Financial Performance
The following are analyses of financial performance and condition of General Motors (GM) between 31st December 2018 and 31st December 2019: Revenue declined by 6.7 % to $137,237. The possible reasons for a decrease in revenue are maybe due to a reduction in the number of customers or price markdowns. The gross profit decreased by 0.9 % to $13,972. The net income decreased by 16.9 % to $6,581 (Macrotrends). This means that the profitability is decreasing and which reduces the stockholders’ equity and retained earnings of the company. The Earning Per Share decreased by 17.4 % to $4.62, which may lead to a decline in stock price. The total assets increased by 0.3 % to $228,037. The total liabilities decreased by 1.3 % to $ 182,080, while the total shareholder equity increased by 7.4 % to $45,957. This means that the financial condition of the company is good since it can manage its liabilities. The cash flow from operating activities decreased by 1.5 % to $15,021, implying that the company has improved its debt collection efforts and supplier confidence to supply on credit, and interest-free financing is increasing. The cash flow from investing activities is still negative, although it increased by 47.5 % to $-10,899, meaning that GM is investing in its future growth. The cash flow from financing activities decreased by 140.8 % to $-4,677, implying that the company is capable of retiring its debt obligations (Macrotrends).
Operational Budget and Assessment
The following are the GM financial ratios and performance indicators analysis from between 31st December 2018, and 31st December 2019: A current ratio of the GM reduced by 3.5 % to 0.8832, making the current ratio less ideal since the ideal current ratio should between 1.5 % and 3 %. It is implying that the company is not doing well in terms of generating cash, which can increase their risks of defaulting liabilities hence bringing distress to the stakeholders. Debt to Equity ratio reduced by 8.4 percent to 2.2483, meaning that the company is reducing its efforts of growing or profit-making through debt accumulation. The operating margin ratio increased by 32.1% to 3.9938, indicating that the company can pay costs of operations hence generating profits and the higher, the better (Macrotrends). Don't use plagiarised sources.Get your custom essay just from $11/page
Prioritized Core Strategies
The GM core strategies are: To have a world with zero congestion, zero emissions, and zero crashes. The GM has already unveiled a Cadillac CT5 sedan 2020 model and announced CT6 recently (General Motors). GM wants by 2023 all digital and electronic platform installed to almost all vehicles. Another plan is the Chevrolet Tahoe model 2021 and Suburban vehicle with exclusive technologies and size, which is expected to be on sale in the mid-2020. According to GM management, achieving zero emissions, zero crashes, and zero congestion is their core business, and they will do everything for sure to meet them. Besides, sustainability is their core, and GM is planning by 2030 to have at least 50 % of the materials used in vehicles sustainable (General Motors).
Recommended Organizational Structure
The current GM’s organizational structure is a regional, divisional structure whereby the management decisions are decentralized, and operations are divided into geographical regions. The divisional or market-based structure allows for flexibility. Programs and strategic plans are executed as per the geographical segments, and approval can be done at regional headquarter offices and some in the headquarter office. The structure may pose a challenge in terms of communication and accounting. I will recommend the GM Company to continue using the divisional organizational structure since it seems to be working for them. Moreover, to not disrupt the corporate culture and strategic plans of achieving zero emissions, zero crashes, and zero congestion. Also, executing projects and making decisions is easy and on time (General Motors).
Recommended Marketing Positions
The following are marketing positions and opportunities for growth: main and regional marketing analytics, main and regional marketing managers, main and regional brand managers, main and regional market research analysts, main and regional digital marketing specialists, main and regional marketing strategists, main and regional sales support managers, main and regional product development managers, main and regional channel and/ or partner marketing managers, main and regional business developers, main and regional marketing communications managers, main and regional public relations specialists, main and regional content marketing specialists, main and regional social media marketing managers, main and regional marketing automation specialists, main and regional product marketing managers, and main and regional Search Engine Optimization (SEO) specialists. These managers should have officers to execute their plans and assist them in planning and decision making as well (Close et al., 2011).
Measuring Success
The following are plans in measuring the success of the strategic plan: Firstly, clearly define the objectives so that you can be able to measure the level of achievement later. Secondly, ensure there is enough funding for foreseen and unforeseen so to enhance the efficiency of the strategic plan. Thirdly, measure the quality of your products as per the objectives. Fourthly, measure the accuracy of your plans and make any necessary adjustments in the scope of your plans. Lastly, did your strategic plans changed the status quo of the company? The strategic plan should be able to transform the company’s culture positively (Rothaermel, 2016).
References
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Close, A. G., Moulard, J. G., & Monroe, K. B. (2011). Establishing human brands: determinants of placement success for first faculty positions in marketing. Journal of the Academy of Marketing science, 39(6), 922-941.
General Motors.retrieved from https://www.gm.com/ on 20th February 2020.
Macrotrends.retrieved from https://www.macrotrends.net/ on 20th February 2020.