GENERAL MOTORS STRATEGIC MANAGEMENT AND LEADERSHIP

General Motors Strategic Management and Leadership



General Motors Strategic Management and Leadership

Executive Summary

This paper explains the internal and external forces and other factors for the General Motors and the strategies and decisions of the management to take GM out of the current crisis. This paper also reports some options and startegies that GM should adopt in order to come out from the crisis. This paper highlights the strenghths, weaknesses, opportunities and threats to the General Motors and the remedies and solutions to face these problems in context of it`s strengths and opportunities. We have also discussed about the stakeholders, the management and leadership styles and the decisions and sacrifices made by them for the betterment of the organization.Task A: Strategic Analysis

Question 1 (a):

External Analysis

For conducting an extenal analysis of General motors, we are using PESTEL analysis and Five Forces model.

PESTEL Analysis

The PESTEL analysis is as follows:

Political Factors

The Government changing regulations effect automobile industry because automobile industry relate with huge capital, vast labour forces etc. (Browne, Steane, Foster 1998:34. Also, Some governments are strict about environmental pollution so, different laws will affect the industry. E.g. automobile manufacturing companies use different raw material, gas, chemical etc. The high tax on export-import of automobile product will increase the price in domestic market. Political stability is helpful for any automobile company to get long-run profit while they started from green field investment (Maynard, 2009).

Economical Factors

The countries with high GDP will be main target for automobile companies. E.g.: Japan, USA etc are biggest market for automobile industry, because per-capita income will affect the automobile consumption in each country. (Bartol, Matthews, Martin 2001: 12). If interest rate is high people will buy less number of automobiles through bank money. If individual expenditure is less, people will use public transport rather than buy automobile. Therefore, higher and medium levels of consumer are the main targets of automobile companies in every country. The automobile demand is more in higher disposable income country. Eg: In Europe, Canada, USA etc, because in these countries, the disposable income of people is higher.

As, we all know that General Motors is facing financial losses due to economic recession and with a total workforce in Europe of 50,000 the announcement of the job losses made on Wednesday by GM Vice-President John Smith means that one in five people involved in the production of the Vauxhall brand in Britain, and the Opel brand, predominantly in Germany, will find themselves without work in the near future (Dade, 2009).

If the sale of the 55 percent stake in GM Europe to Canadian auto parts supplier Magna International, whose partner in the deal was the Russian bank Sberbank, had gone through it is thought that 10,000 job losses would also have occurred (Dade, 2009).

Social Factors

The higher per-capita income in society will increase the automobile consumption. One factor may also to avoid traffic congestion, people will use automobile rather than public transport. In some countries, life style implement with ...