About Your Signature Assignment SignatureBenchmark Assignments .docx
- 1. About Your Signature Assignment Signature/Benchmark Assignments are designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. Signature/Benchmark Assignments are graded with a grading guide or an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for course/program improvements. Purpose of Assignment The purpose of The Final Strategic Plan is to allow the student to develop a comprehensive strategy for a new division of an existing company. This analysis will be the culmination of all the previous week's coursework as well as e objectives covered during their entire degree work. Assignment Steps Resources: Strategic Planning Outline and Week 5 textbook readings Develop a minimum of 700-word section for your business model and strategic plan in which you add your strategies and tactics to implement and realize your objectives, measures, and targets. · Identify marketing and information technology as part of the strategies and tactics section of the business plan. · Develop at least three methods to monitor and control your proposed strategic plan, being sure to analyze how the measures will advance organizational goals financially and operationally. · Determine the best possible options for evaluating the strategic plan. · Explain the ethical issues faced by the organization, summarize the legal and regulatory issues faced by the organization, and then summarize the organization's corporate social responsibility.
- 2. · Show, in this section, the possible implications of the triple bottom line (people, planet, profit) on the strategic plan and its implementation. Prepare a minimum 350-word executive summary defining the new division of existing business. Share your Vision, Mission, final business model, and value proposition, and list your key assumptions, risks, and change management issues. Quantify the growth and profit opportunity and planned impact on various stakeholders. Note: Any investor should be eager to meet with you after reading your executive summary. I WILL BE USING THE ASSIGNMENT ABOVE AND THE PREVIOUS ASSIGNMENT TO CREATE THE BELOW SECTION Use the Strategic Planning Outline as a guide, and combine Parts 1, 2, and 3 of your completed business model strategic plan with your Final Business Plan Model assignment and Executive Summary. This includes the Business Model, Vision, Mission, Values, SWOTT Analysis, Supply Chain Analysis, and Balanced Scorecard and Communication Plan from prior weeks. Your consolidated final strategic plan should be a minimum of 4,200 words in length. IMG_3803.jpg IMG_3804.jpg IMG_3805.jpg IMG_3806.jpg IMG_3807.jpg
- 5. IMG_3831.jpg IMG_3832.jpg IMG_3833.jpg IMG_3834.jpg IMG_3835.jpg Running Head: GENERAL MOTORS COMPANY 1 GENERAL MOTORS COMPANY 6 General Motors Company Balanced Scoreboard to Develop Effective Strategic Objectives University Affiliation Name Date Shareholder Value or Financial Perspective, General Motors has maintained the largest market share in the United States auto market having beaten Ford, Toyota, and Fiat Chrysler. General Motors was listed third on the list of the largest global automakers by vehicle sales volume in the world. According to General Motors' estimates presented in its year 2017 earnings report, General Motors' market share of the US population during the quarter was at 16.8%—higher than 16.4% of the previous year (Deyo, 2016).Although general motors' enjoy the dominance of the US market share, rising competition in the developing markets, especially from Tesla, is likely to be a massive challenge. General Motors generated a total of $152.4 billion revenues during 2015. General Motors reported revenue growth of -
- 6. 2.3% year-over-year during 2015.General Motors generated a total of $166.4 billion revenues during 2016. General Motors reported revenue growth of 9.2% year-over-year during 2016 (Calabrese, 2016) G.M. expects to earn pretax profit margins of 9 to 10 percent of its global sales by 2023 and to increase introductions of new models worldwide. The company is also planning to make its roster of product platforms that provide the fundamental underpinnings for many models more efficient G.M. also plans to invest $14 billion over the next five years, primarily to build five new plants and introduce 60 new or revamped vehicles (Magatef, & Tomalieh, 2015). The automotive industry is ever growing. Recently, several auto manufacturers have into producing electric automobiles. Elon Musk's Tesla is the major competitive threat to GM's newly created division. Considered to be one of the best innovative technology companies, Tesla produces high quality, cutting- edge cars with creative and high-end features. Tesla is best known for Tesla Model X and Tesla Model S. It is therefore important for general motors’ to start working on automobiles that consume less energy to remain competitive in the market. However, General Motors has been leading in market share worldwide (Colby, 2015). Customer Value Perspective General Motors has over the years developed strategies that keep their coming customers coming back to purchase their brands. General Motors has been able to maintain good communication with their customers where they evaluate their feedbacks and their experience. The strategy has helped the company improve the quality of their brands. The company engages in a compensation plan where the customers realize defects that might cause harm to them. The plan has improved
