Management Economics: Factors Influencing Demand for General Motors

Management Economics

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
1. Overview of General Motors its products/services and history............................................................3
2. Market Analysis of General Motors to evaluate factors which influence its demand..........................4
3. How factors influence the products and services of General Motors...................................................9
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Management economics identifies demand forecasts as a theory that enables essential parts
including such taxes and expenditure, money, etc. to be efficient in conjunction. In addition,
management inside a company uses the concept to tackle such business-related problems, and
requires a range of different concepts and decision-making strategies (Belleflamme, Omrani and
Peitz, 2015). In other terms, management economics has been one of the central tenets which
distinguish different economic theories as a comparison between marketing plans for making
reasonable decisions. Such choices are concentrated towards efficiency gains and ultimately lead
by organizational creativity and outcomes. In this reason, General Motors is chosen to interact
with the automobile industry as it conducts market in multiple nations, where the availability of
raw materials and changes in economic environment have a higher impact on its production
costs. In the present study, different variables are analyzed in order to examine this dimension,
which also helps to decide if demand for GM products is elastic or inelastic.
MAIN BODY
1. Overview of General Motors its products/services and history
The automotive industry relates to a most evolved market that commercially extends
international business. Each year businesses that operate in this period used to produce and
export millions of vehicles, trucks and other transports. In the end, this will benefit a world's
growing economies, and also play a prominent part in either intentionally or unintentionally
providing jobs to millions of people. In addition to this, the automobile industry is also
accountable for gasoline or oil use. Thus the, the idea of managerial economics selected from the
automotive sector is most advantageous because it evaluates all elements that are possible to
examine the very same. For instance, General Motors (GM) is one of's biggest organizations, but
it provides its products globally. This has produced a range of developments in the manufacture
of luxury vehicles such as Chevrolet, GMC, Cadillac and more that help this company sell the
largest amount of people globally compared to companies.
Products and services
It operates fabrication and manufacturing plants and processing facilities across the U.S. ,
Canada and several other nations. The main company’s products involve trucks and cars,