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Final Report

Samantha Gonzalez, Malik Bembridge, Charles Bostic

MGT4991

Professor Fening

April 1, 2024
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Comprehensive Strategic Plan for the New GM

Introduction

General Motors (GM) has long been recognized as one of the foremost automotive giants

globally. However, the year 2009 marked a significant downturn as GM found itself compelled

to file for Chapter 11 bankruptcy, citing the inadequacy of its prevailing business model.

Presently, with a substantial 60% ownership stake held by the US government, GM faces the

imperative task of devising a fresh business model to pave its path to recovery. Our consulting

firm has emerged victorious in securing the bid to craft a comprehensive strategic blueprint for

the rejuvenated GM.

This detailed report will encompass various critical components, including articulating a

visionary outlook, defining a mission statement, establishing clear-cut objectives, conducting

thorough external and internal assessments, implementing strategic initiatives, conducting a

comprehensive strategy analysis, offering strategic recommendations, outlining the

implementation process, and setting up an evaluation framework. The ensuing comprehensive

strategic plan charts a course toward revitalizing GM and ensuring its long-term prosperity. In

response to the bankruptcy proceedings and subsequent governmental intervention, GM must

undertake a thorough reevaluation of its business model and strategic direction to regain its

foothold in the fiercely competitive automotive landscape. This holistic plan embraces a

multifaceted approach, addressing pivotal aspects such as vision, mission, objectives, external

and internal assessments, strategic initiatives, detailed strategy analysis, recommendations,

implementation strategies, and performance evaluation mechanisms. By harnessing the power of

innovation, operational excellence, strategic partnerships, and a customer-centric ethos, GM

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endeavors to position itself as a trailblazer in sustainable mobility solutions, thereby delivering

value to all stakeholders involved.

Vision

The envisioned trajectory for the revitalized GM entails establishing itself as a

frontrunner in sustainable mobility, offering pioneering solutions tailored to both customer

requirements and environmental imperatives. This involves spearheading the evolution of

transportation by furnishing inventive and sustainable mobility alternatives that not only enhance

livelihoods but also ignite advancement.

Mission

The objective of the reimagined GM is to craft, manufacture, and market top-tier vehicles

and mobility services globally, surpassing customer anticipations while nurturing a culture

characterized by innovation, honesty, and societal accountability. This mission underscores the

importance of safety, environmental sustainability, and affordability, all while generating value

for every stakeholder involved.

Objectives

The primary goals for the reinvigorated GM encompass enhancing revenue streams,

expanding market penetration, streamlining expenditures, elevating product quality and customer

contentment, and fostering innovation across product development and manufacturing

methodologies. To realize these objectives, GM aims to augment its market presence in pivotal

sectors by a noteworthy 15% within the ensuing three years. Additionally, GM endeavors to

achieve a substantial 20% decrease in manufacturing expenses by leveraging operational

enhancements and optimizing supply chain planning. Furthermore, GM plans to introduce a

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minimum of three novel electric vehicle models by the year 2025, seizing a substantial portion of

the burgeoning electric vehicle market. Concurrently, GM seeks to bolster its brand image and

customer allegiance by fortifying product excellence, dependability, and elevating customer

service accolades.

External Assessment

To assess the external environment, we will use a competitive profile matrix (CPM), an

external factor evaluation (EFE) matrix, and Porter's five forces analysis. The CPM will identify

the strengths and weaknesses of the new GM relative to its competitors across strategic

dimensions. The EFE matrix will Assess external opportunities and threats facing GM in the

automotive industry and broader macroeconomic environment. Porter's five forces analysis will

assess the competitive intensity of the industry, and the bargaining power of suppliers, buyers,

threat of new entrants, and threat of substitutes.

Internal assessment

Now, we will be going over the internal assessment of General Motors, and some of the

integrations they should use. First, we will be going over Vertical integration and its main two

components. With Backward Integration being the first one, this integration can be used by

General Motors to acquire more raw material producers and suppliers. This can help reduce their

costs tremendously as it will help limit their reliance on external suppliers for resources. Forward

integration will be the next integration discussed and this is an example of how General Motors

can try to obtain and own its own distribution channels. This allows them to gain more control of

pricing and branding ideas which can help draw in more attention and customers and be more

affordable for them.

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One crucial factor GM will need to be aware of is their financial ratios and doing ratio

analysis. Some of their biggest financial ratios such as ROA, ROE, and debt to equity are

extremely important for GM to look over and see what adjustments should or could be made.

