INTRODUCTION TO BUSINESS MANAGEMENT

TERM PAPER

GENERAL MOTORS

BY G.NARENDER REDDY
161316
SECTION-C
1. TITLE:

GENERAL MOTORS

2. OBJECTIVE:

Intensity to Win
Make customers successful
Team, innovate, excel
Act with Sensitivity
Respect for the individual
Thoughtful and Responsible
Unyielding Integrity
Delivering on commitments
Honesty and fairness in action

3. ABOUT THE COMPANY:

Company Description
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile
parts worldwide. The company also provides automotive financing services through General
Motors Financial Company, Inc. (GM Financial). Automotive The Companys automotive
operations meet the demands of its customers through its four automotive segments: GM
North America, GM Europe, GM International Operations, and GM South America. GM
North America primarily meets the demands of customers in North America with vehicles
developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC
brands. The demands of customers outside North America are primarily met with vehicles
developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet, GMC,
Holden, Opel and Vauxhall brands. General Motors led global vehicle sales for 77
consecutive years from 1931 through 2007, longer than any other automaker, and is
currently among the world's largest automakers by vehicle unit sales.

WORK FORCE
General motors employees about 215000 employees .It serves 6 continents and serves
across 23 time zones.

COMPANY PRODUCTS
Automobiles
Automobile parts
Commercial vehicles
REVENUE

US$152.35 BILLION (2015)

WORLD PRESENCE
North America
South America
Europe
Asia
Africa

COMPETITORS
Ford
Chrysler
VW Group
Fiat Group
GENERAL MOTORS.

4. BUSINESS INDUSTRY OR TYPE RELAVANT TO THE COMPANY:

GM motors is an automotive industry.
The automotive industry comes under secondary industry.
It takes the output of primary industries as inputs.

Automotive industry is a wide range of companies and organizations involved in the design,
development, marketing and selling of motor vehicles.

5. MANAGEMENT THEORIES:
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of direction
6. Subordination of individual interests to general interests
7. Fair Remuneration to employees
8. Centralization and Decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of use of personnel
13. Initiative
14. Spirit of Co-operation (Spirit de crops)
6. PLANNING MODULE:

General Motors Mission Statement:

"G.M. is a multinational corporation engaged in socially responsible operations, worldwide.
It is dedicated to provide products and services of such quality that our customers will
receive superior value while our employees and business partners will share in our success
and our stock-holder will
Receive a sustained superior return on their investment."

General Motors Vision Statement:

"GMs vision is to be the world leader in transportation products and related
services. We will earn our customers enthusiasm through continuous improvement driven
by the integrity, teamwork, and innovation of GM people."

OBJECTIVE
Safety and Quality First
Create Lifelong Customer
Deliver Long-Term Investment Value
Innovate
Make a Positive Difference.
Enhance growth and profits in its worldwide markets
Create operational and product guarantees

SWOT ANALYSIS
STRENGTHS
Global presence
New vision and strategy
Strong brand portfolio
Strong presence in China
Knowledge of home market
4 well performing brands

WEAKNESSES
High cost structure
Brand dilution
Bureaucratic culture
Car recalls

OPPORTUNITIES
Positive attitude towards green vehicles
Increasing fuel prices
 Changing customer needs
Growth through acquisitions

THREATS
Fluctuating fuel prices
New emission standards
Rising raw material prices
Intense competition
Exchange rates

PORTERS FIVE FORCES:

1. Threat of new entrants:

The threat of new entrants is low because of high barriers to entry and heavy
investment and other costs.

2. Suppliers threat
Suppliers threat is low. Suppliers rely on the automakers, so they could not build
vehicles on their own. Moreover, the raw materials are almost of different commodities
(paint, steel, glass, oil etc.)

3. Threat of substitution
Threat of substitution is high. There are many other car brands like ford, GENERAL
MOTORS other than US brands. Their switching costs are also low.

4. Competitor threat
Competitors threat is very high. There is very minimal growth in this industry, and all
the companies are stuck in this

5. Internal rivalry
Rivalry between existing competitors with the rise of foreign competitors like
GENERAL MOTORS, Honda and Nissan in the 1970s and 80s, rivalry in the American auto
industry has become much more intense. Firms compete on both prices and non-price
dimensions. The price competition erodes profits by drawing down price-cost margins

BCG matrix:
BCG MATRIX ANALYSIS OF GM:
BCG Matrix method is based on the product life cycle theory that can be used to determine
what priorities should be given in the product portfolio of a business unit
 To ensure long term value creation ,high growth products and low growth products should
be undertaken by the companies in need of cash inputs and generate a lot of cash
respectively
Determining the factors of industry and as well as firms businesses is playing an essential
role for gaining competitive advantage in the global market.
Till before two decades, oil prices had gone up with high percentages .so that, this and the
environmental factors had out shed the automobile sector to fuel efficiency vehicles.
With the consideration of BCG matrix applied to GM, GM should pull off the brands like
Pontiac, hummer which are fuel efficiency and oil-guzzling cars.
Furthermore, more investment should put into producing smaller fuel efficient vehicles, and
also HEVs.

CORPORATE STRATEGY:
GM purpose begins with a few simple but incredibly powerful words. we are here to earn
customers for life .our purpose shapes how we invest in our brands around the world to
inspire passion and loyalty .It drives us to translate breakthrough technologies into vehicles
and experiences that people love .It motivates the entire GM team to serve and improve the
communities in which we live and work around the world .over time its how we build GM
into the worlds most valued automotive company.

