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Strategic Management and Leadership (3) - Essay Example

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This report is an effort to have a critical analysis of the company and its external environment in consideration to the decision taken up by the management…
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Strategic Management and Leadership (3)
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Download file to see previous pages The political environment of the location insisted on selling off the German Subsidiary of GM, Opel to the other investors formed by the coalition of Canadian-Austrian Brand Magna and Russian bank Sberbank but the company did not agree to that.
Funding were being offered by government business regulating agencies to the company to remain in the European market with an assurance of providing 5,500 jobs to the people in the Vauxhall unit of the company (Boston, 2009).
More emphasis given on the restructuring of the system in order to resist the effect of the economic crisis and form an entirely new system to provided emergence of new opportunities for business and the employment activities (Brunello, 2009).
Buyer Bargaining Power – The complications between GM and German authorities including the other involved companies influenced the buyers’ decision over GM products. It indicated the strengthening of the bargaining power of buyers.
Competitive Rivalry – The competitive rivalry between GM and other European brands have increased because of the controversial situation of Opel in European market. To perform in such kind of highly competitive environment GM adopted approaches of product differentiation as it supported the company to develop its unique image in its customer group.
Threat of New Entrants – The economic condition of the location does not have potential capability which allows any new organization to enter the market as the economic condition gradually became worse. GM remained out of such kind of pressure as due to several big brands it becomes tough for any company to start its own business in the automobile sector.
Resources – The Company possess a strong resource backing for both tangible as well as intangible resources. Forming strategic partnership has also benefited the organization in generating resources for its production process. To confirm the availability of its resources the ...Download file to see next pagesRead More
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