General Motors - Business Model and Direction Research Paper

General Motors - Business Model and Direction - Research Paper Example GM has been operating for over 100 years and has produced about 450 million vehicles globally, and operates in nearly every nation worldwide. Research has demonstrated that a firm, such as, GM adopts an internationalization strategy to gain access to new customers, attain lower costs via economies of scale and increased purchasing power, further exploit its competencies, to gain access to the capabilities and resources located in international markets, and spread its business risks across a wider market base. In the next five years, GM is focusing on restructuring its brands whilst focusing on its core business with Chevrolet, Cadillac and Buick remaining at the core of the business. A corporate strategy, as found out by Abraham (2012), is carried out at the corporate head office and defines the scope of the business in relation to the markets and industries that it competes. It consists of new ventures, vertical integration, decisions about diversification, acquisitions, and allocation of scarce resources between units. At the corporate level, GM aims at maintaining its customers as long as possible. GM’s goals shape the manner in which it invests in brands across the globe to inspire loyalty and passion. The corporate level strategy also entails translating breakthrough technologies into experiences as well as automobiles that customers like. Proceeding further, the corporate strategy motivates GM’s entire team to serve and enhance the society where it operates worldwide. In conclusion, the corporate strategy is geared towards building the General Motors into the globes most valued car manufacturing firm (General Motors, 2015b). The firm’s corporate level executives attend to the overall performance of the company. They also pursue opportunities to leverage cross-business value chain relationships together with strategic fit into competitive advantage. In this regard, GM has a competitive value