Running Head: STRATEGIC ANALYSIS
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Strategic Analysis: Organizational & Competitive
By: Dawn Branzei
Business Tactics and Execution
Argosy University
May 1, 2013
STRATEGIC ANALYSIS
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Introduction
Owing to globalization, the business environments in which companies now operate have
become excessively dynamic and competitive. The organizations have to ensure continuous
improvement in their product offerings along with increased quality at economical prices to
remain competitive in globalized marketplace. It is essential for the organization to gauge the
changes that are occurring at the external environment to exploit the opportunities and mitigate
the threats. The external environment scanning and adjusting the organization’s strategic goals to
them is a significant process. This paper discusses the mission and vision statement of General
Motors and its association with the business strategy of the organization. The external and
internal factors and their influence on the company’s strategy are also discussed in the paper.
Mission, Vision and Value Statement
Mission Statement
The mission statement of General Motors is, “G.M. is a multinational corporation
engaged in socially responsible operations worldwide. It is dedicated to provide products and
services of such quality that our customers will receive superior value while our employees and
business partners will share in our success and our stockholders will receive a sustained superior
return on their investment” (Mission Statement 2013, p.1).
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Vision Statement
The vision statement of General Motors is, “At GM, we are focused on a single global
vision: To design, build and sell the world’s best vehicles. This powers the development of
world-class products that are winning in the marketplace, and is helping to transform our
business and fortify our balance sheet” (Powerful Vision, Powerful Strategy 2013, p.1).
Value Statement
The value statement of General Motors is, “GM is committed towards providing a better
customer experience through changing the customer perception towards the adoption of
environment friendly, quality and innovative automobiles” (Mission Statement, 2013).
The mission, vision and value statement of the organization are inter-related and focuses
on the need of company to be innovative and environment friendly to sustain in the marketplace.
The company also considers quality of the product provided to customers as a significant factor
in deciding the market share and profitability of company. The mission and vision statement of
the company represents the primary objective of the company to be the world’s best seller in
terms of designing, developing and selling the automobiles in the market (Mission Statement,
2013). The company adopts a focused approach as reflected in the mission, vision and value
statement.
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The three statements could be analyzed to comprehend that company considers
innovation and quality as the key to retain existing customers and attract new ones to remain
competitive in market. The significance of delivering values to the customers is well-recognized
by the company in its value statement and the company also provides due importance to
environment-friendly vehicles that would be sustainable to the customers and would ensure longterm profitability for the company.
Strategic Goals of GM
The strategic goals of the organization are the foundation of its business model that is
derived from the vision statement of the company. The three strategic goals of the company for
year 2013 are;1. To optimize GM’s global footprint to develop vehicles that are best in the
segment and are cost effective 2. To focus on fewer brand through leverage of the global
resources in order to create increasingly compelling technologies and vehicles 3. To maximize
revenue using a focused branding strategy that delivers the world-class automobiles to globalized
market.
The strategic goals of the organization are derived from its mission and vision statement
that clearly stated the focus of the organization to invest heavily in innovative technology to
deliver enhanced value to its customers (Powerful Vision, Powerful Strategy, 2013). The vision
statement of the company focused on designing, building and selling the best automobiles in the
globalized market that the company would achieve through continuous innovation. The first
strategic goal of GM is related to designing the vehicles that are preferred by customers across
the globe, using the manufacturing facilities of GM scattered around the world such as U.S. and
China. The company aims to develop vehicles that are superior in value and are cost-effective,
STRATEGIC ANALYSIS
therefore providing complete value to customers (General Motors unveils three years strategic
growth plan , 2012).
The second strategic goal of the company also facilitates achievement of its mission and
vision by enabling company to deploy advanced technologies and innovative designs that would
not only create the best automobile but would also meet the ultimate objective of the
organization to increase its profitability by offering superior products to customers. The
company also aims to deploy a brand strategy that focusses on two or three products from the
product line of company and promotes them throughout the world. This is driven by the mission
statement of the company to ensure superior return to the company’s stakeholder through the
enhanced profitability of organization. Overall, the strategic goals of GM are well-linked to the
mission and vision statement of the organization. Despite of the strategic goals being driven by
vision and mission statement of GM, there are some changes that the organization can
incorporate in its strategic goals to better align them with their mission.
The strategic goals of the organization should include the environment-friendly factor of
the General Motors that has been mentioned in their mission statement. The company should
ensure that the production process become increasingly environment-friendly, thereby reducing
the carbon footprint of the organization and emerging as an excellent industry example. Another
change in the strategic goals should be an incorporation of the customer service statement. The
organization defines the level of customer satisfaction such as 95% that they aim to achieve in a
specified period of time through their business strategy.
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External Factors and Influences
The external environment for the General Motors is assessed using PEST analysis of the
automobile industry. This framework scans the macro-environment in which an industry operates
and any changes in the environment influences the business operations and strategies of the
organizations in that industry for worse or better.
PEST Analysis of General Motors
Political Factors – The political factors that influence the business strategies and operations of
the company are the fuel and environment regulations in the countries it operates. In U.S.,
recently the Obama administration passed the bill limiting the sulfur amount in gas (Obama’s
New Fuel Standards That Even Car Companies Love, 2013). This presents a favorable
opportunity for automobile industry as this makes the emission standards uniform across the
country, therefore, making it easier for automobile industry to design their products. However,
the industry faces a significant challenge with the government implementing new policies for
automobiles that requires nearly every technology and parts of automobile to be changed
(Ashley, 2012). The lightweight structure and efficient engines are well-defined in the policy that
could raise the costs associated with this change immensely.
