Effect Of Increasing Training Budget Justification

Effect of Increasing Training Budget Justification and/or reasons why you want to do this project

Week 1 - Form 1: Applied Research Project FORM 1 Brief description of your proposed Applied Research Project: Topic: Effect of Increasing Training Budget Justification and/or reasons why you want to do this project: INTERPRETING PRESENTATIONS OF DATA ANALYSIS IN ARTICLES OR REPORTS LEARNER’S NAME CAPELLA UNIVERSITY APPLIED BUSINESS ANALYTICS INTERPRETING PRESENTATIONS OF DATA ANALYSIS IN ARTICLES OR REPORTS FEBRUARY, 2019 General Motors: The Business Context Publicly traded multinational corporation (CNN, 2019) Only 14.5% of its gross revenue comes from markets outside North America (Statista, 2019) Downsizing of the company (CNN Business, 2018) Recent shift toward the production of autonomous electric vehicles (General Motors, 2017) Hello, all. In today’s presentation, I will discuss two graphs that provide insight into the global economy, and this will go on to provide a clearer perspective of our business context and direct us toward profitable decision-making. In the past decade, the company has been through turbulent times. We have faced bankruptcy, acquired the status of a government-owned company, and have again become a publicly traded company (CNN, 2019). Although we are one of the largest automakers in the world, only 14.5% of our gross revenue for 2018 was generated from sales in markets outside North America (Statista, 2019), a major concern from the standpoint of growth in revenue and profitability. The company is currently undergoing major restructuring at the global level. We have shut down five facilities in North America and have cut our salaried workforce by 15%. These decisions have been tough but are necessary to remain flexible, increase savings, and stabilize profits (CNN Business, 2018). Today, General Motors is moving toward a bright future by investing in the production of cutting-edge automobiles. Our 2017 sustainability report highlighted the successful operation of five electrified automobile models developed by us. This accomplishment is accompanied by our commitment to introduce 20 electric vehicles by 2023, which is in adherence to the goal of zero-emission vehicles (General Motors, 2017). The value of this direction should be understood against the backdrop of the automobile industry’s future in self-driving cars and its changing competition arena. Technological firms from the Silicon Valley are challenging traditional automakers with self-driven car models. Therefore, the way forward is to stay ahead in the innovation race (CNN Business, 2018). 2 Variance in Returns on Invested Capital for North American Firms (as cited in Dobbs, Koller, & Ramaswamy, 2015) The line graph offers a visual representation of the variance in returns on invested capital for North American firms over a period of 50 years. The graph explains the relationship between two variables, with the value of the first depending on the value of the second. The time duration (measured in years) is marked on the x-axis. The variance in returns on invested capital for North American firms (measured in percentage) is marked on the y-axis (Dobbs et al., 2015). The variance in returns on invested capital for a year represents the percentage difference in return on invested capital in relation to the previous year. This variance is representative of volatility in the returns on invested capital. By connecting the series of variance values through straight line segments for subsequent years, the line graph helps in determining the predictability of the returns on invested capital. The graph also helps compare predictability trends for corporate profits between two different time periods to draw important conclusions (Dobbs et al., 2015). The graph presents a comparison of the average variance in returns on invested capital for two time periods: 1965 to 1980 and 2000 to 2013. The average variance for the former period was 57%, a reflection of the postwar economy in which corporations evaded risks and consumer behavior was needs-based. The average variance for the latter period stands at 93%, a reflection of volatile economic conditions wherein consumer demands are erratic and quick to change. The many technological changes ushered by high-powered IT firms have made a significant impact on social and economic life. With high levels of unpredictability in the economy, the profits of traditional multi-national corporations depend on how well their products or services cater to rapidly changing consumer demands. The volatility of the market also makes it vital for corporations to remain flexible and carry out sustainable innovations (Dobbs et al., 2015). 3 Trends in Working-Age Populations and Future Projections (as cited in Leke & Yeboah-Amankwah, 2018) The graph depicts the projected estimates of working-age populations in Africa, India, China, Europe, and North America from 2000 to 2050. The x-axis measures the passage of time and the y-axis measures the number of working-age population in billions. Each of the five lines in the graph represents the populations of Africa, India, China, and Europe and the combined populations of Canada, Mexico, and the United States (Leke & Yeboah-Amankwah, 2018). From the graph, it is evident that both European and North American working-age populations have been stagnant and will continue to remain stagnant in the coming decades. Further, while the Indian working-age population will continue to rise in the near future, it is expected that the Chinese working-age population will decline. In contrast, the most noteworthy trend is that of Africa. The graph displays a sharp, continuous rise in Africa’s working-age population over the past 20 years and projects a robust growth in the near future. The graph estimates that Africa will have the largest working-age population by 2034 and that the population will continue to grow in the future at a rate that exceeds the other regions measured here (Leke & Yeboah-Amankwah, 2018). 4 Applying Graphical Data to General Motors’ Business Context Volatile market conditions as a challenge Responding to the demand for autonomous electric vehicles Africa, a potential region for investment While various errors on the part of our management cannot be neglected, the looming economic milieu made it a challenge for us to succeed. Rapidly changing consumer behavior, increasing competition from companies in the emerging markets, and disruptive technology trends are some of the factors fueling the crisis in our business (Dobbs et al., 2015). The volatility in returns on invested capital for North American firms can be understood as one of the considerations behind our management’s decision to become more flexible in offerings. The decision to cut down on some of the traditional offerings and expand the focus to include the production of autonomous electric vehicles is reflective of a sound understanding of the volatile market and a vision for the future of the industry (CNN Business, 2018). The graph depicting the trends in working-age population projects Africa as the future leader of the working-age population (Leke & Yeboah-Amankwah, 2018). This puts Africa at the forefront of steering the global economy of the future. Africa’s growing young population would produce a nimble workforce while also making it a thriving market for investments. With only 14.5% of our gross revenue coming from the international market (Statista, 2019) and stringent competition in the Asian markets for both labor and market share, Africa is indeed a potential region for investment. As we are going through a phase of significant restructuring both at the level of technology and global expansion, increased flexibility and engagement with newer markets will offer us optimal conditions to consolidate our revenue. 5 References CNN. (2019). General Motors fast facts. Retrieved from CNN Business. (2018). GM is reinventing itself. It’s cutting 15% of its salaried workers and shutting 5 plants in North America. Retrieved from CNN Business. (2015). GM’s total recall cost: $4.1 billion. Retrieved from Dobbs, R., Koller, T., & Ramaswamy, S. (2015, October). The future and how to survive it. Harvard Business Review, 48–62. Retrieved from General Motors. (2017). General Motors 2017 Sustainability Report. Retrieved from Leke, A., & Yeboah-Amankwah, S. (2018, November–December). Africa: A crucible for creativity. Harvard Business Review, 116–125. Retrieved from Statista. (2019). General Motors company’s sales and revenue streams in FY 2018, by region (in billion U.S. dollars). Retrieved from