MBA 580 Module Eight Benchmark Study Guidelines and Rubric

Overview

In Milestone Two, you recommended a strategic plan to your organization for the IoT innovation project. Now that senior management of your company has approved your recommendation, your task is to recommend ways your organization can better support innovation. Remember that your perspective is still that of a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks.

In this assignment, you will read a case study and write a report that compares your organization's structure and innovation culture with those of Skunk Works. This report may help you identify ways to improve your organizational structure and culture in an effort to better support innovation.

Directions

Using the information about your company in the Organization Overview document and the Skunk Works case study linked in the Supporting Materials section, compare your organization with Skunk Works and identify similarities and differences in organizational structure and culture related to an organization's overall ability to innovate. Specifically, you must address the following rubric criteria:

1. Organizational Structure: Compare your organization's structure to that of Skunk Works's organization structure.
2. Shared Vision: Compare your organization's shared vision to that of Skunk Works's vision.
3. Creative Climate: Compare the creative climate of your organization to that of Skunk Works's creative climate.
4. Effectiveness of Teamwork: Compare the effectiveness of teamwork in your organization to that of the Skunk Works team.

What to Submit

Submit a 1- to 3-page Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited in APA format.

Supporting Materials The following resources support your work on the project:

Reading: Skunk Works Case Scroll down the page and select Skunk Works Case from the list of case studies. This case study will be used in this assignment.

Document: Organization Overview This describes the organizational structure and some aspects of the culture of your company. MBA 580 Organization Overview (Processes, Structure, Culture) Your company manufactures and distributes automobiles across six continents. The structure is very complex and it is difficult to accurately count the levels of hierarchy. The company operates under a tall matrixed structure design. Tall structures can be cumbersome, and decision makers are often those farthest from the customer. Communication can be slow and difficult, also slowing down decision-making speed. The specialized functions and organizations, often referred to as centers of excellence or centers of expertise (COE), allow for deep knowledge and expertise. Your company has many functional COEs where increased structure, governance, and control allow for resource and process efficiencies. Resources are centralized, reducing duplication of effort across the organization. These efficiencies can, however, result in rigid, inflexible processes. In addition, COEs can create functional silos or reduced crossfunctional coordination and lack of connectedness, where each function is striving toward its own unique objectives. Your company follows a centralized and standardized approach where enterprise-wide decisions are often made centrally and at the top of the hierarchy. This centralization makes it easier to implement common policies and practices, prevents parts of the organization from becoming too independent, and capitalizes on specialization. Matrixed organizations are often associated with this specialized COE structure. Rather than having permanent cross-functional teams or organizations working on specific projects or product launches, matrixed organizations pull teams together from the various functional departments. Specialists are pulled from functional areas to work on a specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously. Although the project manager, who is on the same leadership level as the functional vice president (VP), supervises the project, the true management authority still resides with the VP. Specialists supporting specific product launches generally remain "seated" with their functional team but meet regularly with their product team to advance the project. They may be fully dedicated to the project or still work on other unrelated projects. Finally, product teams are pulled together at the enterprise level and are not region-specific. Although they may produce differentiated projects for unique regions, their primary focus is on enterprise-wide initiatives. Organization Structure Chart Product A Product B Product C Functional VPs: Project Manager Project Manager Project Manager Design Technology Hardware Electronic Systems Safety Engineering Sustainability Quality Strategy Finance Procurement Marketing Specialists are pulled from functional area to work on specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously.

MBA 580 Milestone Two

1. Executive Summary

The automotive industry continues to evolve rapidly amid technological disruptions, with the Internet of Things (IoT) playing a pivotal role in enhancing vehicle connectivity, safety, and user experience. As a middle manager at General Motors (GM), one of the top U.S. producers of luxury and mass-market automobiles and trucks, I previously recommended an incremental innovation approach in Milestone One. This strategy entails integrating IoT features into one model initially, followed by a phased rollout across the broader product line, allowing GM to mitigate risks, leverage existing infrastructure, and respond to consumer demands effectively. This expanded strategic plan builds on that recommendation by providing deeper analysis of competitors' strengths using Power BI visualizations, a comprehensive comparison of GM's market position, projections for total available market (TAM) and growth opportunities informed by recent industry data, adaptive strategies for dynamic business conditions, and a detailed roadmap from concept to launch. Drawing from updated comparative growth data, sales forecasts, and operating statistics as of December 2025, this plan positions GM to achieve a competitive edge, targeting a 12% market share in IoT-connected vehicles by 2030 while emphasizing financial resilience and agile execution. With global automotive sales recovering post-pandemic and IoT adoption accelerating, GM's focus on incremental enhancements could drive a 4-5% annual revenue growth, outpacing industry averages in key segments.

