Case study of General Motors that uses technological workforce
Order Instructions:
You are going to write up a case study for a company that uses technology in the workforce. An internet/library search will give you a good idea about companies that have case studies on technology. In terms of the selection of the company, you could use one that is listed throughout the textbook or one from any of the articles you have read. No one is to do Apple, Iphone, Dell, Nike as everyone likes to do them, you will all be competeing with each other. Try to choose a company that no one else will think to do.
When writing a case study analysis, you must first have a good understanding of the case study. Before you begin the steps below, read the case carefully, taking notes all the while. It may be necessary to read the case several times to fully grasp the issues facing the company or industry.
Once you are comfortable with the information, begin the step-by-step instructions offered below to write a case study analysis.
Here’s How:
Investigate and Analyze the Company’s History and Growth. A company’s past can greatly affect the present and future state of the organization. To begin your case study analysis, investigate the company’s founding, critical incidents, structure, and growth.
Identify Strengths and Weaknesses Within the Company. Using the information you gathered in step one, continue your case study analysis by examining and making a list of the value creation functions of the company. For example, the company may be weak in product development, but strong in marketing.
Gather Information on the External Environment. The third step in a case study analysis involves identifying opportunities and threats within the company’s external environment. Special items to note include competition within the industry, bargaining powers, and the threat of substitute products.
Analyze Your Findings. Using the information in steps two and three, you will need to create an evaluation for this portion of your case study analysis. Compare the strengths and weaknesses within the company to the external threats and opportunities. Determine if the company is in a strong competitive position and decide if it can continue at its current pace successfully.
Identify Corporate Level Strategy. To identify a company’s corporate level strategy for your case study analysis, you will need to identify and evaluate the company’s mission, goals, and corporate strategy. Analyze the company’s line of business and its subsidiaries and acquisitions. You will also want to debate the pros and cons of the company strategy.
Identify Business Level Strategy. Thus far, your case study analysis has identified the company’s corporate level strategy. To perform a complete analysis, you will need to identify the company’s business level strategy. (Note: if it is a single business, the corporate strategy and the business level strategy will be the same.) For this part of the case study analysis, you should identify and analyze each company’s competitive strategy, marketing strategy, costs, and general focus.
Analyze Implementations. This portion of the case study analysis requires that you identify and analyze the structure and control systems that the company is using to implement its business strategies. Evaluate organizational change, levels of hierarchy, employee rewards, conflicts, and other issues that are important to the company you are analyzing.
Make Recommendations. The final part of your case study analysis should include your recommendations for the company. Every recommendation you make should be based on and supported by the context of your case study analysis.
SAMPLE ANSWER
General Motors that uses technological workforce
Company history and background
General Motors was founded on September 16, 1908 in Flint, Michigan. It was founded as a holding company for Buick which by that was controlled by William C. Durant. It was co-founded by Charles Stewart Mott who by the time of GM’s inception owned a carriage company. Late 1908, GM acquired Oldsmobile. (General Motors Company (GM) – Clean Technology – Deals and Alliances profile, 2014). In 1909, Durant bought Cadillac, Elmore, Oakland and several other companies. In the same year, GM acquired the Reliance Motor Truck Company of Owosso, Michigan and the Rapid Motor Vehicle Company of Pontiac, Michigan. In 1910, Durant lost control in GM. This was due to a bankers’ trust that was caused by the large amount of debt taken on its acquisitions coupled with a collapse in new vehicle sales. Durant started Chevrolet Motor Car Company through which he controlled major interest in GM. General Motors was re-organized into General Motors Corporation in 1916. In the early 1980s, GM experienced an unprecedented growth during which it employed 349000 workers and operated 150 assembly plants, under the leadership of Alfred P. Sloan (Houghton, 2013).
Over the years, GM has grown to be a big automobile manufacturing company which, together with its partners, has been able to design, build and market cars, trucks and spare parts around the world. The brands include Chevrolet, Cadillac, Buick, GMC, Holden, Hummer, Pontiac, Opel, Fleet and Commercial, Vauxhall and Saturn. Moreover, GM provides automobile financing services through its subsidiary, General Motors Financing Company (Essays, UK, 2013). The company sells cars and trucks to daily rental car companies, commercial fleet customers, leasing companies and the government. This is either done directly or through a network of dealers that have been established over the years. GM has operations in North America, South America, Central America, Europe, Africa, Asia and Australia (Oceania). It has its headquarters in Detroit, USA (Houghton, 2013).
