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Sunday, March 10, 2019

Swot Analysis Gm

Solongo Burennemekh Marc Hamilton Management Practices 24 October 2012 GM SWOT Analysis superior general Motors (GM) is the i of the liberalgest car manufacturer high society in the world. It was established in September 1908, headquartered in Michigan and Detroit. They do financial and automobile business all oer the world, and they are very successful Multinational Corporation in the U. S. However, because of the bang-up recession, they suffered some financial conditions and crisis. In November 2010, GM made the worlds largest initial public offering (IPO) and that decision bring them a dexterous future (About GM).In the past hundred years, GM tries to suit its threats into opportunities, maximize its strengths as much as possible, and struggle to overcome its weaknesses. The company history said that they go for various strengths and opportunities. Large trade capitalisation could be one of the primary strengths of GM. According to the bumpkin Finance, GMs market capita lization equals $37. 38 billion U. S dollar and they have 8. 1 billion helpings outstanding in the job market (General Motors). They increase their size of market capitalization by doing IPO in 2010, so they raised $20. 1 billion on the U. S stock exchange market.Even though GMs market share change magnitude and they were in unsuccessful person in 2009, the company recovered its market share successfully and renewed its investors confidence (About GM). GM is leading Multinational Corporation in the world, which means they have treasured global experience in the global markets. Therefore, the global experience could be other key strengths of GM. For example, they increased their global market share by 0. 4 per centum from 2010 to 2011. In the Chinese automobile industry, GM is the market leader, and their sales and joint venture partners are change magnitude continuously (10-K).They discharge business more than 150 countries, and they have complex assembly line, scattering network, manufacture, and warehousing operations in more than 60 countries. In growth of those strengths, GM has strong brand name and portfolio. Although they cut its brand name calling much(prenominal) as, Pontiac and Saturn and sold hummer to China, they still have Cadillac, GMC, Chevrolet, and Buick (About GM). Despite their strengths, they have some weaknesses such as, low debt pass judgment, bankrupt, and large amount of debt. Standard & scurvys gave its first AAA credit rating to GM in 1950s, and GM held its highest credit rating until 1980s.Nevertheless, because of the great recession, the northwest Americas vehicle demand declined sharply, and it affected for GMs sales volume poorly. The company suffered deep financial crisis, and Standard & Poors lowered its debt ratings CCC- in 2009 (Maynard, par. 7). However, in August 2012, GMs credit rating gets upgraded to BB+, which means they overcome its weaknesses (Bomey, par. 2). Moreover, in 2009, GM filed its bankruptcy. As a result, GM laid off its thousands of employees, c resortd its plants and lost its dealerships. The U. S government gave $49. billion bail out to GM to avoid bankruptcy and restructure their operations in 2009 (Amadeo, par. 1). However, some people reported that the U. S government wasted billions of taxpayers money, and GM is going to file bankruptcy again, unless it is not true. GMs total sales and net income is increasing since 2009, and Canadas largest credit rating agency reported that they have strong financial profile. Therefore, GM has proved its financial profile and tries to beat its weaknesses (Amadeo, par. 2). Additionally, they had $9. 5 billion loan from Canada, and if the U.S government cut of GMs immediate payment payment, IPO, interest, and dividends, they still have $25 billion to be repay (Rosevear, par. 3). This big amount of loan and interest payment could be one of the biggest weaknesses of the GM corporation. Even so, GM still has strong opportunities in the automaker industry. For example, GM has big opportunities in emerging market. In 2011, GMs 72. 3 percent of the vehicle sales generated outside in the U. S, and it includes 43. 4 percent from emerging market. Industry analyst forecast growth of around 12. million units in only for emerging market for the next 4 years. In this forecast, China, Russia, India, and Brazil have the highest increase of demand (About GM). In recent years, hybrid electric vehicles demand is expect to increase, so GM heap take advantages from that market. Since 2010, the financial market is becoming stable, and the purchasing military force of the consumer is increasing. This could be another opportunity for GM. Additionally, GM has the millions of loyal customers, so they can keep and attract their customers to offer more efficient and higher-quality car.Because of the high competitory automaker industry, GM still has some threats. Fuels and oils are the limited imagery of the world, and its pric e is increasing continuously. As a result, consumer may prefer more fuel-efficient and small car, or bicycle. Because of this threat, GM can lose its customer. Also, the company confront high labor and raw material cost due to the economical downturn. If they do not decrease their labor and material cost, they will lose their opportunities. Even though GM tries to do its best, it has lots of strong competitors such as Toyota, Honda, Ford, and Nissan.Therefore, it is not easy to be the leader in the automaker industry. Also, the recent report said that the demand for developed market is expected to decrease in the future such as, Western Europe and Japan. referable to the fact that GMs sales volume is going to decrease, they cannot fall upon their goals (About GM). However, by using their strengths and opportunities, they can overcome their threats. working Cited About GM. General Motors. General Motors. 2012. Web. 22 Oct. 2012. Amadeo, Kimberly. The Auto Industry Bailout. Abou t. com US economy. About. om 28 Mar. 2012. Web. 24 Oct. 2012. Bomey, Nathan. GM Credit Ratings Get Upgraded. Mail Tribune. Dow Jones topical anaesthetic Media Group, Inc. 27 Aug. 2012. Web. 24 Oct. 2012. Form 10-K. SEC. gov. Web. 24 Oct. 2012. General Motors. Yahoo Finance. Yahoo Inc. 2012. Web. 24 Oct. 2012. Maynard, Micheline. Bankruptcy Specter Raised as Rating on GM Debt is Cut Anew. The New York Times. The New York Times Company. 13 Dec. 2012. Web. 24 Oct. 2012. Rosevear, John. When Will GM Pay Us Back? The vary Fool. The Motley Fool. 22 Mar. 2012. Web. 24 Oct. 2012.

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