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SWOT Analysis of Chrysler and General Motors

According to Schooley (2019) a SWOT analysis is a method used in putting together a company’s strengths, weaknesses, opportunities, and threats, and the primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision. Businesses are strongly advised to perform a SWOT analysis before their commitments to any sort of company action, whether they are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution. Also, SWOT analysis must be used to discover recommendations and strategies, with a focus on leveraging strengths and opportunities to overcome weaknesses and threats (Schooley, 2019).

Berry (2020) also made it known that strengths and weaknesses are internal to the company (think: reputation, patents, location), you can change them over time but not without some work; Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not, so you can’t change them. Now, here are the SWOT analyses of Chrysler, General Motors, and Mercy Hospital:

	Chrysler is an automobile manufacturing company, and one of the largest manufacturing companies in the United States. This company has encountered lot of problems starting from its year one of existence in 1925 where Walter Chrysler founded it; Problems such as: market share, competition and reduced productivity. But, as its difficult years gradually passed by, the company has been among the best-selling companies in the United States (Mariani, 2017). How come? It was due to the help of a SWOT analysis performed by the company. SWOT analysis for the Chrysler Company

Strengths

One of the strengths of the Chrysler company is that it is one of the best-selling companies in the United States. This means that the company has a high market value hence higher profit. The company has done well in marketing especially in the northern part of America. Secondly, the company is well known for its reliability and the engines both nationally and internationally. The main strength is their market strategies especially with their sales of minivans in and outside the United States (Pratap, 2019).

Weaknesses

Poor management in the company is one of the weaknesses that the company faced over the years. Another weakness is the high customer rates who have different preferences. When the company does not meet the requirements of a client, most clients move to different automobile brands and companies. These weaknesses in a company lead to low production since the customer demand is not met hence low-profit margins. The company also has a limited number of automobile models thus making the competition steep with other companies (Pratap, 2019).

Opportunity

One of the opportunities that Chrysler company has is their ability to focus on the global markets to introduce new models of automobiles. With the introduction of new models in its markets, the competition with other companies will be reduced, and the production will be high. Availability of good marketing strategies which help the company compete with other companies (Pratap, 2019).

Threats

Firstly, threats like an increase in the number of competitors can lead to a lot of adverse changes in a company and especially Chrysler company. This would mean that the effectiveness and the market value of the company will be reduced leading to decreased profit margins. Secondly, diminishing faith and confidence in dealers. Dealers are usually the biggest supporters of a company. In this case, the Chrysler company would be affected if changes were to be made in the northern part of the United States where they have large markets (Pratap, 2019).

	General Motors (GM) company is a multinational company that designs, manufactures and distributes motor vehicles and their spare parts. It is one of the three largest and best-performing companies in the United States, and it is the largest of the three. William Durant founded the company in 1908. Just like any other company, General Motors have been through issues like competition and low productivity and decreased profit margins over the years (Bhasin, 2019). SWOT analysis for General Motors company

Strengths

The first strength that the company has is that they participate in different motor vehicle sports. This helps the company to market the different models of cars. Moreover, the company also is recognized globally for its high market value in its products. Some of its markets are in the United States, Europe, China and India. The company also contribute to charity works and sponsorship programs (Bhasin, 2019).

Weaknesses

Competition between the different departments in the company is the first weakness that this company faces. With high competition in the company, employees will only work to better their departments and not for the good of the whole company. This minimizes productivity over the years, and finally, the company fails to meet the needs of its customers. This results to the tarnishing of the company brand name (Bhasin, 2019).

Opportunities

The company should introduce to the market the electric car system which they have been working on for years. Without a doubt, most people will go for this kind of car. This is because the car will be effective and efficient. Thirdly, the company should reduce the prices of different cars and thus increase their market profits in the long run (Bhasin, 2019).

