General Motors commonly known as GM is one of the largest car manufacturers company in the United States and the world. It was founded way back in 1908 and has been in the market until now (Pound, 2013). General Motors manufactures designs and distributes vehicles and vehicle parts in more than 37 countries making it one of the most successful and largest car manufacturers in the world (Helper & Henderson, 2014).
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General Motors most popular brands include Cadillac, Chevrolet, Opel, Buick, Hummer and GMC among others with controlling interests in companies such as Baojun, Holden, and Jiefang just to mention a few (Helper & Henderson, 2014). The company is also involved in sectors such as financial and insurance services, heavy duty automotive and telecommunication. General Motors has been successful over the years because it is driven by a team of innovative, creative and hardworking people with a vision to top the world in the automotive industry (Helper & Henderson, 2014). This vision makes it compete favorably in the global market.
However, due to the advancement in technology and the rapid market changes, the company is faced with unpredictable changes that need a lot of strategic planning and implementation to suitably adapt to changes. This paper will identify some of the different data indicators that will help the company plan for future changes, and these include the companies’ policies and prices and the Gross Domestic Product (GDP). Gross Domestic Product represents a country’s market value of all the goods and services produced with a certain financial year (Helper & Henderson, 2014). General Motors is one of the largest companies in the United States; it greatly affects the country’s economy, employment, and productivity. The U.S. is one of the largest producers and consumers of motor vehicles; the motor vehicle company represents over 5% of the private sector Gross Domestic Product (Helper & Henderson, 2014). General Motors, therefore, need to make profits to support their operations, and in return improve the country’s general GDP. Therefore, General Motors need to implement strategies that will help the company have a healthy and growing economy that would fit in the global markets (Goolsbee & Krueger, 2015).
The market in the U.S. is good, and the company should strive to increase their market base in the Middle East, India, China, Africa and the European Countries such as Russia (Goolsbee & Krueger, 2015). The population growth in China will give a good market for the companies’ products. The company should invest in advertising strategies that will put it on top of other vehicle manufacturers in the global market. The company needs to increase its production and meet the consumers’ needs through the use of advanced technology and innovation (Goolsbee & Krueger, 2015). General Motors has been identified as one of the top innovative companies in the world, and to put it on a competitive market, it should invest on innovative and resources human personnel that will help transform the companies’ productions and goals(Goolsbee & Krueger, 2015). The company also needs to come up with organizational and management strategies over the next six months that will help increase production rates. Organizational management and good leadership are always identified with efficient production and effectiveness of a company. More production increases the rates of revenues and corporations revenues can only increase as fast as the real Gross Domestic Product (GDP) of a country.
Another economic data indicator that the company needs to work on over the next six months is the company’s policies and prices. With a good strategy on policies and pricing, the company will create a favorable market that will help it compete favorably in the market, both locally and globally (Goolsbee & Krueger, 2015). Due to the fluctuation in prices and policies in the global markets, the company is negatively affected and needs to raise prices to offset commodity prices (Josephs, 2018). Policies such as energy crisis affect customers’ choice on what type of automotive to buy, for instance, higher prices for fuels will reduce the company’s overall sales since customers will refrain from buying vehicles that highly consume fuel. Consumers will turn to the fuel-efficient vehicles from alternative companies such as the Japanese Companies that manufacture these types of vehicles. The company should also invest more on alternative energy vehicles or the so called hybrid vehicles that will help it compete favorably in the market with Japanese vehicle manufacturers that major on these alternative energy vehicles (Goolsbee & Krueger, 2015).
The company makes a lot of profits in the sales of big vehicles such as the SUVs and pickup trucks compared to small fuel efficient cars, and when the prices of fuel shoot up, they definitely go at a loss. The company needs to advocate for a suitable energy policy that will not affect the market of its production or discourages consumers from buying its products (Helper & Henderson, 2014). The quality of the company’s production has also affected the prices of available materials for production. The company has different plants all over the world in different countries, and it should improve on the technologies it uses on the plants to cater to every consumer’s needs, for instance, the use of Bluetooth that connects mobile devices to vehicles, radios that use voice commands and the modern mobile apps that help consumers schedule maintenance of the vehicles among others (Goolsbee & Krueger, 2015).
General Motors have been in the business for many decades, and it has survived through a number of rapid changes, stiff competition, market changes, technological advancement, energy policies among others and with this accumulated wisdom, it is able to make workable shifts to these economic indicators. The company should adopt a SWOT analysis strategy that will cater to all the economic indicators that may affect its production and supply in the market over the next six months. The current economic situation is fluctuating, and there need to come up with a good strategy that will make the company stand among its competitors and the strict global policies.
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