Economic Factors – The 2007 global financial crisis impacted the automobile industry while
General Motors demonstrated resilience to a certain level. However, with the economy
recovering at slower pace, the organization is faced with a challenge to increase sale through
developing cost-efficient automobiles that are of same or better quality. The industry is
competitive in terms of cost-efficient cars that offer innovative features along with increased
quality.
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Social Factors – General Motors is a popular brand among customers that represents class,
affordability and quality simultaneously. The company garners huge support from its customers
across the globe and with the company growing in innovation and quality, the products of the
organization are preferred by the customers.
Technological Factors – The automobile industry is embracing advanced technology to ensure
innovation to remain competitive in market. The continuous innovation and launch of new
features in the market represents a huge challenge to the organization. However, General Motors
is proactive in technological innovation and therefore, keeps pace with the developments in
industry.
Internal Factors and Influences
Competitive Position of General Motors
General Motors has competitive advantage in manufacturing. The organization has
adopted several innovations in both the processes to ensure innovations. The organization
deploys flexible manufacturing enabling power train facility to operate varied transmission or
engine families on the universal machining lines. The flexible manufacturing has reduced the
tooling and setup costs that are incurred during the changeover of product (GM Announces $250
Million for Flexible Manufacturing in Ingersoll Plant, 2013). Moreover, the organization has also
implemented Video Variance Monitor, an advanced vision technology that facilitates quicker
diagnose and faster resolution of the quality problems. These innovations in manufacturing
process have caused cost savings across the organization, thereby enabling organization to have
competitive advantage in terms of cost-efficiency in market.
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Market Position
General Motors market position is continuously strengthening with the sales of Cadillac
increasing by 50 percent overall, the sale of Buick increasing by 37 percent. The market share of
the company increased to 18% in the first quarter of 2013, providing an affirmation of the
organization’s robust marketing strategy and competitive position (Reed, 2013). The market
position is further expected to enhance with the scheduled launch of Sierra and Silverado trucks
in the second quarter of 2013.
Resource Strengths and Weaknesses
The strengths of general Motors enable it to exploit the opportunities external
environment offers and mitigate the threats. The top three strengths of GM are popular brand
names, large market share, and global experience. The organization has several brands that are
self-sustained because of their popularity in the market. The organization also has global
marketing programs that becomes a strength because of the intrinsic knowledge organization has
on conducting successful marketing campaigns across the globe. The weaknesses of the
organization include the reducing employee morale, lack of robust leadership and market share
fluctuations. The organization ought to address its weaknesses to ensure that it retains its
competitive advantage.
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Focused Strategy
General Motors adopts the differentiation strategy by ensuring that the products are
innovative and customer-friendly. The company has maintained its competitive advantage by
offering the automobiles that are a representation of quality and innovation to its customers. The
company launches new and innovative product features in the market with enhanced designs that
not only increases the appearance of the automobile but also ensures enhanced functionality.
General Motors focuses on the design and production of automobiles that are a combination of
autonomous features and is planning to introduce semi-autonomous and fully-autonomous cars
in future.
The organization competes in international market by comprehending the local culture
and integrating cultural elements and local customer requirements in the features of their
automobile. General Motors is an industry leader in China, recording highest sales of
automobiles that demonstrate the success of organization in the international market (Annual
Report 2012, 2012).
Conclusion
General Motors demonstrates a robust comprehension of strategic tools required for
success and profitability of an organization. The company has successfully linked its vision and
mission statements with its business model and strategic goals. The adoption of strategic goals
driven by mission and vision statement has led to competitive advantage and enhanced
marketing share for the company.
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References
Annual Report 2012. (2012). Retrieved from General Motors.
General Motors unveils three years strategic growth plan . (2012, July 27). Retrieved April 30,
2013 from The Guardian:
http://www.ngrguardiannews.com/index.php?option=com_content&id=93525:generalmotors-unveils-three-years-strategic-growth-plan&Itemid=605
GM Announces $250 Million for Flexible Manufacturing in Ingersoll Plant. (2013, march 11).
Retrieved April 29, 2013 from Auto Service World:
http://www.autoserviceworld.com/news/gm-announces-250-million-for-flexiblemanufacturing-in-ingersoll-plant/1002131280/
Mission Statement. (2013). Retrieved from General Motors: Retrieved April 29, 2013 from
http://www.gm.com/company/investors/stockholder-information.html
Obama’s New Fuel Standards That Even Car Companies Love. (2013). Retrieved April 30, 2013
from CoExist: http://www.fastcoexist.com/1681720/obamas-new-fuel-standards-thateven-car-companies-love
Powerful Vision, Powerful Strategy. (2013). Retrieved April 30, 2013 from General Motors:
http://www.gm.com/company/investors/corporate-strategy.html
Ashley, S. (2012, Nov 08). New Fuel Economy Regulations: A Major Stretch for the Auto
Industry. Retrieved April 28, 2013 from General Electricals Ecomagination:
http://www.ecomagination.com/new-fuel-economy-regulations-a-major-stretch-for-theauto-industry
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Reed, T. (2013, April 04). GM Has Good News/Bad News March. Retrieved April 30, 2013 from
CNBC: http://www.cnbc.com/id/100616443
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