DISCUSSION
Corporate Entrepreneurship
Citing from the description of entrepreneurship by Pearce & Robinson (2013), an entrepreneur can be delineated as a person who practices processes of compiling inventive and innovative ideas and decisions reinforced with the application of management and organizational skills in order to meet the objectives of the business. Therefore, it is factual that for the effectiveness in achieving the objectives of the business, the entrepreneur ought to have management skills and business knowledge regardless of being inventive and innovative (Pearce & Robinson, 2013).
Intrapreneurship can be defined as practicing entrepreneurial skills by an employed person while working for the large firm. Thus, entrepreneurs are typically employees of a certain company but are assigned a project to develop it using entrepreneurial skills. This is best enabled when the employer (the company) provides required resources and capabilities to develop the project.
General Motors (GM)
Introduction
General Motors Company Ranks as the top six successful organizations in the Fortune 1000 organizations list. The company has been successful since its foundation date back in 1908 by William C. Durant. Currently, the company ranks as the world’s largest automobile producer, distributor and marketer. Additionally, GM is among the largest IPOs in the United States history. However, it is factual that in order to retain its rapid growth in future, GM requires implementation of new strategies and quality improvement tools.
Company Background
General Motors (GM) is the dominating full-line automobile manufacturer in the global market situated in United States (General Motors Company, 2016). The company operates both manufacturing and assembly sectors together with marketing and distribution of different automobile brands in numerous places across the globe. General Motors assembles and markets brands such as Cadillac, Chevrolet, Hummer, Buick, Saturn, Saab and Pontiac among others (General Motors Company, 2016). The foundation of the modern GM Company can be cited back in 1908 after the consolidation of several automobile companies under the management of William C. Durant. Some of the companies that consolidated to form the current organization include Cadillac, Ewing, Buick, Marquette, Oldsmobile and Oakland among others autos such as Rapid trucks and Reliance (General Motors Company, 2016). However, it is noteworthy that foundation of the original General Motors Corporation can be dated back in 1892 by R. E Olds who through his personal savings decided to convert an industrial engine naval plant that belonged to his father into an automobile factory to manufacture horseless carriages. After continued operation, the company performed well and managed to be the leading producer of passenger vehicles in United States back in 1929 (General Motors Company, 2016). This happened after the company outdid Ford Motor Company in U.S automobile market. Furthermore, the company continued to develop and in 1931, GM became the world largest producer of automobiles. By 1941, the company had dominated the U. S automobiles market where it dominated approximately 44% of cars market in the country. Currently, the company is headquartered in Detroit, Michigan (General Motors Company, 2016). In the contemporary automobile global market, the company ranks as the largest IPO both in U.S and world’s car producing history.
Company Vision and Mission Statements
The mission statement of the company states that GM is an international organization that emphasizes on corporate social responsibility provisions globally. Therefore, it is dedicated towards offering quality products and services to their potential consumers while sharing their success with their business partners and employees together with their shareholders. On the other hand, General Motors has different mission statements regarding their success. One of their visions include following the same pattern of success that they have followed over the past 100 years of operation (General Motors Company, 2016). Therefore, they are committed towards dominating the automobile industry. The other vision of the company is to be the dominating producer of transportation products and services. Thus, it is worthwhile to state that mission and vision statements have helped GM retain their organizational values and culture towards maintaining and retaining their competitive advantage and dominance in the global automobile industry.
Leadership and Organizational Culture
Citing from the objective of grand strategy in an organization, leadership and organizational structure and culture of General Motors will be affected significantly. Effects of grand strategy include rapid market growth and strong competitive position (Pearce & Robinson, 2013). Therefore, as the company attains rapid growth, they will be obliged to increase and organize their employees in order to satisfy the demands of their clients and comply with the growth. On the other hand, the culture of the company will be affected as it will be obliged to adopt new strategies and technology in order to serve the rapidly growing demand in the market. Therefore, their employees will demand more training in order to promote and retain good relations with the customers.
Corporate Social Responsibility
As stated in the vision statements of the company, GM motors focuses on adhering to corporate social responsibility provisions of all market served through compliance with the laws and regulations such as dumping and environmental concerns. Some of the major trends in the current market served by the company include environmental pollution and safety of the passengers in the vehicle. As a result, GM is focusing on producing less pollutant vehicles with advanced safety products.
