• Study Methodology The purpose of this study is to analyze General Motors' (GM) current strategic position and provide recommendations to enhance its competitive advantage in the automotive industry. The research steps taken include:
• Examining GM's annual reports, press releases, and financial statements. Analyzing industry trends, market data, and external factors. Conducting a SWOT analysis and Porter's Five Forces analysis. Identifying key resources, capabilities, and competencies. Generating strategic alternatives based on internal and external analysis. Strategic Analysis a. Competitive Environment
• The automotive industry is currently in a transitional stage with increasing competition and rapid technological advancements. Key external factors influencing GM's strategy include:
• Growing demand for electric vehicles (EVs) Increasing regulations on emissions and fuel efficiency Intense global competition from traditional automakers and new entrants Technological advancements in autonomous vehicles and connected car technology Shifting consumer preferences towards sustainable and shared mobility solutions b. Company Analysis
• GM's vision is to create a world with zero crashes, zero emissions, and zero congestion. Its mission is to transform the global automotive industry by delivering safe, innovative, and sustainable transportation solutions. Current strategy involves:
• Accelerating EV production and launching 30 new EV models by 2025 Investing in autonomous vehicle technology through Cruise, its subsidiary Enhancing digital capabilities to improve customer experience and connectivity Key resources and capabilities include:
  • Strong brand portfolio Established distribution network Skilled workforce and engineering capabilities Solid financial position Strategic Management Recommendations a. Strategic Alternatives Considered & Expected Outcomes
• Expansion into emerging markets: Strengthen GM's global presence by entering high-growth markets like India, Southeast Asia, and Africa. Strengths include access to new customer segments, increased market share, and diversified revenue streams. Weaknesses include higher operational costs, political risks, and potential local competition.
• Strategic partnerships with technology companies: Collaborate with technology companies to develop advanced autonomous, connected, and smart mobility solutions. Strengths include accelerated innovation, access to new technologies, and potential cost savings. Weaknesses include possible conflicts of interest, dependence on external partners, and potential loss of control over key technologies.
• Vertical integration in the EV supply chain: Acquire or develop strategic partnerships with key suppliers (e.g., battery manufacturers) to secure critical components and control costs. Strengths include cost control, reduced dependency on suppliers, and improved product quality. Weaknesses include high upfront costs, potential integration challenges, and reduced flexibility.
• b. Recommended Strategy
  • The recommended strategy is to pursue strategic partnerships with technology companies. This approach aligns with GM's vision and mission and leverages its existing resources and capabilities. The expected benefits include accelerated innovation, increased market share in the EV and autonomous vehicle segments, and a stronger competitive position.
• Implementation Recommendations & Cost To implement the recommended strategy, GM should take the following steps:
  1. Identify potential technology partners with expertise in autonomous vehicles, connectivity, and smart mobility solutions
  2. Negotiate and establish mutually beneficial agreements with selected partners.
  3. Develop joint R&D projects and integrate technologies into GM's product lineup.
  4. Allocate resources (human, financial, and technical) to support partnerships and monitor progress.
  5. Conduct regular reviews to evaluate partnership performance and make necessary adjustments.
  6. Costs involved include upfront investments in R&D, human resources, and potential equity stakes in partner companies.
  7. However, long-term benefits are expected to outweigh initial costs, driving increased innovation, market share, and profitability.
• Monitoring and Control To ensure the success of the recommended strategy, GM needs to establish a monitoring and control system that includes:

1. Setting clear performance metrics and objectives for each partnership, such as the number of joint projects, technology integration milestones, and market share targets in the EV and autonomous vehicle segments.
2. Regularly reviewing the progress of each partnership against the set objectives and making adjustments as necessary.
3. Implementing a robust risk management system to identify and mitigate potential risks associated with the partnerships, such as intellectual property disputes or conflicts of interest.
4. Establishing a cross-functional team responsible for overseeing the partnerships, fostering collaboration, and ensuring alignment with GM's overall strategic goals.

• Conclusion
• The recommended strategy of pursuing strategic partnerships with technology companies is well-aligned with General Motors' vision, mission, and current strategic focus. By collaborating with technology partners, GM can accelerate innovation, access new technologies, and strengthen its competitive position in the rapidly evolving automotive industry. The successful implementation of this strategy, coupled with effective monitoring and control measures, will enable GM to capitalize on growth opportunities in the EV and autonomous vehicle markets, ultimately driving long-term value for its stakeholders.
• ANSWER THE TWO QUESTIONS.
• 1. THIS is a Presentation on Strategic Recommendations for General Motors 2023
• Questions:
• a. Executive Summary: No longer in length than a page, this section summarizes what you are going to recommend and the rationale for your recommendation. It is written at a high level but identifies the most relevant criteria used in forming and assessing your recommended strategy. It should highlight how the strategy will contribute to performance. It should summarize the resources and time that will be required to achieve the performance benefits.
• b. supporting Calculations for recommended strategy: Costs/Revenues, FN Calculations or Pro-Forma Statements?