The Business-level Strategy of General Motors - Case Study Example

General Motors affiliation General Motors General Motors in an automobile company that manufactures, designs, markets and distributes vehicles. The corporation sells vehicle parts as well as financial services. Over the years, the corporation has developed to fit the top position of all corporations in the automobile industry. Its growth is attributed to its global recognition. General Motors supplies its products worldwide (General Motors, 2014). The global demand for its products surpasses that of its competitors. With continuous ventures in numerous countries, the organization has recorded significant revenue collection from its global sales. For instance, in 2014 second quarter the corporation recorded a sale of 2 million units (General Motors, 2014). This depicts its global superiority. The organization was created in 1908. William Durant, Charles Stewart and Fredric Smith were the founders (General Motors, 2014). Its original name was General Motors Corporation. The name was switched to General Motors Company in 2009 (General Motors, 2014). It was founded in Detroit, United States but has since launched 371 facilities worldwide. The corporation trades heavily in six continents. Its production process is conducted in 37 countries in different continents. It focuses its production on ten vehicle brands; Chevrolet, Buick, UzDaewoo, Baojun, Opel, Holden, Vauxhall, Cadillac, GMC and Jie Fang (General Motors, 2014). The corporation has employed 219,000 people in its operations in 157 countries. General Motors was the leading organization in vehicle sales in a record 77 consecutive years (General Motors, 2014). This market dominance is influenced by its formidable operations strategies. Business level strategy From the five business level strategies, General Motors would benefit significantly from utilizing human resources. Utilizing human resources refers to the ability of the organization to put in place mechanisms that would effectively utilize the efforts of the human resources. In an argument by Vitez (2014) utilizing human resources put an organization in a perfect position to compete effectively in the market. The author further points out that the utilization of human resources is mandatory in any organization (Vitez, 2014). This business level strategy is more important in manufacturing companies. In these companies, employees are the main source production. Apart from the production practices, the role of human resources ensures the objectives of the organization are met. For instance, an organization may seek to put in place a sales team that would increase the organization by 20%. For this to be possible, the organization is required to put in place mechanism that would increase the efficiency of the sales team. In General Motors, human resources have a major mandate to play in the operations of the organization. General Motors (2014) points out that the corporation has 219,000 employees as at May 2014. These employees are located in over 150 countries. The data presented depicts the significance of human resources in the corporation. In addition, one may be of the assumption that the organization requires the services of more than 200,000 employees considering its demanding production process. Moreover, General Motors has a massive consumer demand. This level of demand requires a large number of efficient human resources. General Motors delivered 2.5 Million cars globally in the second quarter of 2014 (General Motors, 2014). The cars were created upon demand of suppliers. The process production comprises of the processes of design and manufacturing. These processes require the participation of the human resources. Vitez (2014) is of the assumption that the process of production requires human labor. In organization with a massive production quantity like General Motors, human resources are required to function are per the market demand. The efficiency of the human resources reflects in the production level. For this reason, organizations are required to put in place mechanisms that utilizes and maximizes on the role of human resources. General Motors also directly depend on the direct function of its human resources across the globe. This can justified by the massive number of human resources employed. In all its branches, the competency of employees is ensured. Employees are taken through the process of production of trained on their area of expertise. This ensures their presence is effectively utilized. In addition, the corporation spends a lot of resources in creating a quality employee environment and compensation. The resources used on employee should reflect from their level of productivity. Generally, utilizing human resources enables GM to retain its high level of production thus satisfying its market demand. Corporate level strategies Under the corporate level strategies, General Motors would benefit significantly from the deciding on a strategy process. This strategy creates a realization that risks may be imminent from any organization process. Bradley (2014) is of the assumption that deciding on a strategy has major reflection on the nature of the business. The process dictates operation embraced at level of the