Professional Development 1

Students name: Students ID: Students IC: Module Title: Subjects name:
Mavlonbek Soliev CL2571245 0086MWMW0612 Bachelor of Arts (HONS) Business Studies Professional Development 1
Date of Submission: 16th April Assignments type: Individual Semester: Module code: Lecturers name: Mr. Francis Asirvatham Two
Course: Bachelor of Arts (HONS) and business studies
Professional Development 1
Contents
1.0 Introduction ........................................................................................................................................... 2 1.1 Background ........................................................................................................................................... 2 1.2 Business: Cyclical nature of business.3 1.3 Management team ................................................................................................................................ 4 2.0 Business Environment ............................................................................................................................ 5 2.1 The Specific Environment .................................................................................................................... 5 2.1 A Competitors....5 2.1 B Customers.... .6 2.2 The General (external) Environment.................................................................................................... 6 2.2. A Economic factors ........................................................................................................................ 6 2.2. B Sociocultural factors.................................................................................................................... 7 2.2 C Political factors..7 3.0 Adoption to Changes in Business Environment ..................................................................................... 8 3.1 Plans for New General Motors ............................................................................................................. 8 3.2 Involving Young Consumers into Showrooms ...................................................................................... 9 3.3 Government Motors............................................................................................................................. 9 3.4 Two Years after Bankruptcy .............................................................................................................. 10 4.0 General Motors future plans ............................................................................................................... 10 5.0 Recommendation .................................................................................................................................. 11 6.0 Conclusion.11 7.0 Appendix ............................................................................................................................................... 13 8.0 Reference .............................................................................................................................................. 14 Page Mavlonbek Soliev UZB/WIC/BABS/0086MWMW0612 Page 1
1.0 Introduction
Since down of urbanization and civilization people have been reached to make their living condition more comfortable. They started to build high story buildings, wide street and alleys, discover new planets and create innumerable technologies. One of the most significant developments, that people have ever achieved, is automotive technology. Nowadays automotive technology as well as automobile industry have already taken own possession in the world global market and be known in society. This assignment will present requisite facts and information about General Motors Company encompassing board of directors, key environmental factors that affected management and recommendations for this business.
1.1 Background
General Motors, one of the leading car manufacturers in the world that also named GM. In 1908, Company was established by Crapo William Billy Durant ( born : December 8 / 1861 died : March 18 / 1947 ) who was the most famous entrepreneurs, one of the leader in USA automobile industry. Today company fabricates trucks and cars in almost 40 countries .It is headquartered in Detroit, Michigan ( United States ). In every main region of the world more than 208,000
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employees who speak more than 50 languages, 145.000 are hourly and 63.000 are salaried employees work for company .In 150 countries it sells and services cars and trucks under the
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following brands , Pontiac, GMC, Buick, Cadillac, Saturn, Hummer, Saab, Vauxhall, Holden and Chevrolet. It should be remembered here which GM alliances are being consolidated with GM Daewoo, Fiat Auto, Isuzu Motors and also Suzuki Motors. (General Motor, 2013)
1.2 Business: Cyclical nature of business

Company designs, sell and create vehicles auto industry scraps all over the world .In addition, GM provides automotive financing suppliers over the General Motors Financial Company . GM automotive operations meet with demands and needs of consumers wound up segments GM Europe, GM North America, GM International Operations, GM South America.In end of years 2010, 2011, 2012 Company has got 8.4 million/ 9.0 million and 9.3 million from vehicles sales as numbers show here company revenue is rapidly increasing year by year. But it should be mentioned here in ended December 2010, 2011, 2012 company market share almost reminded without changings: 11.5%, 11.9%, and 11.5%. (www.gm.com, 2013). Moreover, in every month wholesale are cyclical and production will be different .From the beginning till end of the year new models of vehicles are changeover; it will do for new market entries. The auto market relevant with general economic conditions, how is customer spending and credit availability.
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1.3 Management team
GM Chairman & Chief Executive
Officer
He made a start work in GM Board of Directors after company emerged from
bankruptcy July 24 / 2009. D F Ackerson has been a CEO of GM since on 11th august / 2010.Before coming to the company he worked in many companies as a chairman and CEO including General Instrument Corporation (1993-1995) MCI Communication Corp (1983-1993),Nextel Communication Inc. (1996-1999) (The Wall Street Journal, 2013)
Co-Founding
Partner
and
Managing
General Partner, TPG
He has joined Board of Directors since July 2009. His career: Assistant U.S Attorney General. He was an assistant professor Tulane university law school. He worked as a chief operating officer of the RMBG.
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2.0 Business Environment

