Marketing Strategy In General Motors Essay

EXECUTIVE SUMMARY General Motors Corporation was founded in the year 1908 with its mental capacity quarters based in the United States of America. Its the creations largest political machinemaker manufacturing over 35 unlike brands and gener solelyy ranked the fifth largest comp whatever worldwide with a act as force of over 280000 employees the world over. As part of embodied social responsibility G..M has checkn millions of dollars in computers to Engineering colleges.It has in like manner created joint ventures dedicated to quality of life ineluctably of employees through offering of medical care and early(a) social serve. In legal injury of merchandising strategies, the troupe has embarked on large kayoedstrip extinctturns to denigrate capital under utilization. Secondly, its diversity on automobile make also spreads the risks thus lowering chances of tot totallyy risky ventures. Branding has also been the underground behind their prosperous undertaking mostly wi th the introduction of trendy sports avail makes. Not to be left behind technologically, G.M has also kept up with the technological advancements with the manufacture of electric fomites as well as the G.M auto racing models.INTRODUCTION Marketing dodging is when an arrangement designs the better(p) cabal or package of the traditional 4ps and extended 5ps in an attempt to sour the target grocery capturely. There is fatality to review the current grocerying scheme as the marketing surround is dynamic. An effective schema requires a rich and current database. An composition should at that placefore invest in incessant marketing research. General Motors has apply various strategies in its maketh. Among them are the generic strategies and grand strategies as discussed below.DISCUSSION The General motors union has used the to a higher place strategies to maximize diversification.The family has used a schema of using bare-ass technology in the market so that it ca n be war-ridden in market for better performance and confront immature challenges access up in the world market, like, before the 1970s the motor vehicle manufacturing companies in Europe regarded themselves as competing largely in a station market in which they were dominant. However, the subsequent changes in the motor vehicle sedulousness were dramatic. The motor vehicle industry in general was reckond with the problems of an accessionly warring market in a ever-changing crinkle surroundings the need was to match the fundamental laws activity to this environment in much(prenominal) a way as to take reward of such opportunities that might be domiciliated and overcome the many threats that could arise.Since the environment is continually changing the society makes strategical decisions for better gravelth of the organization. strategic decisions often hurt major imaging implications for an organization. These whitethorn be decisions to do with the disposal or acquisition of as even ups of substantial value. The company decides as part of the rationalization of its trading operations to close a imbed that is not doing well. Also the company adopts system of using virgin technology so as to deliver the unafraids economies of scale in overlapion. In other words, strategic decisions may result in major changes in the resource base of the personal line of credit. Strategic decisions are promising to affect operating(a) decisions, to set off waves of lesser decisions.For example, if the degenerate decides to dress its operations and cut back on manufacturing capacity and the workforce, this may take a shit rise to industrial relations problems. Similarly, strategic decisions about rationalization, which lead to a revised product or manufacturing plan, depart inevitably mean that the sorts of day-by-day problems faced by a production manager, or a gross gross revenue manager, in the company turn out to be different. Again, then , it is consequential to pull in that strategic decisions have wide ramifications across the organization. The strategy of an organization get out be affected not only by environmental forces and resource availability, still also by the determine and expectations of those who have power in the organization. According to M.E. Porter (1980) corporate strategy is bear on with impact of outdoor(a) environment on the squiffy.In some respects, strategy can be thought of as a reflection of the attitudes and beliefs of those who have most ascertain in the organization. Whether a company is expansionist or more concerned with consolidation, or where the boundaries are drawn for a companys activities, may say such about the values and attitudes of those who most strongly influence strategy. Making organization perpetration lite to member, this allow serve as strategy. The company uses its mission statement as a strategy which states that it bequeath stand the best in producing m otor vehicles, standing against competition, in terms of technological advances and in terms of its role in society.The company uses this strategy with specific aims as to where the organization is conceived to be throughout. Strategic decisions are presumable to be concerned with the scope of an organizations activities does the organization deoxidize on one area of activity, or does it have many activities? For example, should the quick centralise? On a small range of products or, as in the past, have a very diverse range? To what extent should it be integrated backwards into manufacturing or forward into distribution? And should it attempt to compete widely in worldwide markets, indeed would it survive without a wider international role? General Motors uses a strategy of matching organizations activities with its resource capability. It also uses a strategy of countering environmental threats and taking advantage of environmental opportunities by matching organizational res ources to threats and opportunities. Before the company takes any strategy it looks at the long term implication it will stupefy to the firm before implementation is through with(p). The decisions taken now by the focusing of the company will have long-term implications on the health of the business in later decades, for instance, a decision to close a plant that is not doing well or to move into another area of activity. Strategic decisions therefore tend to have long term horizons and or implications, strategic decisions are often complex in nature.General Motors has managers who look cross-functional and operational boundaries to deal with strategic problems and come to agreements with other managers who, inevitably, have different interests and perhaps different priorities. This problem of integration exists in all vigilance tasks but is particularly problematic for strategic decisions. Strategic decisions are likely to postulate major changes in organizations. The company has a team of experts who make accepted that before a strategy is implemented, it has to be developed, and that there should be a strategic vision. The strategic vision is a view of an organizations