Impact of Globalization on General Motors Essay

Impact of Globalization on General Motors - Essay ExampleThese include simplifying the process where possible, conclusion cheaper but high quality material to help with the manufacturing process (Reader 2006, p.7). Additionally the confederacy believes that innovative engine room will help it attain better business hence increasing output but the read/write head is how globalisation in the automotive industry affects GM. Globalisation is a double-edged sword that cuts both(prenominal) ship canal in this case it has both the positive and the negative impact on any industry. However, the degree of managing these personal effects determines the success or failure of a company in a particular industry. When examining the effects of globalisation in a company for instance GM, we have to look at all the department, branches, plants and any subsidiaries of the company. The priming coat for this is that globalisation is a multifaceted phenomenon. For instance, we have to look at how globalisation has affected GM employees, the production process, the marketing aspect, the information technology aspect and the management aspect (Alias 2008, p.10). The complexity of the automotive industry demands that the company should effectively deal with the impact of globalisation because if the competitors ar able to deal with it more effectively than the GM then this can be catastrophic or detrimental to both the company image and the market. The public is moving towards becoming a global village hence having a very fast station of globalisation. As a result, companies should strategise and gear up for this cause to avoid eradication referable to drastic changes. However, in dealing with the effects of globalisation on the GM it is important to separate all the sections and critically examining them singly ratherthat having a... The paper tells that increased globalisation has led to increased competition in the automotive industry with adaptation of new entrants w ho have better ways of manufacturing and production of vehicles. However, one of the biggest competitors to GM is the Japanese company Toyota manufacturing undestroyable and affordable vehicles. Additionally, due to the persistent hard economic times more and more people are opting to buy fuel-efficient vehicle and vehicles whose spare parts are easily available. The Toyota Company has managed to tap into this market both locally and globally hence giving GM very stiff competition. Additionally, due to globalisation vehicles are becoming cheaper hence reducing the profit margin of GM. Because of this, it forces the company to seek ways of cutting crush costs in regularise to increase the profit margin because they cannot increase the prices due to the demand and offer forces of the market. Globalisation has in addition made information readily available to consumers in the market. Additionally, the introduction of ecommerce solution has also cut down on the cost of business tra nsactions. Customers are now able to purchase vehicles from some other counter through the internet and go through all the relevant processes that will enable him or her get the vehicle at his or her disposal. GM has to deal with these globalisation effects in order to stay afloat in business. The distance between countries is closing up very fast due to the development of efficient ways of transportation and business transactions are becoming easier due to the proficient development.