Considering the unusual and difficult economic conditions facing General Motors, a strategic analysis is needed. This will help the ailing automaker chart its path to recovery (if there is one).

A strategic analysis is composed of the following elements:

• Firm's mission statement
• Firm's objectives
• External audit using:
•     Porter's five forces (P5F)
•     Industry structure
•     Industry life cycle (ILC))
•     A profit pools analysis
•     Industry-wide opportunities and threats
•     Competitor analysis (CPM)
•     External factor evaluation (EFE)
• Internal audit using:
•     Company-specific strengths and weaknesses
•     Organigraph
•     Financial ratio analysis
•     Internal factor evaluation (IFE)
• Strategy formulation is next, which is composed of:
•     TOWS matrix
•     Matching process
•     SPACE matrix
•     Boston Consulting Group matrix
•     Industry Evolution or McKinsey Matrix
•     Internal-external matrix
•     Grand Strategy matrix
• Alignment of strategic alternatives with the objectives from the beginning
• Selection of strategic alternatives
• Strategy evaluation
• Quantitative strategic planning matrix (QSPM)
• QSPM evaluation