Management and Business Context for Motors - MyAssignmenthelp

Question: Discuss about theManagement and Business Context for Motors. Answer: Introduction: Company Profile: General Motors is the company that deals and operates in automobile industry. It is the company that has its headquarters situated at Detroit, Michigan. The company has been established in 1908. It performs various functions such as designing, manufacturing, marketing and distributing the vehicles and the related products. The company operates in 35 countries with the operations of manufacturing the cars and trucks (Jobber Ellis-Chadwick, 2012). The company is also called as GM and its cars and trucks are sold all over the world. Some of the brands that are associated with the company are Chevrolet, Holden, GMC, Wuling etc. SWOT Analysis: Strength: Huge market share: The major strength of the company is its hug market share. The share value of the company is consistently increasing in the market of China and various other countries thus suggest that the company has its acceptance in the international market as well. International knowledge: being a worldwide company, the company is operating its functions very well in international market and thus proves that the company has great international knowledge (Malhotra, 2008). Wide range of brands: As discussed that the company has range of brads that are associated with the same. These brands serve the large market segment and act as the strength for the company. Weakness: Outdated technology: Even though the company is operating and functioning in the industry since years but still not able to compete with new trends because it has not updated the technology they are using to manufacture the products. Only focus on US market: The Company is operating worldwide but the main focus of the company always remains at the US market (Pinto, 2007). In order to compete with the competitors, the need of hour for the firm is to come up with the strategies that can helps in increasing the sales in international countries along with US. Low quality: This is also the major weakness of the firm. The company is very well-known but still serves the market with low quality products as compared to competitors. Opportunities: Technological improvement: It is the very essential need of the firm to substitute its technology in order to manufacture the products. The company should substitute the energy use by making the hybrid vehicles that have more fuel efficiency. More focus on global market: The Company also has the opportunity to shift their focus towards global market as thecae already established their businesses there. They have t maintain the same too. Threats: Rising competition: The automotive industry is very much competitive in nature thus develops the threat for the company (Turban, Sharda, Aronson King, 2008). Increased fuel prices: The Company is manufacturing trucks and cars that have less fuel efficiency and thus rise in fuel prices is the threat for the company. Competitor Analysis: The competitors of General Motors are highly competitive in nature. the major competitors includes Toyota, Ford, Nissan, Honda etc. the competition is not high in the parent country but all these companies have their businesses all over the world and thus gives tough competition to General Motors in every area. With the rise of these companies, the intensity of the competition has increased in the industry (Lee-Ross Lashley, 2010). The competition is not just with the products but also with the prices. The competition in prices results in declining prices of the vehicle which decreases the profit margin of the companies as well. Another reason that can be majorly considered is the homogeneity in the products. There is not much differentiation in the products in this industry mad thus the companies have to deliver somewhat similar products to the market which becomes challenging for them in tis competitive environment. What is Globalization? Globalization is the process that helps in expansion of business to the international country. It helps the companies to cross the boundaries and explore the new market. In the process globalization the transfer of knowledge, technology, processes, designs etc. takes place. The companies have to make many efforts in order to go global. They have to analyze the overall market of the host country in order to establish their business in that country. Globalization provides a win-win situation for both the company and the international country in which it will establish its business (Weske, 2012). This is because the country earns the foreign revenue from the company and the company can get access over the larger and the new market so as to hence the business. GM motors is the company that has took full advantage of this strategy and opened its businesses almost all over the world. Advantages of Globalization: The first advantage of globalization is that it provides a great platform for the companies who want to expand. It integrates the world and thus brings unity. This is because more than one country nationals are involved in the business so the country may for healthy relations with each other (Fairclough, 2009). Workforce diversity is another big reason for the popularity of globalization in business. As the companies operate in different countries so they have to give the people from the local country as well. This brings the diversity in the workforce and the people with different culture and beliefs world together in the same organization for the common goals (Laanti, Gabrielsson Gabrielsson, 2007). Another advantage of globalization is that if the company established its business in the foreign country then it brings opportunities for the people of that country to get employment. Disadvantages of Globalization: The first negative impact of globalization is on the local market of the countries. As more and more multinational companies spread their businesses and functioning in different countries, the local market of those countries face the threat from such MNCs Globalization is the process that results in over use of the resources of the host country as well as the parent country. This increases the transportation and thus the use of fuel resources. Business Issues in Globalization: It is very moral for the business to face one or the other issues because go globalization. Some