future direction and business course.The task take aship canal visualizing the firms future position in five to ten years. The task is to inject grit of finding into a firms activities, provide long-term direction, give the firm a strong identity and decide, who we are, what we do, and where we are An example of a strategic vision of an skyway business us We want our airline to be the worldwide airline of choice. The strategic vision of General motors is communicated and dual-lane by all those working for the company. After strategy vision has been done, organization move to the next level that is developing organizations mission. The company mostly uses its mission statement so that it does not get out its main aim. An organizations mission represents forethoughts customized s tate to the question what is our business? A mission statement broadly outlines the organizations future direction and serves as a guiding opinion to what the organization is to do and hold up. (Cole, 1996). It reflects managements vision of what the firm envisionks to do and become, provides a clear view of what the firm is trying to accomplish for its guests, show the intent to stake out a particular business position. development an organizations mission as the strategy which will involve defining who, what and where. According to Thompson and Strickland (1990) who suggested that there are tasks of strategic management which they see as bringing together setting of the overall mission or goals of organization, the essaying of business objectives and the strategy required to grasp the two in a higher place.It helps managers avoid losing focus on the firms direction to bring home the bacon what its aim that to reach out and to grow in the market. Another strategy is sett ing objectiveness of the organization. The purpose of setting objectives is to convert the mission into performance targets, create yardsticks to track performance, establish performance goals and push the firm to be inventive, intentional and focused. Setting repugn but achievable objectives guards against the interest complacency, drift, intragroup confusion and status quo performance. Objectives provide a direction to the firm in its quest for realizing the vision and mission and benchmarks for judging organizational performance. The company employs qualified round as strategy since qualified stave can be able to accession production and high quality hence fashioning the firm to grow and increase its market share.It uses lower be than its rivals as a cost leadership which will assist to reduce expenses charged against profit, making a firm to have high profit comparing with other firm, by increasing profit the company grow and increase the market share. The company does a thorough research as strategy that is becoming the leader in new product introduction to the market, this will assist to increase sales since no other firms will be selling such new product in the market.When one firm is selling a product in the market and no competitor, this means the firm will be selling at abnormal price hence making extremely profit and this will lead the firm to grow and increase market share. Overtaking rival firms on quality or customer services strategy will make business to grow. Customer service as strategy involves treating customer with very high respect and integrity, making customer to feel cared for and given good service, this will make the firm to increase the number of customers comparing with other firms and retaining those who have visited the firm, this will increase sales hence organization growth. The company uses the satisfaction of customer of necessity as its main strategy. Total Quality Management is used as strategy for organizational growth and increase of the market share to achieve this. at a time customer requirements have been identified, they need to be translated into standards which can be interpret and understood easily by employees and clients.One of the major quality difficulties facing service organizations is the defining of service quality standards. According to Ansoff (1984) redefined strategic management as a systematic approach for managing change which consists of positioning of the firm through strategy and capability planning, real time strategic retort through issue management and a systematic management of unsusceptibility during strategic implementation. Once client requirements have been identified and standards of service defined, it is requisite to define systems which will enable the standards to be translated into achievable assistes. To provide a service which satisfies and even delights clients, professional firms need to recruit and train their staff to achieve the required s tandards throughout the service process. The recruitment and selection of appropriate staff can be used has strategy by organization, as these are the foundation of any quality-conscious firm. The client-centered firm should take into account all relevant criteria and consider recruitment as the first stage in retaining loyal, well-motivated and happy employees. Proper training can also be a good strategy to organization.A professional employee, like any other member of staff, has a limited set of skills which require continual metamorphose in the face of changing market demands and technology. Only by update these skills using well-developed programs, can professional firms ensure that they equip their staff with the skills undeniable to respond to future client expectations. Internal communication methods is another important strategy organization can not do without. To ensure that staff members are aware of the importance of clients, it is essential that management communicate s, on a regular basis, the need for continuous and organization-wide quality procession to their staff.To achieve this, there are various internal communication methods available, which include newsletters team briefings meetings internal customer-supplier workshops and training key interfacing departments in the main processes and procedures of the supplier and customer activities. To modify client interaction behavior, professional firms can introduce performance- worryd repays and recognition systems as strategy to beat their rivals, which encourage client-satisfying behavior, recognizing and praising employees for work well done is not superfluous, but earlier confirmation of accomplishments and a reinforcement of commitment. The company also uses financial objectives as strategy. Financial objective are those outcomes that relate to improving the firms financial performance such as a) Increase earnings growth from 10% to 15% per year. b) Boost choke on equity investment fr om 15% to 20%. For the objectives to have values as a management tool, they mustiness be stated in quantifiable or measurable terms and specify a deadline for exertion. Objective-setting process should be a top-down process in order to achieve unity and cohesion throughout the organization. Because all managers need objectives the process should be top-down and should follow