Swot Analysis Gm

Solongo Burennemekh Marc Hamilton Management Practices 24 October 2012 GM bone up Analysis command Motors (GM) is the one of the biggest automaker gild in the world. It was complete in September 1908, headquartered in Michigan and Detroit. They do financial and machine business all over the world, and they ar very successful international Corporation in the U. S. However, because of the great recession, they suffered some financial conditions and crisis. In November 2010, GM made the worlds largest initial public offering (IPO) and that closing bring them a bright future (About GM).In the medieval hundred years, GM tries to turn its threats into opportunities, maximize its strengths as much as possible, and struggle to overcome its weaknesses. The caller-out history said that they clear assorted strengths and opportunities. Large market capitalisation could be one of the primary strengths of GM. concord to the Yahoo Finance, GMs market capitalization equals $37. 38 mill ion U. S dollar and they gain 8. 1 million shares outstanding in the stock market (General Motors). They increase their size of market capitalization by doing IPO in 2010, so they raised $20. 1 one million million on the U. S stock exchange market.Even though GMs market share decreased and they were in bankruptcy in 2009, the company recovered its market share successfully and renewed its investors federal agency (About GM). GM is leading Multinational Corporation in the world, which means they stand precious spherical experience in the orbicular markets. Therefore, the global experience could be other key strengths of GM. For example, they increased their global market share by 0. 4 percent from 2010 to 2011. In the Chinese automobile industry, GM is the market leader, and their sales and joint venture partners are change magnitude continuously (10-K).They run business to a greater extent than 150 countries, and they have complex assembly line, distribution network, manufact ure, and warehousing trading operations in more than 60 countries. In addition of those strengths, GM has strong brand concern and portfolio. Although they cut its brand names such(prenominal) as, Pontiac and Saturn and sold hummer to China, they unsounded have Cadillac, GMC, Chevrolet, and Buick (About GM). Despite their strengths, they have some weaknesses such as, low debt evaluate, bankrupt, and large amount of debt. Standard & Poors gave its first AAA doctrine rating to GM in 1950s, and GM held its highest credit rating until 1980s.Nevertheless, because of the great recession, the North Americas fomite demand declined sharply, and it affected for GMs sales volume poorly. The company suffered deep financial crisis, and Standard & Poors prevail down its debt ratings CCC- in 2009 (Maynard, par. 7). However, in August 2012, GMs credit rating gets upgraded to BB+, which means they overcome its weaknesses (Bomey, par. 2). Moreover, in 2009, GM filed its bankruptcy. As a result, GM laid off its thousands of employees, closed its plants and lost its dealerships. The U. S government gave $49. jillion bail out to GM to avoid bankruptcy and restructure their operations in 2009 (Amadeo, par. 1). However, some people crossed that the U. S government unpointed billions of taxpayers money, and GM is going to file bankruptcy again, but it is non true. GMs total sales and net income is increasing since 2009, and Canadas largest credit rating agency reported that they have robust financial profile. Therefore, GM has proved its financial profile and tries to beat its weaknesses (Amadeo, par. 2). Additionally, they had $9. 5 billion give from Canada, and if the U.S government cut of GMs cash payment, IPO, interest, and dividends, they still have $25 billion to be repay (Rosevear, par. 3). This big amount of lend and interest payment could be one of the biggest weaknesses of the GM corporation. Even so, GM still has strong opportunities in the automaker ind ustry. For example, GM has big opportunities in emerging market. In 2011, GMs 72. 3 percent of the fomite sales generated outside in the U. S, and it includes 43. 4 percent from emerging market. pains analyst forecast growth of around 12. million units in notwithstanding for emerging market for the next 4 years. In this forecast, China, Russia, India, and Brazil have the highest increase of demand (About GM). In recent years, crossbreeding electric vehicles demand is expected to increase, so GM can take advantages from that market. Since 2010, the financial market is becoming stable, and the purchasing power of the consumer is increasing. This could be other opportunity for GM. Additionally, GM has the millions of loyal customers, so they can keep and suck their customers to offer more efficient and higher-quality car.Because of the high competitive automaker industry, GM still has some threats. Fuels and oils are the limited resource of the world, and its price is increasing c ontinuously. As a result, consumer may prefer more fuel-efficient and small car, or bicycle. Because of this threat, GM can lose its customer. Also, the company faced high mash and raw material cost due to the economic downturn. If they do not decrease their labor and material cost, they will lose their opportunities. Even though GM tries to do its best, it has lots of strong competitors such as Toyota, Honda, Ford, and Nissan.Therefore, it is not easy to be the leader in the automaker industry. Also, the recent report said that the demand for developed market is expected to decrease in the future such as, Western Europe and Japan. Due to the fact that GMs sales volume is going to decrease, they cannot achieve their goals (About GM). However, by using their strengths and opportunities, they can overcome their threats. Works Cited About GM. General Motors. General Motors. 2012. Web. 22 Oct. 2012. Amadeo, Kimberly. The Auto Industry Bailout. About. com US economy. About. om 28 Mar. 2012. Web. 24 Oct. 2012. Bomey, Nathan. GM Credit Ratings Get Upgraded. Mail Tribune. Dow Jones Local Media Group, Inc. 27 Aug. 2012. Web. 24 Oct. 2012. Form 10-K. SEC. gov. Web. 24 Oct. 2012. General Motors. Yahoo Finance. Yahoo Inc. 2012. Web. 24 Oct. 2012. Maynard, Micheline. loser Specter Raised as Rating on GM Debt is thinning Anew. The New York Times. The New York Times Company. 13 Dec. 2012. Web. 24 Oct. 2012. Rosevear, John. When Will GM Pay Us Back? The Motley Fool. The Motley Fool. 22 Mar. 2012. Web. 24 Oct. 2012.