AAM Internal/External Factors
American Axle & Manufacturing (AAM) was formed in 1994. AAM is one of North Americas' leading providers of drive train components for the SUV market. AAM is the largest provider of Driveline systems in the United States. AAM has five manufacturing plants in the United States as well as other plants located in Mexico, Brazil, and Scotland. AAM also has offices in Europe, Asia, and the Pacific.
As a company of this size, corporate planning is a vital function to deal with external and internal factors, in which, the company's goals or objectives are achieved. In addition, a well-defined strategic planning implemented will be the guidelines in dealing with each factor, such as, globalization, innovation, and ethics. We will break down each factor as how AAM's business plans set their objectives in being the leader of driveline systems.
External factors also have an effect on AAM called the external environment.
The external environment would be all relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy (Bateman, Snell, 2004, p. 42). According to Peter Drucker one of the great "business gurus", the essence of a business is outside itself (n.d. P. Drucker).
The internal factors that influence any organization are those of the organizations strengths and weaknesses. These factors require a constant monitoring, and are central for consideration when decisions are being made regarding a company's strategy and inventory of the skills of the company's human resources. The internal strengths of a company basically begin at the financial level. Balance sheets and financial statements need to be constantly updated to maintain a continued view of the company's options and responsibilities. The management's abilities pertaining to the talents and skills of the management and the motivation of the employees are also an area...