STRATEGIC REVIEW AND ANALYSIS OF GENERAL MOTORS

General Motors Corporation (GM) ranks number one on the Fortune 500, and GM is a premiere American company by any measure. In 2004, however, General Motors employs more people outside of the United States than the company employs within the United States (Hoover's Inc., 2004). The increasingly outward focus of General Motors reflects a corporate strategy based on the company's recognition of shifts in the loci of opportunities for the company from the domestic sphere to the global domain.

This paper describes and assesses the position of the company in a Strategic Review, which includes a Global Review, a Functional Review, a Strategy Review, and a Review of GM's Assumptions about the future. Following the Strategic Review, a Strategic Analysis evaluates the company's strategic position through the application of four analytical models SWOT (Strengths-Weakensses-Opportunities-Threats) Analysis, PEST Analysis, Porter's Five-Forces Analysis, and Boston Consulting Group (BCG) Analysis.

As noted above, GM is a truly global company. This paper begins with a focus on the global operations of the company before narrowing the focus to GM's operations related to the Chinese market. Entry into and participation in the Chinese is sought by many global companies that recognize the country's growth potential. GM is among the companies that have committed substantial resources to the Chinese market and which foresee

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The government of China is attempting to preclude the manufacture of automobiles at levels the economy cannot absorb (Welch, Roberts, & Edmondson, 2004) As of June 2004, all new entrants into the domestic automobile manufacturing market in China must invest a minimum of US$240 in manufacturing facilities and a minimum of US$60 million in research and development facilities (Welch, Roberts, & Edmondson, 2004) Chart 2 SWOT Analysis: General Motors Strengths Opportunities 1. The company has great depth in engineering expertise and experience. 2. The company is able to develop new vehicle platforms at low cost. 3. The company's financial position is strong. 4. GM can expand its overall capacity quickly. 1. The company can continue to expand into new domestic markets in Asia for several years. 2. Rapid expansion in the China market will create ongoing growth opportunities. 3. The China market provides an opportunity for the development of hydrogen-powered automobiles. Weaknesses Threats 1. The faces problems in rapid capacity expansion in China. 2. Production quality in China remains lower than production quality in North America, Europe, and Japan. 3. The company's expansion process in China i

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