organization. Bradley (2014) is of the assumption that on numerous occasions, organizations usually understand the type corporate level strategy they wish to implement but sometimes they cannot decide on which are the most appropriate strategies. For instance, the nature of the market may change the strategy selection process of the organization. Bradley (2014) points out that, organizations should avoid elongated decision making process to save on the resources that may be used. However, the author asserts that the process should be done occasionally to increase market relevance and competitiveness of the organization (Bradley, 2014).However, the most successful strategy that may be implemented is the value reducing strategy. This would ensure an increase in the organizations, competiveness and market relevance. In General Motors, the decision making strategy may be an occasional requirement. This is based on that they are numerous competitors that may take advantage of their lack of competition and market relevance (General Motors, 2014). However, considering the experienced nature of the organization, the corporation is able to transition from one corporate level strategy to another. In addition, the decision main process is determined by the nature of the market. For instance, the organization may require cutting down in the level of production if the market demand minimizes. In addition, the trend of car models perception change occasionally. The corporation should be able to adjust and create models that are still relevant to the market. Generally, the decision making strategy enables an organization to embrace abrupt market variations without being exposed to numerous risks. General Motors significant competitor Ford Motor Company is the greatest competitor to General Motors in the industry. Ford in an American Automaker founded in 1903 in Michigan (Ford Corporate, 2014). The corporation manufactures and distributes vehicles under the brand Ford. The company also creates and distributes luxury cars under the brand Lincoln (Ford Corporate, 2014). Since its creation, Ford has grown to a global corporate level. The company distributes vehicles globally. Apart from motor vehicles, Ford offers automotive finance, Vehicle leasing and vehicle service. In the years 2013, Ford had 118, 000 employees and valued above US $26 billion(Ford Corporate, 2014). Similar to General Motors, Ford has a massive global market demand. The massive number of employees is used to ensure the success of its production process. However, the corporation has surpassed the participation of General Motors on numerous fronts. For instance, Ford provides tour cars, rally cars, Formula One cars, sport cars and stock car racing(Ford Corporate, 2014). These activities are absent in the operation of General Motors. However, Ford is less superior to General Motors in most global market. The vast options on car models provided GM with an upper hand. The two companies share the same marketing strategy. They both use corporate advertisements to create publicity. For instance, Ford participation in F1 increases its market significance. The two corporations also have effective environmental initiates. Other the years, both Ford and GM have invested significantly to control pollution that may emanate from their production plants. They also offer delivery services for its clients across the globe. However, Ford has a different production strategy. Ford focuses on the creation of one brand on vehicle model. On the other hand, GM has ten brands. This creates the difference in that Ford may focus on perfecting of one brand which may be an advantage. However, GM may be successful in the long term. This is based on that company creates numerous brands of vehicles that may suit the versatile market. Ford relies on a specific market that tends to embrace its one brand and services. Additionally, GM ventured in the production of small cars (General Motors, 2014). This decision was reached after the realization that market had grown a large preference on small vehicles. This process may not affect the operations of the company since it has numerous brands that it may adjust to fit the market demand. The same could be emulated in both slow-cycle and fast-cycle markets. The arguments may justify the assumption that General Motors have a greater competitive advantage that Ford in any market structure. From the arguments presented, one may points out that General Motors have exceptional business level and corporate level strategies. In addition, the success if the organization depicts it market superiority. The argument is justified by compare the success of the corporation for Ford. Regardless, of its less market experience as compared to Ford, the company has dominated the industry above all competitors. References Bradley, J. (2014). Types of Corporate Level Strategy. 22nd July 2014. Retrieved from http://smallbusiness.chron.com/types-corporate-level-strategy-60147.html Ford Corporate. (2014). Retrieved from: http://corporate.ford.com/ General Motors. (2014). Retrieved from: http://www.gm.com/ Vitez, O. (2014). Five Types of Business-Level Strategies. 22nd July, 2014. Retrieved from: http://smallbusiness.chron.com/five-types-business-level-strategies-781.html Read More