FINANCIAL ANALYSIS

Managing Financial Performance

Managing Financial Performance

Q1 A) Forces considered in Environmental Scan

General Motors is considered to be one of the largest motor manufacturing companies of the world, hence with its growing popularity it has become imperative for the management of the company to carefully analyze the external and internal environment of the company.

External Environment

For affective management of its operations it is imperative for the organization to analyze the external environment such as (Fabozzi and Peterson 2003)

The company must analyze the current trend in the market on regular basis.

The management of the company must frequently analyze the policies of its competitors and their new developments.

The management of the company must analyze the changing need and desire of the customer and ensure that all its product developed by keeping an eye on customer needs.

The management of the company must analyze the pricing policies of the company; in addition, to these it is imperative for the company frequently analyze the affect of increase in raw material prices required to develop the products.

Further, the management of the company must analyze the policies of the government and increase in rates like, interest rates, effect of inflation, custom duties and other important financial issues.

Internal Environmental Scan

It is effectively important for the management of the General Motors, to analyze the working environment of the organization for instance (Fabozzi and Peterson 2003).

It is the primary responsibility of the company to carefully analyze and evaluate the performance of employees of the company, because these are the integral part of the organization and if they are giving hundred percent than company will grow. In addition to this, it is imperative for the management of the company to ensure that all the basic needs of the employees are provided and their concerns are being removed on urgent basis.

Further another important aspect of internal environmental scan s closely monitoring of the performance of the every product, as products are the source of direct relationship with the valuable customer. Therefore, it is essential for the company to monitor the performance of every product and if found issues they must immediately be removed.

Another internal factor that a company must analyze is to ensure that there is no cultural dispute among t he employees, as cultural dispute distract the performance of the company.

Q1 B) Risk to consider for General Motors

Being the number one company it is not easy to perform constantly and sustain your leadership in the market, but with the help of effective polices and its implementation the General Motors have able to increase their market share with the passage of time.

In spite of the tremendous growth, there are certain possible risks that General Motors must consider before starting the operations.

Operational Risk

The most important risk that General Motors must consider before starting its operation is operational risk, this risk include all the hurdles that can distract the performance of the company. For instance, one of the most common operational risks is availability of required resources to complete the particular operations, availability of ...