Assignment #5 General Motors
DeAndre Daniels
Strayer University
Financial Management
FIN 534
Dr. Ron
06-September-2011
Summary
This report discusses General Motors Corporation, one of the largest auto manufacturers globally, manufacturing cars and trucks in 34 countries and its subsidiaries. This assignment is an analysis of General Motors Corporation’s financial stability. It is hoped that these findings illustrate the strengths and weaknesses of the company’s common stock as a potential investment opportunity. GM currently focuses on four brands as well as strategic joint ventures with other automotive brands worldwide. GM operates under the core competencies of technology, leadership, large scale operations, and product & research development (www.gm.com). Despite the large scale operations of the company, GM has multiple areas of concern that need to be addressed in order to sustain long term value for both stakeholders and shareholders. Preliminary results of this analysis indicate that GM suffered enormous financial losses as a result of poor product quality, lack of consumer appeal, lag in alternative fuel technologies, inefficient plant production, and a saturation of similar car models amongst their brands. Due to these factors, consumer perception has plagued the company‘s sales, resulting in a steady decrease in market share across all platforms (www.gm.com).
Assignment #5 Financial Research Report - GM
Company Overview
General Motors Company develops, produces, and markets cars, trucks, and parts worldwide. GM also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). The company was formerly known as NGMCO, Inc. and changed its name to General Motors Company in July 2009. General Motors Company is based in Detroit, Michigan (finance.yahoo.com).
In efforts to reinvent its global presence, General Motors decided to focus on its "core brands" -
References: Berk, J., & DeMarzo, P. (2010). Corporate Finance: The Core: 2010 custom edition. (2nd Ed.). Boston: Pearson Education. General motors. (2011, May 03). Retrieved from http://finance.yahoo.com General motors