Académique Documents
Professionnel Documents
Culture Documents
Time Context
1978
Viewpoint
oProduction Manager
oProduction Workers
Central Problem
The main problem faced by
GM are declining US
Automobile market share, Lack
of differentiated products,
inability to generate revenues
from its core activity
(Manufacture of cars)
overdependence on its
financing division, inefficient
Statement of Objectives
To be able to know the
possible cause of GMs
productivity decline.
To be aware of whats the
effect of GMs productivity
decline on its cost
efficiency, production and
profit.
Critically, analyze how GMs
Areas of Consideration
SWOT Analysis of GM
Internal Environment
Strengths
Global presence
Strong knowledge of home
market
One of the oldest
manufactures
Large skilled employee
base
Weaknesses
High cost structure
Sensitive to fuel prices
Lack of innovation
Poor quality and repetitive
designs
Less use of cutting edge
technology
Little diversification
Bureaucracy
External Environment
Opportunities
Opportunities in
emerging markets
Growing economy of car
market
Demand for hybrid
electric vehicles
New vehicles styles and
model
Threats
Global economic
recession
Rising fuel prices
Rising raw materials
supply cost
Disadvantages
Highly dependent on a
single supplier, to give all
the raw materials needed.
So In case an unforeseen
event happens that affect
supplier adversely, the
business will likewise suffer
Differentiated Strategy
Advantages
Increase potential
market share that a firm
can gain
Provide a highly
distinctive products that
make it difficult for new
entrants to compete with
the reputation and skills
Disadvantage
Other firms may attempt
to "out differentiate".
Final Decisions
GMs approach to suppliers
needs to be part of your
strategic plan since almost
every company, whether
product or service oriented, is
dependent on suppliers. Many
business owners seem to get
this supplier issue backwards.
They think that because they
write the order, theyre in the
dominant position and can
exploit it with unreasonable
demands, including personal
Reported by:
Solibio, Andy
De Castro, Joana
Maicha
Almazan, Glory May
Arellano, Apollo