General Motors Corporation (GM) is a multinational

automobile manufacturer founded in 1908 and headquartered in the United States. GM is the world's largest automaker as measured by global industry sales and has been the global sales leader for the last 77 years. As of 2008, General Motors employs about 266,000 people around the world.

 It manufactures its cars and trucks in 35 different

countries and sells them under the brands of Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Waling. As of 2008, General Motors is the ninth largest publicly traded company in the world. In recent years the company has endured significant financial turmoil, including a 38 billion dollar loss in 2007.

Vision Statement
The GM vision is as follows: GMs vision is to be the world

leader in transportation products and related services. GM will earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people. The proposed new vision for GM is as follows: For GM to become the automotive industry leader in alternative fueled vehicles and providing superior quality products that global consumers call to mind when they think of quality and innovation. My vision for GM is to be the industry leader in innovation, and where all other industry competition strives to imitate.

Mission Statement
The current GM mission statements are as follows:

Drive improvements in market share, revenue, brands, people, responsiveness, and cost effectiveness through the implementation of global common metrics and best practice sharing. The new proposed mission statement will be as follows: GM will become an industry leader, not a follower. To regain lost market share that was lost to foreign competition, and once again be the auto industry leader in sales and market share in todays global market.

Values Statement
The auto industry just like the global economy is going

through tremendous change, due to rising fuel prices, and environmental worries, such as global warming. GM must use these threats as opportunities, and take advantage of changing consumer buying habits. GM needs to change consumer perception of the company, from a dull, poor quality, vehicles to innovative, quality, and environmentally friendly company.

 To do this GM must portray an image that states that

GM values what the consumer wants and what the environment needs. Listen to what consumers are saying directly and indirectly about GMs current products, and create innovative, green, vehicles that turn consumers into customers. At the same time provide GM stakeholders pride and financial incentives to remain with GM.

Environmental Analysis
GM and the entire auto industry are currently

challenged with the perfect storm. The auto industry is being hit by a weak US and global economy, rising fuel prices, and social and political environmental concerns and issues. In order to overcome these potential threat, GM should consider mass producing a range of alternative fueled vehicles, i.e. fuel cell, electric, and hybrid.

Competitors Analysis

Damiler Chrysler
As the number two auto manufacturer in total

revenues DaimlerChrysler has positioned itself as an industry leader, with this come many strengths. The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world.

Ford Motor Company

Ford Motor Company is a global company with two

core businesses: Automotive and Financial Services. The Automotive business consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Ford has been focusing on cutting costs to increase margins more than its competitors. It has used reverse engineering in the development of their products. Thus Ford has been an innovator in the auto industry.

Honda Motor Company

Honda motor company is not your average Japanese

car manufacturer. Originally know for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world. There are many strengths to Honda. Honda has a reputation for producing high quality products from cars to motorcycles. Honda has won many awards for initial quality and customer satisfaction. Their automobiles are reliable and generally fuel efficient. Their research has afforded them competitiveness in innovative products.

Toyota Motor Corporation

The Toyota Motor Corporation was incorporated in 1937

and has many strengths being one of the industry leaders in the automotive industry. Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers. Toyota has traditionally also been the leader in Total Quality Management or TQM. By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers during the 1980s.

Factors affecting the Automotive Industry (PEST Analysis)

Political
Laws and government regulations have affected this

industry since the 1960s. Almost all of the regulations come from consumers increasing concerns for the environment and the concern for safer automobiles.

Economic
The automobile industry has a huge impact on every

countrys economy. According to various studies this industry is the major user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics, vinyl, and rubber. The study also showed that for every autoworker there are seven other jobs created in other industries. These industries include anything from the aluminums to lead to vinyl.

Sociocultural
Todays society judges people on the type of car you

drive. Manufactures know this happens and targets their markets by these thoughts. Anyone who drives a nice vehicle is thought to be wealthy. Consumers also just feel better when they are driving a nice or new car, if makes them feel better about themselves.

Technology
A study was conducted by J.D. Power and Associates in

2002 and involved more 27,000 new vehicle buyers. The study showed that 60% of the buyers referred to the internet before making their purchases and out of that 60%, 88% went to the auto websites before going and taking a test drive. Business-to-business marketplaces have given the industry many opportunities because of the internet, such as more efficiency and lower cost.

Demographics
For many years now, the baby boomers generation has

been the main target market for just about every product. Right now, the focus is starting to turn towards the baby boomers children (Generation Y) who are in their mid 20s and 30s. According to Analysts, five years from now Gen Y will account for at least 30% of vehicle sales.

Global
General Motors, Ford Motor Company, Daimler

Chrysler, BMW, Volkswagen, Volvo, Toyota, Mazda, and Nissan Motor Company come together to create a new trade association created the Alliance of Automobile Manufacturers.

 The organization was to replace the American

Automobile Manufactures Association that only consisted of American manufacturers, the goals of the associations were to work together on public policy matters of common interest to provide credible industry information and data, and seek consistent global regulatory standards

SWOT ANALYSIS

Strength
Large Market Share
Global Experience Variety of Brand Names

GMAC Customer Financing Program

On Star Satellite Technology

Weaknesses
Behind on Alternative Energy Movement
Poor Organizational Structure Stagnant Profitability

Overly Dependent on US market

Overly Dependent on General Motors Acceptance

Corporation (GMAC) Financing Poor Credit Status

Opportunities
Alternative Energy Movement
Continuing to Expand Globally. Low Interest Rates

Develop New Vehicle Styles and Models

Threats
Rising Fuel Prices
Growth of Competitors Pension Payouts

Increased Health Care Costs

Rising Supply Costs, i.e. Steel

Suggested Strategies
Market Development
Market Penetration Product Development

Restructuring
Retrenchment Liquidation

Implementations
Recommended strategies for General Motors would

start with product development then market development, liquidation, and restructuring. GM must also re-evaluate the market. Restructuring.

Evaluation
The biggest thing for General Motors is to develop a

Hybrid vehicle that will maintain the pace of the competition for the firm as well as one that will stand out from the crowd to make the product new and exciting. Creating a Hybrid SUV is a brilliant idea and if GM can pull that off by the end of 2007 the future could look very bright for them. The company has a huge background proving that they can maintain being number one, it's just a matter of product development being maintained and refocusing products to the correct target markets.