Though GM has grown over the years to enjoy dominance of the auto industry, it has internal factors that have influenced its performance, growth and expansion. It has enjoyed strengths from within and in equal measures has had its share of weaknesses. The strengths include:
- Customer Satisfaction that has been brought about by perfect branding
General Motors has in the past produced quality products. This is indicated by its scores in 2010 American Customer Satisfaction Index. GM’s Buick and Cadillac brands took the second and third spots in overall customer satisfaction. The GMC brand also appeared in the top 10, sitting in slot number 8 above Toyota and Nissan hence demonstrating a 2.4% increase over the previous year (Klikauker, 2012).
- Huge market share depicted by its worldwide presence:
GM has an international presence with factories in Poland, Russia, South Africa, Ecuador, Egypt, Argentina, Australia, Germany, Belgium, China, Colombia, South Korea, Spain, Sweden and Thailand. Moreover, it has assembly, manufacturing, distribution, office and warehousing operations in 55 other countries. Though GM lost the top slot for global auto sales after 77 years in 2009(Reuters, 2010), it still has the top market share for any American car Company, as reported by “The Wall Street Journal,” leading in both overall sales as well as light truck sales (Klikauker, 2012).
- Lower labor costs that have been put in place since 2009
GM has kept labor cost low in most of the world, including foreign markets. In 2009, it cut its white collar labor force by 14%, according to Huffington Post. This effectively reduced overhead for the company and ensured increase in profitability without an actual increase sales or productivity (Klikauker, 2012).
- Leaner Operations
When GM came out of bankruptcy in 2009, it had adopted a much leaner operation system. It had cut brands, plants and employees so as to streamline production costs, according to “The Washington Post” with the executive committee being reduced to eight members. This enhanced the company’s efficiency and increased the speed of decision making (Business: Rising from the ashes in Detroit; General Motors’ IPO, 2010).
The following weaknesses have however hindered its operations.
- Diminishing Dealer Network: GM has identified more than 1000 dealership markets that are due for closure. It also announced that it would not be renewing its franchise agreements with almost one quarter of its dealership in the U.S. As at December 31 2008, GM had 715 dealerships in Canada and as at May 2009 plans had been put in place for closure of 200 dealerships (Goussak, Webber & Ser, 2012).
- Insufficient Liquidity that has negatively affected both Research and Development and relationship with suppliers (Goussak, Webber & Ser, 2012).
- Inadequate performance among some Business Segments: In 2008, the GME segment accounted for 21.8% of the total revenues and its revenues decreased by 8.8% to $32,440 million. Other business segments experiencing declines include GMNA which fell by 23.9% to $82,938 million, and GMAP which stood at $12,477 million for the 2008 fiscal year indicating a major decline (Klikauker, 2012).
Threats
Intense Competition: GM is vulnerable to fierce competition from firms like AB Volvo, Bayerische Motoren Werke, Daimler, Fiat Group Automobiles, Ford Motor, Honda, Hyundai Motor, Mazda, Nissan, Peugeot Citroen, Renault, Toyota and Volkswagen. Many of these have responded to the financial crisis by adding vehicle enhancements, providing subsidized financing or leasing programs in order to sell more vehicles. They also offer option package discounts, marketing incentives and reducing vehicle prices in certain markets. These actions may have negative effects on GM’s pricing, market share and operating results, particularly on the low end of the market (Research and markets adds report: ‘General Motors Corp. – SWOT framework analysis’, 2010).
Global Recession: Dire predictions for the global economy were realized in 2009(Klikauker, 2012). These resulted in stalled economic growth that stretched into 2010. The decline in the economy came with reduced consumer demand for less fuel efficient vehicles, including full size pick-up trucks and Sport Utility Vehicles (SUVs) which had been GM’s most profitable products. The decline also resulted in tighter credit markets making it quite hard for customers to finance automobile purchases. The meltdown also resulted in the government of US buying out GM (Klikauker, 2012)
Opportunities
Growth Potential in India and China: There are positive projections for General Motors ventures in China and India. In China, the market for new cars has grown by 14% and was projected to reach $97billion by the end of 2008. (Webb, 2005). Moreover, in India, the market grew by 15.5% in 2008 to a dollar value of $28billion. This is a strong indicator that India will play a bigger role in the projected increase. (Webb, 2005)
Increased Global Truck Market: It is projected that in the coming years there will be steady growth rates. The market volume is also expected to increase. (Asia News Monitor, 2014)
Rising Demand for Hybrid Vehicles: With its hybrid models of Saturn Vue and Aura Hybrids, Chevrolet Malibu and Tahoe Hybrid as well as Cadillac Escalade, the company will move fast to meet this demand. Vehicles market would boost the demand for GM’s products.