Multinational Business Organizations control in various difficult domestic and global environment. Several factors influence the marketing environments that are not under control of organization. Business environment of the company is divided into two groups: The Specific and The General Environment. (Stephen P Robins, 2003)
2.1 The Specific Environment

The specific environment is straightly relevant to the organizations success and it consists of four main components: Customers, Suppliers, Pressure Group and Competitors.
2.1. A Competitors
GM competes against the car manufactures in two areas which are internationally and domestically. Internationally, GM faces to competition from Honda and Toyota. Domestically, Ford motor company and Daimler Chrysler. After Toyota presented Prius and Hybrid gas electric car all car manufacturers have struggled to create eco-friendly cars. In first decade of 21st century GM lost attention a little bit to competition. Consumers were willing to buy high designed, high quality and less price Toyota vehicles. As a result in 2009 years manufacturing uncompetitive vehicles and ignoring competition have brought GM to declare bankrupt it.Company has stopped making a profit and GM has lost more than $90 billion in first three month of 2009 year. But, Today Company has already changed and it is being controlled by wise chairman, Dan Ackerson who says he is confident about GM and company will consolidate its leadership in next decade. (Murray, 2012)
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2.1. B Customers
In global growth customer loyalty and understanding, they are becoming the significant key success of automobile industry. 25 years before GM faced on some issues with unavailable options and supplying special orders. Dealers hardly got automobiles they wanted and customers wanted, aluminum wheels, V8 engines, leather interiors had not been manufactured adequately. Customer had decided to buy basic and lower margin models.Company spent 85 to 90 days to delivery special order , customer who ordered special had to wait without any choice, not only customers but also dealers barely had chance to check on the status of orders. Unavailable options and dealer replenishment problems have forced the GM to down in market place. (Victoria Cooper, 2005) Changes in company were rarely easy but it reached by 65 percent in special orders and Dealers replenishment. According to customer survey, today customers wait for special order only 5 to 7 days; this is the best result now among competitors in automobile industry. Today customer demand high quality, fewer prices, safer cars that is pushing GM to create and find the ways to supply consumer with better product and company is presenting powerful brands through understanding its customers better than others. (GM cor, 2013) Alicia Boler-Davis, GMs vice president customer service and global quality, said that they were working hard for development of customer experience with dealers and their dealers wanted to did that even more they wanted them more. (Finlay, 2012)
2.2 The General (external) Environment

The general environment consists of Political/Legal, Economic, Sociocultural, Demographic, Technological and Global conditions which might affect the organization.
2.2. A Economic factors

During past half century the most significant changes have showed itself in technology.
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Internet is main factor that may affect every industry and also has enormous influence for General Motors. The researches show, before making a purchase and deciding to buy a vehicle 65 percent of company consumers will need to help from internet and 90percent of them connect to companys before test driving. Raw materials, while customers want to buy lower price cars raw materials comes to help General Motors to reduce vehicle price that company may use plastic or fiberglass to build some part of the vehicles.
2.2. B Sociocultural factors

No one can deny, today people name and comment others poor or rich on the kind of vehicles they drive. Everyone wants to drive attractive, stylish and the last model of cars because what others think about them. And also some consumers say they feel much better and more confident when they drive a car. General Motors has been planning its targets relevant to thoughts.
2.2. C Political factors

Political factors have made a start to affect automobile industry for 50 years by government regulations and laws. In beginning of 21century General Motors has been affected by political factors when society has had a negative perception on what President George Bush was doing in USA. This negative perception was war culmination in Iraq and peoples interest on buying Vehicles decreased. As a result, companys sale has been pulled down. .
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3.0 Adoption of Change in Business Environment Foresight of Dan Ackerson

CEO, Dan Ackerson came to company July 2009 and joined to board of directors. After his coming, he and team around him have reached too much achievement to recreate General Motors and rescue it from bankruptcy. Even company was criticized it has not stopped to get record IPO in GM history that is $23billion.This amount of IPO has been spent for improvement of product quality, new vacancy creation and gaining market share. Another main work by Ackerson leadership is becoming leadership position in two big markets: (BRIC) Brazil, Russia, India, China and North America. Ackerson and his team have won back customer from Toyota soon. They realized what is the customer need, what kind of cars consumer wants to make a purchase. They created new rival and reliable vehicles Chevrolet Sonic, Cruse Eco, Buick Vera no and Lacrosse were the first and the best fuel efficient vehicles have ever made in company history. After fuel efficient cars company did not stop on developing. Electric versions of Chevrolet Spark and Opel Ampera (2010) have been another main achievement in Ackerson leadership. (Brown, 2010)
3.1 Plans for New General Motors

