General Motors Company
Thursday 12:00 P.M. – 1:20 P.M.
General Motors Company
September 29, 2011
“Any increases in the price of oil in the U.S. or in our other markets or any sustained shortage of oil, including as a result of political instability in the Middle East and African nations, could weaken the demand for such vehicles, which could reduce our market share in affected markets, decrease profitability, and have a material adverse effect on our business.” Page 26
“The majority of our vehicle sales are generated outside the U.S. We are pursuing growth opportunities for our business in a variety of business environments outside the U.S. Operating in a large number of different regions and countries exposes us to political, economic, and other risks as well as multiple foreign regulatory requirements that are subject to change” Page 37
The political statements above are part of PESTLE because the fluctuation price of oil and the multiple foreign regulatory requirements caused by political instability affects the demand for cars which in turn disturbs the business prosperity for General Motors.
Political instability is an important factor to understand since all auto manufacturers must abide by the rules set forth in a geopolitical world. General Motors is no different since the political instabilities affect the price of oil which largely influences the demand for their vehicles. Also, Expanding to different regions brings multiple foreign regulatory requirements that change the amount of business they can obtain. Overall, there are many changes General Motor must adhere to in an ever altering geopolitical realm and having a competitive advantage is being able to modify their business strategy to better suit their needs.
“Failure of our suppliers, due to difficult economic conditions affecting our industry, to provide us with the systems, components, and parts that we need to manufacture our automotive products and operate our business could result in a disruption in our operations and have a material adverse effect on our business.” Page 27
This statement represents the economic portion of PESTLE because the economic conditions are what affect the suppliers, components, and parts needed for the production of General Motors.
The economic conditions manufacturers must face are a critical component of how they run their business activities. As stated above, the difficult economic conditions General Motors’ faces causes strain on their production. These conditions not only affect General Motors but also their suppliers which overall causes a domino effect in the chain of productivity. In conclusion, economic conditions are factors that cannot be ignored since companies must be ready to react to variable circumstances at any moment.
“Our ability to change public perception of our company and products is essential to our ability to attract a sufficient number of consumers to consider our vehicles, particularly our new products, which is critical to our ability to achieve long-term profitability.” Page 26
“The automotive industry, particularly in the U.S., is very competitive, and our competitors have been very successful in persuading customers that previously purchased our products to purchase their vehicles instead as is reflected by our loss of market share over the past three years. We believe that this is due, in part, to a negative public perception of our products in relation to those of some of our competitors.” Page 26
“If we are unable to change public perception of our company and products, especially our new products, including cars and crossovers, our results of operations and...