Car models made by General Motors

Case study on General Motors Inc.

General Motors Company Inc., commonly known as GM, is an American multinational automotive corporation headquartered in Detroit, Michigan, and among the world’s largest automakers by vehicle unit sales, employing 202,000 people and doing business in some 157 countries. General Motors is divided into five business segments: GM North America, GM Europe, GM International Operations, GM South America, and GM Financial. General Motors produces cars and trucks in 37 countries.

Today, the top three individual GM shareholders are Mary Barra, as of her most recent filing with the SEC on February 15th, 2018, Mary Barra is General Motors’s largest individual shareholder, holding a grand total of 520,608 shares of GM, Mark L. Reuss is the current Executive Vice President of Global Product Development, Purchasing and Supply Chain at GM. As of that previously-mentioned February 15th, 2018 SEC filing, Reuss claims the vaunted spot of second-largest individual GM shareholder with 203,934 shares in the company and Dan Ammann is the current president of General Motors; he has held the position since January 2014. Before that, he enjoyed laboring as the company’s CFO and executive vice president. As of the February 15th, 2018 SEC filing, Ammann is the third-largest GM shareholder, he holds 195,228 shares. Since, being top shareholders, these individuals’ “own” significant chunks of the company.

General Motors owns and operates a plethora of automobile brands across the globe. These brands include Chevrolet- mass market models, Buick, More expensive models GMC targeting the luxury market, Cadillac, Baojun, Holden, Isuzu, Jie Fang, Opel, Vauxhall, and Wuling. To understand the competitive environment of the small car market, including market commonalities and resource similarities, General Motors should perform a competitor analysis. Car companies competing in various market segments, including SUVs, trucks, and compact cars, are referred to as multimarket competition. General Motors’ strategy is to deliver safer, simpler and more sustainable transportation solutions for our customers. In doing so, we’ll realize our vision for personal mobility — we’ll help the world see a future with zero crashes, zero emissions and zero congestion.

GM’s operating profit remained healthy. The company reported an operating profit, which is earnings before interest and taxes, of $8.4 billion for the year, including $105 million in the fourth quarter. That’s down from $11.8 billion in 2018 and $8.4 billion for the fourth quarter of that year. In 2019, an equity income of $1.1 billion from China joint ventures was added to GM’s earnings before interest and tax (EBIT). Nevertheless, GMI’s revenue contribution still totaled as much as $16 billion with 995,000 vehicles delivered in 2019, making up nearly 12% of the company’s entire sales. To understand the competitive environment of the small car market, including market commonalities and resource similarities, General Motors should perform a competitor analysis. Car companies competing in various market segments, including SUVs, trucks, and compact cars, are referred to as multimarket competition.

GM acts in most countries outside the USA via direct subsidiaries, but in China through 10 joint ventures. GM’s OnStar subsidiary provides vehicle safety, security and information services. In 2009, the company shed several brands, closing Saturn and Pontiac, and emerged from a government backed reorganization. In 2010, GM made an initial public offering that was one of the world’s top 5 largest IPOs to date. GM returned to profitability in 2010.

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Part One- Qualitative Questions

1. Explain and cite the car models made by General Motors. [1 mark

2. Define General Motors’ business strategy and value of MONOPOLY.

[0.5 mark

3. How does GM understand its competitive environment and create models for its customers? [0.5 mark

4. Why is GMC models more expensive than Chevy models? [1 mark]

Part Two-Quantitative Questions

1. What do you learn about marketing from the General Motors story for making money? [1 mark]

2. Who owns GM Motors? Write shareholders along with their profile and number of shares. [1 mark]

Part Three- Process Integration and Assumptions

Assume the following scenario in our case study of integrated processes. Petroman Corporation (PC), a General Motors Company customer in GM North America, has ed 800 bottles of GM Dexos Motor Oil (GMD- 5W-30) from GM. Because PC is located in the Western U.S. sales organization, GM will ship the GM Dexos Motor Oil from its San Diego plant, which is warehouse management enabled. We will make the following assumptions:

1.The San Diego plant has 200 bottles of GM Dexos Motor Oil (GMD- 5W 30) in stock valued at a moving average price of $15.43 each.

2.The Miami plant has 1,500 bottles of GM Dexos Motor Oil (GMD- 5W-30) in stock valued at a moving average price of $15.25 each.

3.GM can purchase bottle of GM Dexos Motor Oil (GMD- 5W-30) from Shell Motor Oil at $14.95 each.

4.Petroman Corporation (PC) has sent GM a purchase (PO) for 800 GM Dexos Motor Oil.

5.GM sells GM Dexos Motor Oil for $30 each.

6.GM Dexos Motor Oil (GMD- 5W-30) must be re ed when there are 250 or fewer left in inventory. In addition, the GM Dexos Motor Oil (GMD- 5W-30) must be purchased in quantities of 1000 bottles.

Based on the following six logical groupings of process steps, identify and discuss the steps in the integrated process that include the procurement, fulfillment, and IWM processes. Analyze the financial and material impacts of the various process steps:

1.Fulfillment process—initial steps

2.Procurement process—initial steps

a)Procurement process—external procurement/ In the event the Miami plant is unable to fill San Diego’s requirement for GM Dexos Motor Oil (GMD- 5W-30).

For the points 3-6 assume that GM has selected the Procurement process—external procurement option.

3.Warehouse management steps related to procurement

4.Fulfillment process—shipping

5.Warehouse management steps related to fulfillment

6.Fulfillment process—concluding steps

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Questions

1.Fulfillment process—initial steps [1 Mark]

2.Procurement process—initial steps

a)Procurement process—external procurement [1.5 Mark]

3.Warehouse management steps related to procurement. [0.5 Mark]

4.Fulfillment process—shipping [0.5 Mark]

5.Warehouse management steps related to fulfillment. [0.5 Mark]

6.Fulfillment process—concluding steps. [1 Mark]