The mission statement of Tata motors is broad and ambiguous and is mostly concerned with customer satisfaction, whereas, G.M mission statement not only addresses the customers but also the investors, employees and business partners.
Mission statements set the objectives of companies, therefore keeping these targets in mind the companies form their strategies and business models.
Tata has kept the road structure and conditions of India into consideration to design the cars so that they are more convenient for customers to drive, such as the Tata Nano is a mini car with - wheels to assist in turning sharp corners and a compact shape to - through the rush due to its compact structure, so it can be seen that it’s customer oriented. Furthermore, most of the population in India is middle-class therefore, Tata motors has employed a Low Cost Strategy, to target the price sensitive customers. Furthermore, the takeover of Jaguar and Land Rover from Ford has allowed Tata to spread it horizons and target other parts of the society. Furthermore, the in mission statement the company talking about global recognition and to implement this Tata employed the technique of first establishing itself well within India and spreading its roots to foreign countries by constructing dealerships in 26 countries across 4 continents.
G.M mission statement mentions engagement in socially responsible operations, and setting that as a goal they have started to work towards eco-friendly greener cars such as the Chevrolet Volt, which has been designed to cover around 40 million miles on electricity avoiding the use of 4.1 million gallons of gasoline. Additionally, it has also installed 110 land-fill free facilities to recycle and convert to energy the waste pro...
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While at present Tata is mostly manufacturing in India and exporting abroad resulting in higher costs, GM is more cost effective in the sense that it is manufacturing in the areas in which it wants to carry out its sales hence, cutting on costs.
G.M has around 11 top car brands operating underneath it such as Chevrolet, Buick, Cadillac and GMC so that if one brand sales collapse the company can still operate. Such as in 2008 when the G.M was in decline and to the point of declaring bankruptcy it shed 3 of its brands; Saturn, Pontiac and Hummer and focused its revenues on the other brands and emerging again as one of the top companies in 2010.
G.M has a global presence with dealers and factories located in Oceania, Africa, Europe, South America and North America.
G.M also invests in market securities and bond portfolios to lower the risks it faces.
A mission statement express the core purpose of an organization and its reason for existence. Mission statements are vital to an organization because they communicate and set the foundation of the purpose of their existence. They shape the attitudes and behaviors of the members of the organization and the perceptions of the public (Hess, 67).
GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.
An article discussing the importance of a mission statement states that a mission statements’ job is to outline the organization’s unique purpose and establish the basis of its values and traits, as well as describe the attitude that is to be expected of those a part of the organization. Furthermore, this philosophical foundation sets the “tone” for physical actions, meaning that the content of the mission statement can determine the behavior of personnel (Hitt & Ireland, 1992).
The case study, `Will GM 's Strategic Plan Lead to Success,` is about how the company General Motors Co. Plans to overcome financial deficits, ensure growth within the company, and remain competitive in the automotive industry. To help with overcoming financial deficits, GM was apart of the bailout, which assisted GM in relieving themselves of almost $40 billion dollars of debt. This restructuring gave GM an advantage over other automakers. Most other automotive businesses, that did not participate in the bailout, still have billions of dollars of debt they must repay in addition to competing with its adversaries.(Kinicki & Williams, 2013). GM made many cutbacks to ensure growth within the company. The reduced the amount models that are in production. They have recognized that some changes need to be implemented with global production in order to remain ahead.
The reader is quickly lost in all of the detail in the statement leaving them with no sense of direction or empowerment. The statement has the necessary content to be a quality mission statement if the current version is shortened.
General Motors (GM) has been a staple of American culture since 1908. GM represents the best of American ingenuity, with brand names such as GMC, Cadillac, and Chevrolet. According to GM, “Our unyielding mission to earn customers for life has led to a healthy balance sheet and world-class products that are wining in the marketplace” (GM, 2015). At GM’s height, the company was the largest employer in the world. In addition, GM has been an integral company during the wartime efforts, and has capitalized on the American spirit. GM is of the longest tenured American brands.
As the automobile industry made its first appearance in the early 1900s, General Motors had already slowly begun its formation. GM was founded in 1908 by William C. Durant, a carriage manufacturer of Flint, Michigan, and today operates manufacturing and assembly plants and distribution centers in many countries, including Canada . Its major products include automobiles and trucks, a wide range of automotive components, engines, and defense and aerospace materiel. General Motors has a long history of business and technological innovation designed to deliver ever-increasing value to their customers and society. GM today has manufacturing operations in more than 30 countries and its vehicles are sold in about 200 countries.
The next thing to analyze is the way GE is managing its assets. If you look at the numbers GE as a company has a 3.01 return on assets, while the industry has 6.10 return on assets. It seems that GE is not very efficient in converting its investments into profits. For example a short-term bond fund run by General Electric Co.'s GE Asset Management returned money to investors at 96 cents on the dollar after losing about $200 million, mostly on mortgage-backed securities (1). The GEAM Trust Enhanced C...