Having a better understanding of these numbers, this can provide more opportunities for GM to

help shift their focus and energy into higher production rates and increase the technological

capabilities for their products. With internal assessment, it will also cover the company’s SWOT

(Strengths, Weaknesses, Opportunities, and Threats). This is an extremely important internal

analysis that any company needs to utilize to figure out what they need to focus on more and

focus on less.

However, one of the biggest challenges is that GM will have to fully comprehend some

of their biggest weaknesses and work towards addressing them and pushing those weaknesses to

become better. The IFE weighs certain categories from a scale of one to four with four being the

highest rating and one being the worst. These categories can be broken up into a bunch of

different things such as product development, market development, and many more. This is

super important as GM can be using this info to help compare itself to its competitors and see

what categories they lack in, and which categories give them a strategic advantage over everyone

else.

Strategies in action

With the challenges GM has faced, implementing a mix of intensive, diversification, and

Porter’s generic strategies can help guide GM towards success. GM can use the vertical

integrating backward strategy in order to help gain more raw materials and distribution channels

to help keep up with demand. Having a more secure supply chain, this allows for more room to

create and design more products efficiently and have the required materials within a reasonable
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time limit. The horizontal integration would allow GM to enhance their market share and

competitiveness within their respective target market. With diversification strategies, this

strategy allows GM to explore new things such as more revenue channels, and the ongoing

trends that occur throughout our world. With diversification, GM could focus on the ongoing

success of electric vehicles as it has been a huge trend within the world and starting to become

the new and improved way for people to transport around. This can also allow them to explore

newer technology and opportunities that would continue to grow their company overall.

Next, the defensive strategy is one of the most important strategies for any company to

utilize. This is when a company looks and reviews its operations to help allow them to find ways

to reduce costs and focus on becoming the most efficient, they can be. GM could utilize this by

reviewing some of their lowest selling products and taking them off the line to create more space

and time for newer and improved products for the company. This is an extremely smart strategy

to also help keep up with the constantly changing and evolving world and trends. Lastly, Porter’s

generic strategies will be the last strategy discussed and used by GM. With Porter’s strategies,

this allows GM to help put itself in better positions within its respective market and become

more efficient in meeting consumer demands. Most of the time, companies will experience a

shift in their target market and must properly understand how that is changing and meet the

needs required to successfully market out to them and continue their growth.

Comprehensive strategy analysis

We now must cover General Motors' comprehensive strategy analysis. The main

strategies and things we will be going over are the BCG matrix, the grand strategy matrix, and

the quantitative strategic planning matrix. First, with the BCG matrix we will be going over

General Motors' biggest question marks. General Motors must carefully understand its
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competitors, market, consumer needs, and many other aspects. One of the biggest question marks

has been their minimal investments in electric vehicles. Lately, many car companies such as

Ford, Dodge, and many other big-name companies have shifted their attention and focus to

electric cars as it has been becoming extremely popular within the last few years. Just alone, in

2023, over 1.2 million Americans owned electric cars within the states. General Motors has

made investments in electric vehicle technology but has an extremely low market share

compared to many other competitors out there. If General Motors were to increase their

competition with electric vehicles and technology, it could be a serious hit with the ongoing

popularity with electric vehicles and hybrids.

Now, we will move onto the stars of General Motors. General Motors has been

notoriously known for their SUVs such as the Chevrolet Tahoe, Chevrolet Silverado, and many

more to count from. This has been the key reason why GM had such enormous success at one

point and was dominant in their market. GM’s biggest sources of stable revenue have been

without a doubt their mid-size sedans such as the Chevy Impala and Cadillac sedans. Just alone

with these two vehicles, GM was able to generate over sixty million dollars alone with the Chevy

Impala in 2019.

Lastly, we will talk about GM’s dogs or some of their products that compete in a slow

growth market. With the Buick Enclave released in early 2022, it was one of their lowest selling

cars to date. There were three base models that the car could be purchased in and with all models

included they barely sold around 100,000 vehicles which was one of their lowest selling cars

ever to this date. This is also a huge issue as this car took years to develop, plan, and fabricate,

which slowed GM down considerably from being able to focus on some of their other products

and ideas. We will now be discussing the grand strategy matrix and each of its quadrants.
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First, quadrant one will be focusing on some of the strong competitive advantages GM

has and where the most rapid market growth would be for them. One of the biggest things GM

could focus on is the electric vehicle market and self-driving technology. Without a doubt,

electric vehicles are becoming one of the most popular ways for people to drive and the market is

constantly expanding and growing each day. GM being able to focus on trying to utilize electric

vehicles could give them a huge competitive advantage. Quadrant two, this will be focusing

more on GM’s question marks and their weak competitive position within the market. GM’s lack

of partners is one of the biggest downsides for them as a company as it makes it extremely

expensive and difficult to invest in more competitive capabilities and technology. GM should try

to allocate and reach out to other alliances and joint ventures to help grow within their target

market.