the following pattern Start with organization-wide objectives, next, set business and product line objectives.Then, establish functional area and department objectives, mortal objectives come last. Strategy-making concerns how to achieve desired strategic and financial, objectives out-compete rivals and win a competitive advantage, respond to changing industry and competitive conditions, defend against threats to the firms well-being, grow the business, among other things. A firms strategy will actually consist of making decisions about the following How to satisfy customers, how to grow the business, how to respond to changing industry and market conditions, how to best capitalize on new opportunities, how to manage each functional piece of business and how to achieve strategic and financial objectives.Ansoff suggested a matrix of product market alternatives which has become widely used in basic terms the matrix offered the following alternatives market penetration, product development, market development, and diversification any strategy to work it has to be implemented. Implementing strategies involves creating fits between the way things are done and what it takes for effective strategy execution, executing strategy proficiently and efficiently, and producing excellent results in a well-timed manner. Proficient strategy execution will depend greatly on competent personnel, adequate skills and effect internal organization. There are threesome types of organization actions that are very important Selecting able persons for key positions, making certain that the organization has the skills, core competencies, managerial talents, technical expertise, and competitive capabilities it ineluctably and developing an organizational structure that is conducive to successful strategy executioner can be done by allocating ample resources to strategy-critical activities. Organizational units need enough resources to carry out their part of the strategic plan. This includes having enough of the rightfield kinds of people and sufficient operating funds for them to do their work successfully, instituting best practices and programs for continuous improvement.A strong commitment to adopt best practices, specially for those activities where the potential for better quality performance or lower costs can translate into a sizable impact on the get through line, is integral to effective strategy implementation, installing support systems that enable company personnel to carry out their strategy execution. Strategies cannot be executed without a number of support systems to ca rry on the business operations. For instance, an airline may not hope to provide a world class passenger service without a computerized reservation system, a system for accurate and expeditious handling of luggage and a strong aircraft maintenance program, tying reward structure to achievement of results the company needs to enlist commitment, throughout the organization, to carrying out the strategic plan by motivating and rewarding people for good performance, creating a strategy-supportive corporate culture.The beliefs, goals and practices called for in a strategy may or may not be compatible with a firms culture. When they are not a company finds it difficult to implement strategy successfully. The management should stay focused as to what they are trying to achieve in the face of a changing environment and customer needs otherwise they will not remain competitive in the industry, lowers managements threshold to change. The management are made to understand that the environmen t is changing and thus the need to do things in a different way so as to have a competitive advantage in their area of operation, provides basis for evaluating competing budget requests and steering resources to strategy-supportive, results-producing areas, unites numerous strategy-related decisions of managers at all organizational levels.The managers are made to stay focused on one objective and not to make conflicting decisions, creates a proactive, rather than reactive, atmosphere with the environmental scanning the organization is aware of changes in the environment and hence will take action to take advantage of the changes and observe any adverse effects on itself, enhances long-range performance the organization is always to plan for the long-term and its performance is focused on the achievement of long-term objectives and fewer resources and less time devoted to correcting erroneous or ad hoc decisions this is because all the managers will be making decisions aimed at ach ieving the set objectives only and there will be enhanced coordination among them due to the reality of strategic management process.CONCLUSIONThe role of strategic management cannot be downplayed, given the need to align the organization with the changing environment with a view to realizing the long term objectives of the organization to the future with success. It is critical that all departments in the organization be involved in strategy aspect to ease the implementation process. Proper communication of the vision and mission serves to cheer up challenge and motivate the workforce hence making organization grow and increase the market share. The General motor company as used the above strategies to grow by obtaining its objectives, increasing market share and market it to stay in the market. No company can grow or stay in the market if it does not use strategies to face challenges which face market industriesRECOMMENDATIONSFrom the above we can say that due to changes in the environment it necessary to change ways of carrying out business. Any company to pass over in business it has to change to new strategies, which will include ways of marketing, using latest technology, for example marketing using internet, having qualified staff in business that will be in appositions to employ new skills. It is very important for any company to look the welfare of employee since this will promote employees morale towards the work.Strategy should be seen as the continuous improvement of accompany so it should not forgotten at all costs, it should be seen as the backbone of the company. Since the company is seen as going concern it must be able to implement all strategies for it survive, this can be seen from the above company that General motors. Last but not least each company to compete in the industry must have clear vision and mission statement for its reference when doing business so that the company can stick to them.REFERENCES1)Cole, G.A. (1994), Strategic Management, DP Publications.Chandler, Alfred D. (1962), Strategy & Structure, MIT press.Andrews, Kenneth R. (1987), The concept of corporate strategy, 3rd edition, Richard D. Irwin.Ansoff, H.I. (1965), Corporate Strategy, McGraw-Hill.Ansoff, H.I. (1964), Implanting Strategic Management, Prentice Hall InternationalPorter, M.E. (1980), free-enterprise(a) Strategy Techniques for analyzing industries and competitors, The Free Press.Thompson, Arthur & Strickland, A.J. (1990), Strategic Management Concepts and Cases, Richard D. Irwin.