- 7. the trust of the customers, and the dealer's thus increasing customer retention rate. General Motors won the prize of customer retention from Ford in 2016 making it the best company with quality brands. The company is looking forward towards maintaining the best position in retaining customers by ensuring quality and release of new brands such as Chevrolet Express 2500 cargo improving the customer’s experience (Middleton et al., 2016). General Motors has over the years won customer loyalty through their marketing strategy which has improved customer satisfaction. The consequence of customer satisfaction on the customer’s behavior is reduced complaints to the dealers. General Motors has won the loyalty of their clients where the number o0f repurchasing has increased over the years and minimal complaints from these customers. General Motors has effectively used customer’s data and information for their brand preferences, and segment within its portfolio is enabling customer and company communication (Magatef, & Tomalieh, 2015). General Motors values their customers by ensuring that they provide them with the best products as well as responding to their complaints. The company was previously involved in a scandal of ignition switch failure, but due to the value of their customers, the CEO, Mary Barra commenced an ignition switch recall. The company’s mission is to provide the desired future to its customer in the automotive industry (Oliver, 2014). The company is looking forward to producing electric vehicles reducing environmental hazards from caused by carbon dioxide emissions enhancing environmental sustainability. Process or Internal Operations Perspective Measuring process performance requires that the mangers quest some perspective in business such as the innovation perspective
- 8. and the internal business perspective. The success of these perspectives in business leads to the production of quality brand and reduction of cycle time. The objective of General Motors Company is to ensure production of the best brands with minimal cost. Application and monitoring of data analytics to various processes evaluated the quality of the plants ensuring detection of problems before inspection. The company’s aim is to use excess capacity from improved cycle time and quality to boost revenues or eliminating them by reducing expenses (Pound, 2013). Productivity at General Motors Company is measured based on the operations of GM Financial, production facilities, corporate offices, and dealership network. The productivity rate of assembling, manufacturing, engine transmission and stamping of a vehicle has increased by 0.2 percent where it cost 32.29hours per vehicle. General Motors objective is to maintain sufficient inventory supporting the goals of the operation. The company ought to have sufficient inventory to accommodate in times of demand fluctuations for their automobiles to satisfy to meet customer satisfaction Epstein & Buhovac, 2014). There are various operations that the company focuses on doing in future like designing electric cars to ensure environmental sustainability. The objective of the company is to carry out intensive training that will ensure all members participate fully in the technology to meet customer satisfaction. The change that is to be pioneered in the organization is the introduction of electric cars and new model vehicles comfortable to the users. The automotive industry is under disruption which may make some automakers not participate fully in the designing of electric cars due to lack of knowledge. The company’s objective is to reduce completion from other car dealers such as Tesla and Ford by making electric and quality models to meet market demand (Sukitsch et al. 2015)
- 9. Learning and Growth (Employee) Perspective The employees enjoy an amazing experience in the organization where they are motivated by the managers through bonuses and other rewards. Marry Barry encouraged teaming up with employees which resulted in quick doing of the job(Deem et al., 2015) The employees are satisfied when they work together irrespective of their gender and background. The objective of the company is to make workers happy where they look forwards towards paying them extra when a customer purchases another vehicle (Calabrese, 2016) General Motors' has enjoyed a high rate of employee’s retention over the years. The company has provided career advancement opportunities by keeping a balance between the requirement of organization workforce and individual career needs. The company has also been rolling out its employees training and career advancement program which boost employee satisfaction (Peterson, Hyska, & Patel, 2017). Finally, GM has compensated and reward employees who are more responsive to their performance and their contribution to the organization. GM. Has maintained a knowledgeable workforce through its staff training program to ensure growth and sustainability in the market. Moreover, the company has improved the organization- customer relationship. The relationship between the organization and its customers is an organizational capability that affects sales, reputation, and loyalty for future business (Magatef & Tomalieh, 2015). Maintaining existing relationships with customers as well as developing new ones ensures the company will grow and thrive in the future. General Motors organizational culture has been segmented into regional groups. These segments are either operation or geographical. The structure is characterized by regional