GM has begun the work after bankruptcy from reducing numbers in factories, dealers, whitecollar jobs, hourly paid jobs. That numbers were about 15 factories, 2.500 dealers, 8.000 whitecollar jobs and more than 20.000 hourly paid jobs. It left the some brands: Pontiac, Saab, Hummer, Saturn. The goal was for GM breaking market in North America through: improving annual sale until 10m of vehicles. But no one believed Company can come back its first times glory because according to Wall Street Journal reports it
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was one of the three largest bankruptcy in history.
3.2 Involving Young Consumers into Showrooms

For changing condition not only company presented new vehicles but also advertised them to new base of consumers. GM customers are typically older than Volkswagen, Honda and Mitsubishi that attract young buyers. Company also endeavored to establish customer base among young buyers. Company could sell product to young buyer, company products appeared in movies, music videos, TV shows. GM used the best way to sell and to advertise its products. Result is Chevrolet Cobalt; younger generations of Cadillac became popular in car market.
3.3 Government Motors

I believe in our workers and I believe in our industry
The bankruptcy is process that brings the company to cut employee rate and several changes. But after bankruptcy president Barack Obama and GM ex CEO Fritz Henderson promised each other to renew the company. And CEO thanked Obama. Government gave or loaned $45.7 billion federal help to company, even he has been criticized. He supported the company and in every his speeches he talked again and again: I am not spending your tax dollars for nothing because I want to protect General Motors (Clark, 2009).In the first year company paid back $23.2billion of federal help in 2010 after stock has been gone to public. Another bailout number is $30.1billion.Govermmet bought GM stock: company has not had any financial help to reestablish the company. With $30.1billion dollar government has been owned 60% percent of GM ownership.
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3.4 Two Years after Bankruptcy
CEO of General Motors, Dan Ackerson is announcing companys first profit since 2004.
Two years after bankruptcy in 2010 company earned $ 4.8 billion profit and it was the first has been made in decade. But companys several divisions in Europe did not stop struggling. At the end of the year GM lost $ 1.8 billion dollar. It lost more than 700million in recreating costs. It was not end for company and also company had to cut over 5000 jobs. In generally GM could improve the sales until 12.2 percent in 2010 and the best sales growth did in China. In China sales rose approximately 28.8 % from 2009 and now also company is selling more vehicles in this country than US. (Rushe, 24 february 2011)
4.0 General Motors future plans

