General Motors Company, commonly known as GM, is an American multinational holding corporation headquartered in Detroit, Michigan that, through its subsidiaries, designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors produces vehicles in 37 countries under eleven brands, including Chevrolet, Buick, GMC, Cadillac, Baojun,Holden, Isuzu, Jie Fang, Opel, Vauxhall, and Wuling.[5][6] General Motors employs 212,000 people and does business in 157 countries.[1] General Motors is divided into five business segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA), and GM Financial.[4](pp12, 13)

General Motors led global vehicle sales for 77 consecutive years from 1931 through 2007, longer than any other automaker, and is currently among the world's largest automakers by vehicle unit sales[7]

General Motors acts in most countries outside the USA via wholly owned subsidiaries, but operates in China through 10 joint ventures.[4]:pp.18,

96 GM's OnStar subsidiary provides vehicle safety, security and information services.

In 2009, General Motors shed several brands, closing Saturn and Pontiac, and emerged from a government backed Chapter 11 reorganization. In 2010, GM made an initial public offering that was one of the world's top 5 largest IPOs to date and returned to profitability later that year

 Company Profile1928: GM enters India. Produces cars under the Chevrolet and Vauxhall brands. It also produces Trucks under the Bedford brand.1954: GM exits India due to unfavorable business climate. It produces386,000 vehicles during this period.1988: Hindustan Motors begin to manufacture Isuzu trucks at the Halol plant. The plant is closed due to unfavorable exchange rate.1993: GM re-enters India by entering into a 50:50 joint venture withHindustan motors at Halol.1995: GM launches Astra under the Opel brand.1999: GM acquires 100% stake in GM India.2000: GM launches Corsa under the Opel brand.2003: The Company launches Chevrolet brand in India with the launch of Optra.

2003: The GM technical center was established at Bangalore.2004: Launch of Chevrolet Tavera 2006: Launch of Chevrolet Aveo2006:Launch of Chevrolet Optra-SRV2006:Launch of Chevrolet Aveo-UVA2007:Launch of Chevrolet Spark GM's Vision :GM's vision is to be the world leader in transportation products and relatedservices. GM earns customers' enthusiasm through continuous improvementdriven by the integrity, teamwork and innovation of GM people. Mission:To profi tably sel l 200000 vehicles in 2010, achieve top 3 ranking in JD power and be amongst the 50 most admired companies in India

Company backgroundName General Motors Company

Industries served Automotive

Geographic areas served

Worldwide

Headquarters U.S.

Current CEO Daniel Akerson

Revenue $ 152.3 billion (2012)

Profit $ 4.9 billion (2012)

Employees 202,000 (2012)

Main Competitors

Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Co., Honda Motor Company, Nissan Motor, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.

General Motors Company (GM) is a corporate that designs, builds and sells cars and trucks. GM owns 18 brands, including Chevrolet, GMC, Cadillac, Buick, Opel and many others. The company operates in about 160 countries and is one of

the largest vehicle manufacturers.You can find more information about the business in its official website or Wikipedia’s article.

SWOT

General Motors SWOT analysis 2013

Strengths Weaknesses

1. Global presence2. New vision and strategy3. Strong brand portfolio4. Strong presence in China5. Knowledge of home

market

6. 4 well performing brands

1. High cost structure2. Brand dilution3. Bureaucratic culture

4. Car recalls

Opportunities Threats

1. Positive attitude towards “green” vehicles

2. Increasing fuel prices3. Changing customer needs

4. Growth through acquisitions

1. Fluctuating fuel prices2. New emission standards3. Rising raw material prices4. Intense competition

5. Exchange rates

Strengths1. Global presence. GM was the leading auto manufacturer in terms of

sales for 77 years until 2007. The business has grown its presence in the world and is now operating in 157 countries, while its Chevrolet brand reached world record sales (4.95 million units).

2. New vision and strategy. After 2008 bailout, GM has experienced major changes and reorganized the way it does business. New members were appointed to the firm’s management team with Daniel Akerson as the CEO. He shook GM’s bureaucratic organizational culture and introduced new strategy and visions to the business. GM became smaller but leaner and is becoming more cost competitive.

3. Strong brand portfolio. GM currently sells 18 automobile brands to satisfy as many customer needs as possible. The most popular brands are Cadillac, Buick, GMC and Chevrolet that sell very well in USA and China. Chevrolet reached a global sales record and sold 4.95 million units in 2012.

4. Strong presence in China. China is the largest automotive market and is an emerging economy that grows steadily. It is also the second largest market for GM in terms of vehicle units sold. An early entrance into China, well

performing partnerships and local Buick brand are the main reasons why GM has a strong position in China’s automotive market.

5. Knowledge of home market. GM is the largest car manufacturer in US and currently holds more than 18% market share. This is mainly due to extensive knowledge of US market and its consumers.

