Question

This question is for a project about providing an executive mangement plan of a major publc company. The company we picked is General Motors. Should General Motors be in Canada? If yes, why? What can they do to continue growth and success? What problems and opportunities can be identified in the executive management of General Motors in Canada?

Answer 1

According to the current marketing conditions and company operating in Canada would face problems as America does not have good relations and automobile policy for Mexico which includes the deal between the 3 countries. Most of the low budget cars are manufactured in Mexico as well as the high budget cars are manufactured in United States of America and Canada. While the transportation of these goods require criss-cross between these three countries including Mexico, increasing tension between the borders and political challenges have really make it difficult to operate in such environment.
General Motors should focus on creating a local market strategy rather than focusing on Canadian market as it would affect the overall revenues because of the challenging aspect of Logistic operations between two countries. Shifting the high price car manufacturing to the existing facilities in Canada and other parts would be beneficial for General Motors rather than investing in creating any manufacturing facility.
As most of the vehicles in Canada for a premium class are imported by United States of America and other vehicles are imported in United States of America which are manufactured in Canada, pushing this type of approach for existing manufacturing facility would be beneficial for General Motors to improve the market condition rather than investing in a fully new manufacturing facility.
Managing the best available logistics operations and focusing on creating smaller vehicles in Mexico would help General Motors to understand the market situation and leaving other manufacturing of their cars in Canada would also help them to sell the cars inside the country without even transporting it back to the United States of America which would increase their overall sales and improve their market position.
Executive management should focus on understanding the policies which are changing every day. The point is to be determined for that available as well as the forecast should be made accordingly to survive in the market and to get better revenue.