Threats

Competition from the other three companies which might lead to the fall of the best company in the United States. Additionally, government regulations on the emission of exhaust gases according to the model of the car. Another one is the high prices of fuel leads to people refusing to buy cars in the market (Bhasin, 2019). In conclusion, both General Motors and the Chrysler companies have had their struggles in the past, but now they are at the top in the United States. They have been through a lot to achieve their greatness. The financial SWOT analysis guides these companies to make decisions that favor both the company and the customers. Therefore, SWOT analysis will help companies to identify challenges and issues that will impede mission achievement (Walston, 2014). The number of challenges should be narrowed to four or five that are most prominent and most likely to hinder the organization from accomplishing its mission and vision.

In healthcare field, some key challenges posed by today's healthcare environment to include availability of technical personnel, new technology, new or potential regulations, financial capabilities, market and competitive changes, customer satisfaction, preferences and demands, capacity issues, cost pressures, relationships and affiliations with partners, employee engagement and retention, and access to capital (Walston, 2014). The challenges collected from an SWOT analysis are the foundation on which a strategic plan is formed for a healthcare care facility (Walston, 2014).

Detailed Financial trend analysis for GM & FCA

Quick Financial Review of GM:

Now I am going to show this two companies financial stability and income statement and balance sheet from previous recorded data.
==== In every year except 2014, 2015, 2017 GM was able increase sales/ revenue but their sales growth was steady. However, 2012 there was huge operating loss but initially they recovered it for next consecutive years. ==== During the financial crisis of 2007/2008, GM saw sales decline due to a decrease in demand for their "less" fuel efficient vehicles, and a decrease in available funds for financing due to credit restrictions. Their stock price dropped over 70% compared with a general market decline of around 30%. Although a correlation exists, the overall market and economy relies less on the performance of one automaker than it did in the 1970s.

Now I am going to show GM balance sheet trend and forecasting:

GM total assets, which was at $212482m for 2017 is a balance sheet item representing value of what General Motors owns. Assets are brought to aid a firm’s operations, or to increase its economic value. It must be noted that tech stocks may not have a lot of assets, as the value for these companies is often derived from future earning potential.

Liabilities on the balance sheet implies the firm's, in this case General Motors's, legal obligations including loans, accounts payable, deferred revenue, accrued expenses and mortgages. The total liabilities for GM stock stand at $176282m.

Fiat Chrysler Automobiles

By looking at the graph understand that sales/revenue of Fiat Chrysler was excellent throughout the period. Revenue trend implies that the company is growing. It has been the case with Fiat Chrysler. One must look at stocks with increasing revenues and stay away from stocks whose revenues or sales are declining.

FCA total assets, which was at € 96299m for 2017 is a balance sheet item representing value of what Fiat Chrysler owns. Assets are brought to aid a firm’s operations, or to increase its economic value. It must be noted that tech stocks may not have a lot of assets, as the value for these companies is often derived from future earning potential.

The total liabilities of Fiat Chrysler for the year 2017 total to € 75480m. Liabilities for a company like Fiat Chrysler include bank loans, services which have been availed for which a settlement in the form of cash/ asset transfer needs to be done in future etc. A firm takes on such obligations to grow its business which in turn will generate future economic benefits for its business.

References

Bhasin H. (3/7/2019). SWOT Analysis of General Motors. Retrieved from: https://www.marketing91.com/swot-analysis-general-motors/

Berry T. (2020). How to do a SWOT analysis for better strategic planning. Retrieved from: https://articles.bplans.com/how-to-perform-swot-analysis/#

Mariani, G. (2017). M&A and Value Creation: A SWOT analysis. Retrieved from: https://core.ac.uk/display/80277717

Pratap A. (7/10/2019). Fiat Chrysler automobiles (FCA) SWOT analysis. Retrieved from: https://notesmatic.com/2018/12/fiat-chrysler-automobiles-fca-swot-analysis/

Schooley S. (6/23/2019). SWOT analysis: What it is and when to use it. Retrieved from: https://www.businessnewsdaily.com/4245-swot-analysis.html

Walston, Stephen L. (2014). Strategic healthcare management: planning and execution. Retrieved from: http://library.books24x7.com.prx-	stratford.lirn.net/assetviewer.aspx?bookid=74364&chunkid=759413729&noteMenuTogg	le=0&leftMenuState=1