Though GM has gone through recession, notwithstanding the economic scars that tainted its reputation, it needs to understand that there is increase in global competitive pressure and realize the significance of it understanding the organizational behavior and dynamic changes to its cultural and ethical environment. GM may not remain competitive if some aspects of its operations are not improved (Groussak, Webber and Ser, 2012)
Corporate Level Strategy
GM has a powerful vision backed by a powerful strategy. It is focused on a single global vision: To design, build and sell the world’s best vehicles. This would in effect power the development of world-class products that are winning in the market place, and is helping to transform business and fortify the balance sheet. This model also creates a self-sustaining cycle of reinvestment that drives continuous improvement in vehicle design, manufacturing discipline, brand, competitive pricing and margins (Groussak, Webber and Ser, 2012)
GM has annuals sales of over 9million vehicles and operations in more than 120 countries. Its business is diversified across products and geographic markets. The company meets local sales and service needs for its retail and fleet customers with a global network of independent dealers. Across the world, GM is a top manufacturer led by diverse portfolio of brands that share core platform efficiencies and are connected by its global reach (Groussak, Webber and Ser, 2012)
GM has equity ownership stakes directly or directly in entities through various regional subsidiaries like GM Korea, Shanghai General Motors Co Ltd, SAIC-GM-Wuling Automobile Company, FAW-GM Light Duty Commercial and SAIC GM Investment Limited (HKJV) (Asia News Monitor, 2014).
Business Level Strategy
Brand Restructuring: GM focuses to restructure Chevrolet, Cadillac and Buick. It also plans to either close or sell out brands like Saab, Saturn and Hummer. These actions are based on sales statistics that are lagging in the domestic market (Asia News Monitor, 2014)
Fuel-Efficiency: This has been the demand brought about by effects of global warming and green technology for industries to become more sustainable and environmentally friendly.
Cost cutting: This will be achieved through the reduction of GM brands and models and closure of some dealerships across the world. Cost will also be reduced through salary cuts for employees and executives. (Asia News Monitor, 2014)
Emerging markets: Markets in India and China present GM with the opportunity to expand its brands and become a force to reckon with in these markets. (Asia News Monitor, 2014)
Marketing Strategy: GM needs to re-establish itself as America’s leading brand. Advertisements and commercials must not only promote this position but also emphasize the developments in sustainability and fuel efficiency. (Asia News Monitor, 2014)
Recommendations
General Motors needs to expand its marketing strategy to cover markets in China, India, Europe and the larger American continent. The message of its fuel efficiency cars and better quality should be heard across all its ancient markets.
General Motors also needs to invest more of its resources in Research and Development Centers in African and India. This will help in establishing the need for cars in those regions and also aid in coming up with better designs for such regions and low end customers.
References
Business: Rising from the ashes in Detroit; General Motors’ IPO. (2010, Aug 21). The Economist, 396, 49-50.
Essays, UK. (November 2013). A SWOT Analysis of the General Motors Company Marketing Essay
General Motors Company (GM) – Clean Technology – Deals and Alliances profile. (2014). London: Global Data Ltd.
Goussak, G. W., Webber, J. K., & Ser, E. M. (2012). A CRITICAL NEEDS PLAN FOR GENERAL MOTORS: A CULTURAL PLURALISM APPROACH. Review of Business & Finance Studies, 3(2), 45-53.
Houghton, J. D. (2013). What is good for General Motors: The contributions and influence of Alfred P. Sloan, Jr. Journal of Management History, 19(3), 328-344.
Klikauer, T. (2012). A General Motors works council’s response to the capitalist global financial crisis: A case study from Germany. Capital & Class, 36(2), 303-322.
Research and markets adds report: ‘General Motors Corp. – SWOT framework analysis’. (2010). Manufacturing Close – Up
Webb, A. (2005). General Motors plans more choices for china. Automotive News, 79(6144), 21. World: General Motors chief reveals business strategy. (2014, Jan 23). Asia News Monitor
Fixing what’s wrong with General Motors and other U.S. manufacturers; American business concepts issues opinion editorial. (2005, Jun 06). Business Wire
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