6. 4 well performing brands. GM’s Cadillac, GMC, Chevrolet and Buick are among the best-selling brands in US and China and brings in more than 80% of all General Motors sales.

Weaknesses1. High cost structure. GM has one of the highest cost structures compared

to all automobiles manufacturers. GM’s costs are driven by its generous employee compensation and pension plans. Although GM has reduced its cost after 2008 it still has a lot to do to become cost competitive.

2. Brand dilution. GM controls 18 automobile brands that vary in quality and are sold in separate markets. With so many brands in sales, customers find it hard to identify which brand belongs to GM family, as only one of 18 brands carry GM letters. The result is lower GM brand awareness.

3. Bureaucratic culture. Before reorganization in 2008, GM was infamous for its rigid culture and structure. Since then, the company has made some cultural and structural changes but should continue improving as it isn’t as quick as its competitors in reacting to constantly changing environment.

4. Car recalls. Last year, General Motors recalled 119,000 pickups due to missing hood latch. The same year it had to recall it Chevrolet Volt and fix battery problems. Recalls are expensive and damages brand reputation, especially when the company announces them so often.

Opportunities1. Positive attitude towards “green” vehicles. Today consumers are more

aware of the negative effects (air pollution) caused by cars fueled by petrol and diesel. Large quantities of CO2 emissions intensify greenhouse effect and negatively impact the life on earth. Thus, consumers are more likely to buy new hybrid and electric cars that emit less CO2.

2. Increasing fuel prices. Increasing fuel prices open up large markets for GM’s hybrid and electric cars as consumers shift towards cheaper fuel types.

3. Changing customer needs. By introducing new car models, General Motors would be able to meet changing customer needs for smaller and more fuel-efficient cars.

4. Growth through acquisitions. GM has successfully acquired many car companies in the past and should continue doing so to gain new skills, assets and access to new markets.

Threats1. Fluctuating fuel prices. Due to increasing extraction of shale gas, future

fuel prices should drop and make electric and hybrid cars less attractive. GM would treat the projects of hybrid and electric cars as losses, rather than

perspective future cars. On the other hand, steeping fuel prices would make current GM models less attractive to cost conscious consumers, as they demand smaller cars that consume lower amounts of fuel.

2. New emission standards. A new wave for stricter regulations on vehicle emission standards may negatively affect GM’s finances. The corporate would have to invest large amount of money to comply with these new standards.

3. Rising raw material prices. Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits for the companies.

4. Intense competition. For 77 years from 1931 to 2007, GM led global sales of vehicles, but lost its position in 2008 due to increased competition of cheaper and better quality cars, especially from Japan and South Korea.

5. Exchange rates. China is GM’s second largest market and the business earns huge profits there. Exchange rate fluctuations threaten GM’s profits if the dollar would appreciate against Chinese renminbi.

IntroductionThis paper is split into two sections. Section one provides some contextualinformation relating to how the concept of strategy is understood when appliedto GM vis-à-vis its information systems capabilities. Also discussed are thecurrent challenges facing the automotive sector generally and GM in particularbefore proceeding to give a detailed description of the more important aspects of GM‟s global strategy, and the ways in which IS are incorporated into the overallstrategic vision. Section two focuses on the specific ways in which GM utilizes itsinformation systems resources to fully complement wider organizationalstrategic objectives by assessing the extent to which functional integration of value chain activities are successfully realized. Particular emphasis is given tothe alignment of manufacturing and engineering business processes with thoseof marketing and sales to satisfy global demand, and how any obstacles havebeen overcome. Finally, an assessment is also made of the importance of the firm‟s strategic alliances with key stakeholders in relation to IS ventures andhow these relationships are crucial to the firm‟s successful delivery of its wider strategic objectives.

1.1. How ‘strategy’ applies to GM:-As other writers have demonstrated (e.g., Nickols, 2000), strategy can beinterpreted by individuals (and indeed organizations) in many different ways.Such interpretations are often dependant upon certain philosophical assumptionsmade by the individual (organization) as to the nature of strategy, and this canbe crudely summarized as being the conflicting debate between those whobelieve that strategy is a concept which is rooted in sequential and plannedprocesses, against those who are of the opinion that strategy is a continuouslyevolving phenomenon which is adaptable to a range of unforeseen forces thatarise from the external environment. Although it is crucial to be aware of thisdebate, for our purposes strategy is taken to mean the way in which GM utilizesall of the available means at its disposal in pursuit of the realization of a pre-determined set of objectives. A strategy is usually deemed to be successful if itresults in measureable concrete outcomes such as increased operationalefficiency or rising profits, as well as a general improvement in a firm‟s competitive position within the sector in which it operates.Why information systems (IS) are important :-IS‟s are an essential ingredient of any firm that aspires to be successful in today‟s globalised, digital economy. The fundamental aim of IS‟s are to bringtogether the sociotechnical elements of organizations whereby “optimal

