General Motors Rob bray, Luke butler, Danielle griffith, john Hendricks, Cody Johnsen

Internal Assessment:

  • Leading automotive retailer
  • Highly diverse product line
  • 13 billion in cash assets

External Assessment:

  • Strong presence throughout the world market
  • Strong ability to adapt to change
  • Automotive industry increasing

Matrices Analysis:

SWOT Matrix:

  • The evaluation of the SWOT lead to various strategies including enhancing production or creating a more fuel efficient vehicle line
  • The most supported choice included capitalizing on the Chinese market.


  • As GM stands, expanding manufacturing in Chinese markets was more attractive than creating a new fuel efficient product line


  • Crossovers are the fastest growing units for GM across the board
  • The GMC and Chevrolet Truck brands have seen a decline in recent years
  • Sedan sales have remained on a steady growth rate in recent years.

Strategic Recommendations:

Increase Manufacturing in China by 20%

  • Increase manufacturing in China from 5 million units per year to 6 million units per year.
  • Construct a 6 million square foot manufacturing plant in Changsha.
  • Hire 3,000 local employees to man the operation and maintenance of the factory.

Manufacturing in China

Manufacturing Locations


  • a large city, and capital of Central China's Hunan Province
  • Population: 7.432 million
  • located on major highway systems, only a 4 hour drive from Shanghai and Hong Kong

Cadillac sales totaled 116,406 vehicles, up 46 percent helped by the launch of the CT6 sedan and XT5 crossover.

Buick sales hit a new record of 1.18 million, up 19 percent from 2015 totals, aided by the Envision SUV and Excelle GT sedan.

Financial Support

Total Cost: $20 Billion

  • Construction of Factory
  • Training of Employees
  • Initial start up Costs

Expected Return:

  • Increase revenues from 7% to 10%
  • Increase net profit by 7%
  • Increased Manufacturing in China 20%


  • Equity financing would consist of selling almost 600 million shares of stock.
  • Debt financing is the more attractive form of financial support.


  • Approximately 42%

Bottom Line

Spending $20 Billion to create a new manufacturing plant in China will increase overall Chinese production by 20%, increase revenue by 3% and net profit by 7%.


Created with images by mrkumm - "GM"

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