General Motors Group 30: Tian ping, vincent lim, jeremy martin, danielle Wohlert, zi ye

Mission

To earn customers for life by treating customer with respect and providing them breakthrough technologies into vehicles.

Vison

To be the world leader in transportation products and related services.

Internal Assessment

Strength:

  • GM has the biggest market share which is 12.5% in U.S.
  • Their manufacturing facilities are all around the world.

Weakness:

  • Frequent product recalls distress brand image
  • Over reliance on the US market to generate revenue

External assessment

Opportunities:

  • Positive outlook of global automotive manufacturing
  • Growth in China market expected to avg. 3-5% over the near-term with industry volume expected to grow from 25.1M in 2015 to 30M+ by 2020

Threats:

  • Intense competition could adversely impact the market share, sales volume and margins
  • The used car market and the electrical car industry is booming along with the traditional gasoline car industry, which might affect their sales

Major competitors:

Toyota & Ford

Recommendation

Increase the market share in China

  • Sponsorship with reality TV show
  • Focus on increasing SUV sales in China because the the two child policy and requirement of the bigger car will increase in China.

Recommendation

Acquiring Talent Through Scholarship Program

  • Selected 250 Chinese students
  • Top 1% of their province of national exam
  • $80,000 in return for their service at GM

Projected Financial

Cost Analysis

  • Advertising: 14.5 million
  • Scholarship Program: 20 million
  • CSR - Humanitarian Aid: 15 million

EBIT growth of 9.21%

Net Income growth of 13.51%

NPV $12,046.86 with a 10% discount rate

Balance scorecard

  • Target Market: 20-50
  • CSR: Scholarship program and Humanitarian Work
  • Increase cashflow in China market

Conclusion

Credits:

Created with images by frolicsomepl - "car toy impala" • pixel2013 - "christmas tree christmas christmas motif" • Emslichter - "opel vw bulli karmann gia" • MichaelGaida - "auto opel pkw" • allenran 917 - "_DSC0745"

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