Example of an Organisation Impacted by External Environmental Factors

The External Environment of General Motors

The external environment of the American multinational, General Motors is surrounded with varied circumstances as the company strives to be among the brightest faces of US development and technology. The GM Company is a legend in the automobile industries for its renowned technologically advanced widespread range of brands ranging from light to truck vehicles. The company has been in operation for more than a hundred years and they have acclaimed or developed a series of brands that satisfy the needs and preferences of their customers (Alpay, 2013).

GM Company is a well-established entity with a globally acclaimed name. The company has made a success business operation in the automobiles industry for more than a hundred year since 1897. Its huge success in US has made its business in other corners of the world to flourish. This success has been attributed to its philosophy of business and pursuit of quality and technological advancements. The aspects of comfort and safety of their customers are key to their success.

There has been a great pull by the Japanese automobile industry within the automobile industry across the globe creating great impact on the operations of GM, Chrysler and Ford and their respective market share. Alpay(2013) argues that this impact has resulted in decline of the GM Motor’s finances and share due to their poor choice of investments and delayed operations, for instance, the Hybrid technology. They were almost to become follower and this led to a reduction in their market share in given regions a result of product recalls and rejections.

The GM Motors agenda of technology and innovation, the company should incorporate the hybrid technology within the newlyemerging markets like Asia Pacific and Latin America as well as in US. Moreover, the strong standing of the company on the aspects of technology has ensured that their idea of hybrid technology is successfully evolved (Conklin, 2012). It experienced a brutal impact as a result of being a follower rather than a leader in the global recession and a severe blow to the profits of the company.

The business environment of the GM Motors has been affected by environmental concerns of the various governments in which the company operates. The customers also have inflicted dominance over the business progression of the company and thus it resorted to making specific changes in its operations since 1960. The company being among the firms the U.S. automobile industry, it plays a critical role in the economic growth of the nation. Different studies have shown that the automobiles industry has made huge contribution in terms of U.S. economic development over the past several years.

Moreover, there has been a high increase in the technological advancements across the globe, for instance innovations as a result of internet and social connections over web. This aspect of technological advancement has been a game changer in the business environment of the GM Motors and the U.S. automobiles industry at large (Hamilton & Webster, 2012, p.359). Additionally, the company is affected with the recent challenges of legal aspects and regulation, for instance, the ELV endorsement for the automobile industry that was established by the Automobile Recycling Law, of July 2002 in accordance to which the Japanese give lots of concern and are very aggressive to ensure that there is effective compliance.

Therefore, GM Motors should ensure that it takes bold initiatives to ensure that it conquers the newly emerging markets and pursue a greater competitive edge in order to achieve success within this highly dynamic and competitive automobiles industry.

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