Shanghai General Motors Company Ltd

Background

General Motors is a global motor vehicle manufacturing company operating in different parts of the world. General Motors was started in 1908. The company has been employing 205,000 human resources globally. Operations are carried out in 157 nations. The company is involved in building, designing and selling vehicles. The company’s vision in providing the best vehicles is believed to unite all employees through a culture that is centered on the prospective customers. In 2010, GM completed the largest initial public offering in the universe (General Motors). This was attributed to a robust financial foundation that has facilitated the production of good vehicles and building a better future for shareholders, partners, and employees at large.

 

This study narrows down to Shanghai General Motors Co., Ltd, which was founded in 1997. The company has a consolidated passion for esteemed customers. This competitive spirit has propelled the company to success (Thomaselli 2012, par. 1-4). GM’s culture is a representation of inclusion, mutual respect, diversity, understanding, and responsibility and invites fresh perspectives and different experiences.

Despite its success, General Motors Company Limited has faced a lot of competition from other stable manufacturers like Toyota Motor Corporation, Ford Motor Company and Nissan Motor Company Limited among others. The greatest concern for many companies is directing the flow of the products to prospective customers. Modern markets are infested with a lot of competition. Therefore, manufacturing companies are engaging in any activities that are deemed useful in propelling organizational goals and objectives in marketing.

This area of investigation is thus important in establishing the efforts made by GM in out-doing its competitors in the market. Internal marketing has been thought useful and a cost-effective procedure that leads to the manufacture of quality products and thus creates ease in the selling process (General Motors). Upon the application of internal marketing, companies do not struggle to sell, but the quality of products sales.

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Research Questions

Studies are normally guided by research questions that seek to help in achieving certain objectives. In this study, the research questions are stated as follows:

  1. What are the efforts made GM towards internal marketing?
  2. Why is internal marketing important in any company?
  3. Why should GM take up internal marketing procedures?
  4. What is GM’s perception of internal marketing?

Research Objective

By listing the above-named research questions, the anticipation would be that they will help attain the following objectives:

  1. To delineate marketing through the internal organization
  2. To find out the relationship between internal marketing and sales volume
  3. To the impact of internal marketing in GM
  4. To determine the perception of internal marketing in GM.

Purpose of the study: To establish how internal marketing has helped manufacturing companies like GM in attaining success in the market. The research seeks to establish further on the past, present and future applicability of internal marketing in achieving company goals and objectives.

Research Method

Research Design

Obtaining thorough research will require the application of a mixed-method approach. A mixed-methods strategy involves qualitative and quantitative techniques. For purposes of getting high-quality findings from a well-informed point, a mixed-methods approach will be needed to meet such requirements (Saunders, Lewis, & Thornhill 2003, pp. 15-32). Issues of time constraints will be unavoidable, but they will go a long way in providing enough data needed for analysis before recommendations and conclusions.

This approach will be applied because it makes it possible for the integration of data between the two different study methods. Data collected will thus be more reliable and credible. The need to establish the cause and effect of internal marketing would be facilitated through the use of both qualitative and quantitative strategies. The study is linked to the human resource functions of GM and, therefore, can be classified as social research. With the use of various data sources, issues of sampling are well taken care of.

The advantage of using a mixed-methods approach is the increased ability to collect data that would have been lost through a single-approach (Fisher 2004, pp. 23-45). Many challenges faced in data collection procedures are believed to be addressed through a mixed-methods approach. This happens because the weakness of one study method is well addressed through the other.

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Sampling

The sample for the study will be attained through probability sampling. This kind of sampling helps in getting a general perception held in the data collected. It will also be important to make sure that all respondents come from all departments felt to have good and relevant information concerning the objective of the study. A stratified sample would thus be most suited to make sure that this is realized. A random sample of 40 participants will be obtained from an already defined population sample of about 300 people.

Data Collection

A qualitative procedure will include a review of literary sources concerning the topic in question. Information concerning internal marketing and how it has been applied will be studied from scholarly sources and books. The review will also look into GM on matters of internal marketing and the extent to which it has been applied.

A quantitative approach will involve the administration of survey forms where respondents will be required to give their perceptions on internal marketing in GM. This will include both closed-ended questions and open-ended questions. All the questions will be projective, sourcing of opinions, factual and also based on attitudes.

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Discussion and Analysis

The discussion and analysis of the data collected is a very crucial stage. Data analysis will use descriptive statistics. Statistical tools and mathematical techniques will thus be useful in interpreting the data collected. These will be crucial in representing the data to show relationships and make conclusions with ease. All data collected will be written in summary. The data will then be put into groups based on how they relate.

Quantitative raw data will easily be transformed into visual forms like graphs and charts through statistical packages like the SPSS software. This will be an important step in making clear conclusions and drawing important findings from the research to be disseminated in a manner that can be understood and easily read.

Qualitative data follows a relatively long process. The data from the survey forms will involve the drawing of the major concepts. These main ideas will be coded in a way that will help in the analysis process. Codes addressing a particular idea will be grouped together. Grouping will be based on how each response relates to internal marketing and the impact on sales volumes. A scorecard will be used for analysis in order to highlight vital conclusions per se.

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Literature Review

Internal marketing is a philosophy of management where an organization is promoted along with its policies to the esteemed employees taken as customers to the organization (Varey 1995, pp. 40-63). Business activities are no longer now coordinated and motivated through the market. Roberts (2004) in his book, “The Modern Firm” indicates that strategy of management is an act of creativity that takes into consideration giving solutions to problems of management as well as the articulation of the aspired goals and vision (p.74).

