Essay about Student

1352 Words May 5th, 2011 6 Pages
GENERAL MOTORS-2005

Presented To: Mr. Mohammad Asim

Presented By Muhammad Atif 092148 Tanvir Ahmed

Summary:

The year 2005 is not good for General Motors. The company face loss $286 million in the second quarter and over $1billion in the first quarter. GM losses are largely tied to be North American operation and rising supply, fuel, healthcare, and pension costs. GM makes money not on auto sales auto financing.GM is overly dependent
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General motors also introduce to new products to the market, allowing for increase in profit. In order to maintain its position as the leading producer in the automotive industry general motors.

PEST:

ECONOMIC FACTORS: * An increase in gas prices. * An increase in a health care trend rate.
SOCIAL FACTORS: * A change in life style to concern more about environment. * Global warming.
TECHNOLOGICAL FACTORS: * Alternative vehicles for alternative energies(hybrid and hydrogen car) * Economic efficient.
SWOT ANALYSIS:
Strengths:
* wide cash reserves * Global network of suppliers and distributors * Economies of scale and scope * Quality improvements * Low cost suppliers through competitive bidding process * Technological know-how for SUVs * Only company to have invested in all 5 alternative fuel technologies * Developed internet distribution channels
Weaknesses:
* Legacy costs/unionized labor force * Brands require large investments to maintain equity and are a barrier to innovative thinking * Poor corporate reputation for green technology * Customer perception of low quality * Poor experience in smaller vehicle production
Opportunities:
* Increasing demand for smaller cars and CUVs * Emerging world markets * Reduce costs through JIT * Demand for environmentally friendly cars * Government subsidies * Increasing

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