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Project One Final

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BUS 225 Milestone One Template
Executive Summary
7/12/2021
Description of Problem
There has been a continuous decrease in profit margins hence creating a lot of tension.
This has been a massive blow to the organization since it has led to a deficit in the overall
portfolio and revenue, thus triggering the need to secure new organizations and industries in dire
need of automobiles and automotive parts, especially engines. Traditionally, the organization
model of mass production has been utilized by Rivian, where there is an overdependence on
mass production to enable the gain of competitive advantage (Truett,2019). The continuous
growth of competitors in the automotive industry has triggered an intensification of demand and
expectations of customers, therefore, forcing the organization to reevaluate its logistics and
management of the supply chain.
Description of the Current U.S. Automotive Industry
Rivian is an organization that is highly specialized in the making of electric vehicles and
automotive technology located in Irvine, California. The company emphasized the concentration
on the production of automotive electric vehicles since the year 2011. The reception of a large
investment spearheaded the company's significant growth in 2015, which also enabled it to open
up research facilities in the Bay Area and Michigan. Rivian is highly known for its normality of
acquiring near-product-ready facilities instead of investing huge amounts in constructing new
factories (Truett,2019).
Current Automotive Market Trends
Rivian highly emphasizes the production and development of vehicles, commodities, and
services that facilitate sustainable transportation. Its manufacturing plant is located in Normal,
Illinois, with other facilities based in Michigan, Plymouth, San Jose, Palo Alto, Carson,
Vancouver, California, and the United Kingdom. It is necessary to note that the organization
currently has four main branches whose operations are majorly engineering based, design, and
finances. Rivian’s factory located in Illinois is considered the home for processing vehicles and
other components like battery packs. There is also a paint shop, machines for stamping, robotics,
and other equipment used in the production process (Truett,2019). There is also a well-
maintained and highly advanced manufacturing office located in Surrey, England
Description of the New Industry
GM and other partners are continuously involved in the manufacture and sale of vehicles
in diverse brands. The global headquarters of GM is found in Detroit, Michigan, in the United
States. The organization is highly involved in the manufacture of cars and trucks in more than
thirty-five countries. Per annum, General Motors sells more than 9 million cars and trucks
globally under various brand names. Automotive brands found under General Motors consist of
Chevrolet, Oakland, Opel, GMC, Holden, Wuling, Buick, and Cadillac. China and various
countries in the European Union have thus been indicated to be one of the biggest consumer
markets of the products of GM, with the US being the top.GM has maintained its leadership in
the vehicle electrification industry thus seeks to diversify its production of electric motors,
batteries, and power controls (VeCasey,2018). Therefore, this has prompted the organization to
involve in the development of a broad range of high volume, energy-saving, and innovative

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technologies such as an improved aerodynamics design, valve timing, speed transmissions, and
turbocharging.
The total revenue of GM is considered to be more than $200 billion hence an indication
that every year it has been increasing its value by about $5 billion. Besides, the earning per share
has also been on the rise with $0.1 billion per annum. In terms of sales, GM has been a leading
manufacturer for close to 100 years, indicating that it has managed to broaden its coverage in the
world, therefore operational in 157 nations. Profits generated by GM have been on the rising
daily as a result of a capital structure that is vigorous.GM is focused on investing in new
technologies such as auto driving, fuel efficiency, and electronic displacement to ensure that it
remains competitive in the automobile industry. Application of efficiency in innovation and fuel
has proved helpful in fuel preservation (VeCasey,2018). This has aided in the magnetization of
consumers requiring to purchase standard vehicles compared to prices of major competitors such
as Toyota. The core objective of GM is thus considered to be customer retention through the
process of availing accommodations deemed as efficient.
Current Market Trends in the New Industry
Since its development in 1908, General Motors has evolved from a smallholding
organization into a leader in the manufacturing industry. For more than a century, General
Motors has attracted global recognition for its high involvement in the manufacture of cars and
trucks. It has a highly recognized industrial involvement, with most of its focus on motorized
forms of transportation and the manufacturing and engineering that makes this a possibility.
General Motors has been experiencing slow growth in the industry but is considered to have a
solid competitive edge in its scope of operations. There is thus a need for diversification into
various business segments deemed untapped by utilizing existing resources.GM has been facing
restricted internal growth and has a high intensity when it comes to its cash flow, thus providing
an avenue for diversification in an effective manner (Stanisic,2018). The firm is also open to a
joint venture to fulfill its needs for internal growth.
Appendix A
Explanation from Porter’s Five Forces Analysis of the New Industry
Rivalry
General Motors has been losing many points when it comes to the market share compared
to its competitors such as Toyota and Nissan. Because of the barriers hindering exit,
organizations and it hard to shut down due to high investments.
Barriers to Entry
General Motors has been operational for many years; thus, this factor is considered a low
threat.
Threat of Substitutes
In the past years, the threat of substitution has been high due to the rise in commodities
prices such as gasoline. Customers today place a lot of emphasis on the efficiency of fuel during
the process of vehicle selection. Less fuel-efficient automobiles are thus being substituted by
those that are highly efficient.

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BUS 225 Milestone One Template Executive Summary 7/12/2021 Description of Problem There has been a continuous decrease in profit margins hence creating a lot of tension. This has been a massive blow to the organization since it has led to a deficit in the overall portfolio and revenue, thus triggering the need to secure new organizations and industries in dire need of automobiles and automotive parts, especially engines. Traditionally, the organization model of mass production has been utilized by Rivian, where there is an overdependence on mass production to enable the gain of competitive advantage (Truett,2019). The continuous growth of competitors in the automotive industry has triggered an intensification of demand and expectations of customers, therefore, forcing the organization to reevaluate its logistics and management of the supply chain. Description of the Current U.S. Automotive Industry Rivian is an organization that is highly specialized in the making of electric vehicles and automotive technology located in Irvine, California. The company emphasized the concentration on the production of automotive electric vehicles since the year 2011. The reception of a large investment spearheaded the company's significant growth in 2015, which also enabled it to open up research facilities in the Bay Area and Michigan. Rivian is highly known for its normality of acquiring near-product-ready facilities instead of investing huge amounts in constructing new factories (Truett,20 ...
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