General motors. Module 10 : A More Detailed Analysis of the Financial Statements. Enterprise operations. General Motors. Client Strategy Template: GM . Strategies.
A More Detailed Analysis of the Financial Statements
Growth Strategy:Focus on “alternative propulsion strategies” (hybrid, electric, FlexFuel, hydrogen fuel cell) in an attempt to create environmental diversity and fuel efficiency throughout product line
Financial Goals & Operating Priorities:Aim to be the industry leader in fuel efficiency, pursue top market share in both domestic and global market
Characteristics of the Business
Major Business Units: GMNA, GME, GMIO, GMSA, GM Financial
Markets: Automotive assembly and manufacturing, financial services (leases, contracts), automotive safety technology
Products: Chevrolet, GMC, Buick, Cadillac, OnStar technology, GM Financial services
Customers: Auto wholesalers, Rental car agencies, Authorized dealerships
Competitors:Toyota, Ford, Nissan
Strategic Alliances/Joint Ventures: Mostly concentrated in China
Potential Adverse Influences: Constant technology innovation, oil prices, raw material prices, government regulation, dependence on suppliers, product recalls (safety issues)
Enterprise Profit Margin (EPM)
-Measure of profitability
-How much operating profit does the firm earn from each sales dollar?
-Used EPM from sales
Enterprise Asset Turnover (EAT)
-Measure of efficiency
-What level of sales does the firm realize from each dollar invested in enterprise assets?
(Sales remaining relatively constant)