Moreover, Roberts (2004) asserts that there is more communication that is needed that requires managers to persuade and show the members of the organization where they want to be as an organization (p.74). It is with this reason that Roberts (2004) says that organizational and strategic choices should be made in a more holistic way taking into consideration the interdependencies (p.74).

Some of the theories put forward by Thomaselli, (2012, par. 1-4) concerning the exit of the marketing executive of GM, Mr. Ewanick, were issues of clashing cultures, a lag in sales, a lot of changes in marketing, the breach of company policy and an outsize ego. The process of restructuring for Shanghai General Motors Co., Ltd requires measures that improve internal performance. These measures according to Roberts (2004) have the capability of growing companies and helping them adapt to the huge changes in the surrounding (p.74). These include such measures like:

  • doing experiments with new designs of the organization;
  • making alterations of processes and routines;
  • changing of corporate practices and cultures together with the range of operations;
  • redefining responsibility and decision making allocations;
  • restoring motivational and reward schemes;
  • redesigning systems of information;
  • changing the beliefs that are shared as well as the values that put the members together.
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Roberts (2004) argues that there are possible, important relationships in the relationships aforementioned in the aspired changes (p.74). According to Roberts, there are three performance determinants, which include strategy, organization, and environment. The strategy involves determining what products are to be made for particular markets and customers. Toyota Motor Corporation, having established such measures, has posed a major competition in the market for Shanghai General Motors Co., Ltd.

According to Roberts (2004), the organization is a social entity that involves people who are arrayed to get the common goal (p.74). This is very crucial in directing the flow of goods from the organization into the market. The environment takes into consideration the customers, competition, technology regulatory and legal context as well as a number of social, political and population features. These will be very crucial in the restructuring process within the organization.

Roberts (2004) argues that the general manager like that of Shanghai General Motors Co., Ltd with a particular strategy should design an organization using the pertinent environment that will see the maximization of performance (p.74). It means that manufacturing companies need a contingency method for the organization and strategy for what goes hand in hand with the environment in which they are trading in. For strategy, Roberts (2004) says that there should be the predetermined objectives, competitive advantage, scope as well as logic (p.74). Consequently, it gives information on what the company does as well as that which is not done.

It all begins with the opportunity that the organization has for business. The major design of an organization is complementarily in the choices of designs. This happens when an option of two variables tends not to decrease, but rather increase returns. Roberts (2004) states that a change affected in one place may lead to the emergence of other changes and, therefore, every piece must join well with each other (p.74). The making of a decision on the design of the organization takes into account the way individuals will be motivated to improve business performance in their areas of operation.

It is always a major challenge in determining the incentives, which employees can be given. Roberts gives a solution for this by using a system of People, Architecture, Routines and Culture (PARC). Architecture refers to structure whereas culture defines the beliefs and values shared. This is a very excellent plan that could be adopted by companies because it has worked even as Roberts addresses these issues. They are in fact a real and logical approach that yields sustainable growth and development.

A lot of research has been done towards turning the economy from a market-driven one to one that is driven through a good organization (Varey 1995, pp. 40-63; Quirke 2008, pp. 34-56). There is a need to synthesizing and making analysis more than it is to any huge enhancement of a body of technique together with knowledge for giving solutions to systems and organizations.

The occurrence of many centers of making a decision in an organization is considered fruitful. The skills of the employee are a huge source of putting into practice actual control and power of making a decision in the organization. A lot more emphasis on the duties and roles realized through the social norms in ignoring or allowing the relationship of the formal authority has been extensively done. Companies like Shanghai General Motors Co., Ltd, therefore, need to acknowledge the logical rules of behavior that the employees produce. Later on, it would very imperative to review the issue of the legitimacy of authority, which is formal as well as official rules looking at the members of the organization.

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The creation of high commitment in the human resources through people that can be trusted, transparent, empowered and identified themselves personally with the vision of the organization is very paramount.

To achieve this, companies have guaranteed employment, teams, which are self-controlled and managed, making work enjoyable, fulfilling and interesting. The Nokia company approach, where the structure of the organization was kept flowing with the teams of projects which were formed and dissolved with ease, has been one perfect example. As a result, it gave everyone a chance to work on things, which were interesting thus building links across the organization.

Taking this example of Nokia, GM can encourage openness and the ability of the subordinate employee to approach the topmost officials. This promotes teamwork, the result of which is a leadership based on values rather than a rigorous control process. The far-reaching result thus would be making goods that can sell rather than struggling to sell what the company has produced.

Practical and Ethical Issues

Research studies can face difficulties in confidentiality assurance and making informed consent to participants of the study. Informed consent will seek to make respondents know why the study is being carried out, the form that the study will take, any risks that may be there, the usefulness of the study to the respondent and the obligations of the prospective respondents. Participants need to know that they are not obligated to the task and are at liberty to turn down the request. The signing of a letter inclusive of the informed consent statement will be required before the beginning of a study. Professionalism will be maintained all through the exercise.

For the prospective study participants to get involved in the study, they need to be guaranteed privacy. Keeping matters confidential is very important in order to enhance the rate of response and full participation without bias or any prejudices. Anonymity will thus be guaranteed. These materials will be destroyed after a period as determined by the laws governing such agreements.

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