PESTLE analysis of General Motors Company 2023: Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment of General Motors Company in terms of political, economic, social, technological, environmental, and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of General Motors' strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on its business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot, etc. to real company cases
1.0 INTRODUCTION
General Motors is a multinational company headquartered in Detroit with operations in over 29 countries. The Company was incorporated in 2009 and operates in the design, manufacture, and sale of cars, trucks, as well as automobile parts, while also providing financial solutions such as retail loans and lease lending. It manufactures and markets brands like Cadillac, Chevrolet, and GMC among others in and outside North America as well as in its various subsidiaries in Asia.
General Motors has a market cap of $46.37 Billion as of 2023 and it sealed off 2022 with an annual revenue of $ 156.7 Billion and a market share of 17.1 % in the United States making it one of the leading automobile manufacturers in the world, among other manufactures of automobiles are Toyota Motor Company, Ford Motor Company among others.
It is divided into four major strategic business units which include GM North America, General Motors Financial, Cruise, and GM International. The Cruise segment engages in the development and commercialization of autonomous vehicle technology.
In this assignment, we will critically examine the broad macro-environment of General Motors in terms of political, economic, social, technological, environmental, and legal factors. For this Pestle and Swot case study, the research carried out will aim to understand how the various macro environment factors, in the form of positive and negative trends, have affected the automobile manufacturing company.
This pestle analysis of General Motors explores the impact of different factors like Brexit, falling post Covid disposable income levels, new trade agreements, the rise of contactless technology as well as other legal and environmental factors such as the Federal government policies and regulations. Critically, a macro environmental analysis will reveal the inherent opportunities as well as underlying threats facing General Motors and other automobile manufacturing companies.