1 what are the advantages and disadvantages of general motors strategy for operations

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1 what are the advantages and disadvantages of general motors strategy for operations

There are different forms of foreign direct investment which are depending on the types of companies and the reasons for investment. A foreign direct investor might purchase a company in a target country by means of a merger [ Why do companies merge?

Foreign direct investment is important for developing and emerging countries. Advantages and Disadvantages of Foreign Direct Investment: Foreign direct investment is beneficial for the global economy, as well as investors and recipients. Investors seek the best return of their money with least risks.

It gives a competitive advantage and reduces the effects of politics, cronyism, and bribery. It can create a more favorable environment for the investor and benefits for the local industry. Many countries have their own import tariff and for this, they face difficulty during trading.

Alongside, there are industries which require their presence in the international markets to ensure their sales and goals will be completely met.

FDI will make these easier for international trades. Development of Human Capital Resources: Because of foreign direct investment, human capital resources will be developed.

The attributes gained by training and sharing experience through FDI would increase the education and overall human capital of a country. Foreign direct investment will allow transferring resources and will also allow exchanging knowledge to the target countries. As a result, those target countries will be benefited from these.

The facilities and equipment which are being provided by foreign direct investment would increase the productivity in the target countries. This is a huge advantage of foreign direct investment. Adding more jobs and having higher wages, the national income will be increased.

Besides these, FDI has few more advantages. Favorable balance of payments Increase competition that benefits the economy Access to markets.However, the disadvantages to that strategy included a lack of consistency in marketing strategy from nation to nation, extensive duplication of manufacturing operations and supply chains, as well as a profusion of new products, many of which were not profitable.

The task of the paper was to prepare any matrices that would justify the strategies to be recommended to General Motors for adaptation for future profit making and consequent growth: The matrices to be adapted were, SWOT Matrix, SPACE Matrix, BCG Matrix, IE .

In the early s, Chrysler Corporation placed nearly all decisions about the development of a new vehicle in the hands of a single, cross-functional product team.

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1 what are the advantages and disadvantages of general motors strategy for operations

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