Innovation in Business: General Motors Case Study

Managing a
Innovation in Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Internals analysis.........................................................................................................................3
Pestle analysis: ................................................................................................................................6
STP MODEL: .................................................................................................................................7
Budget..............................................................................................................................................9
Benefits of Implementation of Plan.................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
Books And Journals .................................................................................................................11

INTRODUCTION
Innovation can be defined as an idea which is adopted or perceived for the attainment of
goals of the business. It can be defined as a combination of ideas which is developed by the
research and development team after analysing the current scenario of external environment to
sustain productivity. This report is based in context with General Motors company which is an
American multinational organisation headquartered in Detroit. The company manufactures,
market and distribute Vehicles and its parts across the globe to maintain their profitability. In the
beginning this report focuses on the mission, vision and objective of General Motors company.
For evaluating the internal environment of the company, the report has performed its VRIO and
BCG matrix analysis. Moreover, for analysing the external environment of the company the
PESTLE analysis is performed. The report also consist of a budget as a base for the
implementation of the plan. Lastly, this report depicts the monitoring and benefits of the plan
implemented.
MAIN BODY
Mission: The mission of General Motors is " To become the global leader in the automotive
industry by pushing their limits and enhancing the teamwork and innovation to achieve the
customer's trust".
Vision: The vision of the company is " To ensure continuous improvements in their technology
advancements to lead their way of zero crashes, zero congestions and zero emissions".
Objectives:
The objectives of general motors can be explained as follows:
 To apply potential innovative technique in their technology by introducing engineering in
their automobiles.
 To ensure the launch of a electric vehicle with high capacity, low fuel emission and
comfortable driving with affordable prices.
 To implement the innovative technique with an efficient plan and ensure effective
monitoring for further improvements.
Internals analysis
VRIO Analysis of General Motors

It is a method through which an organisation can evaluate and examine the resources that are
internally available in the organisation. An organisation can also utilise this method to identify,
evaluate and manage the competitive advantage as well. Usually there are a number of resources
that can be utilised by an organisation to increase the effectiveness and productivity of its
operations. In VRIO analysis, a company needs to choose or select the resources that are most
essential and important for an organisation. After selecting the most essential resources, an
organisation need to check their relevancy by applying the same to the four parameters i.e. First :
Value, Second : Rare, Third : Imitable and Fourth : Organisation. In order to scan the internal
environment of the company, VRIO analysis can be applied to the same.
Valuable :- There are various valuable resources in every company. In case of General Motors,
the most valuable resources are employees, investors, technology, patents. Employees are
extremely important for General Motors in order to carry out the day to day routine work and
operations of the organisation productively and effectively. An organisation needs to have
adequate financial resources in order to carry out the smooth functioning of operations in the
business. Investors provides financial assistance to the organisation in order to meet the
financial requirements of the company. Hence, investors are considered as one of the valuable
resources of the company. Technology is a very vital resource for general motors , as the
company incorporates auto-mobile and technological advancements. Patent is also one of the
valuable resources as it helps the company to protect its product and services from getting copied
by the competitors prevailing in the market.
Rare :- Rare resources are the ones which are not easily acquired by the business organisations
and their acquisition requires a lot of efforts and time. In General motors, employees are
considered to be rare as it takes as it takes a lot of time, efforts and money to recruit and hire
talented workforce in an organisation. A lot of training is provided to the employees in order to
increase their productivity and efficiency. Investors are also a rare resource for General Motors
as it is not easy for a company to find the right investors for its organisation. Since, general
motors is intensively working in technology based products and services, it is can be easily
concluded that technology is an essential and rare resource for the company. Patents cannot be
considered as rare resource because nowadays almost every organisation has patents as integral
part of their company. Hence, General motors cannot label patents as rare resources.