Two main plans Goal33 percent market share. In the first three month of last year GMs share of US market has been the lowest in history, 17 percent. For the next decade company is aiming to improve US market share by 33 percent. Plug-in technology. According to the senior vice president of GM, Marry Barbara, company will focus on plug-in technology. She says we are not refusing hydrogen or biofuels; no we want
manufacture 500.000 vehicles with electrification next 5 years. (Blanco, Nov 15th 2012)
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to give great chance to change the way people commute. She also mentioned that company will
5.0 Recommendation
The first recommendation will be here is GM has to increase its market share to manufacture hybrid vehicles. Today day by day hybrid industry is being rapidly strengthened in sales and other car manufacturer that are competitors of GM also trying to be strong position to compete. It can be the question here that why should GM focused on it? The reason is: if company will be able to direct its strategy at fuel-efficient vehicles into product line after that consumer may realize GM is not ignoring the environment, it is doing CSR in the environment. That is help to company consolidate its place among competitors in near future by attracting and allowing customers to choose variety number of its products. Customer has already lost attention to big size cars because of fuel economy. Today they want to make a purchase for B -sized small cars that requires less oil and driver will spend less money. In this case GM cannot offer to consumer to choose. Where are the companys small cars? Other car manufacturers have already began some works on it one is Ford. According to the last small cars tests, Chevrolet Aveo has been the smallest and the lightest engine and it has had the poorest fuel economy. It is time to the company to create different small cars, to have different ideas about future small car products. On the other hand, as I mentioned above CSR plays significant role for long term stability. To be more successful more than today, company ought to focus on using CSR to find out key factors.
6.0 Conclusion
After tons of researches and going through this assignment, I can say that General Motor is endeavoring to improve its new operations; that can make stronger the company. Company is trying to create new generations of flexible fuel vehicles with new design, high quality which is profitable to its sales. But it should be mentioned here company has to understand the impact of external factors. Because effects of external environment is huge for GM that brought it to
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company that can be ideal company for every industry. It showed that how company should
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bankruptcy. It means there are a lot of works to be done by company. But overall, GM is
adopt, how management should work effectively during the changes in business environment. Improvements of company make as believe, no doubt in future General Motors will not give the leadership to others in automobile industry.
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7.0 Appendix MCI Inc. is American Telecommunication Company that is based in Mississippi. It was
established in 1983 year. Today it is the subsidiary of Verizon Communications and currently its main office in Ashburn/ Virginia.
IPO: initial public offering. A share of stock that is in company is sold to the general public.
Companies use initial public offering to raise expansion capital. Not every time IPO offers advantages but there are also some disadvantages.
BRIC: is acronym of following countries Brazil, Russia, India and China that all are in similar
economic development. The acronym was used the first time in 2001 year by Jim ONeill.
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8.0 Reference
1. Anon., n.d. 2. Blanco, S., Nov 15th 2012. GM ready for 500.000 electric vehicles by 2017. [Online] (1.0) Available at: http://green.autoblog.com/2012/11/15/gm-ready-for-500-000-electric-vehicles-by-2017/ [Accessed 30 March 2013]. 3. Brown, P., 2010. Old navy and akerson begins to set his source. september. p.38. 4. Clark, A., 2009. General Motors declares bankruptcy the biggest manufacturing collapse in US history. [Online] (1.15) Available at: http://www.guardian.co.uk/business/2009/jun/01/general-motorsbankruptcy-chapter-11 [Accessed 29 March 2013]. 5. Finlay, S., 2012. GM strives to become customer service champ. Wards Auto. 0. 6. General Motor, 2013. Browse by Brand. [Online] Available at: http://www.gm.com/vehicles/browseByBrand.html [Accessed 17 March 2013]. 7. GM cor, 2013. General Motors Careers. [Online] (1.5) Available at: http://careers.gm.com/careertracks/business/sales-marketing-customer-care-and-aftersales.html [Accessed 27 March 2013]. 8. Murray, A., 2012. GM's Chief Labors to Get Rebuilt Car Maker Into Gear. The Wall Street Journal. 9. Rushe, D., 24 february 2011. General Motors returns to profit two years after bankruptcy. [Online] (1.15) Available at: http://www.guardian.co.uk/business/2011/feb/24/general-motors-back-in-profitafter-bankruptcy [Accessed 29 March 2013]. 10. Stephen P Robins, M.C., 2003. The Enviroment. 3rd ed. Australia: Pearson Education Australia. 11. The Wall Street Journal, 2013. Dan Akerson. [Online] (1.15) Available at: http://topics.wsj.com/person/A/dan-akerson/6225 [Accessed 2 April 2013]. 12. Victoria Cooper, M.C., 2005. General Motors Profile: Driving Customer Satisfaction. [Online] (1.5) Available at: http://coopercomms.com/portfolio/articles/case-studies/gm_profile.pdf [Accessed 28 March 2013]. 13. www.gm.com, 2013. GENERAL MOTORS COMPANY. [Online] Available at: http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Corporate_Governance/PDFs/Investor ContactsPDFs/10-K.pdf [Accessed 18 March 2013].
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Students name: Students ID: Students IC: Module Title: Subjects name:

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

1.2 Business: Cyclical nature of business

Course: Bachelor of Arts (HONS) and business studies

1.3 Management team

GM Chairman & Chief Executive

He made a start work in GM Board of Directors after company emerged from

General Partner, TPG

Course: Bachelor of Arts (HONS) and business studies

2.0 Business Environment

2.1 The Specific Environment

Course: Bachelor of Arts (HONS) and business studies

2.2 The General (external) Environment

2.2. A Economic factors

Course: Bachelor of Arts (HONS) and business studies

2.2. B Sociocultural factors

2.2. C Political factors

Course: Bachelor of Arts (HONS) and business studies

3.0 Adoption of Change in Business Environment Foresight of Dan Ackerson

3.1 Plans for New General Motors

was one of the three largest bankruptcy in history.

Course: Bachelor of Arts (HONS) and business studies

3.2 Involving Young Consumers into Showrooms

3.3 Government Motors

Course: Bachelor of Arts (HONS) and business studies

3.4 Two Years after Bankruptcy

4.0 General Motors future plans

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

Course: Bachelor of Arts (HONS) and business studies

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