- 10. segments, business-type divisions, and corporate functional groups. The regional divisional structure allows for flexibility in responding to regional market variations as well as allowing the division to separately focus on automotive business and financial services business hence optimizing its effectiveness in the global market (Colby, 2015). The high rate of technological change adopted in the new division of the organization is presenting a great opportunity for the company to enhance its automobile's technologies increasing automation another opportunity since the new division has great growth opportunities through further automation of the business processes. Finally, the increasing popularity of the online mobile systems should prompt the new division to increasingly integrate these systems into the automobiles (Deyo, 2016). Reference Deem, J. W., DeLotell, P. J., & Kelly, K. (2015). The relationship of employee status to organizational culture and organizational effectiveness: A quantitative analysis. International Journal of Educational Management, 29(5), 563-581. Peterson, E. A., Hyska, J., & Patel, D. (2017). Human Rights Law, Corporate Governance, and Globalization. JL Bus. & Ethics, 23, 63. Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett- Koehler Publishers Sukitsch, M., Engert, S., & Baumgartner, R. J. (2015). The implementation of corporate sustainability in the European automotive industry: An analysis of sustainability
- 11. reports. Sustainability, 7(9), 11504-11531. Calabrese, G. (Ed.). (2016). The greening of the automotive industry. Springer. Colby, L. (2015). The road to Power: How GM's Mary Barra Shattered the Glass Ceiling. John Wiley & Sons. Deyo, F. C. (Ed.). (2016). Social reconstructions of the world automobile industry: Competition, power, and industrial flexibility. Springer. Pound, A. (2013). The Turning Wheel-The story of General Motors through twenty-five years 1908-1933. Edizioni Savine. Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge. Magatef, S. G., & Tomalieh, E. F. (2015). The impact of customer loyalty programs on customer retention. International Journal of Business and Social Science, 6(8), 78-93. Middleton, R. J., Gupta, O. G. H., Chang, H. Y., Lavoie, G., & Martz, J. (2016). Fuel efficiency estimates for future light-duty vehicles, part a: Engine technology and efficiency (No. 2016- 01-0906). SAE Technical Paper. Running head: SWOT ANALYSIS OF GENERAL MOTORS’ NEW DIVISION 1 SWOT ANALYSIS OF GENERAL MOTORS’ NEW DIVISION 11 Swot Analysis of General Motors’ New Division Name: Institution:
- 12. Background Information Apart from being the world’s largest automobile company, General Motors is also one of the most valued automobile organization and has been for a very long time. To further this amazing success story, a new division which produces cars using alternative sources of energy- solar and electricity is proposed. Since the future of the automobile industry is green, General Motors must move towards using lean sources of energy to produce cars. Also, the car manufacturer understands that with Tesla producing electric cars, there is going to be a lot of competition in the automobile industry hence the need for the newly created division. Charged with furthering research on producing cars which use leaner sources of energy, the new division will largely focus on producing cars that operate on rechargeable lithium ion batteries or solar energy or both. External Environmental Forces Global and Industry Changes Globally and in the United States, the auto industry is going through rapid changes that present opportunities and threats to major players like General Motors. According to Elon Musk, CEO of Tesla, the auto industry is going to experience massive changes especially in the next decade. Firstly, according to trends already being seen, more than 50 percent of new car production in the United States will be electric in the next ten years (Calabrese, 2016). From the current statistics, Americans are embracing the new electric car technology and therefore companies in the industry must adjust to get a share of the shifting customer demographics. Secondly, almost all the cars produced in the next decade and a half will be autonomous. Companies should embrace this change and should already focus on producing cars that will have this quality. Thirdly, in the next two to three decades, there will be no steering wheel for the motor vehicles.
