Strategic planning plays an important role for an organization. It is a discipline and process to guide decisions, actions and shape what and why the organization is and does. Strategic planning and long-term planning cover several years. However, strategic planning requires organizations to check what it is and its working environment (Christine, 2015). Strategic planning also assists the organization to focus its attention on those key issues and challenges.
The United States has one of the largest automotive markets in the world, and is home to many global vehicle and auto parts manufactures. In 2016 year alone, vehicle production reached almost 17.5 million passenger vehicles. Automobile industry involves many industries in it. It includes original equipment, manufacture, and adverting industry as well as oil and natural gases industry. Main players of the Automobile industry are Toyota, General motors, Volkswagen, Honda, Ford and more.
Case Study on Geely and Volvo International American University Aashish Gautam MGT 590: Strategic Management Shashwat Dhakal APRIL 25, 2016 Brief Overview The automobile industry of China has grown drastically over the past decades. From producing 2 million vehicles in 1990, the production increased to around 9.5 million in 2008. Due to this huge number of prospect buyers of vehicles have grown in China. The financial crisis in the world was triggered due to the failure in insurance and banking companies poor decisions on lending on US real estate that turned to crisis. This led to recession in world 's economy and reduced the consumer 's consumption behavior dramatically.
In 1886 the first petrol powered automobile the Benz patent Motorwagen was invented by Karl Benz. It was the first time in history that an automobile (car) was produced in production. It was the beginning of the car industry, what today has become one of the world’s most important economic sectors by revenue. Although the car industry has always been a huge Market it has mostly be regional, the past 30 years have enabled the car market to gain growth through globalisation. These factors were a result of a market that started to transform globally: Foreign Direct Investment or (FDI) which is an investment made by a company based in one country, into a company based in a another country.
It is a French multinational company operating out of Levallois-Perret. Its main interests are in the electricity and the transport markets. It employs approximately 96,000 people around 100 countries. It had annual sales of €20.3 billion in 2012-2013 according to the company website. It is active in the field of electrical generation and transmission, with products including coal, gas, nuclear-powered and hydroelectric plants as well as large scale electrical grid infrastructure, geothermal and solar-thermal systems.
Strong presence in China. China is the largest automotive market and is an emerging economy that grows steadily. It is also the biggest market for Volkswagen vehicles where the company captures nearly 20% of the market mainly with its Audi and Volkswagen brands. 5. Well performing brands.
This was a big step for the American Automobile manufactures considering back in 2009 both General Motors and Chrysler Corporation were in bankruptcy and without the help of the federal government and bailouts to the tune of 80 billion dollars  it is unclear where they would be today, if around at all. Manufactures heeded the message consumers were sending them and started with redesigning many of the models in production and introducing technology which many of their foreign counterparts already had. They had no choice but to improve the product and win back the American
The scandal which involved the company has been influencing the car market and the company has lost value and money that we could see the direct impact in the following table which shows the trend of VW’s stock which has had a dramatic decreased after the cheat emission: The company has cheating the emission tests by making its cars seems less pollution than they are which affects at least 11 million cars worldwide which are 5 models in particular: Jetta, Beetle, Audi A3,Golf and Passat. Certainly, this impact has influenced not just the financial markets but the reputation of company too.THE EXTERNAL ANALYSIS Automotive world market: The automotive market has considerably suffered from the 2008 crisis, including Western markets. But today the automotive world market was able to recover and automotive industry has-been enjoying a period of relatively strong growth and profitability. It has now caught up and exceeded the pre-crisis level. The sale of passenger cars continues to rise, reaching in 2013 more than 80 million cars sold
SWOT Analysis of General Motors as of 2008 STRENGTHS • Globally renowned General Motors enjoys the position of largest US car manufacturer and is the internationally, the world’s second largest automobile producer. As of 2008, it was also listed in the Fortune Global 500 (Annual report, 2008). • Large market share General Motors market share had faced a significant reduction from 2005 due to high competition, increasing costs and the financial crisis. However, at a market share of 24%, it is still above the major competitors in its US market
As a multinational car company which can be found on every single continent around the globe, a revenue in 2013 of 14,3 billion euros and a profit of 1,9 billion euros makes us the car manufacturing company with the highest profit margin in the whole world. And still our main focus lies on people. We believe that the best engine are highly motivated and committed employees. And that’s why we take care about them by providing apprenticeships and further education to enable our employees every chance they want to and satisfy them as much as possible. By doing this we also try to adjust every single job to the individual stage of life by creating for example a family friendly environment by providing