A strategic planning initiative for the organization (GM) identified in the Week 2 assignment - Identify an initiative discussed in the organization's annual report.

Please check the attached page of Week 2 Assignment

Running head: INDUSTRY AVERAGES AND FINANCIAL RATIOS Industry Averages and Financial Ratios Bernadette Ocampo, Madrid Francois FIN/ 370 February 1, 2015 Thomas Gruber 1 INDUSTRY AVERAGES AND FINANCIAL RATIOS 2 Industry Averages and Financial Ratios "General Motors Company designs, builds and sells cars, trucks and automobile parts across the world. It is managed by Daniel Ammann/President, Mary T. Barra CEO, Charles K.Stevens III CFO. Its lines of products and services include GM Financial, GM North America, GM Europe, GM International Operations, and GM South America involving private and governmental institutions. The Company also offers 13 FlexFuel vehicles in the United States for the 2015 model year plus an additional four models to fleet and commercial customers capable of operating on gasoline, E85 ethanol or any combination of the two. As of January 29, 2016 GM's stocks traded by the NYSE for US$ 29.56 per share." (http://www.google.com/finance? q=NYSE%3AGM&ei=_vynVuHZK4HEeZ3wo6gK) General Motors as a worldwide company must maintain a well organized inventory because failure to do so can affect its operational efficiency from the acquisition of raw material, passing by the manufacturing procedures and warehousing until the goods reach the final customer. General Motors is built on strong partnerships to ensure the quality of its products and their availability at the right prices. All suppliers must abide by all laws and regulations of the countries of destination as it relates to manufacturing, labeling, transportation, imports, exports, licensing agreements, certification regarding the goods/services natures while respecting environmental matters. The shipping and handling of dangerous materials, data protection and privacy, proper salaries, safety, and fraudulent business practices entangled in the supply chain. GM must use a lean approach in order achieve its goals. That said GM is organized in ways that encourages several aspects of its operation to work parallely to each other by various INDUSTRY AVERAGES AND FINANCIAL RATIOS 3 teams within its organization. This approach help find and address any mistake in the project without having to restart and to continuously improve processes through waste elimination. It's fierce competition include Ford Motor Company, Volkswagen, Tesla Motors Inc, Toyota Motor Inc, Renault S.A., Honda Motor Co. 2013 2014 Return on Sales (%) -1930495 / 66568804 = -0.03% 344286 / 86071384 = 0.0004% Return on Assets (%) -1930495 / 44800805=0.04% 344286 / 59475326 = 0.0058% Return on Net worth (%) -130495 / -27955702 = 0.07% 344286 / -291429097 = -0.001% Profitability (in millions) 2013 4435280 + 4435280 / 2014 7196514 + 6839662 / 313316017 Current Ratio 603346684 = 0.01% 26432475 / 60346684 = = 0.04% 33484609 / 313316017 = 0.11% Current Liabilities to Net Worth 0.44% 60346684 / -27955702 = 313316017 / -291429097 = Current Liabilities to Inventory Total Liabilities to Net Worth -2.16% 60346684 / 0 = 0% 72756507 / -27955702 = -1.08% 313316017 / 0 = 0% 350904423 / -291429097 = -1.2% Fixed Assets to Net Worth -2.6% 10752193 / -27955702 = 12073491 / -291429097 = -0.04% Solvency (in millions) Quick Ratio -0.38% INDUSTRY AVERAGES AND FINANCIAL RATIOS 4 Sales to Inventory ratio 2013 4435280 / 66368804 * 365days = 24 days 66568804 / 0 = 0% 2014 6839662 / 86071384 * 365days = 29 days 86071384 / 0 = 0% Assets to Sales ratio 44800805 / 66568804 = 0.67% 59475326 / 86071384 = 66368804 / 26432475-60346684 = -1.96% 0.69% 86071384 / 33484609313316017 = -0.31% 22534805 / 66568804 = 0.34% 123292351 / 86071384 = Efficiency (in millions) Collection Period ratio Sales to Net Working Capital ratio Accounts Payable to Sales ratio 1.43% INDUSTRY AVERAGES AND FINANCIAL RATIOS 5 Reference Dun & Bradstreet Key Business Ratios. (2004). Retrieved from http://www.mergentkbr.com.ezproxy.apollolibrary.com/index.php/login/iplanding General Motors Company. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml? c=231169&p=irolSECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdl PTkzNjYyNjgmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJza WQ9NTc%3d#s3BC6135300416FC12510A539C7C5DE54 UNITED STATES and Exchange Commission Washington D.C.20549 Form 10-K. (2014)