- 13. A lot of changes will have happened that will make driving cars be like driving horses. Economic Forces Firstly, the high growth rate of the developing markets is an external economic opportunity for the new division. The high growth rate of the developing creates an opportunity for the new division to grow and expand into these new horizons (Pound, 2013). For instance, Indonesia and India are presenting a viable market for the new division. Secondly, the economic stability of major markets like United States, Europe and China is a major opportunity for the growth and expansion of the new division. The major markets are relatively stable and therefore the new division and General Motors as a whole is not likely to face major challenges (Pound, 2013). However, rising competition in the developing markets especially from Tesla is like to be a massive challenge. Legal and Regulatory The legal environment is likely to present opportunities and threats to the newly created division. Firstly, expanding regulations on the safety of automobiles is an opportunity for the new division. Secondly, stricter emissions regulations is another opportunity for the new division. The new division is focused on making the environment safer in product design and development and hence will boost GM’s brands. Thirdly, expanding environmental regulations is an opportunity in the legal environment. The new division will benefit largely from intensified efforts for end-of-life considerations in product design, supply chain sustainability and business sustainability. Environmental Forces For the newly created division, environmental trends and changes can impact availability or resources, product usage and supply chains (Ili, Albers, & Miller, 2010). The following
- 14. opportunities will boost the performance of the new division: rising interest in business sustainability and rising concerns on the air quality effects of automotive emissions. The new division is developing automotive solutions that promote pollution-free air and business sustainability. By enhancing its electric or hybrid automobiles, the division is addressing the rising concerns on the air quality impacts of automotive emissions (Ili, Albers, & Miller, 2010). This way, the organization improves its sustainability position, brand image and corporate image, based on the rising interests in business sustainability. Technological Factors and Innovation Three factors are at play here. Firstly, the high rate of technological change is both an opportunity and threat. The high rate of technological change is presenting a great opportunity for the company to enhance its automobile’s technologies but also threatens the new division in terms of the potential rapid obsolescence of the technologies currently being used. Secondly, increasing automation is an opportunity since the new division has great growth opportunities through further automation of the business processes. Thirdly, the increasing popularity of the online mobile systems should prompt the new division to increasingly integrate these systems into the automobiles. Social Factors There are three social factors that are likely to present opportunities or threats to the newly created division. Firstly, the increasing popularity of low-carbon lifestyles is an opportunity for the new division. People are increasingly shifting to low-carbon lifestyles and hence the division can tap into it (Deyo, 2016). Secondly, there is increasing preference for renewable energy especially in the automotive industry. People are caring more for clean energy and the new division
- 15. can tap into this potential. Thirdly, Competitive Analysis The automotive industry is crowded. Over the years, several automobile manufacturers have into producing electric car batteries and electric cars. In fact, today, people are not asking about companies which produce electric cars. They are rather interested in companies producing the best electric cars. Elon Musk’s Tesla is the major competitive threat to GM’s newly created division. Considered to be one of the best innovative technology company, tesla produces high quality, cutting edge cars with creative and high-end features. Tesla is best known for Tesla Model X and Tesla Model S. Secondly, BMW, the German’s car marker has entered the electric car market with its all electric luxury SUV BMW i3. The model is already changing the market. Nissan’s Nissan Leaf is probably the most popular electric vehicle in the world produced by Japanese based Nissan Company. Ford’s Ford Focus Electric and Volkswagen’s Volkswagen e-Golf is likely to give the company a run for its money. Internal Forces and Trends Structure and Culture General Motors has a regional divisional organizational culture. Business activities are grouped into areas of operations or geographical segments (Helper, & Henderson, 2014). The structure is characterized by: regional segments, business-type divisions and corporate functional groups. Firstly the regional divisional structure allows for flexibility in responding to regional market variations (Helper, & Henderson, 2014). Secondly, the structure allows the division to separately focus on automotive business and financial services business hence optimizing its effectiveness in the global market. However the structure has limited support for branding consistency at the global level. The new division has an organizational culture of agility just like the parent company. The agile organizational culture in the new division is based on
