Submitted to : Prof. Hiren Patel Submitted by : (Group No. O2) Roll no. Name 4 Ankita Brahmbhatt 5 Yogita Chhabhaya 6 Taruna Dalwala

 General Motors Corporation (GM) is a multinational automobile manufacturer founded in 1908 and headquartered in the United States.  General Motors, often known as simply GM, is a U.S. automaker based in Detroit, Michigan with operations around the world. GM was founded by William C. Durant and was the world's second- largest automaker as ranked by global unit sales for U.S.automakerDetroitMichigan William C. Durant  As of 2008, General Motors employs about 266,000 people around the world.

 It manufactures its cars and trucks in 33 different countries and sells them under the brands of Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling.  In recent years the company has endured significant financial turmoil, including a 38 billion dollar loss in 2007.

 GM Leadership  Frederick A. Henderson President and Chief Executive Officer  Thomas G. Stephens GM Vice Chairman, Global Product Development  Ray Young GM Executive Vice President and Chief Financial Officer

 PRESENT OWNERS:  United States Treasury 61 %  United Auto Workers VEBA 17.5 %  Canadian & Ontarian Governments 11.7 %  Bondholders of Former GM

 vision Statement:  “GM’s 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.”  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-holders will receive a sustained superior return on their investment.”

 JOURNEY OF GENERAL MOTORS:-  1908 :- Founded on September 16, in Flint, Michigan as holding company for Buick, controlled by WILLIAM C. DURANT. Acquired Oldsmobile later that year.  1909 :- Acquired many companies & folded into a single unit, called General Motors Corporation.  1910 :- William Durant was removed from the company & bankers prevented financial collapse.

 1911 :- Company advanced to International Market. General Motors Export Company was formed to handle sales outside U.S. & Canada.  1915 :- Durant formed Chevrolet, to come back into GM.  :- The period was full of success. Cadillac became wildly successful. Durant reorganized General Motors Company into General Motors Corporation.

 JOURNEY TO ZENITH: -  1920 :- Thereafter Alfred Sloan took charge of the corporation, thus, giving a fresh lease of life into GM and led to its post war global dominance. During the financial boom in the 1920's, the history of GM virtually glowed with success. Auto sales reached the 4.5 million mark, and the auto industry now had three giants - GM, Ford and Chrysler.

 1930 :- GM bounced back and bought the Yellow Coach bus company. It also bought Electro- Motive Corporation, the internal combustion engine railcar builder.  1955 :- 31st December, 1955, is another landmark in the history of GM. The first company to make more than a billion dollars in a year.

 UPTO 2005:-  Led in Global Sales for 75 consecutive years.  Manufactured cars and trucks in 33 countries.  Employed 2,44,500 people around the world.

 STRATEGIES THAT LED TO GROWTH  Positioning itself in emerging markets so that the company will grow simultaneously with these economies.  Manufacturing of small cars for Brazil as well as other countries including Argentina and Paraguay.  Expand the product development center.

 Hiring & Developing the best talent  Expanding its product base to mid – size trucks  Investing in Emerging market.  Providing right product to the right person  Huge investment in promotional activities.  Continuing to expand global client base.  Emphasis on “Continuous Safety”

 Adopting to a different international marketing strategy.  Focusing on a large number of brands.  Segmenting the market on the basis of cars:- Chevrolet- Entry level car buyers. Opel & Vauxhall- Middle market consumers. Cadillac- Wealthy people. Hummer- Premium market consumers

 BANKRUPTCY OF GENERAL MOTORS:-  GM'S bankruptcy could impact Indian service providers in a small but significant way, immediate impact being delayed payment and ramped down existing project. There will be adverse impact on US steelmaker.  The GM fiasco will boost up the confidence of Asian Auto maker to increase their market share.  GM customers may suffer severe cutbacks

Ford Motor Company:  Ford has been focusing on cutting costs to increase margins more than its competitors. It has used reverse engineering in the development of their products. Thus Ford has been an innovator in the auto industry. Damiler Chrysler: The DaimlerChrysler umbrella covers many well known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep.

 Honda motor company is not your average Japanese car manufacturer. Originally know for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world. Toyota Motor Corporation: Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers.

 S = Strengths  W = Weaknesses  O = Opportunities  T = Threats

 1. Large Market Share  2. Global Experience  3. Variety of Brand Names  4. GMAC Customer Financing Program  5. OnStar Satellite Technology

 1. Behind on Alternative Energy Movement  2. Poor Organizational Structure  3. Stagnant Profitability  4. Overly Dependent on US market  5. Overly Dependent on General Motors Acceptance Corporation (GMAC) Financing  6. Poor Credit Status

 1. Alternative Energy Movement  2. Continuing to Expand Globally.  3. Low Interest Rates  4. Develop New Vehicle Styles and Models

 1. Rising Fuel Prices  2. Growth of Competitors  3. Pension Payouts.  4. Increased Health Care Costs  5. Rising Supply Costs, i.e. Steel

 The core competence of General Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since  In 1911, it conceptualized, engineered and commercialized the self-starter engine for the first time. Then in 1926, its product Cadillac was the pioneer in devising a nationwide service strategy.

 In 1996 General Motors introduced OnStar satellite technology which allows equipped vehicles to be tracked in case of an emergency or theft and allows the passengers to communicate with OnStar personnel. Other new car concepts include minicars such as Chevy Aveo.

 1. Rivalry between existing competitors  2. Threat of entry by new competitors  3. Price pressure from substitute or complementary products  4. Bargaining Power of Buyers  5. Bargaining Power of Suppliers

 Development of alternative fuel vehicle.  Development of Hybrid or Eco- friendly car.  Reduce compensation and headcount.  Reduce the no. of Retail Channel and Dealer network.  Sale some of businesses  Give more responsibility to Managers.

 Good deeds always pays off.  When the cash cows turn into dogs, its better to sell their meat and earn money out of it.  We should be more realistic rather than being over ambitious.  Quality must never be compromised for the sake of crown