External State of the General Motors - Essay Example

General Motors has remained one of the most competitive automobile companies both in the United States and globally. It forms part of fewer companies that embrace the use of technological advancement to aid their production process. The company engages in the production of small personal cars to heavy commercial trucks that are meant to carry heavy loads (GM, 2014). The general motor company has been involved in the automobile industry for over 100 years producing various models that meet customers’ tastes and preferences. Below is a comprehensive external analysis of General Motors (PESTEL ANALYSIS)
PESTEL analysis
Demographic factors
According to its mission statement, General Motors strives to improve the organizational market share by expanding market margin to a vast community through responsiveness and production of quality in sufficient quantity, which ensures consistency in supply to the population in demand of such products. During the duration of its existence, General Motors has engaged in the production of models that target specifically the baby boomer generation. This constitutes a younger generation who are aggressive bout simple, stylish models that go with fashion. The latest statistical analysis points out that the company has targeted customers in mid 20 who account for almost 50% of revenue returns from the sale of vehicles (GM, 2014).
Economic analysis
General motors’ has played a considerable role in the development of the United States and the global economy. Based on the national financial reports of the United States, the company has contributed a higher percentage of economic development for a longer duration since its launching into operation. Not only to the United States General Motors also had a huge economic impact in its areas of operations. In essence, the organization has triggered operations of other industries such as aluminum and textile that supply raw materials to the industry. In addition, the company has also created job opportunities both directly and indirectly for a significant number of populations (GM, 2014).
Political//legal
With influence from both the government and members of the public, the company has constantly implemented different policies to harmonize the mutual coexistence of all members of the society with customers invoking dominance on the progress of the business (GM, 2014). The latest amendment was the environmental protection agency act, which ensures that any by-product generated by the company is less effective towards environmental degradation.
Social cultural factor
With the current trend in modern life, most members of the society associate status of life with the car the person drives. Whereas wealth and richness are associated with nice vehicles, dilapidated vehicles would make somebody feel odd within society. Therefore, general motors’ has implemented this into practice by producing simple, stylish private cars and thus being able to improve its economies of scale. The organization understands that achieving a competitive strategy is based on the reward clarifies (Horsler, 2011).
Technological factors
According to Horsley (2011), the presence of technology, especially the use of the internet has greatly transformed operations in every automobile industry and general motors have been no exception. For instance, the rate at which customers use online engagements to process transactions concerning car purchases has exceeded manual operations thus general Motors has put in place a procurement management system to enhance the processing of such transactions. Read More