1. Introduction

Consumer expectations for smarter, more connected vehicles have surged, propelled by advancements in 5G, AI, and IoT technologies. GM's commitment to incremental IoT integration aligns with this trend, enabling seamless upgrades to features like real-time diagnostics, over-the-air updates, and vehicle-to-everything (V2X) communication without overhauling entire production lines. This approach not only reduces development costs but also allows for iterative improvements based on user feedback, fostering long-term customer loyalty. In this expanded document, I delve deeper into competitor dynamics, incorporating recent 2025 data for accuracy. Using Power BI to analyze comparative growth, market shares, and financial metrics, the analysis reveals opportunities for GM to capitalize on emerging markets like connected services, projected to generate billions in additional revenue. The plan also explores TAM expansions, contingency strategies for economic shifts, and a granular implementation timeline, ensuring cross-functional teams can execute with clarity. All projections are supported by industry forecasts, emphasizing GM's strengths in North American trucks and luxury segments while addressing global competition.

1. Competitors' Relative Strengths in the Marketplace

Plot Chart 1: Market Share Percentage for Cars and Trucks Now

Plot Chart 2: Market Share Percentage for Cars and Trucks in 2030

Plot Chart 3: Market Share Percentage for Connected Cars and Trucks Now

Plot Chart 4: Market Share Percentage for Connected Cars and Trucks in 2030

• Growth Rate of Each Competitor: Analyzing comparative growth data from 2020 to 2025, Toyota Group demonstrated robust performance with a compound annual growth rate (CAGR) of approximately 3.4% in global sales, bolstered by strong demand in Asia and North America, where it gained 4.3% and 4.6% respectively in market penetration. This growth reflects Toyota's early investments in hybrid and

Competitor	Current Market Share (2025)	Projected 2030 Share	Key Trend
Toyota	12.3%	13-14%	Gaining via hybrids/EVs
Volkswagen	11.5%	12%	Stable with EV focus
Hyundai-Kia	8.5%	10%	Rapid gain in connected
GM	7.2%	8-9%	Potential gain with IoT
Ford	6.0%	5-6%	Losing due to delays

• Growth Rate of Each Competitor: Analyzing comparative growth data from 2020 to 2025, Toyota Group demonstrated robust performance with a compound annual growth rate (CAGR) of approximately 3.4% in global sales, bolstered by strong demand in Asia and North America, where it gained 4.3% and 4.6% respectively in market penetration. This growth reflects Toyota's early investments in hybrid and connected technologies, enabling quicker recovery from 2020 supply chain disruptions. Volkswagen achieved a CAGR of around 2.5%, driven by its push into electric vehicles (EVs) and diversification across Europe and emerging markets, though tempered by lingering effects from emissions scandals. Hyundai-Kia posted a higher CAGR of 4.0%, attributed to aggressive pricing strategies and rapid adoption of affordable IoT features in models like the Tucson and EV6, capturing share in Asia and the U.S. GM's growth stood at 2.8%, supported by dominant U.S. truck sales but challenged by global competition. Ford experienced a 1.8% CAGR, hampered by operational inefficiencies and slower EV transitions, while Stellantis grew at 2.0% amid ongoing mergers and restructuring efforts. These rates underscore a post-COVID rebound, with Asian manufacturers leading due to innovation speed and supply chain resilience. Overall, growth disparities highlight the need for GM to accelerate IoT to match Hyundai-Kia's momentum.
• Market Share Ownership and Trends: As of late 2025, Toyota commands 12.3% of the global cars and trucks market, followed by Volkswagen at 11.5%, Hyundai-Kia at 8.5%, GM at 7.2%, Ford at 6.0%, and Stellantis at 5.8%. Trends show Toyota and Hyundai-Kia gaining share???Toyota up 3.4% year-to-date through October 2025 via EV and connected tech expansions, while Ford and Stellantis are losing ground due to delayed innovations and higher costs. In the U.S., GM leads with 17.3% share, ahead of Toyota at 15.4%. Projections to 2030 indicate Toyota solidifying at 13-14%, Hyundai-Kia rising to 10%, and GM potentially holding or gaining to 8-9% with IoT focus, assuming no major disruptions. For connected cars and trucks, Tesla holds 15% in 2025 due to native IoT integration, Toyota at 10%, GM at 8%, and Hyundai-Kia at 9%. By 2030, Hyundai-Kia could surge to 12-13% with 5G-enabled models, while GM targets 10-12% through incremental rollouts. This shift emphasizes the growing importance of connectivity were laggards risk further erosion.

