Strategic Plan (General Motors)
...Executive Summary
General Motors (GM) has been a leader in the auto industry which over the past few decades has continued to lose market share to foreign competition. The current weak U.S. economy combined with rising fuel prices and increased political pressures regarding global warming, presents several challenges to GM and the entire auto industry. These current challenges provide exciting opportunities for the auto company who can quickly develop and produce alternative fueled vehicles. The global auto industry will continue to grow with 80% of the global auto industry’s growth from now until 2012 is expected to come from emerging markets. However, for GM to succeed they will need to address several internal issues regarding legacy costs, unions, and the development of a wide range of alternative vehicles that consumers deem are “must have” vehicles.
Looking to the future GM has a global presence in these critical emerging markets, and have the knowledge and expertise in alternative vehicle technologies required to move the company forward. For GM to achieve the vision of being synonymous with alternative vehicles (fuel celled hybrid, ethanol, and electric / battery). When consumers think of the innovative technology in the auto industry they think of GM! For this to happen GM can no longer be a quick follower, but must be an industry leader in technological advances in the auto industry. GM must offer a variety of alternative vehicles that meet consumer demands and government regulations.
GM has significant fixed costs and large capital investment needs, so cash flow is the lifeblood and should be considered in every decision which could impact our expenses or require a capital investment. By 2010, GM expects to reduce structural cost as a percent of revenue to only 25%, and by 2012 to only 23%; these would be considered benchmark levels of cost....
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