Gm Business Environment

Topics: General Motors, Strategic management, Automotive industry Pages: 11 (2947 words) Published: December 17, 2011

1.1 Brief introduction
General Motors Company or better known as GM is an American multinational auto manufacturing corporation traded as NYSE:GM, TSX: GMM. Its headquarter is in America.

The company was found first in 1908. In 2008, the major recession and global credit crisis drove car sales to near depression levels and dried up private sources of capital. GM, critically short of operating cash, received a bridge loan from the U.S. Treasury, under conditions that the company further accelerate a tough restructuring of its operations that had been underway for several years [1]. General Motors Corporation then filed for bankruptcy on June 1, 2009. In June, 2009, with a support from the U.S. Government, a new GM was reborn with four brands in the U.S.: Chevrolet, Buick, GMC and Cadillac. Since then, the company has grown up rapidly with more than 70% of its sales coming from outside of the U.S and become one of the world’s largest automakers. GM now employs over 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries. They sell and provide services for the brands: Chevrolet, Buick, GMC, Cadillac, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling and China is the biggest market.

After the bankruptcy and getting support from the US government, GM has changed their strategy and now re-emerging at the new GM is a very competitive spirit.

1.2 GM mission and vision statement
The New York Times evaluate that for most of the 20th century, General Motors was the biggest company in the most important industry in the world. And after one of the biggest corporate collapses in history, the new GM made one of the biggest rebounds ever[2].

“Vision statement is concerned with what the organization aspires to be”. (Johnson et al., 2010; p164). GM’s vision is to design, build and sell the world’s best vehicles[3].

‘A mission statement aims to provide employees and stakeholders with clarity about the overall purpose and raison d’être of the organization”. (Johnson et al., 2010; p164). GM works to be the leading auto manufacturer in style, technology, services and marketing of the auto business and surely in innovation.

1.3 Company’s core values
According to Johnson, Scholes and Whittington (2008), core values are the underlying principles that guide and organization’s strategy[4]. GM has some main core values focusing on five main areas: customers, employees, communities, dealers and suppliers.

(1) Customers. the company always keep in mind that motor vehicle safety begins with the driver and convince customers with quality and safety. GM listens to their customers and the relationship with customers is critical to their vision.

(2) Employees. GM’s business can not be developed well without innovative and skillful employees. GM welcomes and encourages all employees to perform at their highest potential toward achieving the company’s business objectives and each individual’s professional goals. The company invest in educating and training their employees.

(3) Communities. GM support communities in various ways including sponsorships and participation in events such as Education, Health and Human services, Environment and Energy and Community Development [5]

(4) Dealers: GM wants to create a profitable dealer network across all GM bands that reflects consumer diversity.

(5) Suppliers. GM has developed and grown competitive, diverse supply base that will work together with GM to design, build and sell the world’s best vehicles.

1.4 Company’s objectives
“Objectives are statements of specific outcomes that are to be achieved.” (Johnson et al., 2010; p55). Like other companies in the industry, GM’s objectives are (1) maintaining consistent levels of investment in engineering and product development to provide clients world best vehicle, (2) become...
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