Mission, Vision, and Values Paper
Strategies for Competitive Advantage
Mission, Vision, and Values Paper
A mission, vision, and values are an essential part of a company and its success. These contribute to the company's ability to reach its goals and objectives. Once these things have been put into place, the organization can develop a strategic plan to guide them in the decision making process.
Company Background- General Motors Corporation
General Motors Corporation (GM) was founded in 1908. Based in Detroit, it is the world's largest automaker, and has been the global industry leader in sales for 76 years (General Motors, 2008a) with the United States being its largest national market, followed by China, Canada, the United Kingdom, and Germany years (General Motors, 2008a). Today, the company employs about 284,000 people worldwide and manufactures cars and trucks in 33 countries. In 2006, the company sold 9.1 million cars and trucks globally under its many brands, which include Buick, Cadillac, Chevrolet, to name a few (General Motors, 2008a).
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GM has ventured into partnerships with many automobile manufacturers around the world. The company is currently the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea (General Motors, 2008a). GM has collaborated with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan with product, powertrain, and purchasing (General Motors, 2008a). The company has also collaborated with DaimlerChrysler AG, BMW AG of Germany, and Toyota Motor Corp. on advanced technology and ventured in vehicle manufacturing with several automakers, such as Toyota, Suzuki, and Renault SA of France years (General Motors, 2008a). GM currently sells its genuine parts and accessories under many brands including GM Goodwrench, and ACDelco brands (General Motors, 2008a).
With all of GM's success in the past, the company is facing challenges during this time of economic hardship. The company's market valuation has decreased to $5.9 billion and its stock prices are at its lowest in 50 years (Lowenstein, 2008), which is evident with a closing price of $9.69 on July 10, 2008 (Yahoo Finance, 2008a). The skyrocketing price of oil seems to be the immediate cause of GM's problems, decreasing the sale of its sport utility vehicles and trucks (Lowenstein, 2008). The automaker is potentially looking at more layoffs and speculation of a possible sale of Buick and Pontiac (Lowenstein, 2008), however GM's vice president states that Hummer is the only brand the automaker is considering selling at this time (Yahoo Finance, 2008b).
The mission/vision of GM is “to be the world leader in transportation products and related services” (General Motors, 2008b). Through continuous improvements driven by teamwork, integrity, and innovation, the company has earned its customers' trust and enthusiasm. With all the competition and the advancement of hybrid and alternative fueled vehicles, GM should look to being a leader of innovation. With this in mind, the mission statement could read GM will become the world leader in quality, innovative, and cost efficient products. The mission is for GM to become the auto industry leader in sales and market share in the global market.
GM has six core values in which employees are to use in conducting daily business practices (General Motors, 2008c). These core values consist of continuous improvement, customer enthusiasm, innovation, teamwork, and individual respect and responsibility (General Motors, 2008c). These values must portray an image to the company's consumers that it values their needs and wants. With this said GM should add customer value and thinking green to its core values. This measure would show the company is focused on achieving high levels of customer satisfaction by providing innovative products that offer customers more choices with alternative fueled vehicles. Thinking green will show the company is concerned with doing right by the environment
How Mission, Vision, and Values Aid in Reaching Desired End State
In order for GM to achieve its vision, the company understands that many issues must be addressed in order to attain its many goals. In order to become a more sustainable company, GM recognizes the importance of integrating economic, social, and environmental objectives into its daily business objectives and future endeavors. The future success of the company partly depends on technology, innovation, and partnerships (General Motors, 2008b).
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With technology, GM can efficiently address climate changes and fuel efficiency through its products. By accelerating the development and deployment of new technology, GM is able to improve its existing technology. Innovation provides the company with the tools needed to develop new ways of operating as a company. With increased competition in the global industry, innovation is critical in the future success of the company. In order to continue being responsive to the stakeholders needs and concerns and create a sustainable future, GM understands the importance of continuing to build strong relationships its employees, industries, governments, markets, and communities (General Motors, 2008b).
GM is based on is six fundamental values. With these values, the company has adopted and endorsed principles, such as the GM Environmental Principles and the Global Sullivan Principles (General Motors, 2008c). These principles are consistent with the company's values and serve to inform its strategies. The company states, “These strategies drive our behaviors and actions, which produce the results that matter” (General Motors, 2008c).
Components of the Strategic Management Process Needing to be Analyzed
Strategic planning involves the decisions and actions needed to formulate and implement plans designed to achieve the company's goals (Pearce & Robinson, 2005). It encompasses long-range planning, with an increased emphasis on environmental forecasting and external considerations in formulating and implementing plans. There are multiple opportunities available to GM to deal with the current trends and threats in the automobile industry. In order to deal with them, the company must clearly identify its strengths and weaknesses. The auto industry as a whole faces issues with the rising fuel costs, as well as political and environmental issues with the rage of going green. As competition increases, there will be an even greater demand for oil. Although GM has a global presence and continues to expand in other markets, the company can reduce more operational costs by eliminating vehicles that are to similar and brands that are not selling. The company can use the savings to invest in further development and production of alternative vehicles that are more fuel-efficient.
Strategy Effects on Leadership, Culture, and Stakeholders
There will be numerous affects on the GM's leadership, organizational culture, and stakeholders after implementing the new strategy. Leadership will have to devise an effective method of getting the work done effectively and efficiently to make the new strategy work (Pearce & Robinson, 2004). This will entail a plan to organize and educate all staff throughout the organization about accomplishing the mission, roles of leadership, and specific values that will guide the everyday activities. Leadership will also have to assess the competition and address the needs of their customers. In addition, commitment must be gathered amongst the organization and stakeholders to embrace change and implement strategies that allow the organization to be competitive. The stakeholders will face the decisions to accept or reject the new strategy. The organizational culture should be established to provide meaning, direction, and a basis for action (Pearce & Robinson, 2004). The organization would benefit if leaders promote and identify key themes and dominant values within the organization to reinforce competitive advantage they seek to maintain and build (Pearce & Robinson, 2004).
GM and the automobile industry as a whole is experiencing tough times, however, there are many opportunities available to GM. The company now has an opportunity to expand market share and once again be the leading automotive manufacturer. The company must look at the trends and threats as new strengths and opportunities by developing and implementing a strategic plan that best positions GM to deal with the threats within the auto industry.
General Motors. (2008a). About GM: Company profile. Retrieved July 10, 2008, from http://www.gm.com
General Motors. (2008b). Sustainability and GM: Vision and Strategy. Retrieved July 10, 2008, from http://www.gm.com
General Motors. (2008c). 2005/06 corporate responsibility report. Retrieved July 9, 2008, from http://www.gm.com
Lowenstein, R. (2008). Siphoning G.M.'s future. New York Times, p. A.21. Retrieved July 10, 2008, from ProQuest database.
Pearce, J. & Robinson, R. (2005). Strategic management: Formulation, Implementation, and control (9th ed.).[University of Phoenix Custom Edition e-Text]. New York: McGraw-Hill. Retrieved July 10, 2008, from University of Phoenix, rEsource, MBA/580- Strategies for Competitive Advantage Web site.
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Yahoo Finance. (2008a). General Motors Corporation (GM): Historical prices. Retrieved July 12, 2008, from http://finance.yhoo.com/
Yahoo Finance. (2008b). GM reassures dealers only Hummer brand is for sale. Reuters. Retrieved July 10, 2008, from http://biz.yahoo.com