of them are discussed below: Issue in maintaining consistency: The major issues that has been faced by most of the companies along with GM is that it take so much of efforts for the companies to maintain the consistency in the design, functions and processes that requires to manufacture the products. This is because, it is not necessary that every resource is available abundantly in every county where the company operates (Audet, Dennis Le Digabel, 2010). Increasing cost: Globalization of the businesses results in increase of cost for the functions that are being conducted. This is because some of the extra functions are required to be conducted when the company operates in two or more countries. Communication and cultural barriers: When a company operates in different countries, it needs to communicate with the people in the subsidiaries. Thus, it becomes difficult for them to communicate as the culture and luggage used in different countries is different from each other. Globalization of Market: Globalization of market can be defined as the process that helps the companies to integrate the whole world market into one single entity (Varghese, 2009). The company who ways to globalizer their market sell the products with consistency all over the world considering that the whole world in the single market. Globalization of Product: Globalization of products is the very different concept from globalization of market. In this concept, the products of the company are modified in such a way that it can used by the people or market of different countries. For examples, of a company has made software which needs to be sold in different countries having different languages. Thus, the software will be modified in a way so that it can be accessed in those languages. GM Strategies for Global Market Penetration: International trade brings high level of risks for the company. There are many aspects of foreign trade such as outsourcing; licensing, exporting, seeking suppliers, franchising etc. affect the business greatly (Laanti, Gabrielsson Gabrielsson, 2007). In case of General Motors, the strategies used for trading internationally is the constant improvement and the expansion of cost products. The company always tries to bring innovation in the auto parts. There are many examples that suggest that the company uses the strategy of innovation in terms of attracting the global market. The introduction of 4G LTE high speed mobile broadband to enhance the vehicle to vehicle connectivity in Cadillac CTS 2017 is one of the strategies. The company is also planning to release the new design of the vehicle that is called super cruise. In china, the company is continuously using the strategy of joint venture to enter the market. The new and innovative project of Chevrolet will also be releasing by t he company in China, India, Mexico and Brazil by 2019 (Chesbrough, 2007). GM Strategies of Meeting Local Needs: The business of General Motors is very m much diversified in nature. The company meets the local ends of the customers by implementing global network of dealers. It has been analyzed that the company forms the network that allow the firm to distribute the products in all the operating areas (Inkpen, 2008). This helps the firm to transport their products easily and it also helps in communicating with the local customers at every area. The independent dealer of the firm in every county helps the firm to know about the local needs of the people there. Internal Issue of Globalization in GM: Production issues: GM is the firm that manufactures the automotive products like trucks and cars. The company has to serve the market with consistent designs of the products but has to modify the products specification according to the logical needs of the people that differs according to the beliefs and choose of the people as well as the environmental factors of the country. Marketing issues: the company faces some of the issues in marketing as well. The issues are related to the strategy that needs to be adopted in order to market the products in different countries (Daniels, Radebaugh, Sullivan Salwan, 2009). External issues of globalization faced by GM: external issues of globalization are related to the political and legal aspects of the county where the business will going to be established, the company needs to have access of al the legal framework of that country and also needs to maintain that consistency in the process at the same time. Recommendations and Conclusions: After the analyzing the whole scenario, it has been identified that globalization greatly affect the conies like General Motors as it is the firm that operates in many countries. There are many issues such as communication issues, maintain the consistency issues, cultural issues etc. force as the conies to take intelligent decisions over the same (Wilkins Hill, 2011). It has been recommended that the company should focus on some of the things in order to make full profit of the opportunities that the globalization presents for the company the main strategy or step that needs to be adapted by the company is to make their focus on global market. The merging market like China and India provides immense opportunities for the company to avail but the company has to take initiatives in the direction especially in terms of marketing (Fogel, Morck Yeung, 2008). Anointer strategy hat needs to be implemented by the common is up gradation in the technology. The company is still using the same old technology to conduct its proceeds and to design its products. The incurred in fuel efficiency of the vehicles is the need of hour for the firm. This can be done by introducing new and loaded technology so that the firm can compete with the new competitors that are technologically very active in the market. References: Audet, C., Dennis, J. E., Le Digabel, S. (2010). Globalization strategies for mesh adaptive direct search.Computational Optimization and Applications,46(2), 193-215. Chesbrough, H. W. (2007). Why companies should have open business models.MIT Sloan management review,48(2), 22. Daniels, J. D., Radebaugh, L. H., Sullivan, D. P., Salwan, P. (2009).International business. Pearson Education India. Fairclough, N. (2009). Language and globalization.Semiotica,2009(173), 317-342. Fogel, K., Morck, R., Yeung, B. (2008). 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