Evaluation of the business strategy

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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Executive Summary

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The report will focus on identifying the issues that are being faced by General Motors while
operating in the UAE markets and the strategy that might be implemented by the same with the
objective of gaining a competitive benefits over the existing or new players. In this relation, the
research analyzed the internal and external environments of the venture in the UAE markets and
formulated a strategy for growth through the utilization of generic model. The research also
visualized the applicability of the strategy in the organizational situation and the manner in
which the same might contribute to the competitive benefits of the venture. Lastly, the research
also enumerated an implementation plan for the concerned organization with the purpose of
implementing the strategy successfully in the UAE markets.

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Table of Contents
Assignment Task 1..........................................................................................................................3
1. Introduction..................................................................................................................................3
2. Relationships between strategy, stakeholder expectations, and organizational performance.....4
3. Impact of external and internal factors on strategic management in international context.........6
3.1 PEST Assessment of GM......................................................................................................6
3.2 Porter’s five force of GM....................................................................................................10
4. Formulation and evaluation of a new strategy through Porter’s Generic model.......................12
4.1 Formulation of the strategy..................................................................................................12
4.2 Evaluation of the strategy....................................................................................................14
5. Evaluation of the business strategy as it encourages innovation and change evaluation of the
chosen strategy against competing strategies for the success of the organization.........................15
6. Implementation plan for the strategy and the manner in which it might adhere to the
stakeholder expectations................................................................................................................17
7. Recommendations and Conclusion............................................................................................24
7.1 Recommendations................................................................................................................24
7.2 Conclusion...........................................................................................................................24
References......................................................................................................................................26

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Assignment Task 1
1. Introduction
The diverse modification in the organizational operations are reliant on the efficient
functioning of the diverse systems correlating to the changing requirements of the customers.
However, It has been observed from the stats provided by the analysts that around 67% of the
well planned strategies fail in the execution stage (Hbr.org 2017). However, the challenges that
are faced by the businesses while improvising on the innovative designs are specifically
grounded on their clashing interest with the stakeholders.
The research will study the case of General Motors, which have been facing significant
challenges in driving the attention of the prospective customers towards their propositions
leading to bankruptcy. It has been observed that the concerned venture de-prioritized the need of
empowering the R&D operations and focused more on selling sports utility vehicles (SUVs)
between the years 1990s to the mid 2000s (Gm.com 2019). However, It has been observed that
the concerned venture focused on improving their linage in the electronic vehicle markets for
adhering to the increasing competition in the markets. Again, the absence of effective marketing
campaigns affected the capability of the venture in holding effective communication with
customers. Lack of efficient communication with customers restricted the capability of the
venture in identifying the loopholes in their process for facilitation of improvements.
Therefore, the research would take the initiative of identifying the relationship between
strategy formulation, stakeholder expectations and organizational performance while evaluating
the internal and external environmental factors that are being encountered by the concerned
venture, GM. Moreover, the research would also take the initiative of developing a strategy for

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the organization and identify the factors that would be considered while implementing the same
on the business model.
2. Relationships between strategy, stakeholder expectations, and organizational
performance
Strategic management critically evaluates the diverse managerial processes for
empowering the diverse processes through continuous planning, monitoring and assessment
related activities while achieving the common goals and objectives of an organization (Hitt and
Duane Ireland 2017). The strategies that are framed by the organizations are grounded on the
assessment of the needs of the customers while operating in diverse markets. Meyer, Neck and
Meeks (2017) stated that the major modifications in the strategic discourses of the organizations
are mostly grounded on the changing preferences of the customers. Therefore, the preferences of
the customers, being one of the important stakeholder group, play an important role in
influencing the type of strategies that are planned by the ventures. On the other hand, the in-
house employees of an organization are also the top- prioritized stakeholders on which the
strategic discourse of an organization rests (El-Kassar and Singh 2019). Reverte, Gómez-Melero
and Cegarra-Navarro (2016) reflected that the uninterrupted functioning of the organizations and
the safe implementation of the strategies are reliant on the loyalty of the workforce towards the
businesses. In this connection, it might be observed that the leaders of the organizations take the
initiative of motivating the employees and engages the same actively in the new strategies with
the purpose of safe implementation of the new projects (Helmig, Spraul and Ingenhoff 2016).
However, Lin-Hi and Blumberg (2018) opined that the lack of collaboration among the
leaders and the employees might restrict the capabilities of an organization in empowering the
implementation process for the growth related strategies. On the other hand, the lack of customer

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needs based knowledge might restrict the continuous innovation based capabilities of an
organization. In this relation, Zhao et al. (2017) stated that most of the strategies that are planned
and executed by the organizations are focused on increasing the sales volume. However, the lack
of knowledge on the concerns that are being faced by the customers through the propositions
might restrict an organization in improving their performance (Agudo‐Valiente, Garcés‐Ayerbe
and Salvador‐Figueras 2015).
The organizational performance is specifically measured in terms of sales volume, brand
value and market share. In this relation, the employees and the customers play an important role
in contributing to the organizational performance. Bourne (2016) stated that an organization
creates strategies both for the retention of the customers and the employees, both being the
stakeholders that contributes to the long term sustenance of a business. The governance and
policies of an organization enables the same in retaining the confidence and loyalty of the
employees. Loosemore and Lim (2017) stated that the imposition of LMX model (Leader-
member exchange) permits an organization in improving the inter- confidence factors between
the workforce and the management while encouraging active engagement of the staff members
in the diverse organizational processes. On the other hand, the continuous innovation related
strategies of an organization permits the same in empowering the loyalty of the customers
(Taghian, D’Souza and Polonsky 2015).
The strategic discourses on innovation that are adopted by the organizations are critically
focused on increasing the value of propositions that are made to the customers. Continuous
innovations made by the organizations in their propositions allow a venture in gaining a
competitive vantage over the existing players in the market. Shaukat, Qiu and Trojanowski
( 2016) stated that the strategic developments that are made by the organizations are reliant on