- 16. five important pillars: freedom and opportunity to grow, learn and evolve; fast thinking for continued success; innovation and emphasis on quality; responsibility and accountability; and positive relationships for operating success. Strategy and Strategic Capabilities General Motors has a generic strategy that ensures competitive advantage even with the rising competition in the global automotive industry (Goolsbee, & Krueger, 2015). The company’s generic competitive strategy is based on cost leadership and this has been taken up by the new division. The new division’s competitive strategy emphasizes on the opportunities created through economies of scale. The new division’s automobiles will be offered at lower prices to attract customers. Three strategic capabilities support the generic or overall business strategy: fast market penetration, automated and efficient product development; and market development (Goolsbee, & Krueger, 2015). However, limited product diversification may limit the ability of the new division to take on the industry giants. Processes, Technologies and Innovations The new division will benefit from technologies and innovations that have been embraced by the company. The division is focused on delivering IT and other innovations faster, help in shortening the time from design of the vehicle to its manufacturing. One of the best innovation is the Detroit-based Social Center of Expertise where members of a team can monitor and contribute to social media conversations about the organization. Through the use of GM’s Oracle-based Social Media Management system, new division’s CoE agents are capable of tapping into the organization’s databases to record ongoing interactions with customers and sales leads. Secondly, the
- 17. company has improved and sped up back-end processes with several tech innovations. The company’s engineering team for instance has ramped up its high performance computing capabilities to improve wind tunnel, crash, combustion and many other simulations. Thirdly the manufacturing branch of GM is applying monitoring and data analytics to different processes to evaluate the quality of a plant’s pant jobs in real time. This helps in spotting problems before the vehicles can get to final inspection. The company also has a vision for autonomous driving. Tightly connected to the future of urban mobility is the concept of autonomous driving where the vehicles equipped with sophisticated software and sensors navigate themselves without the aid of a person in control of the wheel. As a move towards autonomous driving, the company has acquired Cruise Automation to accelerate the development of autonomous – vehicle innovative technology. Leadership Transformational leadership at General Motors is a strength that will transform the new division into a performance- based outlet. Mary Barra’s transformational and exceptional leadership has changed how things are done at the company and the same is likely to be experienced in the new division (Colby, 2015). Barra has brought in three transformational leadership qualities that will be significant for the new division. Firstly she is team oriented. Mary Barra and her team believe that collaboration yields results and so they have invested in teamwork. Secondly, she is decisive. Transformational leaders must take decisions in the most difficult moments (Colby, 2015). Thirdly, together with her team, they have built a culture of respect and persevering attitude at General Motors. Summary of the SWOTT Analysis
- 18. Strengths · Economies of scale · Strong brand and corporate image · Highly innovative processes and control on vehicle production · Transformational leadership exhibited by CEO Mary Barra and the rest of her team. · Rapid technological development including autonomous – vehicle innovative technology · Organizational culture of agility optimizes the success rate of strategic implementation in the auto market. · Regional divisional structure allows for flexibility in responding to regional market variations. · Structure allows great focus on automotive business and financial services business hence optimizing its effectiveness in the global market Weaknesses · Limited market presence especially in the developing countries. · High prices · Limited supply chain · Inherent bureaucracy in the organizational structure and culture. · Limited product diversification may limit the ability of the new division to take on the industry giants.
