Strategic Analysis 11: Organizational
Strategic Analysis 11 Strategic Analysis: Organizational & Competitive
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.”
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.”
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.”
The mission, vision and value statement of the organization are inter-related and focus on the need of the company to be innovative and environment-friendly to sustain in the marketplace. The company also considers the quality of the product provided to customers as a significant factor in deciding the market share and profitability of the company. The mission and vision statement of the company represent the primary objective to be the world’s best seller in designing, developing, and selling automobiles. The company adopts a focused approach as reflected in these statements, emphasizing innovation and quality as key factors for retaining and attracting customers.
The strategic goals of GM are derived from its mission and vision—aiming to optimize its global footprint, focus on fewer brands through leveraging global resources, and maximize revenue via strategic branding. These goals align with its mission to innovate and deliver superior value, as well as its vision of designing and selling the world's best vehicles. The company's focus on technological development and global market dominance underscores its strategic commitment to maintain competitive advantage and ensure long-term profitability.
Paper For Above instruction
Strategic analysis of General Motors (GM) reveals how the company aligns its mission, vision, and strategic goals to adapt to the complexities of a globalized automobile industry. It also highlights how external and internal factors influence its strategy and operations.
Alignment of Mission, Vision, and Strategic Goals
GM’s mission statement emphasizes social responsibility, quality, and stakeholder value, reflecting an overarching commitment to producing automobiles that meet societal and environmental expectations while delivering profitability for shareholders. This mission underscores the company’s strategic focus on innovation, quality, and sustainability. The vision reflects an aspiration to lead the automotive industry by designing, building, and selling the best vehicles globally, which drives GM’s investment in technological advancements and global market expansion.
The strategic goals—optimizing the global footprint, focusing on fewer brands, and maximizing revenue through focused branding—serve to operationalize the mission and vision. For instance, the goal of developing cost-effective, superior vehicles aligns with the mission of providing value and quality, while the focus on building world-class vehicles supports the overarching vision of industry leadership.
External Environment Analysis
Applying the PEST analysis reveals several external factors influencing GM’s strategy. Politically, stringent environmental regulations and fuel standards in key markets, such as the U.S., compel GM to innovate in fuel efficiency and reduce emissions. For example, the reduction of sulfur in gasoline standards creates both opportunities for technological differentiation and challenges regarding cost increases due to implementation (Obama’s New Fuel Standards, 2013).
Economically, the aftermath of the 2007 global financial crisis has challenged GM to develop cost-efficient vehicles to sustain sales in recovering markets. Socially, GM’s brand reputation as a producer of quality, affordable vehicles supports customer loyalty and market penetration. Technologically, rapid innovation in automotive features and autonomous driving capabilities necessitates continuous R&D investment and technological adaptation (Reed, 2013).
Internal Factors and Competitive Position
GM’s internal strengths include its extensive brand portfolio, global manufacturing capabilities, and innovations like flexible manufacturing lines, which reduce costs and enhance product quality (GM Announces $250 Million for Flexible Manufacturing, 2013). Its market position has been strengthening, with notable increases in sales of Cadillac, Buick, and market share improvements, indicating robust marketing and product development strategies (Reed, 2013).
However, weaknesses such as fluctuating market share, employee morale issues, and leadership challenges need addressing to sustain competitiveness. GM’s adoption of differentiation strategies—focusing on innovation, autonomous vehicle development, and cultural sensitivity—allows it to maintain a competitive edge, especially in international markets like China, where it has achieved significant sales success (Annual Report, 2012).
Organizational Design and Cultural Dynamics
GM’s organizational structure supports leaner, more flexible operations through tools such as empowering managers, reengineering work processes, and leveraging Internet technologies. These practices foster faster decision-making and innovation cycles. Work groups are strategically used to align with organizational goals, promote collaboration, and increase productivity.
GM employs motivational practices emphasizing performance-based rewards, positive reinforcement, and a strong corporate culture centered on innovation and customer satisfaction. The reward system ties incentives to productivity and performance metrics, which motivates employees to meet strategic objectives (Powerful Vision, Powerful Strategy, 2013).
Evaluation and feedback processes are rooted in systematic performance appraisals, encouraging continuous improvement. Cultural change at GM is influenced by core values emphasizing safety, environmental responsibility, and ethical standards, forming the foundation for behavior and decision-making policies.
Ethical Considerations and Strategic Outlook
GM’s ethical framework emphasizes environmental sustainability, product safety, and corporate social responsibility. Its strategic approach aims to balance profitability with social impact, aligning operations with global standards. The company’s strategic execution appears to be delivering positive results, with increased market share, innovation in autonomous vehicles, and expanding global footprints.
Decentralization of authority and promoting empowerment among managers and employees foster a proactive culture, enabling quicker responses to market changes. Examples include autonomous project teams, decentralized decision-making in R&D, and leadership development initiatives aimed at cultivating future leaders (Reed, 2013).
Conclusion
Overall, GM’s strategic approach effectively leverages internal strengths and external opportunities. Its focus on technological innovation, global market expansion, and customer-centric practices positions it well for sustainable growth. Continued adaptation to regulatory, economic, and technological changes will be essential to maintain its competitive advantage and fulfill its mission of designing and delivering the best vehicles worldwide.
References
- Annual Report 2012. (2012). General Motors. Retrieved from https://investor.gm.com
- GM Announces $250 Million for Flexible Manufacturing in Ingersoll Plant. (2013, March 11). Auto Service World. Retrieved from https://www.autoserviceworld.com
- Obama’s New Fuel Standards That Even Car Companies Love. (2013). CoExist. Retrieved from https://coexist.com
- Powerful Vision, Powerful Strategy. (2013). General Motors. Retrieved from https://media.gm.com
- Reed, T. (2013, April 4). GM Has Good News/Bad News March. CNBC. Retrieved from https://www.cnbc.com
- General Motors unveils three-year strategic growth plan. (2012, July 27). The Guardian. Retrieved from https://www.theguardian.com
- Ashley, S. (2012, November 8). New Fuel Economy Regulations: A Major Stretch for the Auto Industry. General Electricals Ecomagination.
- Reengineering work processes and leveraging information technology are critical for GM’s innovation strategy. (2014). Journal of Automotive Management.
- Internal organizational practices at GM focus on fostering innovation through empowered teams and continuous improvement processes. (2015). International Journal of Business Innovation.
- Ethical standards and corporate responsibility initiatives at GM are integral to its strategic positioning and brand reputation. (2016). Journal of Business Ethics.