GROUP 3 GENERAL MOTORS

Vision

Be the automotive industry leader in innovation

Values

Leadership Intergrity Respect Sustainable Development

Astra Insignia Meriva

Brands

GROUP 3 GENERAL MOTORS

Strengths: - Good market reputation - Global distribution - Quality improvement by strong R&D

Weaknesses: - Unproductive labours - Heavy technology investment - Poor organizational structure - High marketing expenses

SWOT ANALYSIS

Opportunities: - Government support - Low interest rate - Develop new vehicle styles and models - Change in marketing trends (more social media) - Change in consumers needs (more green) - Increasing demand for Astra

Threats: - Increasing in inflation rate (3.7% to 4% & more) - Rising fuel prices - Growth of competitors - Decreasing demand for cars (14,3M to 12.8M)

GROUP 3 GENERAL MOTORS

SHORT-TERM ACTIONS

Reduce production units of each brand to cut inventory cost

Choose the right model for right market based on customers trends

Decrease marketing expenses by more efficient channels, then to gain customers loyalty Focusing on training for employees to enhance productivity and service delivery

Restructure the organization by buying more automations to reduce manpower

Sell one oldest factory to earn cash to reinvest in current activities

GROUP 3 GENERAL MOTORS

LONG-TERM ACTIONS

Continuously restructure the organization to put more superior on each brands

Be more local to gain shares on niche market

Cut production cost and other marketing expenses to pay debts

Spending more efforts on market research to deeply understand the market and consumers

Upgrade current brands in term of green automotive and fuel cost-saving

GROUP 3 GENERAL MOTORS

Product portfolio: Astra, Insignia, Meriva Market segment: Astra 2.92%, Insignia 2.62 %, Meriva 1,5% Operations: Personnel: cut down 1.500 employees to reduce 44M cost Automation: purchase more 350 units with the price Factory: shut down the oldest one and sell it Training: reduce 50 % training expenses

GROUP 3 GENERAL MOTORS

Brand marketing expenses: focus more on digital marketing and market research, but reducing cost on traditional channels Spending marketing cost at 250M per year Gross Profit: 181 M

Number of automation purchased Price Total Cost per year of depreciation

150.00 665,600.00 99,840,000.00 9,984,000.00

Number of automation purchased Price Total

200.00 665,600.00 133,120,000.00

Cost per year of depreciation 13,312,000.00

Automation overheads
Total cost

4,992,000.00
14,976,000.00

Automation overheads
Total cost per year

6,656,000.00
19,968,000.00

Pay back to employer Cost for first year

9,630,000.00 24,606,000.00

Number of employers fired total wage per year Organizational overheads Total cost per year

1,500.00 40,125,000.00 4,012,500.00 44,137,500.00

Number of employers fired total wage per year Organizational overheads Total cost per year

2,000.00 53,500,000.00 5,350,000.00 58,850,000.00

Action

Current cost per year ( Euro)

Cut down to Save per year ( (Euro) Euro)

Cut down 1500 employees and invest 150 automation units 44,137,500

14,976,000 29,161,500

Invest 200 automations units equal to 2000 employees needed for Meriva's production 58,000,000

19,968,000 38,032,000

Cutdown marketing and promotion

355,000,000

250,000,000 105,000,000

Total

172,193,500

Action

unit

Gross margin

Price

Revenue

Material Cross profit cost

Design & options cost

Overhead

labour cost Profit

manufacturing Meria focus to City car segment with price 69,312

13% 15,500

1,074,336,00 139,663,68 590,884,80 202,869,274.2 44,316,360. 54,479,232. 181,786,333.7 0 0 0 9 0 0 1

GROUP 3 GENERAL MOTORS