organizational performance is achieved by jointly optimizing both the social and technical systems used in production” (Laudon: 28). IS‟s merely serve as aplatform through which a desired set of strategic outcomes can be realized. It is therefore vital that a firm‟s complementary assets are carefully integrated into the value creating process. These assets can also be thought of as the groupingtogether of all tangible and intangible elements in any given organization;including organizational culture, business processes, logistics and so forth (Ibid).Others have neatly conceptualized this as thevalue chain, which is comprised of both primary and support activities (Dess,2007). For our purposes, GM‟s primary  activities are comprised of: logistics, operations, sales and marketingand service; whilst its support  activities include HR, administrative management,procurement and technology. GM statistical data:-There are 386,000 employees spread over 50 countries and 160 manufacturing plants across the world (Greenwich University, 2009; Gordon, 2008). GM ranks in the top ten global (non-financial) transnational corporations, in an industry where the US holds approximately one third of global market share; GM being the sector leader in the US (Morrison, 2006; European Commission, 2007).

 Challenges facing the automotive sector:- Issues surrounding climate change have led many industry observers to conclude that there has been a decisive shift in global public opinion which will have a marked impact on the industry, which has been overly dependant on oil (Reed, 2007). Such tensions have been further exacerbated in recent years by a wildly fluctuating oil price on the commodity exchanges, leading many in the sector to explore alternative energy sources such as bio-fuels and hydrogen. Another challenge facing the sector is the rising threat of low labour costs which primarily stem from the Asian bloc. This is especially worrying for GM as the company has been saddled with a reputation of being overly bureaucratic, resulting in inefficient processes throughout the supply chain (Greenwich, 2009).This needs to change if the company is to effectively reverse the existing situation of a growing loss of competitive advantage in the global automotive industry. However, there is also increased scope for capitalizing on significant opportunities: if we consider the widely held view amongst industry commentators that the next ten years will see a 50% increase in global vehicle stock (HM Treasury: 2005), therefore, the recent global slump in car sales (GM sales in the US were down 49% in January 2009 compared to January 2008)should be seen in this context (Simonet al , 2009).

Key elements of GM’s global strategy  

GM‟s strategy centres on the notion of creating “common global processes For design, engineering, purchasing and product development”

(Stein: 1).For example, its Epsilon 2 architecture programme is a common platform for all of the major front and all-wheel models in its mid-sized car portfolio. Suppliers of parts and components for Epsilon 2 account for the largest in terms of market share, therefore it is critical that GM achieves cost-efficiencies aimed at overcoming regional differences relating to development and design. To that end, GM has adopted a global purchasing strategy (Anonymous, 2007).

Strengthen investment in fuel-efficient technologies, as well as ensuringthat all regulatory requirements appertaining to environmental issues aresatisfactorily addressed (Stein: 1). Both activities involve huge costs,therefore it is vital that systems are in place to accommodate theseoutlays in the most efficient manner possible (Ibid)

To have the capacity to build identical vehicles at any manufacturingplant, regardless of its geographical location. This requires theestablishment of a common framework which provides a unified design,purchasing, and sourcing capability on a global scale. In recent years GMhas taken steps to learn from Toyota in their superior production activities. Toyota‟s concept of lean manufacturing has made it the industryleader. To that end, GM has entered into a strategic partnership withToyota by establishing their Californian NUMMI plant as an exercise incollaborative learning.NUMMI provided GM with a detailed insight intohow Toyota excels at product efficiency. Consequently, GM introduced its Technical Liaison Office(TLO) network, which is an in-house unit aimed atinculcating standards of excellence on all issues relating to knowledgemanagement. TLO is a centralized body that is responsible for theretrieval, storage and systematic dissemination of actionable knowledgethroughout the corporate network. Through the work of its TLO network, GM‟s NUMMI plant was responsible for spearheading the firms

Global Manufacturing System

(GMS), which was largely the product of learningfrom how Toyota operated its multinational business processes. GM plans to extend TLO‟s to Asia, Europe and Latin America (Inkpen, 2005)In the words of a high-level GM insider, the aim of GMS is to:

 “…transform multiple ways of manufacturing into a single method(through) people involvement, built-in-quality, standardization,continuous improvement, and short lead time. Commonality of process iskey; coupled with a global vehicle architecture strategy which championsflexible manufacturing tools in the plants” 

Functional integration: - a critical objective is for GMS to be fully integrated with the firm‟s global marketing strategy as well as the interests of its global suppliers so that, for example, GM China supplier scan produce parts which are fully compatible with other regional markets such as GM Europe (Anonymous, 2005).

Through the GMS it is hoped that commonality will develop acrossfunctional boundaries, thereby enabling the company to pursue its widerstrategic objectives relating to capturing additional market share in boththe advanced western economies, as well as the emerging markets of Asia. For example, GM has set its sights on significant sales increases of its Cadillac model in both Asia and Europe, which is aimed at rivallingluxury rivals such as BMW (Stein:1)