Business Innovation Report: General Motors Analysis & Strategy

This report provides a comprehensive analysis of General Motors' innovation strategy. It begins with an introduction defining innovation and its importance in business, followed by an overview of GM's mission, vision, and objectives. The main body delves into internal analysis using the VRIO framework to assess valuable, rare, inimitable, and organizationally managed resources, with a focus on employees as a key asset. External environmental factors are examined through PESTLE analysis, considering political, economic, social, technological, environmental, and legal influences on GM's operations and profitability. The report also utilizes the STP model to analyze market segmentation, targeting, and positioning. A budget is presented as a basis for plan implementation, followed by a discussion of the benefits of the proposed strategies. The report concludes with a summary of findings and recommendations for GM's future innovation efforts, supported by references to relevant sources.

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.

Imitative :- Imitative resources can be termed as those resources that can be easily copied and
adopted by other rival companies in a business environment. Employees cannot be considered as
imitative resources in general motors as the company has diverse workforce and different
employees coming from different sectors are assigned different positions. Each and every
company has different set of workforce specialised in different departments and skills. Other
companies can not imitate the workforce or employees of General motors. Hence it is not an
imitative resource. Investors also cannot be considered as imitative as different organisations
have different investors. It is not possible that every investor of general motors can be adopted
by other company. Technology is an imitative resource as general motors deals in technology
based products and technological details of products and services catered by general motors are
out in the open. So other companies can also take references from the same and adopt the same
kind of technology to manufacture their products and services in order to give a tough
competition to the rival companies in the target market.
Organisation :-From the above mentioned analysis, we can derive that employees are the only
organised of the General Motors as the company has effective, efficient and talented workforce
that is scattered in an organised manner. General motors can capitalise on the employees of the
company in order to gain a competitive edge over the rival in the market environment.
Overall it can be evaluated that VRIO analysis is an effective way through which General
Motors can easily identify its most valuable, rare and organised resources which cannot be
imitated by other companies. In case of General Motors, the result was the employees working in
the organisation. VRIO analysis also helps an organisation to make batter business decisions as it
provides a brief structure to an organisation regarding the most important resource of the
company. If an organisation So in order to grow and develop in the future, the company should
focus on effective utilisation of its human resources and employees so that it can gain benefit in
the market and utilise it to enhance the profit generation of the company.

Pestle analysis:
Pestle analysis is a framework and tool which guide about external macro environment
factor influences on an organisation. With the help of this analysis, an organisation acknowledge
its outside environment to adapt opportunities and competitive advantage through market
orientation which have direct impact on business performance and growth. The factors that
influences the organisation are listed below:
political factor: This factor influences on the profitability and efficiency of an
organisation due to the imposition of government political interference. In terms of taxes, custom
duties, amendments in policies and other political aspect. These factor stops the growth of
organisation expansion. In recent times, US government stop the process of import and which
affects the profitability of auto mobile industry. These political factors has affect the sales of
General motors because of increment and imposition of heavy taxes due to inflation regulate in
the country. Due to which, general motors suffers the loss of their expansion. The company
should expand their business in which country where have less political influence and regulatory
control from government or by maintaining good partnership relations.
Economic factor: This factor influence on the economic value which a country follow
for its development, economic factors affects the pricing policies of an organisation. Customer
preference and their wants are the main aspect in economy which affects on demand and supply
in the economy that leads to inflation and high interest rates. General motors have seen a positive
impact in economic development by providing employment and increment in growth rate of
economic GDP also its product expansion is leading to high growth into China as the company
enjoy high accountability of customer preference.
Social factor: This factor affects social economy in terms of age, gender, demographic
changes which led an organisation to follow equality and consumer wants. Socio culture trends
are the main part that affects in this factor into an organisation. This can cause huge competition
if others firms produce their products according to market trends and taking customer needs into
consideration. General motors has face rivalry competition as these rivalry firms providing more
of fashionable vehicles with some exciting services. The company needs to develop more
strategic approaches and focus on manufacturing luxurious as well as medium standard products
so that every customer could buy it.

