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“GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services” (Company Q2 report, 2009). I would now begin this report by giving an in-depth and thorough internal and external analysis of General Motors that led it to its decision to withdraw from its European Operations.
General Motors’ automobile production and sales business was greatly affected by global economic downturn. The economic meltdown across the world and the financial crunch adversely affected the business and sales volume of most of the corporate entities and businesses across the globe. General Motors also felt the pinch of this turmoil and observed a decline in sales and profits because of falling demand of its brands. The increasing levels of unemployment, subsequent reduction in incomes and purchasing power because of higher energy and oil prices increased the inflation that forced consumers to reduce their spending and increase saving. In short, sales decreased considerably and GM with high overheads found it difficult to assimilate the shock. Higher costs of production in European countries where company’s plants are located, weak British pound and “unfavorable mark-to-market commodity hedging” (company Q1 financial report, 2009) are others reasons that added to the miseries of GM. In short, the General Motor’s financial position became so weak which compelled It to announce its Bankruptcy on June 1 (2009).
The money losing units of General Motors in Europe are Opel and Vauxhall. These units observed a drastic reduction in sales (from around 2.2 mn in 2007 to 2.04 in 2008) and profits which tumbled from positive 0.357$ bn (EBT) in 2006 to negative 2$ bn in 2009 (company Q1 financial report, 2009). The sharp reduction in sales and resulting mammoth losses forced GM to sell off its European Operations (Opel and Vauxhall) to an Austrian-Canadian automotive group Magna and its Russian partner
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Strategic Management and Leadership Introduction Strategic management used to analyze the key initiatives taken by the top management of the organizations on behalf of owners that involves performances and resources of external environments (Williamson, Cooke and Jenkins, 2004).
As the report, Developing Strategic Management and Leadership Skills, declares leadership is the supremacy to stimulate people by words, actions and deeds using vision, faith and honesty. Leadership involves fairly inspiring others to follow guidelines which should consist of both bureaucratic (procedural) and substantive (character-based) aspects.
They popularly used the nickname ‘Sonny boys’ since they are the ones who came up with this outstanding innovation in the late 1950s. This is when the two partners decided to go commercial with the Sony concept (Subramanian, 2007). Sony is among the leaders in the entertainment industry as it manufactures numerous entertainment gadgets like video games, televisions, and many other electronic gadgets.
Since its inception at the end of World War II in Japan, Sony has grown to be a market leader in the production of ultra modern electronic gadgets in an environment which many regard as being characterised by rapid changes in technology and also economic growth (Gunther, 2001).
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GM has a strong presence and a matching distribution network in major European Union markets like
Various strategic frameworks have been used to have the critical analysis of the external and internal environment of the company. To share the personal experience of the team members of the group activity a
The company has been continuously moving forward and is developing continuously a strong foundation for the future and for facing the strong completion from the competitors. FedEx Corporation is one among the big giants present in the shipping industry in the world who provide
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