General Motors has been a long running company that serves to illustrate many vital business lessons. In this essay evidence will be presented that examines the overall position of GM in marketplace. Beginning with a brief history of the company will establish a fundamental understanding. Following that section with an assessment of the recent returns and financial position of GM will illustrate the strength of their current position. Combining the first elements in order to assess their underlying strategic position will serve to illustrate the future potential of the company. In the end, this study will have assessed past practice, modern implementation and future possibilities with the stated goal of determining if GM’s strategic position is best suited for development.
History
` General Motors, or GM, was founded by William C. Durant in in 1908 (Associated Press 1). This modest beginning was followed by solid revenue over the course of the subsequent year, enabling him to bring back many of the older models. Despite the associated rise in sales, the underlying revenue stream was low, forcing Durant out in 1910 (2). After a series of evolutions that include Durant once again gaining, and then losing control of the company GM became a very important part of the American Culture.
Despite the iconic role of the company, the many innovations and successes have been dampened by failures. Chairman Smith lost more than 750 million in 1981, following a flawed marketing plan (Associated Press 2). This was mirrored in the devastating debacle of 1990 that resulted in a major amount of shuttered plants. In 2007 GM set the record in the auto industry by losing more than 38.7 billion dollars (3). Alongside an associated drop in sales, the outlook was dim for GM.
Modern Illustration
The modern General Motors has a relatively strong position in market (Wayland 1). Management has cited a strong growth in the long term value potential, alongside a substantial progress in the associate operating strategy. The broad position of the financial base of GM allows for a profitable growth projection and optimistic outlook for General Motors as a whole (General Motors 1). The diligent reinvestment of resources back into a sustainable growth pattern, has allowed GM to strengthen the foundation of their business and begin to compete in the international Market.
Strategic position
Klum (1) argues that General Motors is positioning themselves in the growing international markets in order to take advantage of development opportunities. This approach is aimed directly at positioning GM within the many emerging markets around the globe so that the company itself will grow with the nations (2). This is a very similar structure to the one followed by them in the United States.
In Conclusion
General Motors is a long running company that has illustrated a variety of business approaches over the years. Modern assessment has the company in a strong position, with a viable argument for growth. Their strategic position in the emerging markets allows them the very real possibility of becoming a fundamental part of many nations. This is a very positive direction, directly in line with their overall goals. In the end, with diligent application of the stated approach, there is every reason to believe GM will be a profitable company in the near to medium future.
Works cited
Associated Press. "A brief history of General Motors Corp.." Associated press, September 14 2008. 2013: 1-3. Print.
This article succinctly illustrates the long running history of General Motors. Providing a solid time line, this source enables a concise overview of the company.
General Motors. "Strategic and Operational Overview." General Motors Financial Company, 1. 1 (2013): 1-12. Print.
This source provided the raw data and numbers necessary to demonstrate the position of GM in the Market. Good to have for background growth evaluation.
Klum, Evander. "General Motors Growth Strategy." Car Guide, 1. 1 (2013): 1-3. Print.
This article provided a real insight as to the strategic position of GM.
Wayland, Michael. "GM CEO and Chairman Dan Akerson's remarks at 2013 annual shareholders meeting."All Michigan Business, 1. 1 (2013): 1-5. Print.
This source allows a clear and in-depth illustration of the GM management. Valuable addition of practical information.