• Financial Strength: Toyota's financials remain exemplary, with consistent revenue growth (3.4% CAGR) and high margins from efficient operations, positioning it for sustained R&D investments. Volkswagen shows resilience with diversified revenue but carries debt burdens. Hyundai-Kia's strong cash flows from emerging markets enable aggressive tech spending.

GM's financial position is stable, with 5.1% U.S. sales growth in 2025 and improving margins post-restructuring, outperforming Ford's stagnant growth amid cost pressures. Comparative data indicates GM's debt-to-equity ratio is favorable, supporting IoT initiatives without excessive leverage.

Company's Market Share Compared to Competitors

• Gaining or Losing Market Share (2020-2030): Between 2020 and 2025, GM maintained a 7-8% global share but gained 1.12 percentage points in the U.S. through EV offerings, offsetting global losses to Asian rivals. Projections to 2030 suggest a potential 1-2% global decline without intervention, driven by Hyundai-Kia and Tesla's advances in connected segments. Key factors include 2020-2022 supply disruptions, which hit GM harder in international markets, contrasted with strong U.S. truck dominance (e.g., Silverado sales). Incremental IoT could reverse this by enhancing appeal, potentially adding 2-3% share through features like predictive maintenance, as seen in competitors' gains. Economic recoveries and policy shifts toward sustainability further influence these dynamics.
• Growth Potential in the Industry: GM's potential is substantial, leveraging U.S. leadership (17.3% share) and expertise in trucks/luxury. IoT opens avenues for 15-20% CAGR in connected services revenue, via subscriptions for navigation and safety. Expansion into Asia and partnerships (e.g., with tech firms) could yield 4-5% overall growth, exceeding industry 3-5% averages, amid rising demand for autonomous features.
• Financials Compared to Competitors: GM's 2025 revenue growth of 5.1% surpasses Ford's 1.8% but trails Hyundai-Kia's 4.0%. With improving margins and lower debt than Volkswagen, GM is well-positioned for IoT investments, potentially boosting ROI to match Toyota's levels through efficiency gains.

Future Potential TAM and Growth for Chosen Product/Service and Technology

• Global TAM for Annual Cars and Light Trucks in 2030: Projected at $6,678 billion, reflecting growth in EVs and emerging markets.
• Global TAM for IoT-Connected Cars and Light Trucks: Estimated at $407 billion, driven by connectivity demands.
• Projected CAGR for Cars and Light Trucks: 5.6% from 2025-2030, fueled by urbanization and green transitions.
• Projected CAGR for IoT-Connected Cars and Light Trucks: 15.76%, accelerated by 5G and AI integrations.

Ways to Adjust if Business Conditions Change

• Strategies if Customers Are Slow to Purchase: Beyond incentives, conduct market research to identify barriers (e.g., privacy concerns), then launch awareness campaigns via social media and partnerships with influencers. Offer trial subscriptions and bundle IoT with financing to lower entry barriers, while using data analytics to refine features iteratively.
• Actions if One Competitor Overtakes Others: In scenarios like Tesla's dominance, form strategic alliances (e.g., with Google for AI), ramp up R&D budgets by 20%, and pursue mergers for tech assets. Advocate for fair regulations and diversify into mobility-as-a-service (MaaS) to hedge risks.

Steps from Concept Outline to Launch

• Size and Scope of Development: The scope encompasses hardware (sensors, modems) and software (cloud platforms, apps) integration for 10+ features across 20 models, involving 300+ personnel to ensure scalability and compliance with standards like ISO 26262.
• Additional Capital and Personnel: Require $750 million in capital for R&D/tools and 150 new hires in engineering/cybersecurity, sourced from venture funding and reallocations.
• Approach to Determining Timeline: Employ agile with scrum frameworks for a 30-month horizon: assess dependencies like supplier timelines and regulations via risk matrices.
• Key Milestones, Metrics, Phases, and Tools: Phases include Discovery (months 1-3: feasibility studies), Development (4-18: prototyping), Validation (19-24: testing), Rollout (25-30: market entry). Milestones: Alpha prototype (month 6), regulatory approval (month 20). Metrics: Feature completion rate (95%), user satisfaction (NPS >70). Tools: Jira for tracking, dashboards for KPIs, and Monte Carlo simulations for timelines.

References

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