Quadrant three, this quadrant is what GM needs to focus on and what changes they need

to make before declining anymore or being terminated completely. The biggest thing GM can do

is help downsize and eliminate some of their operations. For instance, many of their dogs that

were described in the BCG model should be eliminated as if they are producing cars or products

that are not doing well, it can take up a lot of time, energy, and space that can be utilized for

something more important and beneficial. Quadrant four, this quadrant will focus on some of the

external products and parts that GM sells to consumers. This can be anything from spare vehicle

parts to types of maintenance that is needed by a specific variety of customers. An example of

why this is important is because there are plenty of people who like to design, build, and modify

their own car to their liking and GM can cater towards that market and audience with their

aftermarket parts and services.

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Lastly, we will be discussing the quantitative strategic planning matrix and its purpose.

The Quantitative Strategic Planning Matrix is to be used to lay out all the alternative strategies

and ideas and seek which one is best for the company. There are two varied factors that will be

talked about which are Key external and Internal factors. Some of the external key factors can

include the economy, political/legal/governmental factors, technological factors, and a few

others. Internal factors include the inside operations such as management, marketing, finance,

accounting, and a few others. One of the biggest reasons why the QSPM matrix is extremely

important is because it is in the best interest for GM to constantly analyze and assess what

changes or things they need to adopt within the organization. With the rapidly expanding and

changing economy, it is extremely crucial for GMs to make the best decision for their company

that will give them the highest rate of success.

Recommendations

A strategic business plan recommendation is a detailed proposal that outlines specific

actions a business should take to achieve its goals and improve its competitive position. It is a

critical component of a company’s strategic planning process, which helps to map out the vision

for the organization’s growth and the steps needed to get there. Here is what a strategic business

plan recommendation can do for a business Provides Direction, it helps to define the long-term

vision and objectives of the company, ensuring that all efforts are aligned with the overarching

goals. Based on the comprehensive strategy analysis, we recommend the new GM focus on

diversification strategies, specifically investing in electric and hybrid vehicles to meet

environmental regulations and customer demand.

Market Diversification, GM should diversify its product range to include electric and

hybrid vehicles, tapping into the growing demand for the exact purpose of environmentally
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friendly transportation options. This fact will also mitigate risks associated with the volatility of

oil prices. Technology Integration Invest in autonomous driving technology and connected car

services to position GM as a leader in the next generation of automotive innovation. Cost

Optimization Streamline operations through strategic partnerships and lean manufacturing

processes to reduce costs without compromising on quality. Innovate Product, Lineup GM

should focus on innovation in its product lineup, particularly in the development of electric

vehicles (EVs) and hybrids. This issue includes investing in research and development to create

vehicles with longer ranges, faster charging times, and more affordable prices. Expanding Global

Presence Strengthening GM’s presence in emerging markets is crucial.

Tailoring vehicles to meet the specific needs and preferences of these markets can help

GM establish a strong foothold globally. Enhance Customer Experience Implementing a

customer-centric approach in all aspects of the business, from vehicle design to after-sales

service, will help GM build brand loyalty and attract new customers. Sustainability Practices

Adopting sustainable practices in manufacturing and operations not only reduces environmental

impact but also appeals to the growing demographic of eco-conscious consumers. Strategic

Partnerships, forming partnerships with technology companies can accelerate GM’s entry into

the autonomous vehicle market and connected car technologies.

Financial Resilience Restructuring financial practices to ensure resilience against market

fluctuations, including diversifying revenue streams and controlling costs. Agile Operations

Embracing an agile operational model that allows for rapid response to market changes and

consumer trends. Talent Acquisition and Retention Investing in a skilled workforce and fostering

a culture of innovation and inclusivity to drive the company forward. By implementing these
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recommendations, GM can position itself as a competitive, innovative, and sustainable leader in

the automotive industry.

Implementation and evaluation

Implementation and Evaluation for GM, in a strategic business plan, implementation, and

evaluation are two crucial stages that have a profound effect on the success of the plan. The

process of carrying out the tactics and measures specified in the business strategy is referred to as

implementation. It is about turning the theoretical strategies into practical steps that move the

business towards its goals. To implement the recommendations, the new GM should invest in

research and development to design and manufacture high-quality electric and hybrid vehicles.

