STRATEGIC MANAGEMENT TERM PAPER - Essay Example

Although external factors have played a very crucial role in the current situation of GM Europe, still, the internal strengths of the company like recognition, state support, global operations, U.S. leadership and many others are making the company capable to avoid the threats of closure. The report also shows that the current opportunities in European market such as demands of fuel-efficient, small cars and green cars are some of the unexplored opportunities for GM Europe. The internal and external factor analysis shows that company is less responding to threats and opportunities than its average ability however, it is efficiently responding towards its strengths and weaknesses.

The SPACE analysis shows that in consideration to the current position of GM Europe, company should adopt conservative strategies such as product development, market penetration. Such strategies will help the company to remain consistent in its revenues and to grow its market shares. During the last year, GM Europe has been planning different strategies however, finally in February 2010; the restructuring plan of the company has been announced. The report critically analyses all different alternatives presented by GM Europe throughout the year.

Finally, selling the percentage of Opel Shares, downsizing, bottom cost cutting, development of green and fuel efficient cars have been considered as the most appropriate strategies for GM Europe. This report also shows the three years projections of GM Europe and it has been highlighted that in 2010 revenues of the company will go in negative, however, breakeven profit is expected in 2011 and positive profit is expected in 2012. The market shares of the company will also grow during this period and costs such as manufacturing costs, fuel costs will be reduced because they are the major parts of restructuring plan.

Therefore, GM Europe survival is