Technological factors: this factor put influence on updated technologies and modern
techniques in order to make the work more easier and less time consuming. This factor involves
market research and analysis in order to excess trending knowledge so that, no other perform
could take the pride first. General motors is deliberately focusing on producing advance
technological car which have mobile connectivity mode so can perfectly fit in consumer lifestyle
also attention on customers safety by featuring safe cars locks and other features. These efforts
of general motors positively impact on its sales and revenue.
Environmental factor: According to this factor, an organisation is affected by
environment carnages through weather, season, location, geographic context which creates much
influence on a firms consistency and operations. This factor is mostly affect for small business
like farmers, seasonable food outlets and etc. An organisation must prepare to face these
changes in the environment as they are flexible and uncertain. For an auto mobile industry
environmental factors promotes high positive impacts towards environment. General motors
must adapt king of technologies which make the environment less polluted by using vehicles.
General motors have already producing a battery power which can accelerate the speed to 400
miles. This become a great move towards environmental growth.
Legal factors: According to this factor, an organisation is abounded by the laws and act
which bound them towards economic welfare and individual benefit which include employee act,
safety act, pay scale compensation and customer exploitation laws. US laws imposed to provide
minimum fair amount of salary and heavy charges in the case of consumer exploitation. In recent
years, general motors has faced obligation to make defective ignition switches in their cares
which cause heavy fines in terms of compensate and brand image.
From the pestle analysis, an organisation could understand the external factors and make
changes wherever it is needed as this impact on companies goodwill and profitability.
STP MODEL:
STP model is a significant tool for marketing analysis and making effective promotional
strategy. This segment include the questions of where to sell, how to sell and for whom to sell.
This model evaluates resources into market favours and set the targets to where company wants
to expand their enlargement of product. This STP model shows marketing analysis for General
motors which reflects three main segments mentioned below:

Mission: General motors has their main motive to achieve customer retention and lifelong
service till they own the cars.
Vision: Their main vision is to make customer satisfied and build trust towards the company.
Segmentation: This element focus on classify the wide market into different sections in
order to gain easy excess to different customers and their different needs. This segmentation of
market makes easy for an organisation to choose their targeting customers in according to
geographic or physiological context. Every area has different trends and cultures followed by
various demands for which an organisation has to research about other areas for expansion or
diversification. In context with General motors, they segment their target market according to
individual income, age, gender, or living standards. This helps them to plan production and
quantity according to the need and requirement or segmented areas.
Targeting: After being segmenting market as per the age, gender, income of the
consumers, there is need for target the required market and must ensure that no segment market
has left aside. Also , there is need for efficient targeting to a wide number of customers by
ensuring the promotional activities must be easily understandable. And each segment must be
different form other segments in order to avoid misconception of targeted area. Also, ensure that
the targeted area must be good to reach large customers in order to make high revenue. In
context with General motors, they use various targeting strategy to grab large share of market
with their huge brand portfolio that proves to be a valuable asset for the organisation and helps in
attract new and more targeted customers.
Positioning: This element of STP model gives a sense of thinking to customers whether
the organisation providing valuable good and services and are more beneficial from the other
competitor firms. Positioning sets the key elements that a consumer focus on, that are features,
competency and valuable use product the brand is providing. And also consumer researches
more, in that case an organisation must provide something that no outerr firm can compete with
their products in terms of price and quality. For example, company launching its product with
immense design and features. For which innovation are the most effective way to plan strategies

according to that. In context with General motors, the company provide high quality cars features
with exciting design with easily suits or lifestyle of consumers and always fulfilling luxurious
demand with money worth satisfaction.
By acknowledging STP model, General motors are in capable to use this segments into
efficient way and could promote and expand their companies to other locations where quality
and quantity encouraged.
Budget
Benefits of Implementation of Plan
Planning is a way which will enhance the operations of the company by evaluating the
future growth prospects as a base for formulation of plans. General Motors company have
designed an innovative plan of combination of engineering in their automobiles. This plan
provides the following benefits to the company:
 This plan will enhance the productivity of the company by applying the strategies which
will help them in evaluating the customer preference and analysing their concerns. The
plan will also ensure that the potential innovation methods will be adopted by the
company.
 This plan will decrease the overall operational cost of the company as they will use
effective technology which will utilise their resources efficiently. The company will be
able to maintain their growth prospects by following the perception of the business.
 Furthermore, this plan will enhance the competitiveness of the company in the external
environment. The company is developing the product which will ensure consumer safety
and improve traffic management. This will develop a connection of the company with
their customers and they will achieve high standards of quality maintenance.