General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.
“GM’s focus on efficiency improvements for conventional powertrain technologies is complemented by our leadership in alternative fuel systems and advanced technologies.” GM expanded their electric vehicles portfolio by investing in advanced technologies in order to develop and introduce more efficient and more affordable electric vehicles. GM reduced hundreds of pounds on their best-selling models and announced a breakthrough in resistance spot-welding technology that allows us to weld aluminum to steel.
General Motors Company (GM) is an American multinational corporation that manufactures, designs, markets and distributes vehicles and vehicle parts, and sells financial services. GM produces vehicles in 37 countries, selling and servicing them through thirteen brands such as Alpheon, Chevrolet, Cadillac, Holden and Wuling (Our Company, 2014). GM is among the world 's largest automakers by vehicle unit sales. It employs about 212,000 people working in 396 facilities touching six continents and has 21,000 dealers around the world (Our Company, 2014).
Currently, the major competitors within the industry are Ford, DaimlerChrylser, General Motors (GM), Honda, Toyota, and Volkswagen. A few United States (US) manufacturers produce 23% of the world’s vehicles while Japan is responsible for 21%. The tendency for the industry is to be a global producer of automobiles; parts can be made throughout the world and assembled in many different places. The trend of consolidation has continued throughout today. Presently, this is evident in the recent acquisition of Chrysler by Daimler-Benz in late 1998, thus forming DaimlerChrylser. These consolidations have proved beneficial to consumers since companies have been able to reduce costs and pass those savings on to the customers. Some of the other major examples of consolidation are Nissan selling off a controlling 37% interest to Renault; General Motor’s 49% ownership of Isuzu; and Ford’s 33% majority of Mazda. Other efforts to become more competitive have translated into the European Union dropping trade barriers and European carmakers employing cost reducing efforts. American manufacturers have seen 2-3% growth over the last few years. Some current trends are the explosion in popularity of the Sport Utility Vehicle (SUV) and big luxury vehicles.
Entering the 1950s, no corporation even came close to General Motors in its size, or it's profits. GM was twice as big as the second biggest company in the world, Standard Oil of New Jersey (father of today's ExxonMobil), and had a vast diversity of businesses ranging from home appliances to providing insurance and building Buicks, Cadillacs, Chevys, GMCs, Oldsmobiles, Pontiacs and trains. It was so big that it made more than half the cars sold in the United States and the U.S. Department of Justice's antitrust division was threatening to break it up(to prevent Monopolies, Like how Standard oil was broken up). In the 21st century, it's almost hard to imagine how powerful GM was in the 50s and 60s.Sports cars from Europe were getting popular, because of servicemen coming back from WWII, and wanted sports cars, but American Automakers didn't make sports cars, so they would either buy foreign, or go without. A man named McLean would still try to make a low priced sports car. But it didn't work. The idea of a car coming from GM that could compete with Jaguar, MG or Triumph was pretty much considered stupid and insane. C1:Generation: Bad but valuable. Just 300 Corvettes were made in 1953. Each of these first-year Corvettes was a white roadster with red interior. The Corvette was made of fiberglass for light weight, but the first cars were made with a really weak, (and kind of pathetic for a “sports car”) 150 horsepower 6-cylinder engine and an automatic transmission. The result was more of a look at me, I’m rich car than a race car. The first generation of the Corvette was introduced late in 1953. It was originally designed as a show car for GM's traveling car show, Motorama, the Corvette was a Show Car for the 1953 Motorama display at...
Hence production units for example the exports that take place in Europe and its Ukraine therefore they have competitive advantage with value into the technology. It gone through the acquisition by natural resource seeking for example Tata Company has invested in coal mines in different country and ownership advantage the company that enables them to successfully acquire established goal companies (KUMAR, 2008).Location advantage of Tata motors has the nature of the product and the services which the company requires to invest In plant or an office (Neelankavil and Rai,2009).In addition the Tata Company has a manufacturing with joint venture and Thornburg automotive gives which them a location advantage again in the south East Asia region. Internationalization advantage of Tata motors will help them in having better control over the manufacturing units as licensing option which are issues related to transfer of technology or technology theft. The advantages of own production for Tata company which they have done is introducing a new car called Nano an ultra low cost car
As Tata Motors is an automobile company, the raw materials required in production of a car or a vehicle include aluminium, copper, platinum, palladium, rhodium, steel and zinc. The prices for these materials have been increasing in the recent years. An increase in price of input materials could severely impact its profitability. Additionally, increases in fuel costs also pose a significant challenge to automobile manufacturers worldwide, especially in the commercial and premium vehicle segments where increased fuel prices have an impact on