General Motors



General Motors Business Strategy

Introduction

General Motors (GM) is the leading car manufacturing company in the world. It is a USA based company which came into being in 1908. GM is the world's largest automobile manufacturer. General Motors has over 266,000 employees around the world. It has its manufacturing's operations in 35 countries.

Revenue Analysis

The company recorded revenues of $1, 355, 92 million during FY2010, an increase of 29.6% over FY2009. For FY2010, the US, the company's largest geographic market, accounted for 53.8% of the total revenues. GM generates revenues through five business segments: GM North America (58.7% of the total revenues during FY2010), GM Europe (16.9%), GM International Operations (13.1%), GM South America (11.1), and GM Financial (0.2%).

Revenue by Segment

During FY2010, the GM North America segment recorded revenues of $79,514 million, an increase of 44.7% over FY2009. The GM Europe segment recorded revenues of $22,868 million in FY2010, a decrease of 3.8% compared to FY2009. The GM International Operations segment recorded revenues of $17,730 million in FY2010, an increase of 42.8% over FY2009. The GM South America segment recorded revenues of $15,030 million in FY2010, an increase of 15.6% over FY2009. The GM Financial segment recorded revenues of $281 million in FY2010.

Revenues by Geography

The US, General Motors' largest geographical market, accounted for 53.8% of the total revenues in FY2010. Revenues from the US reached $73,015 million in FY2010, an increase of 48.5% over FY2009. Canada and Mexico accounted for 7.5% of the total revenues in FY2010. Revenues from Canada and Mexico reached $10,197 million in FY2010, an increase of 24.8% over FY2009. Brazil accounted for 7% of the total revenues in FY2010. Revenues from Brazil reached $9,513 million in FY2010, an increase of 15.2% over FY2009. Korea accounted for 5.4% of the total revenues in FY2010. Revenues from Korea reached $7,301 million in FY2010, an increase of 44.3% over FY2009.

Environmental Analysis of General Motors

GM was confronted with the “perfect storm.”The Global economy, inflation, rising prices of fuel, internal and external environment destroyed the market of the automobile industry. In respect to triumph over these possible threats, GM be supposed to regard as mass manufacturing an assortment of substitute fueled vehicles, i.e. fuel cell, electric, and hybrid.

Competitive analysis of General Motors

GM should understand its competition, but should not be focused on how to be like Toyota, Honda, or some other auto company. GM will require focusing on up-and-coming marketplaces that will keep on driving revenues and market share. Markets like China, India, and Russia offer noteworthy opportunities to grow.

Strategic Imperatives by the Manager

In respect to triumph over these possible threats, GM be supposed to regard as mass manufacturing an assortment of substitute fueled vehicles, i.e. fuel cell, electric, and hybrid. As up-and-coming marketplaces expand they will increase their make use of oil products generating yet superior demand and increased prices. Couple this issue with social and political concerns concerning global warming, and the ever increasing state regulations regarding production, will create a potential huge customer demand for these alternative vehicles (Sengir ...