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Essay example - Company Strategic Analysis Paper
Pages 5 (1255 words)
Subsequent to filing Chapter 11 bankruptcy protection, General Motors was renamed as Motors Liquidation Company (MLC). As per reports…
Extract of sample
s strategic analysis paper will examine MLC’s external and internal environments, business and corporate level strategies, organizational structure and overall competitive position.
There are specific analysis models used for evaluating a firm’s external and competitive environments. PEST analysis is the model designed to assess a company’s external environment whereas its competitive environment can be analyzed using Porter’s five forces model.
While analyzing the political factors affecting MLC, it seems that various laws and government level regulations have been affecting the company for the last half century. Evidently, consumers today are highly concerned about health and environmental sustainability. Hence, such consumer concerns would force governments to enforce some strict regulations on automobile manufacturing.
Since the present global economy is not stable, it does not offer favorable business environment to MLC. To illustrate, in an inconsistent business environment, it would be difficult for the company to allot sufficient operating funds; and this may affect the MLC’s operational efficiency.
Socio-cultural factors raise potential expansional opportunities for MLC since today’s automobile consumer are moving towards more feature oriented vehicles. As Sample (2012) points out, people hold the view (it is true) that the society would judge a person’s economic class based on the type of car he drives. Fomin and Krcmar (2003) opine that rapid technological advancements, particularly internet development, over the last two decades have dramatically influenced the automobile industry. Surveys indicate that currently majority of people search the web before making a new vehicle purchase decision. Hence, technological sector provides automobile manufactures like MLC with competitive market opportunities.
Degree of competitive rivalry is very high in the automobile industry (slideshare). Some giant market players like Toyota raise potential ...
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