General Motors Group 15

What are we doing?

  • Increasing quality control so no external failures occur
  • Using OnStar to reach customers after external failures are realized
  • Launching Family Safety Marketing Campaign
  • Advertising Campaign in North America
  • Family Safety
  • Truck and SUV

Why are we doing it?

  • Brand Impairment
  • All the Cars GM Has Recalled This Year Would Wrap the Earth 4 Times
  • Operating profits fell $6.5 million in 2014 ($4.1 billion in repair costs)
  • Increasing Truck and SUV market ( 63% of total vehicle sales in 2016)
  • Increase customer satisfaction
  • Costs 10X to acquire new customer rather than keeping current customer

How are we going to do it?

  • OnStar Notification Process
  • Longer testing period
  • Increased oversight
  • Wifi Promotioal Campaign
  • Family Safety Adverting campaign

How much is it going to cost?

Human Resource Management Expenses:

  • Quality Engineering Team ($73,000, Total; $365,000)
  • Quality Control Specialist ($54,000, Total; $216,000)
  • Quality Assurance Manager ($102,834)

Marketing Expenses:

  • $3 million advertising campaign (commercial, social media, etc.)
  • Unlimited WiFi for 90 days ($330 million)

Financial:

  • IRR: 23.32%
  • NPV: $1.11 Million
  • Gross Profit Without: 39.21 VS With: 39.76
  • ROA Without:20.59% VS With 21.21%
  • Net income without year 2021: $47 B VS With: $49 B
Created By
Nicole Podlecki
Appreciate

Credits:

Created with images by MDGovpics - "General Motors Baltimore Operations Plant Tour with Sec. Hilda Solis" • geralt - "businesswoman presentation suit" • MDGovpics - "General Motors Baltimore Operations Plant Tour with Sec. Hilda Solis" • cletch - "OnStar Command Center Tour" • nan palmero - "Chevy Mancation" • Tim Balogh - "Muddy Chevy Silverado Emblem" • DrivingtheNortheast - "Chevrolet Introduces MyLink" • nile - "hourglass time hours" • MDGovpics - "General Motors Baltimore Operations Plant Tour with Sec. Hilda Solis" • StartupStockPhotos - "office startup business" • Nagy David - "Hummer" • muneebfarman - "online marketing internet marketing digital marketing" • free pictures of money - "Money" • free pictures of money - "Money" • stevepb - "tax forms income"

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