External Analysis and Global Environment
Opportunities
Increasing demand in the market
Cost reduction capability through JIT
Emerging global markets
Increasing demands for environmentally friendly vehicles
Increasing concern on green technology
Government subsidies
Threats
Economic instability
Lessening demand for SUV cars
Unstable oil prices
Increasing government regulations on emissions from the vehicles and their recyclability
Increasing commodity prices
Internal Analysis
Strengths
Quality improvements
Advance internet channels for distribution
Extensive reserves for their products
Economies of scale
Competence in investment in 5 substitute fuel technologies
Weakness
Poor reputation particularly on green technology
Legacy expenses
Low corporate reputation on quality
Lack of experience in small production of cars
Delays arising from bureaucratic processes
Under the implementation control, the recommendable improvement tool for GM Company is Six Sigma. This is based on the fact that one of the major objectives of the company is to retain their competitive advantage in different markets served. Therefore, Six Sigma will help in improving the quality of implementation output through identification and elimination of faults and defects.
Innovation and Entrepreneurship
Citing from the fact that innovation is delineated as introduction of a new thing, incremental innovation can be delineated as a concept where an organization focuses on lowering cost of production, inefficiency reduction, and quality improvement (Pearce & Robinson, 2013). On the other hand, breakthrough innovation is a concept where the company focuses on transforming itself entirely or the market sector served. Some of the risks associated with these types of innovation include inability to retain originality for both the product of the organizational culture, and risk of losing the competitive advantage as the company uses breakthrough innovation (Pearce & Robinson, 2013). Therefore, the recommended strategy for GM is incremental in nature as the company will seek for continuous improvement using Six Sigma tool. Therefore, the strategy is intrapreneurial as it focuses on product development together with marketing strategies implementation. The benefits of this strategy include instant identification of implementation faults, continued improvement through a cycle of processes, and guaranteed efficiency in processes improvements.
Strategic Analysis and Choice
One of the reasons why grand strategy is more beneficial than generic strategy includes the fact that the strategy offers basic direction for the specific strategic implementation (Pearce & Robinson, 2013). Additionally, grand strategy encompasses strategies that can be used as supplements to reinforce each other. Lastly, grand strategy focuses on increasing sales of the products and services offered by an organization. Contrary, generic strategy is complicated in requires resources, specific skills and precise organizational planning.
Generic and Grand Strategies
Product development as the grand strategy will help GM company advance their products to achieve competitive advantage and rapid growth in the market. Additionally, the company will be able to adjust with regard to the changes in market demand and promoting corporate social responsibility.
Long Term Objectives and Strategies
GM’s long term objectives include retraining their rapid growth that have been experienced over the past 100 years and being the dominating producer of vehicles in the global market (General Motors Company, 2016). Some of the generic strategies that GM has implemented in the past and currently include production of low cost vehicles, manufacturing of differently branded cars, venturing in international markets and focusing on quality improvements. Market development is the recommendable grand strategy for long term growth of the company. Market development will help the company venture in numerous markets worldwide thereby increasing their competitive advantage in the global market. Additionally, this will promote product awareness in developing markets.
Short Term Objectives, Functional Tactics and Implementation
Market development will oblige GM to implement research and development (R&D) strategy in assessing the demands of different targeted markets. Through R&D, the company will gain knowledge and skills required to venture to the targeted market. Short term goals required for this strategy include retaining competitive market position and extending the customer base.
Restructuring, Reengineering and Refocusing
In order to support market development strategy, GM ought to focus on retrenchment and integration by shrinking business units in certain markets in order to expand and venture in other markets. For instance, the company might shrink its business units in United States in order to venture in developing markets in Africa. This will make sure that the company operates maximally and optimally in all markets served.
Conclusion
Generally, regardless of the fact that General Motors has been performing excellently since the original date of foundation, it is factual that the company requires implementation of several strategies in order to retain their competitive advantage and control their rapid growth. Both generic and grand strategies will play a significant role in making sure that the company achieves its long term and short term goals. Some of the strategies that can be implemented include product and market development which will be effectuated using Six Sigma tool of quality improvement. As a result, General Motors will maintain its growth track that they have endured over the past 100 years.
References
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition (13th ed.). New York, NY: McGraw-Hill.
General Motors Company SWOT Analysis. (2016). General Motors Corporation SWOT Analysis, 1-10.
