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Report on General Motors[1]

Report on General Motors[1]

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Published by luquini_uk
An assignment about General Motors from a group of MBA students.
An assignment about General Motors from a group of MBA students.

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Published by: luquini_uk on Nov 17, 2009
Copyright:Attribution Non-commercial

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04/27/2013

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Table of Contents

Executive Summary
Introduction
One:

Mission statement
Two:
Key Business Processes
Three:
Environmental Factors
Four:
S.W.O.T. Analysis
Five:
Information Systems
Conclusion
1
Executive Summary

This report presents an analysis of the mission statement of General Motors as well as its key business processes. It also illustrates how the key business processes integrate with the information systems and our suggestions and recommendations to those processes that would better suit General Motors.

The report also identifies the environmental factors which affect the company in terms of political, economic, social, ecological and technological factors and the impact that these factors have had on General Motors and the strategic diversity the company has had to adopt to accommodate these changes.

For any business to sustain its survival and maintain a market edge over its competitors it must maximise on its strength and available opportunities, re-evaluate its weaknesses and determine was on how to aptly handle its threats. This report outlines our S.W.O. T. (Strengths, Weaknesses, Opportunities and Threats) analysis of General Motors briefly indicating how each element plays an integral part in the day to day operations of the company.

Finally the report explores ways on how new information systems can help General Motors create great efficiency by automating and streamlining parts of its business processes. The report concludes by incorporating our recommendations of appropriate information systems for each department within the company.

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Introduction

General Motors is the world\u2019s largest automaker with 386,000 employees in over 50 years. Despite this sheer size, its auto sales have declined from about 60 percent of the U.S. vehicle market in the 1970\u2019s to only 28.3 percent today. This decline is attributed to stiff competition from Ford, DaimlerChrysler and the Japanese all of whom enjoy lower production costs, have a reputation for cars with better styling and quality than General Motors.

General Motors adoption of a vertically integrated corporation which at one time manufactured up to 70 percent of its parts, as a power source of competitive advantage, enabled the company to build cars at lower costs than its rivals. However, over time, these policies worked in favour of General Motors competitors who were then able to make motor vehicles at much lower costs because they could purchase their vehicle parts from outside vendors and also bargain on pricing.

For the past 15 years, General Motors has struggled to overcome the above legacy, inefficient product processes and thousands of outdated information systems that could not communicate with each other. Although the company has now become much leaner and more efficient by shedding off tens of thousands of workers, closing dozens of plants and squeezing costs of motor vehicle parts by scouring the globe for the lowest prices much still needs to be done.

It is our recommendation that General Motors use Internet and other leading-edge information systems technology to reconstruct its entire value chain, transforming itself into a customer-focused business that provides many different electronic services to consumers as well as motor vehicles.

3

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