4. Problem Statement What organizational changes must GM implement in the North American market to earn above average returns and improve its ability to compete in future, developing markets? Case analysis focus on North American market Must first develop a successful domestic strategy to be able to compete internationally Company Overview Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Recommendation Implementation Alternative 1

5. Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Recommendation Implementation Company Overview Threats -Economy fluctuations affect sales -Devaluation of the American dollar -Increasing regulations on CO2 emissions and recyclable parts -Decreasing demand for SUVs -Increasing oil prices -Rise in commodity prices Opportunities -Increasing demand for smaller cars and CUVs -Emerging world markets -Reduce costs through JIT -Demand for environmentally friendly cars -Government subsidies -Increasing public awareness of green technology Weaknesses -Legacy costs/unionized labour force -Brands require large investments to maintain equity and are a barrier to innovative thinking -Poor corporate reputation for green technology -Customer perception of low quality -Bureaucratic processes create delays -Fixed investment in SUV production -Inadequate experience in smaller vehicle production Strengths - Extensive cash reserves -Global network of suppliers and distributors -Economies of scale and scope -Quality improvements -Low cost suppliers through competitive bidding process -Technological know-how for SUVs -Only company to have invested in all 5 alternative fuel technologies -Developed internet distribution channels Alternative 1

11. Corporate Level Strategy Internal & External Analysis Business Level Strategy Alternative 2 Recommendation Implementation Company Overview Alternative 1

14. Alternative 1 Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Recommendation Implementation Company Overview

15. Pros - Uses 8 brands to capture customer loyalty - Enables brands to focus on specific market niches - Allows for reaching economies of scale and scope throughout the whole organization - No extensive organizational restructuring is needed Cons - Slow process, would take long before we see if the differentiation efforts have succeeded - As the market demand changes and market niches are exploited or eliminated, brands might start competing with each other once again - Very difficult for GM to control all these brands consistently - Organization structure is could result to be less flexible* Alternative 1 Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Recommendation Implementation Company Overview

17. Alternative 2 Internal & External Analysis Business Level Strategy Corporate Level Strategy Recommendation Implementation Company Overview Alternative 1

19. Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Implementation Company Overview Recommendation Alternative 1

20. Implementation - Year 1 - Analysis of potential synergies within brands and corporate organization and market research to determine market segments for each remaining brand to target - Begin to phase out brands - Begin organizational change - Formulation of tactical and strategic decisions to be implemented - Develop yearly goals, new corporate vision and mission - Invest heavily in to R&D for new designs Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Company Overview Recommendation Implementation Alternative 1

21. Implementation - Year 2 - Introduce new brand images and marketing campaigns - Begin to clear inventories - Distribution system alterations - Develop new concepts for vehicles within each brand and begin marketing - Develop long term supply chain arrangements - Monitor transitional period from old to new organizational structure Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Company Overview Recommendation Implementation Alternative 1

22. Implementation - Year 3 - Begin fixed investments in specialized assets required for future vehicles - Realize potential synergies - Continuous quality control and customer feedback Internal & External Analysis Business Level Strategy Corporate Level Strategy Alternative 2 Company Overview Implementation Recommendation Alternative 1

23. Alex Side Andrea Bergamini Amanda Eluidge Laurence Vezina-Montplaisir Stelios Charalambous Vanessa Leung