- 19. Opportunities · Increasing automation in business · Increasing popularity of online mobile systems · High growth rate of the developing markets. · The economic stability of major markets like United States, Europe and China. · Expanding regulations on automobile safety. · Expanding environmental regulations is an opportunity in the legal environment. · Rising interest in business sustainability. · Rising concerns on the air quality effects of automotive emissions. Threats · Rising competition in the developing markets. · High rate of technological change. · Intense competition from Tesla, Nissan, BMW and Ford. · Dealership regulations Trends · Increase in strategic partnerships with external tech companies. · Rapid momentum gain on connected and autonomous vehicles. · Increased research and development on par with the globe’s most innovative firms. · Shift in recruitment needs as computer scientists and engineers lead the way.
- 20. · Consumers increasingly browsing online and demanding digital solutions to their cars. References Calabrese, G. (Ed.). (2016). The greening of the automotive industry. Springer. Colby, L. (2015). Road to Power: How GM's Mary Barra Shattered the Glass Ceiling. John Wiley & Sons. Deyo, F. C. (Ed.). (2016). Social reconstructions of the world automobile industry: Competition, power and industrial flexibility. Springer. Goolsbee, A. D., & Krueger, A. B. (2015). A retrospective look at rescuing and restructuring general motors and Chrysler. The Journal of Economic Perspectives, 29(2), 3-23. Helper, S., & Henderson, R. (2014). Management practices, relational contracts, and the decline of General Motors. The Journal of Economic Perspectives, 28(1), 49-72. Ili, S., Albers, A., & Miller, S. (2010). Open innovation in the automotive industry. R&d Management, 40(3), 246-255. Pound, A. (2013). The Turning Wheel-The story of General Motors through twenty-five years 1908-1933. Edizioni Savine. Running Head: GENERAL MOTOR’S NEW AUTOMOBILE BRAND 1 GENERAL MOTORS’ NEW AUTOMOBILE BRAND 7 General Motor’s New Automobile Brand Student’s Name Institutional Affiliation General Motors’ New Automobile Brand
- 21. Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement. General Motors is one of the most valued automobile company in the world and it has been in the business for more than a century. It is also the world’s largest automobile company with braches all over the world and its production output is the largest at approximately 10 million vehicles annually. The company’s headquarters is at Detroit, Michigan, United States of America. The company has a number of subsidiaries which make different models of cars and to add to this list is a new subsidiary which will deal with the manufacture of the cars that utilize alternative source of energy to run. The alternative sources of energy will be solar energy and electricity. This new division has been created because General Motor’s management has sought it through and has seen that the future of automobile is green and therefore, fossil fuel will not be used because of the adverse environmental effects it has (Hill, Jones, & Schilling, 2014). The new cars will be in line with the American vision of reducing its carbon dioxide emission as the United Nations Paris agreement. Furthermore, General Motors has done some extensive research and it has been realized that fossil fuel will not be there forever. A research conducted by some top scientists suggested that the oil wells are getting depleted as more oil is being mined due to the high consumption. This will drive the oil prices very high in the near future because of scarcity and there will be need to have automobile that use alternative sources of energy to run. The new division will focus on manufacturing vehicles that operate on rechargeable lithium ion batteries or solar energy or both. Describe how the division addresses customer needs and achieves competitive advantage. The new cars have been designed after an extensive research but
- 22. at the moment the electric cars cannot compare to the gasoline cars in terms of distance they cover but this is just for a limited time because research is still going on and engineers are working day in day out to ensure that electric cars are suitable to replace gasoline powered vehicles. Research by General Motors conducted in the cities of New York, Los Angeles, London and Paris revealed that on average most people driving to the city for businesses or their own activities cover a distance of 60 miles on average. This means that this product will be marketed to target the people living in city suburbs and within the city. Cities are where most pollution from cars happen because of the high congestion of vehicles and therefore, changing the cars that these people use will achieve reduction in both air and noise pollution significantly. The cars will be designed to have a total mileage of 100 miles before they can be recharged again for three hours to 100% and this gives the customers a great value. This means that customers can charge their cars overnight and be sure to do all their activities of the day without worrying that the car batteries will be depleted. The value conveyed to customers is that electricity is cheaper than gas and therefore, they will be saving money. There is also a greater good being achieved, the effects of too much carbon dioxide on our atmosphere are obvious. Global warming is as a results of these gases that are emitted by cars and factories that hinder the terrestrial heat from earth from disappearing into the atmosphere, but it is trapped within the earth’s environment and the result is the greenhouse effect. The earth now is like a huge greenhouse and that is why, there is increased desertification in sub-Sahara in Africa, ice is constantly melting in Greenland, Iceland, arctic and Antarctica and water levels in oceans is increasing. Islands such as Hawaii are in trouble because of the increase in water levels, they will soon be covered by water if something is not done. Reducing the carbon dioxide emitted is one way of reducing the effects of global warming and General Motors is taking the
