The primary internal and external influence on the General Motors Corporation

Topics: Automotive industry, General Motors, Suzuki Pages: 12 (3827 words) Published: January 20, 2009
Executive summaryThis report analyzes the primary internal and external influence on the General Motors Corporation and the influence of changing political environment on policy making and response of the corporation. Then the report discusses the changing political environment in and its influence. The influences of political environment on policies and decision making to the corporation are analyzed. The corporation response to the political environment changing is critically evaluated. At last, some improvement suggestion for the corporation in the response of the changing political environment is demonstrated.

IntroductionGeneral Motors Corporation is the largest automobile manufactures in the world. The corporation, which is located in Detroit, employs more than 260 millions people and sells cars and trucks in about 35 countries. The corporation has a dominant influence in automobile market in the United States and other developed market such as the United Kingdom, Canada and so on. The corporation also enjoys a large market share in the rapid growing market of developing countries such as China and Brazil. However, the corporation is in face of changing internal and external environment.

Discussion and AnalysisIn the first part of the report, the primary internal and external influence is analyzed following the SWOT Matrix, which is a modern tool for analysis of internal and external environment. In the SWOT Matrix, the S stands for strengths, W for weaknesses, O for opportunities, and T for threats. The strengths and weaknesses are the analysis of internal influence while the opportunities and threats stand for the influence of external environments. In the following part of the report, the strengths, weakness, opportunities and threats that have influence of the organization is discussed one by one.

Internal influence: StrengthsThis section analyzes the internal strengths of the corporation. The General Motors are rich in brands and product lines. The General Motors Corporation acquired and mergers many brands and auto companies in the early stage of its history. The General Motors Corporation acquired Buick and Oldsmobile after it is founded. Then it brought Cadillac, Elmore and Oakland and so on. As a result, the corporation owns many brands which are fit for different segmented markets. Comparing to Ford's only providing black Model T cars in the early years the General Motors Corporation provides various models, colors and brands for different markets. For example, the practical and economical Chevrolet are designed for entry level consumers, the Buick are make for middle class buyer and luxury Cadillac for high end consumers. (Warell, 2008) The advantage of multi brands strategy is to satisfy the needs and wants of different group of consumers to enter more segmented markets. The multi brands make GM a giant automaker and enjoys large market share.

The General Motors Corporation has the strength that it governs the advance technology and has an influencing power in the distribution channel. The General Motors Corporation has developed for a century since it is founded in 1908. During the time, the technology and channel influence is accumulating and increasing. The technology is of great importance in the motor industry, but the technology accumulating needs a long period. The General Motors Corporation now governs the advanced technology that it can make more sophisticated automobiles which are more durable, more safety, and have a rapider speed. On the other hand, the General Motors Corporation has a dominant power in the distribution channel. The General Motors Corporation has been the top automobile manufacturer for a long time accordingly it has a strong bargaining power in the distribution channel. The corporation can distribute it product in the United States and all around the world. The technology and distribution channel can be a great assistant in the further development of the...
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