Automotive industry Analysis Paper Example

General Motors was founded in September of 1908 by William Durant during a time that there were less than 8,000 in the United States. Durant was already known in Flint, Michigan for his horse drawn vehicles. “At its inception GM held only the Buick Motor Company, but in a matter of years would acquire more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac. ”(History & Heritage-Creation,” 2014) General Motors set the tone in the automobile industry with design, production and marketing.

“With the philosophy and strategy of “a car for every purse and purpose,” and a series of landmark innovations that changed the automobile itself, GM’s vehicles went beyond transportation, becoming statements and aspirations in their own right. ” (“History & Heritage-Acceleration,” 2014) General Motors continued to prosper even through the economical and political during World War II, by being committed to their innovative ways. As time went on General Motors initiated the use of unleaded gas in engines, airbags and catalytic converters.

After World War II, General Motors started to decline due to Japan and Germany doing more business with the United States and the cost of fuel rising. GM started to expand internationally by creating more facilities outside of the US. GM also started joint ventures with China, Toyota and Saturn. “However, legacy costs from earlier years continued to weigh on the company, and Japanese, German, and Korean competitors pushed into the lead in most passenger car segments.

”(“History & Heritage-Globalization,” 2014) “However, in 2008, a major recession and global credit crisis drove car sales to near depression levels and dried up private sources of capital. GM, critically short of operating cash, received a bridge loan from the U. S. Treasury, under the conditions that the company further accelerate a tough restructuring of its us operations that had been underway for several years. ”(“History & Heritage-Innovations&Challenges,” 2014) In the later years of the company they filed for bankruptcy and a new smaller General Motors company was made.

it focused only four brands but was still global and utilizing 70% of its sales from outside of the United States. “Re-emerging at the new GM is the competitive spirit that, for decades, drove GM to leadership in styling, technology, engineering, marketing, and other key areas of the auto business. This spirit guides the new GM as it works to design, build, and sell the world’s best vehicles. ”(History & Heritage-Rebirth,” 2014) According to the Business Dictionary online, structural organization is “the typically hierachichal arrangement of lines of authority communications, rights and duties of an organization.

Organization structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. ”(“What is Organizational Structure,” 2014) An organization’s structure depends on there purpose and mission plan. General Motors feels that strong leadership is very important role to their organization. They incorporate a horizontal organizational structure where they focus on being an innovative group of employees.

“Human relations is the process of training employees, addressing their needs, fostering a workplace culture and resolving conflicts between different employees or between employees and management. ””The Importance of Human Relations In the Workplace,” 2014) General Motors is about teamwork and not so much individual roles. This is how they are able to expand their vehicle’s looks and features and their role as leaders in key areas of the auto business. Being a strong teams helps them to be cohesive as a company. General Motors targets the global customer or the diverse people, meaning they have no set type of customer.

Their customer range is very diverse. They want to make a person from San Paolo to feel just as happy with a purchase from them as a person in Detroit would. General Motors focuses on bringing their customers innovation as well as reliability. The prices of their vehicles vary so that it’s affordable to every economic class. For example, a consumer can purchase a small new Chevrolet for around $13000 while another consumer can purchase a luxurious Cadillac Escalade for $70000. Regardless of the price General Motors has put their innovative engineering on both vehicles.

Not only with the US brands but with their foreign brands such as Opel and Vauxhall as well. General Motors is stepping up it’s communication strategy and utilizing social media. Social media such as Facebook, Twitter and Instagram are very important to consumers in this day and age because this is a technology driven world. Social networking can make a business better but it can also show a company’s flaws. It allows companies to engage with their customers and potential customers in a different way than before. It’s also a way to reach a lot more people, for example, General Motors has almost 575,000 likes on Facebook.

Consumers now have the option to publicly praise or criticize General Motors for millions maybe even billions of people to see over social media. As a company their communication between employees is crucial to a horizontally structured company. With trying to be known for their innovation it takes much communication between employees so that plans can come together for the company. I believe that General Motors communication is effective. Using the recent ignition recall as an example, GM used social media to notify customers of the recall and further required actions.

Not all people communicate the same so using as many forms of communication can help improve their already vast communication. If they were to take their one on one meetings, department meetings, and company emails to the next level and include a company employee blog or a newsletter then communication would be improved. GM wants its team members to be all about doing what the customer wants. They also have to be diverse just like the customers. Teams for General Motors are carefully selected based on five principles: 1. Safety and Quality 2. Create Lifelong Customers 3. Innovate 4.

Deliver Long Term Investment Value 5. Make a Positive Difference. To make managerial decisions GM maintains internal control. Internal control is defined as “systematic measures (such as reviews, checks and balances, methods and procedures) instituted by an organization to (1) conduct its business in an orderly and efficient manner, (2) safeguard its assets and resources, (3) deter and detect errors, fraud, and theft, (4) ensure accuracy and completeness of its accounting data, (5)produce reliable and timely financial and management information, and (6) ensure adherence to its policies and plans.

”(“What is Internal Control,” 2014) In the automobile industry, “For the first time General Motors is the car company with the best quality, according to J. D. Power & Associates’ annual automotive survey. ”(J. D. Power Ranks GM Top in Quality for First Time, 2013) GM improved the quality of vehicles and moved up the ladder from 7th place to first. The performance of the company is greatly improving due to human capital. All employees are not equal and General Motors recognizes that and that is why they have leaders with top resumes.

Corporate Officer and Senior Vice President, Tony Cervone, has held top communication jobs for major companies including United Airlines and Chrysler. General Motors shows that they are investing in their company by who they put in top positions. Combining “education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. ” (“Human Capital,” 2014) General Motors ranks number seven on the Fortune 500 lists amongst other top companies such as Walmart, Exxon and Apple. I think General Motors can improve on employee motivation and employee to management relationship.

General Motors needs to implement a cross functional communication strategy. This strategy will take representatives from each department such as human resources, finance, and legal so that everyone has their own outlook and can come together with their ideas to effectively communicate with all aspects of the company. General Motors also needs to keep their leadership strong, which will make the company cohesive and unified. Upper management has a lot of power that can be utilized for employees to feel heard and that will lead to other employees being motivated. The organization does operate in an ethical manner.