- 23. broad step. Furthermore, gasoline cars are very noisy in the cities, one of the advantages of electric cars is that they do not produce sound and therefore, not noisy at all. The cars will also have a solar panel which can use the sun energy to charge the batteries of the car. This means that when the sun is shining, customers will not need to charge their batteries using electricity, the solar panel will convert sun energy to electricity which will charge the battery continuously and this will give General Motors a competitive advantage over other players in the industry. Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future. Vision The vision of the new division is as follows; ‘to develop a sustainable product that will take care of the people, planet and bring profits to General Motors.’ This vision aligns with the bottom line of the company and by taking care of the people and the planet, GM aims at making profits and this is why it is the long time goal of the organization to completely stop manufacturing cars that run on gasoline. The world is changing fast and the effects of global warming are causing poverty in other areas of the world and one way to show that the company cares for the people, is by manufacturing cars that do not emit carbon dioxide which is the most abundant greenhouse gas in the atmosphere. Mission The mission of the organization is as follows; ‘comprehend importance of people and the planet and hence become a responsible company understanding global environmental issues like global warming and doing all possible to reduce their effects.’
- 24. Business model The division will create value by making the market understand the effects of global warming and hence the need to do something about it. Since, people have come dependent on cars, they cannot be eliminated but the source of energy they use to operate on can be changed and hence the electric cars. The cars are cheaper to maintain and operate because their batteries can be recharged either by electricity or solar energy from the solar panels installed on the roof of the cars. Explain how the vision, mission, and value of the new division align with the company's mission and vision. The current vision of GM is to be the world leader in transportation products and related services. The vision of the division is aligned with this vision because GM will be the first large automobile manufacturer to mass produce electric vehicles to promote environmental sustainability. The company will have the first mover advantage giving them some edge over their close competitors such as Toyota, Ford Motor and Volkswagen. The organization’s mission statement establishes the approaches required to push the organization towards its desired future position in the automotive industry. The future of the industry is to reduce the adverse environmental effects of fossil fuel which automobiles operate on. Summarize how the vision, mission, and values guide the division's strategic direction. The future has many uncertainties and for a company to be successful, it has to think, about the long term goals, 30 years or 50 years ahead. General Motors has been a leader in the automobile industry for more than a century and for them to maintain the position of the leader of the industry, they have to think ahead and invest in continuous development. The trend shows that the next big thing is electric vehicles and that is where GM should invest their resources to ensure that they
- 25. achieve the first mover advantage on the new technology (Sukitsch, Engert, & Baumgartner, 2015). Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics. The principle guiding the division is the triple P, profits, people and the planet. When these three things are taken care of, the division will be able to generate high revenue, show some social responsibility and also be on the safe side with the law. By taking care of the people, GM will not just be taking care of their customers, but also showing concern to all people. Manufacturing electric cars to reduce effects of global warming means that the people living in areas where the adverse effects of global warming are visible will have something to be proud of. Taking care of the planet means that the organization will be dedicated to ensuring that their products have no adverse effects on the environment and this indirectly helps the people as well (Senge, 2014). References Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons. Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning. Sukitsch, M., Engert, S., & Baumgartner, R. J. (2015). The implementation of corporate sustainability in the European automotive industry: An analysis of sustainability reports. Sustainability, 7(9), 11504-11531. Senge, P. M. (2014). The fifth discipline fieldbook: Strategies and tools for building a learning organization. Crown Business.