Automotive Industry External Factor Evaluation (EFE) Matrix

In the first column lists key external factors, namely opportunities and threats. These key external factors are derived from tine external-audit process including the opportunities and threats exercise, the CPM (competitor analysis), Porter’s Five Forces, the industry life cycle, and profit pools.

Automotive Industry Competitor Analysis (CPM)

This competitor analysis, or CPM, identifies the competition and their strengths and weaknesses vis-à-vis GM’s strategic positions. These strategic positions are the critical success factors needed to make companies in this industry successful. They span both external and internal territory.

Automotive Industry Opportunities and Threats

Note that the opportunities and threats are external, and these are forces which apply to every firm in GM’s industry with similar scope and planning units that sell vehicles in the US.

The reason a TOWS analysis (threats, opportunities, weaknesses, strengths) is not done here is that we are only looking at autonomous, external forces (meaning industry forces). These are not specific to GM or any car firm. As such, strengths and weaknesses do not apply.

Automotive Profit Pools Analysis

The Porter’s Five Forces analysis is designed to evaluate the competitive forces in the industry the firm operates. If it determines that the combination of forces in the industry act to reduce profitability, it is saying the industry is unattractive. Even worse is an industry close to total competition.

As the name implies, an organigraph is a graphical way to show an organization’s structure. An organigraph is a good alternative to a traditional organizational chart which shows a hierarchical chain of command, because such conventional charts do not show how a firm operates.

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: