Case Analysis
GM
A Brief Summary of the Case
General Motors Company (further GM) is a multinational automotive company based in Detroit, U.S. The
company designs, manufactures and sells various vehicles, including cars, trucks, commercial vehicles,
crossovers and automobile parts. It is the second largest automobile manufacturer in the world.[1] In 2014,
GM produced 9.925 million vehicles and captured 11.40% of the global automotive market share.
GM controls a strong brand portfolio and sells its vehicles under different brands, such as: Chevrolet, Buck,
GMC, Cadillac, Opel, Vauxhall, Holden, Baojun, Wuling and Jiefang. GM’s primary markets are China and
the U.S.
A Brief Summary of the Case
In the case, we found that In 2014, GM was engulfed by the gravest safty crisis, high
recall rate in the company’s history. As a result it made huge amount of compensation
offeringgs and faced sevaral investigations due to accident for the problem with
defective ignition switches. Mary T. Barra, the CEO of GM, sat to take the challenges
and to overcome the critical situations. She found some problems behind the
situations like- lack of responsibility and accountability in the firm, reactive strategy
and high level of bureaucracy in decision making about post sales services.
Barra promised that such neglect of safety issues would not occur again and ensured
that the safety issues had not caused consumers to avoid the firms‘s new models,
tried to finally put this crisis behind and move on with the commitment to build the
best cars that GM ever offered.
As a result, GM ended the year on a high note in the USA, where its sales rose about 5
percent for the full year. GM expected to expand sales in its two largest markets, the
United States and China, and break even in its long-troubled European Division.
SWOT Analysis
Identifying Company’s Opportunities and Threats
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
1. Governmental
promotion of public
transport and other
alternatives
7
.035
3
.105
4T-4
2. Aggressive tax policies
on combustion-type
automobiles
8
.04
2
.08
6T-2
3. New emission
standards
9
.045
6
.27
3
4. Rising competition in
developing markets
7
.035
4
.14
3
5. Fluctuating exchange
rate
8
.04
4
.16
4T-5
Factors
(External strategic Factors)
Opportunity
(E)
largest
(D)
Threat
(F)
largest
(A–C)
SWOT Analysis
Identifying Company’s Opportunities and Threats
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
Opportunity
(E)
largest
(D)
Threat
(F)
largest
(A–C)
6. The volatility in fuel price
9
.045
8
.36
O-1
1
7. Political stability in major
markets
8
.04
5
.20
3
8. Economical stability in
major markets
9.Changes in climate
patterns
10. Rising concerns on the
air quality effects of
automotive emissions
8
.04
3
.12
5T-3
6
.03
4
.12
2
8
.04
6
.24
2
Factors
(External strategic Factors)
SWOT Analysis
Identifying Company’s Opportunities and Threats
Factors
(External strategic Factors)
11. Low on emissions and
fuel consumption receive tax
subsidies and are favored by
the government and law.
12. The pollution tests have
grown stricter and the
vehicles passing these tests
only are allowed in certain
markets
13. The pollution laws have
grown stricter
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
Opportunity
(E)
largest
(D)
Threat
(F)
largest
(A–C)
7
.035
5
.175
2
7
.035
4
.14
3
9
.045
8
.36
1
SWOT Analysis
Identifying Company’s Opportunities and Threats
Factors
(External strategic Factors)
14. The laws related to
product safety that have an
important impact on the
sales of the vehicles
15. Expanding
environmental regulations
16. Tax laws
17. Stricter emissions
regulations
18. Changes in Customer
preferences
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
Opportunity
(E)
largest
(D)
Threat
(F)
largest
(A–C)
8
.04
7
.28
1
9
.045
6
.27
3
7
.035
8
.29
O-5
-1
9
.045
7
.31
O-3
2
7
.035
5
.175
2
SWOT Analysis
Identifying Company’s Opportunities and Threats
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
19. Demand for small cars
8
.04
7
.28
1
20. Emphasis on safety.
7
.035
6
.21
1
21. Increasing
implementation of self
driving vehicles technology
22. Development of electric
vehicles
23. Rising fuel efficient cars
6
.03
5
.15
1
7
.035
6
.21
1
8
.04
7
.28
1
24. Disruptive potential of
new technologies
9
.045
7
.315
Factors
(External strategic Factors)
Opportunity
(E)
largest
(D)
O-4
Threat
(F)
largest
(A–C)
2
SWOT Analysis
Identifying Company’s Opportunities and Threats
Factors
(External strategic Factors)
25. Integration of advanced
computing technologies in
products
26. Increasing demand for
vehicle-sharing and ridehailing programs
Relative
importanc
e rating
(A)
(1–10)
Weight
(B)
B=
A/198
Score
(C)
(1–10)
Weighte
d score
(D)
(B × C)
Opportunity
(E)
largest
(D)
Threat
(F)
largest
(A–C)
9
.045
8
.36
O2
1
10
.05
2
.1
8- T1
SWOT Analysis
Identifying Company’s Strengths and Weaknesses
Relative
importance
rating (A)
(1–10)
Weight (B)
B = A/112
Score
(C)
(1–10)
Weighted
score (D)
(B × C)
1. Development of R & D
supports for promotional
activities
6
.05
5
.25
1
2. Capabilities in new
Geographic shift in the target
Market
8
.07
7
.35
1
3. Increase of the price for
premium & quality
Products/services
5
.04
8
.35
-3
Factors
(Internal strategic Factors)
Strengths
(E)
largest
(D)
Weaknes
ses (F)
largest
(A–C)
SWOT Analysis
Identifying Company’s Strengths and Weaknesses
Relative
importance
rating (A)
(1–10)
Weight (B)
B = A/112
Score
(C)
(1–10)
Weighted
score (D)
(B × C)
4. Competitive Advantages in
Distribution Network
6
.05
4
.21
2
5. Adaption of sustainable
transformation strategy
7
.06
2
.12
5 W-1
6. Bureaucracy in
organizational culture and
structure
6
.05
7
.35
-1
Factors
(Internal strategic Factors)
Strengths
(E)
largest
(D)
Weaknes
ses (F)
largest
(A–C)
SWOT Analysis
Identifying Company’s Strengths and Weaknesses
Relative
importance
rating (A)
(1–10)
Weight (B)
B = A/112
Score
(C)
(1–10)
Weighted
score (D)
(B × C)
7. Organizational structure
5
.04
4
.16
1
8. Responsibility and
accountability at the firm
6
.05
2
.10
4W-3
9. Defined plan and specific
goals
8
.07
8
.57
Factors
(Internal strategic Factors)
Strengths
(E)
largest
(D)
S-5
Weaknes
ses (F)
largest
(A–C)
0
SWOT Analysis
Identifying Company’s Strengths and Weaknesses
Relative
importance
rating (A)
(1–10)
Weight (B)
B = A/112
Score
(C)
(1–10)
Weighted
score (D)
(B × C)
Strengths
(E)
largest
(D)
Weaknes
ses (F)
largest
(A–C)
10. Economies of scale
9
.08
9
.72
S-3
0
11. Strong brands
10
.089
9
.80
S-1
1
12. Human resource expertise
10
.089
8
.80
S-2
2W-4
Factors
(Internal strategic Factors)
SWOT Analysis
Identifying Company’s Strengths and Weaknesses
Relative
importance
rating (A)
(1–10)
Weight (B)
B = A/112
Score
(C)
(1–10)
Weighted
score (D)
(B × C)
13. High rate of auto recall
9
.08
4
.32
14. High operational efficiency
9
.08
8
.64
15. Dependence on U.S to
generate most of the revenue
8
.07
6
.42
Factors
(Internal strategic Factors)
Strengths
(E)
largest
(D)
Weaknes
ses (F)
largest
(A–C)
5W-2
S-4
1
2W-5
Strengths
• Strong Brands Recognition
•
•
•
•
Human Resource Expertise
Economic of Scale
High Operational Efficiency
Defined plans and specific goals
Weaknesses
Opportunities
Threats
• Increasing demand for vehicle-sharing and
ride-hailing programs