LASA 1 - Due by 5/1/13 by 4pm

Selection and Description of Organization

By: Dawn Branzei

Business Tactics and Execution

Argosy University

April 24, 2013

Introduction

Fortune 500 is an annual list of the 500 largest companies in the United States as compiled by FORTUNE magazine. Collective performance of the Fortune 500 companies may be seen as one indicator of the country's overall economic performance. The list is put together using the most recent figures for revenue and includes both public and private companies with openly available income data. When a company is listed on the Fortune 500 it is a status symbol that proves the success of the business. The Fortune 500 list is made up entirely of U.S. companies. One of the companies that have made it on the list is General Motors (GM).

General Motors (GM)

Commonly known as GM, General Motors is an American international motorized corporation. It’s among the world’s largest automobile makers by vehicle unit sales (Gall R T, 2011). The company was founded on September 16, 1908 by William “Billy” Durant in Flint, Michigan. The inspiration that led to the creation of General Motors in 1908 was the decision by William C. Durant, "king" of the Flint carriage makers, to take control of the tiny and almost bankrupt Buick Motor Company in Flint on Nov. 1, 1904.At its beginning GM held only the Buick Motor Company, but in a matter of years it would acquire more than 20 companies. Currently, the corporation’s headquarters is based in Detroit, Michigan. The corporation is located in 157 countries worldwide. Their website (www.gm.com) offers a wide range of information about the company.

Organizational strategy

Organizational strategy is the discipline and knowledge that changes strategic intent into organizational capability, commitment and performance. Developing an organizational strategy for a business involves first comparing its present state to its targeted state to outline differences, and then stating what is required for the wanted changes to take place. At GM, their focus is on a single global vision which is to design, build and sell the world’s best vehicles. This powers the development of first-class world products that are winning in the marketplace, and helping to transform their business and strengthen their stability (Wisner, J. D., Tan, K. C. and Leong, G.K., 2011). Their strategy includes the following:

Designing, Building and Selling

They focus on core brands that have been there since its creation. They leveraged global resources to create the most fascinating vehicles and technologies, also leading in the research and development of advanced technologies to reinvent the future of transportation. By enhancing their global impression to efficiently develop the best vehicles they maximize the efficiency of operating their facilities in a globally and socially responsible way. To maximize their revenues they must do this with a focused product approach.in the delivering of world-class vehicles to the marketplace they offer their customers a developed outstanding value, with lower motivations and appropriate pricing that is averagely affordable.

Reinvesting

By consistently investing cash and profits into vehicle and technology development at strategic points in the business cycle helps improve the outcome of their products.to ensure economic viability of the company a lot of financial strength is put to work by the whole organization regardless of the business cycle.

Business model

This is the plan implemented by a company to generate revenue and make a profit from operations by the company. The process of business model structure is part of a business strategy.it describes the logic of how an organization creates, delivers, and captures the value of their product. A business model can be simple or very complex regarding the way a company plans to make money. In GM, the business model revolves around their vision to design, build and sell the world’s best vehicles. Each of these steps has been discussed earlier in the organizational strategy section. They put their customers first by appreciating them with compelling products that eventually enables the company to gradually reinvest in new products and technology.

Products and/or Services

Their products vary from electronic and mini-cars to heavyweight full-size trucks or heavy commercial vehicles, convertibles. General Motors’ self-motivated brands offer a wide-range of vehicles in more than 120 countries around the world. They also have substantial equity stakes in major joint ventures around the world. Their brands tend to make an emotional connection to their customers from the very first time they get behind the wheel in any corner of the world. General Motors continues to develop advanced technologies to shape the future of the automotive industry.

The GM industry

This a full communications, infrastructure and renewable energy company, which was established in 1980, as an electrical and electronics services company.it has been known to deliver high quality performances for over 30 years. It also includes offering top level customer care and support and high standard installation services. GM Industries has been dedicated to implement a strategic plan in developing the company into a full service communication organization and renewable energy company serving a wide- range of customers across the USA.

Market

The market positioning of a company, is the process by which marketers try to create an image or identity in the minds of their target market for its product or organization (Banks T. L. ,1993). If a product is well positioned, it will have strong sales, and it may become the go-to product for people who need that particular product. Poor positioning, on the other hand, can lead to bad sales and a bad reputation.

At GM, their product comes first but the market share has been known to fall in the past years going as low as 17.5% since 1922.their optimism though has kept them at the top.GM will be refreshing 80% of its U.S. line-up by 2014 - more than any other auto maker (Pride W.M., and Ferrell O.C. , 2007). With this said, GM is transitioning towards becoming an auto manufacturer focused on growing profits instead of just scrambling to hang on to market share for the sake of having market share. But if they plan on maintaining their position in the fortune 500 list, they will have to come up with new designs that had better be superior to the older models being offered by its competitors.

Conclusion

GMs future will only get brighter considering the principles that guide them like always putting the customer first. They are leaders and they clearly know the definition of success. A good population of people is familiar with GM. There is information that can be found by using several sources online, the internet, and magazines by different publishers across the globe. Some of the main sources include: The (GM) website where they have the whole history of the company up to date, the fortune 500 website and the fortune online magazine that creates the list of the most high ranking companies in the world where GM has made it to number 5 at some point, the Forbes website which has reliable business and financial news and also the new york times which acts as a news delivery channel on all platforms.

References:

Banks, T. L. (1993). Distribution law: Antitrust principles and practice. Boston: Little, Brown.

Gall, R. T. (2011). General motors: Life inside the factory. S.l.: Authorhouse.

Pride, W. M., Pride, W. M., & Ferrell, O. C. (2007). Foundations of marketing. Boston: Houghton Mifflin Co.

Wisner, J. D., Tan, K.-C., & Leong, G. K. (2011). Principles of supply chain management: A balanced approach. Mason, OH: South-Western.