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General Motors - Essay Example

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In the paper “External Analysis of General Motors” the author provides PESTEL analysis of General Motors’. General motors’ has played a considerable role to the development of the United States and a global economy. General Motors’ also had a huge economic impact in its areas of operations…
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External Analysis of General Motors External analysis of general motors General Motors has remained one of the most competitiveautomobile companies both in the United States and globally. It forms part among fewer companies that embrace the use of technological advancement to aid its production process. The company engages in the production of small personal cars to heavy commercial trucks that are meant to carry heavy loads (GM, 2014). General motor company has been involved in automobile industry for over 100 years producing various models that meet customers’ tastes and preferences. Below is comprehensive external analysis of General Motors (PESTEL ANALYSIS)
PESTEL analysis
Demographic factors
According to its mission statement, General Motors’ strives to improve the organizational market share by expanding market margin to a vast community through responsiveness and production of quality and in sufficient quantity, which ensures consistency in supply to the population in demand of such products. During the duration of its existence, General Motors has engaged in the production of models that target specifically the baby boomers generation. This constitutes of a younger generation who are aggressive bout simple, stylish models that go with fashion. Latest statistical analysis points out that the company has targeted customers in mid 20 who accounts for almost 50% revenue returns from the sale of vehicles (GM, 2014).
Economic analysis
General motors’ has played a considerable role to the development of the United States and a global economy. Based on the national financial reports of the United States, the company has contributed a higher percentage of economic development for a longer duration since its launching into operation. Not only to the United States, has General Motors’ also had a huge economic impact in its areas of operations. In essence, the organization has triggered operations of the other industries such as aluminum and textile that supply raw materials to the industry. In addition, the company has also created job opportunities both directly and indirectly to a significant number of populations (GM, 2014).
With influence from both the government and members of the public, the company has constantly implemented different policies to harmonize mutual coexistence of all members of the society with customers invoking dominance on to the progress of the business (GM, 2014). The latest amendment was the environmental protection agency act, which ensures that any by-product generated by the company is less effective towards environmental degradation.
Social cultural factor
With the current trend in modern life, most members of the society associate status of life with the car the person drives. Whereas, wealth and richness associate nice vehicles, dilapidated vehicle would make somebody feel odd within the society. Therefore, general motors’ has implemented this into practice by producing simple, stylish private cars thus been able to improve its economies of scale. The organization understands that achieving competitive strategy is clearly based on the reward clarifies (Horsler, 2011).
Technological factors
According to Horsler (2011), presence of technology, especially the use of internet has greatly transformed the operations in every automobile industry where general motors has been of no exception. For instance, the rate at which customers use online engagements to process transactions concerning car purchases has exceeded manual operations thus general motor has put in place procurement management system to enhance the processing of such transactions.
Global factor
On the contrary to the American automobile manufacturers association that only embraces automobile companies in the united States, General motors’ has enforced alliance as a consideration among its strategies. By forming a global alliance with companies such as Toyota of Japan and Volvo of Germany, the companies have been able to share vital pieces of information necessary to improve production standards globally. The alliance is also important in furnishing with General motors’ with global production standard that would help the firm in achieving its competitive edge (Horsler, 2011).
General Motors. (2014). General Motors Corporate Website. Accessed on 22 May 2014.
Horsler, J. (2011). MBA in action: how you can succeed in making millions. Leicester: Matador. Read More
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The topic of "General Motors" is quite often seen among the assignments in college. Still, this essay opens a brand new perspective of seeing the issue. I’ll use the idea for my own essay.


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