 Moreover, the company is planning to enter into a phase of digital transformation of
vehicle which will increase their accessibility towards the potential customers. This plan
has versatility advantage as this covers the customer concerns regarding the innovation.
 The plan will also create the brand recognition for the company by adding valuable
products in the range of the company. This will enhance their turnover which will
ultimately increase the opportunities for the company in the future ahead.
 This plan will help in building effective network with the other parties in the external
environment. This will help the company in entering a way of success through
achievement of sustainable advantage in the automatize sector.
 This plan will enhance the effectiveness of the range of cars offered by the company.
This plan involves the collaborating the engineering in the automotive industry which
will enhance the employment opportunities for the individual.
 This plan will decrease the vulnerability in cyberattacks and will transform the industry
into a growth sector. As the company is entering into a new market, this will provide the
company better opportunities and will erase the boundaries to form a way of success in
the future ahead.
Hence, these are the benefits of the innovative plan which will help the company in achieving
profitability and productivity.
CONCLUSION
It can be concluded from the above mention report that innovation is not just an idea but
it is a scope of opportunity for a company to grow in the external competitive environment. The
latest innovative techniques have captured the automotive market and to build a potential image
it is necessary for a company to implement innovation in their product operations. The PESTEL
analysis have highlighted the opportunity and threat factors for the company and the market. STP
analysis will define the marketing strategy for engaging the segmented and targeted audience.
The company develops certain plans and strategies in support of innovation and productivity.
The competition level is rising in the industry which can be faced with the help of effective
strategies an evaluating the demand of the variety of products in the market.

REFERENCES
Books And Journals
Aagaard, A., 2018. Managing Sustainable Innovation. In Innovation Management and
Corporate Social Responsibility (pp. 13-28). Springer, Cham.
Aagaard, A., 2018. Managing Sustainable Innovation. In Innovation Management and Corporate
Social Responsibility (pp. 13-28). Springer, Cham.
Awate, S. S., Larsen, M. M. and Mudambi, R., 2016. Managing Innovation Networks: A
Multiplex Analysis of the Global Wind Power Industry.
COSTER, J., 2017. Lessons from 3M Corporation: managing innovation over time and
overcoming the innovator’s dilemma.
de Vasconcelos Gomes, L. A., Facin, A. L. F., Salerno, M. S. and Ikenami, R. K., 2018.
Unpacking the innovation ecosystem construct: Evolution, gaps and trends.
Technological Forecasting and Social Change, 136, pp.30-48.
Dürr, O. M., Nisch, M. and Rohlfing-Bastian, A., 2017, May. Incentive Provision and Optimal
Team Size for Managing Innovation. AAA.
Erdogan, I., Rondi, E. and De Massis, A., 2020. Managing the tradition and innovation paradox
in family firms: A family imprinting perspective. Entrepreneurship theory and practice.
44(1). pp.20-54.
Hu, B., Mai, Y. and Pekeč, S., 2020. Managing Innovation Spillover in Outsourcing. Production
and Operations Management.
Jajja, M. S. S., Kannan, V. R., Brah, S. A. and Hassan, S. Z., 2017. Linkages between firm
innovation strategy, suppliers, product innovation, and business performance.
International Journal of Operations & Production Management.
Kulikova, L.I., Yakhina, D. A. and Lyzhova, A. V., THE USE OF ACCOUNTING
INFORMATION ON COSTS IN MANAGING INNOVATION PROJECTS.
Mir, M., Casadesús, M. and Petnji, L. H., 2016. The impact of standardized innovation
management systems on innovation capability and business performance: An empirical
study. Journal of Engineering and Technology Management, 41, pp.26-44.
Porlezza, C. and Colapinto, C., 2017. Managing Innovation: The Networked Form of University
in the XXI Century. International SERIES on Information Systems and Management in
Creative eMedia (CreMedia), (2017/1), pp.287-302.
Puhan, T. X., 2019. Managing Change and Innovation. Available at SSRN 3371800.
Siltaloppi, J., 2020. Managing the innovation process.
Wiegmann, P. M., 2019. Managing Innovation and Standards: A Case in the European Heating
Industry (p. 171). Springer Nature.