General Motors

General Motors

Introduction

General Motors Corporation (GMC or GM) is one of the world's leading car manufactures with several years of experience in the industry. Founded in 1908, the company employs over 300,000 workers around the world. Its headquarters is in Detroit Michigan while its European headquarters is located in Zurich, Switzerland. It has several renowned brands under its umbrella such as Vauxhall, Saturn, Saab, Pontiac, Opel, Hummer, Holden, Daewoo, GM, GMC, Chevrolet, Cadillac, Buick, etc. Its major markets are USA, China, Canada, UK, and Germany.

The company has maintained strong relationship with suppliers, customers, and other business partners. It takes pride in developing customer relationships and fostering global partnerships. It is also a majority shareholder in Daewoo of South Korea as well as collaborative ventures with several other automobile manufacturers. One of its largest joint ventures is with Shangai Automotive Industries Corporation of China (www.gm.com).

General Motors is a very successful company by several standards. Although it faces several internal and external issues, it has still manages to make a mark in the automobile industry. With over 13% share in the total World production of automobiles, GM is far ahead of every competitor. Its nearest competitor is Toyota which is slightly behind and catching up quickly. Although the company has several business units, GM solely focus on its own business and assigned the task of handling other business units to their respective management.

Segments of General Environment

The two segments of general environment that affects General Motors the most are the macro environment and the technological segment.

Macro Environment

In the past, General Motors used to sell most of its motors in the United States; however, it currently sells most of it motors in foreign countries. This means that any problem in the global market will affect the business. During the global market crises of 2008, General Motors faced a lot of issues as its sales decreased significantly. Eventually, the company was heading towards bankruptcy. After reducing its workforce and making several changes in its working, the managers predicted that the company would eventually improve its financial and business standings.

The global market downturn did not only affect General Motors but every other automobile manufacturer since consumers were left with a lower disposable income to spend on purchasing an automobile. Therefore, the slide was temporary and it was expected that as the global financial crises ends, the performance of the automobile industries will improve. As the financial crises improved, the sales of cars increased from 6.5 million in 2009 to 8.4 million in 2010. After losses, it finally made a profit in 2011 (www.gm.com).

Technological Environment

The second environment that is important while analyzing automobile manufacturers is the technological environment. This environment is greatly influencing the way automobiles are produced. Consumer demands are also changing with the change in technology. Apart from this, the increase in global oil process as well as the increase in concern about global has led to the increase in research on vehicles that emit a lower amount of pollution. Engine technology has also developed to ...