Product lines and target markets
Competition in each of its lines and markets
“ What does this company sell and to whom?”
General Motors Company is among some of the biggest retail shops in the United States that has 15,472 stores in 44 states in the US. The company is specialized in selling consumable items, seasonal items, home products as well as apparel. The company is focused on selling its goods to customers at a lower price than the other stores in the aim of equalizing its customers to feel free to visit the stores. The company sells its products to the citizens of the United States mainly to where their stores are located. It has particularly targeted the people of the US under the 44 states but plans to open more stores in the future. The items that account for the highest percentages of sales is the consumable items which include paper and cleaning products, packaged foods, perishables, snacks, health and beauty products, pets and finally tobacco products which are all under one roof. This company has ensured that its stores are a one-stop shop where all your needs are taken care of. The other product that is second in terms of sales is the seasonal products such as phones and accessories, electronics and automotive and home office supplies. Finally, there is the apparel product which includes clothes for all sizes as well as for both sexes.
Marketing and distribution channels
How does the company identify customers and channel their product or service to those customers?
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General Motors Company has identified its customers by locating their stores as well as planning their merchandise selections to serve best and address the needs of their clients. They have specialized in the household items that have been neglected by other stores and standardized their prices to make sure that they value every dollar that their customers spend on their stores. In matters concerning distribution and transportation, the company owns various distributional centers which are located within their geographical footprints. The centers are mainly focused on non-refrigerated goods which are then transported to their stores using their trucks which are 2oo in number. The customers are now able to access the products straight from their stores without any struggles. They have also made sure that they have opened stores in most of the states in the US which is a move aimed at making sure that it makes it easy for the customers to access their products. They have also used a strategy of reducing the cost of production which in turn reduces the final cost of the product which makes their product preferable by most of the residents in the United States. This move has increased their demand, and they are increasingly leasing new stores and building new distribution centers. All this is aimed at making sure that the goods reach the customers in a reliable way.
Asset organization and management
What assets does the company need to be able to produce, acquire, offer, and/or deliver its product?
General Motors Company needs to complete its distribution centers by the year 2019. The distribution centers which are under construction are located in Amsterdam and New York respectively. The company feels that the completion of these centers will play a significant role in ensuring proper distribution to the respective stores in the United States. The company has additionally purchased a cold storage facility which they refer to as DG Fresh which is still under probation and various testing to ensure it fits the needs of the customers as expected. This facility will be useful particularly in the self-distribution of frozen and fresh products. As an added advantage, the company also has leased out some additional stores, and they are also planning to add more in the coming years. They have also relocated some of the stores and remodeled the ones that needed to be improved. The company is also using cash flow to invest in more buildings of more stores in other states and make sure that transport is catered.
Supply chain organization and management
How and from whom does the company acquire raw materials, finished goods, energy and other resources needed in order to offer its products and/or services for sale?
The company has a broad range of suppliers who are mostly based in the US, and they have worked towards maintaining a direct buying relationship with them as well as a variety of different producers of national brand merchandise. Even though it is one of the largest retail shop in the US offering a wide range of items, the company has made sure to balance and maintain a limited number of items in each of the various categories provided which allows them to keep an average price on all their products. The move has made the company to lower the average cost of production hence offering fair prices to its customers. A percentage of 8% is what accounted for the total number of purchases in the year 2018 from their three most significant suppliers as per the report. They have also added that various diversified number of suppliers are responsible for their private brand's supplies. The company has also been keen on this sector ensuring that even if one of the suppliers fail, then they will immediately go for the other option which is readily available in their list.
Human resources organization and management
What labor resources are needed in order to fulfill the requirements of the business model?
Just like any other successful organization, the company cannot work without trusted employees. Up to this point, the company has been able to hire and employ an approximate of 135,000 employees who either work full time or part-time. This number includes various categories like regional and divisional managers, district and store managers as well as other employees working at multiple positions in the stores as well as the distribution centers. The company has put major focus and a lot of effort in this sector to make sure that they employ the best personnel who fit the position they are being offered. The company has focused so much on recruiting, training, motivating and retaining its best employees to make sure that they work towards one common goal which is to serve and satisfy the needs of the customers. This is the most critical segment in the company, and it should be organized accordingly to avoid hiring unqualified applicants. The company also believes that it is in good terms with its employees.
Capital structure
What are the sources of capital used by the company to fund its investments and operations?
The capital that is used for funding investments is usually obtained from the cash flow of the company where the profits earned are meant to circulate the company ensuring its stability. The cash flow is also used for leasing out new stores as well as improvements and upgrading. The cash is also used to remodel and relocate stores around various markets. Profits from sales are invested in the company to ensure the growth and sustainability of the business.
Growth and distribution strategies
How is the firm changing in size and scope?
How are profits and cash flows being distributed?
The firm is changing in size and scope in the sense that the company has been making efforts of building or even leasing new facilities to fulfill its growth objectives as well as strategic initiatives. This is done in the aim of maintaining a flow of network distribution reliably and efficiently. The company is also working hard to make sure it has leased out new stores as well as remodel the old stores to ensure that its brand is maintained in the market. They have also strictly focused on this activity of building and leasing to ensure its growth and stretch to other parts in the United States. The profits and cash flows are mainly distributed around the company in fulfilling various needs by the company like remodeling, relocating and leasing new properties. The cash flow is revolved around the business to ensure its stability and avoid bankruptcy. This is ensured by distributing the cash flows evenly in all the sectors in the company.