The new GM should also invest in advertising and customer loyalty programs to protect its

market share.

To evaluate the effectiveness of the implementation, the new GM should track financial

performance, market share, and customer satisfaction. Implementation and Evaluation Short-

Term Goals Within the first year, launch a pilot electric vehicle (EV) model in select markets to

test consumer response. Implement cost-saving measures in one manufacturing plant to serve as

a model for company-wide adoption. Long-Term Goals: Over five years, expand the EV lineup

and autonomous technology features across all models. Achieve a 15% reduction in production

costs through optimized operations. Evaluation Metrics uses customer satisfaction surveys,

market share analysis, and financial performance indicators to evaluate the success of the

implemented strategies.

The implementation of the strategic plan for General Motors (GM) will be a multi-phased

approach Phase 1, I will focus on Quick Wins and Stabilization for (0-6 months) Immediate cost-
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cutting measures and optimization of the current asset base. Introduction of a customer loyalty

program to boost sales and gather data. Phase 2, Strategic Initiatives Roll-out (6-18 months)

Launch of new electric and hybrid vehicle models in key markets. Expansion of digital services

and connected car features. Establishment of strategic partnerships with tech firms and suppliers.

Phase 3: Growth and Market Expansion (18-36 months) Aggressive marketing campaigns to

promote the new product lines. Scaling up production capabilities for high-demand models.

Further expansion into emerging markets with tailored offerings. Evaluation Metrics Financial

Metrics Revenue growth, profit margins, return on investment (ROI), and cost savings from

operational efficiencies. Market Metrics, Market share growth, brand perception, customer

satisfaction scores, and sales volume of new models.

Operational Metrics, Production efficiency, supply chain robustness, and innovation

pipeline strength. Review and Adjustment, Quarterly Reviews To assess progress against the

plan and make necessary adjustments. Annual Strategic Review A comprehensive review to

realign strategies with market conditions and technological advancements. Risk Management

Continuous Monitoring Regular monitoring of market trends and consumer behavior to

anticipate and mitigate risks. Scenario Planning, Development of contingency plans for various

market scenarios. By following this structured approach, GM can ensure the successful

implementation and evaluation of its strategic plan, positioning the company for competitive

success in the automotive market.

Conclusion

To sum up everything that has been stated so far, the new GM must embrace innovation,

sustainability, and efficiency to remain competitive. By following the recommended strategies

and regularly evaluating their effectiveness, GM can look forward to a future of growth and
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leadership in the automotive industry. This strategic plan aims to guide GM towards a

sustainable and profitable future, ensuring its position as a top contender in the global

automotive market. The comprehensive strategic plan for the new GM requires a focus on

innovation, sustainability, and a customer-centric approach. The plan aims to improve the

company's competitive position by leveraging its strengths and addressing its weaknesses.

The vision and mission statements provide a clear direction for the company, and the

objectives outline specific goals that the company aims to achieve. The external and internal

assessments provide a thorough analysis of the company's environment and resources, and the

strategies in action aim to leverage the company's strengths and address its weaknesses. The

comprehensive strategy analysis, including the BCG matrix, the grand strategy matrix, and the

quantitative strategic planning matrix, provides a framework for evaluating and prioritizing the

strategic options. The strategic recommendations for General Motors (GM) are designed to

propel the company into a future where innovation, sustainability, and customer-centricity are

paramount. By embracing diversification, technology integration, and global expansion, GM is

poised to not only comply with environmental regulations but also to exceed customer

expectations in the burgeoning market for electric and hybrid vehicles.

The implementation of these strategies, coupled with a focus on cost optimization and

operational agility, will enable GM to navigate the dynamic automotive landscape effectively.

The evaluation of these strategies through financial metrics, market share, and customer

satisfaction will ensure that GM remains on the cutting edge of automotive excellence. With a

steadfast commitment to these goals, GM can look forward to a robust and resilient future

marked by growth, innovation, and a lasting legacy in the automotive industry. The

recommendations aim to provide specific actions for achieving the company's objectives, and the
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implementation and evaluation plan outlines the steps for monitoring and adjusting the strategy

over time. Overall, the comprehensive strategic plan provides a roadmap for the new GM to

become a competitive and sustainable company in the long run.

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References

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Approach, Concepts and Cases.

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Martins, J. (2024, January 23). Strategic planning: 5 planning steps, process guide [2024] • asana.

Asana. https://asana.com/resources/strategic-planning

Strategic planning in diversified companies. Harvard Business Review. (2014, October 31).

https://hbr.org/1975/01/strategic-planning-in-diversified-companies