Strategic Management and Leadership Essay Example | Topics and Well Written Essays - 3250 words

Strategic Management and Leadership - Essay ExampleGMs OnStar subsidiary is the application leader in vehicle safety, security and information services (Company Q2 identify, 2009). I would now begin this report by giving an in-depth and thorough internal and external analysis of ecumenic Motors that led it to its decision to fill from its European Operations.General Motors automobile production and sales seam was greatly affected by world(prenominal) economic downturn. The economic meltdown across the world and the financial crunch adversely affected the business and sales volume of most of the corporate entities and businesses across the globe. General Motors also felt the pinch of this ruction and observed a decline in sales and profits because of falling demand of its brands. The increasing levels of unemployment, incidental reduction in incomes and purchasing power because of higher energy and oil prices increased the inflation that agonistic consumers to reduce their sp ending and increase saving. In short, sales decreased considerably and GM with high overheads bring it difficult to assimilate the shock. Higher costs of production in European countries where companys plants are located, weak British pound and unfavorable mark-to-market commodity hedging (company Q1 financial report, 2009) are others reasons that added to the miseries of GM. In short, the General Motors financial position became so weak which compelled It to announce its Bankruptcy on June 1 (2009).The money losing units of General Motors in Europe are Opel and Vauxhall. These units observed a drastic reduction in sales (from around 2.2 mn in 2007 to 2.04 in 2008) and profits which tumbled from positive 0.357$ bn (EBT) in 2006 to negative 2$ bn in 2009 (company Q1 financial report, 2009). The sharp reduction in sales and resulting mammoth losses forced GM to sell off its European Operations (Opel and Vauxhall) to an Austrian-Canadian automotive group Magna and its Russian partner