7. ORGANISING MODULE:
General motors structure was decentralized. They bought in the concept of organization
structure based on business units GM was based on many business units like BUIC, CHEVY,
OYM, CADILLAC, PONTAC.
Responsibilities and Duties
To carry out its responsibility, the Committee shall regularly undertake the following activities:

Financial Statements
Discuss with management and the external auditors the annual audited financial statements and
quarterly financial statements prior to filing. These discussions may be general, covering the type of
information to be disclosed and presentation to be made, and need not take place in advance. The
Committee may be represented by the Chair or a subcommittee to review earnings announcements.

External Auditors
Select, engage, evaluate, and, if appropriate, terminate or replace the external auditors, including
any external auditors who audit the financial statements of GMs direct and indirect subsidiaries
Review reports by the external auditors regarding: their internal quality control procedures; any
material issues raised within the preceding five years by the most recent internal quality control
review, peer review, or by any inquiry or investigation by governmental or professional authorities,
and any corrective actions taken; and all relationships between the external auditors and GM.
Review and discuss the scope and plan of the independent audit.

Internal Audit Staff

Review the performance of the internal audit function including the objectivity and authority of its
reporting obligations.
Approve the GMAS Internal Audit Charter, budget, staffing, and annual audit plan.
Review and concur in the appointment, compensation, rotation, and if appropriate dismissal of the
General Auditor.

Legal, Compliance, and Risk Management (NYSE)

Establish procedures for reviewing and handling complaints or concerns received by GM regarding
accounting, internal accounting controls, or auditing matters, including enabling employees to
submit concerns confidentially and anonymously.
Review managements disclosure of any frauds that involve management or other employees who
have a significant role in internal control.

8. LEADER SHIP MODULE:

Leaders in general motors company
Mary T.Barra : chairman & CEO of general motors company
Dan Amman : president of general motors company
Alan Batey : Executive vice president and president, North America
Daniel E.berce : president and CEO ,GM financial
Alicia Boler Davis : Executive vice president, global manufacturing
Leadership style:
The leader ship in GM is more of coaching style and supporting style
When we look at Barras (CEO) approach it is dramatically different, one that relies on
team-building.
She holds hall meetings to solicit advice on project direction. she challenges
engineers and designers to rethink their assumptions
In any case her motto is lets all figure this out together
This shows her creative leadership

9. CONTROL METHODS ADOPTED BY THE COMPANY AND CONTROL TOOLS

USED

THE CONTROL TECHNIQUES

Establishing Standard
Standard are defined as rules or measures established for making for comparisons and
judgments.
Quality standards
Quality Standards are used to define the degree of excellence of raw materials, finished
products and by extensions, work performed.
Quantity Standard
Quantity standard are defined as measures of weight, count or volume used to make
comparisons and judgment.
Standard cost
Standard Cost is defined as the cost of goods or services identified, approved and accepted
by management in order to make judgment and comparisons of the effectiveness of the
operation. Thus standard cost must be calculated as accurately as possible.

CONTROL TOOLS:

Brainstorming
Flow charts
Cause and effect
Histograms
Pareto charts
Control charts
Scatter diagrams

10. COMMUMICATION CHANNELS AND METHODS:

In GENERAL MOTORS there are several communication methods by which

employees share their ideas, information, opinions and feelings. The following are some of
the methods: news-letter, face to face, notice board, memo, e-mail, telephone, cell phone,
text messages, and instant messaging. The sharing ideas, information, opinions and feelings
contribute to the operations of teams and the work of individuals within the corporation.
Thus, communication in this corporation is a two-way activity between two or more people.
There are various modes of communication, some of which are used more commonly in this
workplace than others.
In the GENERAL MOTORS Corporation where I did my research, communication skills are
very essential because the employees utilize these skills to help the company compete with
other companies like Kia, Honda, and many others.

13. Learnings from the Assignment:

From this assignment I had learned how a company follows particulars
strategies for its development, and how does a company plan its strategy to improve its
output, trends and practices of the company, and also how does a company follow profit
and loss methods for improving their position in the market.

14. Executive Summary

GM is primarily engaged in the design, development, manufacturing, and marketing of
automotive products worldwide. They employ 243,000 people around the world (not including
employees at joint ventures) and manufacture vehicles in 34 countries. In 2008, they sold 8.4 million
vehicles.
During 2008, industry continued to experience significant change and intense global competition
in both mature and emerging markets. GM set aggressive goals for ourselves in key areas of
customer focus: superior design, quality, fuel economy, safety, technology, and value, and
redoubled their efforts to restructure operations in more mature markets to ensure ongoing
competitiveness and grow their presence in emerging markets around the world. Despite strong
progress in the areas of design, quality, and fuel economy throughout much of 2008, the rapidly
deteriorating economic environment during the last quarter made achievement of financial
objectives impossible. Due to the precipitous and widespread economic downturn that occurred,
global sales volumes declined significantly to a point where they applied for federally-funded
assistance under the provisions of the Troubled Asset Relief Program (TARP) and on December 31,
2008, entered into a loan and security agreement with the United States Treasury.
In this highly competitive business environment, it is critical, more than ever, to attract, retain,
and motivate leaders who understand the complexities of their industry and can deliver business
results for the benefit of its stockholders and other key stakeholders. While we know fair and
competitive compensation programs are an important element in GMs ability to do this, we also
recognize the need to link the compensation our executives actually receive with their business
performance.