Contingency Plan and Executive Presentation

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Running head: SIGNATURE ASSIGNMENT SWOT ANALYSIS 1

Signature Assignment SWOT Analysis

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Institute

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SWOT Analysis BUS/475 v11

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Selected organization: General Motors

Strengths Weaknesses

The General Motors Company has quality leadership and financial stability and the two are used to promoted creativity and innovation. Additionally, the company has a unique mission and vision that keeps the internal stakeholders focused on keeping the company brand as the leader in the automobile industry. According to Castilla, et al., (2004) the General Motors have diverse products, customer service is of high quality, and the products are considered durable and ones that meet the value of amount invested in buying the products. The company is also established in almost all countries across the globe making the products highly accessible.

The General Motors Company has a complex and costly structure which is driven by employees’ compensation and benefits. This weakness makes General Motors to record a high cost of production which also makes the prices to the product to shoot in the market. Secondly, the company has not been able to improve on energy efficiency something that makes the management and maintenance of the products costly to the user. According to Castilla, et al., (2004) General Motors management team has not been able to establish a positive and effective relationship with the employees leading to high cases of conflicts and labor turnover.

Opportunities Threats

In the world today, there are other developing countries that have great potential for instance African and Asian countries. This is a great opportunity that GM can explore and increase its customer base. Secondly, GM is putting in place measures to produce and supply the market with green energy products a time when the world is encouraging such products. The company can hence take advantage of environment conservation plans to attract and maintain potential clients.

GM is faced with a major threat of increasing cost of raw materials which is threatening the competitiveness of the company. additionally, the prices of fuel are increasing consistently and the fact that GM does not have fuel efficient products means that the products would have a much lower demand in the market paving way for competitors to dominate over GM. Lastly, from time to time there is economic fluctuation in the United States which is GM’s main market and this affects overall sales and performance of the company.

Analysis Summary

 Explain how you would match the business’s strengths to its opportunities.

GM has a lot of strengths and they can be used to match available opportunities in order to

heighten and maintain a high competitive edge in the market. For instance, the quality leadership,

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creativity and innovation can be used to establish in developing countries to attain a dominating

position in such countries. Additionally, since the company is stable financially, the company can

invest in green energy products to meet the already increasing global demand for green energy

vehicles.

 Analyze how you would convert the business’s weaknesses into strengths.

The weaknesses facing and affecting business operations can be converted into strengths.

For instance, the quality leadership can be used to create an organizational culture where leaders

and employees respect and value each other thereby eliminating the poor relationship that current

exists. The financial stability that the business enjoys can be used to embrace better and modern

technologies that can be used to design fuel efficient yet durable and effective vehicles. This would

help the business to have a product that meets the current times lifestyle and economic hardships.

Lastly, the management through the application of leadership skills can design and implement a

cost effective structure that would promote organizational growth attainment but not make matters

complicated.

 Explain the actions the business needs to take to advance its goals and/or expand its competitive advantage.

The main thing that GM ought to do in order to advance its goals is working on developing

hybrid vehicles. This is an effective action because fuel energy vehicles ought to be faced out in

order to conserve the environment. Instead of working on designing fuel efficient vehicles, the

company should work on designing and making cost effective hybrid vehicles while maintaining

high quality products (Ashamalla, Camp, & Abel, 2011). By so doing, the company will have

managed to achieve its mission and vision of providing the world with better and safer products.

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Secondly, the company should make sure that the products are crash free as this would be a main

selling point since other competing brands have not managed to attain such a goal.

 Analyze interrelationships among distinct functional areas of the organization and how it may affect your SWOT analysis.

At GM, there are different functional areas for instance, production, procurement,

accounting, sales and marketing, HRM, and PR among others. All these areas play different roles

but the challenge is that they are interdependent. The interdependency has an impact on the SWOT

analysis. The reason is that if one functional area commits and error, the entire company is affected

and this tarnishes the brand image of the company including areas where perfection had been

attained (Ashamalla, Camp, & Abel, 2011). For instance, the failure of production department to

design and manufacture fuel efficient products has made the company to be declared as one with a

great weakness.

References

Ashamalla, M., Camp, R., & Abel, I. (2011). Competitiveness of the US automotive industry-past,

present, and future. In Competition Forum (Vol. 9, No. 1, p. 158). American Society for

Competitiveness.

Castilla, C., Mayande, N. V., Suarez, I., & Talebi, A. (2004). Strategic Analysis of General Motors

Analysis Summary