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General Motors of Operation Strategy

The objective of General Motors is to build a long-term consumer base. As a well-known organization with offices and services in many locations worldwide. Making it, a worldwide firm changed the course of history and business operations by allowing it to reach as many customers as possible to serve them better. It has produced a slew of sub-brands, like Chevrolet, GCM, Buick, and Cadillac, dedicated to providing customers with the best vehicles possible (Barabba, 2019). Offering a diverse choice of vehicles demonstrates the Company’s capacity to sustain market share by meeting the needs of various consumer groups. Because the vehicle business faces severe competition due to the growth of numerous automotive industries worldwide, General Motors continues to expand in response to a constant increase in customer demand.

Technological innovation and computerization cannot be overlooked because automobiles have become essential features. Automobiles must meet customers’ ever-increasing demands, who regard automobiles as an indispensable part of their everyday lives. As a result of these facts, the corporation focuses more on current technologies to improve customers’ car experiences.

Furthermore, the corporation aims to help local communities by generating an environmentally friendly reputation, as the corporate image has a significant impact on income (Adler et al., 2018). The Company’s principal strategy may be defined as concentrating on innovation and technology advancement while creating trusted relationships with clients. Since the operation strategy aids in the achievement of the primary objective by prioritizing quality and innovation to be able to meet the needs of the customers, it aids in the creation of customer loyalty by trusting relationships are built with the assistance of high quality and sufficient flow of processes in the supply chain, and it aids in the creation of customer loyalty.

Three tasks that do not align with the General Motors operation strategy include; Production of vehicles whose quality was compromised, it emerged that the Company produced millions of vehicles with defective ignition switches, the problem with this issue is that even the slightest mistake that tends to affect the quality of the vehicles produced pose a significant risk since it can easily cause death. Increased production of SUVs and pickup trucks means that the large portion of the Company’s customers who do not prefer driving either SUVs or pickup may be dissatisfied with the products, leading to loss of market. Also, the change in demand patterns can vary in the future, and bringing more variety to its product line would be essential for the Company. The market exit in India, and closing manufacturing outlets in countries like Indonesia and Australia. This is not the right move since it may reflect losing some of its global appeal and facilities. Instead, the Company could have restructured these centers to continue earning revenue.

The most appropriate strategy would be to diversify the Company’s business by considering restructuring the Company’s approach to the European market. The Company faces stiff competition from other companies in the automobile industry, including the Volkswagens group and Daimler. The Company can improvise the market to remain at the top in sales of vehicles in the market, as new goods and sales outlets generate more money and offset operational expenses, boosting gross sales and net profit. This will enable them to reach a larger group of customers and significantly improve their revenue and profit margins. Since the corporation can allocate resources to respond to contractual agreements established primarily by customers, this model is feasible.; hence flexibility is observed. The time to market and deliver products will be significantly minimized by having the firm within the market space, improving the efficiency of the Company’s services.

Expansion of operations by General Motors is the primary strategy aimed at increasing the market space and improving customer service, which in turn corresponds to improved profitability, will help the Company in acquiring new sources of labor as well as opening new unchartered markets, which has the potential of enabling the company increase in the number of vehicles produced annually (Shire, 2019). Among the Company’s competitive advantages would be cost and quality as time and flexibility remain essential factors.

For the Company, the enablers to be taken into consideration include the new target market in the new countries that would undoubtedly help the Company expand its operations and business and grow further. Improved process of making effective and quality decisions would be implemented, which ill aid the Company in achieving its objectives. The advantages of these enablers would be that the Company will gain the ability to introduce the new products to the market, enhancing new taste for products for the customers, which will go a long way in helping the Company attain a competitive edge over the rival companies. The Company will get a chance to focus on expansion through specialization, with the Company having a better understanding of the market needs due to the direct contact with the market will enable them to improve their products in a manner that best serves the customers with the best experience to be able to compete with other companies.

The disadvantage of the enablers is that the Company will have to invest heavily in cost and time. The research into the new market may also be erroneous, and therefore the Company may incur huge losses due to a poor grasp of the foreign market it wants to expand into. The Company will also fail if it does not take advantage of the opportunities that present themselves due to strategies such as reward acceleration.


Adler, R., Mansi, M. and Pandey, R. (2018), “Biodiversity and threatened species reporting by the top Fortune Global companies,” Accounting, Auditing & Accountability Journal, 31,787-825.

Barabba, V. (2019), “Assessing General Motors’ innovation strategy over three decades using the “Three Box Solution,” Strategy & Leadership, 47,34-42.

Shire, K. (2019). “5. Bargaining Regimes and the Social Reorganization of Production: The Case of General Motors in Austria and Germany”. Workplace Industrial Relations and the Global Challenge, 137-156.


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