October 27, 2014
Strategic and Operational Plans of General Motors
General Motors is a Fortune 500 company that relies upon strategic and operational plans to ensure that the company is consistently growing and evolving. By using strategic and operational plans on a daily basis, General Motors can see these plans working to achieve a goal within the company. The company is also able to see what effect these plans have on the company as a whole.
One strategic plan that General Motors utilizes is to “lead in advanced technologies and quality in creating the world's best vehicles” (General Motors, 2014). This strategic goal was put in place by General Motors in 2014 to set the goal of how to make the best vehicles in the world and to maximize profits by doing so. The strategy will achieve the goal of General Motors for wanting “to earn customers for life,” (General Motors, 2014) and will also be utilized on a yearly basis by changing the designs of vehicles and improving upon features that are already there.
The effect that this strategic plan will have on internal and external stakeholders is increased revenue, therefore possibly increasing the salaries and pay for the employees, better products for the consumers, more business for the distributors and suppliers, and more revenue for the financial institutions that finance the vehicles sold. The strategic plan set in place by General Motors this past year seemingly has worked based upon their profits and losses from this year. According to General Motors (2014), “GM ended the quarter with total automotive liquidity of $36.6 billion. Automotive cash and marketable securities was $26.1 billion compared with $28.4 billion for the second quarter of 2014.”
An operational plan that is utilized by General Motors is “to give employees more responsibility and authority and then hold them accountable,” (General Motors, 2014). This operational plan is used by the company to ensure that the employees feel useful in their positions and also to continually give them more leadership of the company. By using this operational plan, General Motors is utilizing their employees to eliminate the need for as many upper management positions. This plan can be very beneficial for the company by allowing the employees to use their ideas and management styles to help the company evolve.
This operational plan will affect the performance of the brands that it manufactures by allowing the employees to use their creativity to help the brands increase their revenue. This can also eliminate the high-cost structure of General Motors by eliminating some middle management position within the company. By doing this, General Motors is using their resources wisely by building upon the ideas of its current employees and letting them interact with upper management to get new ideas enforced and used within the company. The operational plan can also eliminate the bureaucratic culture within the company.
The effect that this plan can have upon the internal and external stakeholders in the company is to eliminate some salaries so that there is more revenue for the company and the employees. This will not only help the employees to have a higher…