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Introduction to General Electric
General electronics a global industrial company and it deals with various kinds of product and services like aircraft engine, power generation and oil and gas production equipment to medical imaging, financing and industrial products, security technology, consumer financing, media content etc. It is a technological and financial service kind of organisation and which operates through the eight segments that is power, water, oil, gas, energy management, aviation, healthcare, transportation, appliances and lighting. General electronic is launched in 2005 by the CEO Jeff Immelt. He is a person who focused on the strategy to develop tomorrow solutions such as solar energy, hybrid locomotives, fuel cells, lower emission air craft engine etc. The following report provides the depth knowledge and understanding about the strategy of electronic and new strategy necessitated for the organisation changes. In addition to this, requirement of the 21 century business environment and its resources and capability has discussed in this report.
In an organisation, strategy is one of the important aspect by which company can compete with rival in the market. In the absence of effective planning, tactics and strategy, no business enterprise can survive in the competitive market. In a simple word it can be said that strategy is about giving an organisation purpose and direction and maintain the performance of business in the competitive business environment. In the context of General electronic, it is a global industrial company and it deals with various kinds of product and services like aircraft engine, power generation and oil and gas production equipment to medical imaging, financing and industrial products, security technology, consumer financing, media content etc (Anton, 2015). It CEO has considered the on effective and competitive strategy for gain the effective success in the market. General electronic is major objective is to develop the high quality and innovative product and services and meet the customer expectation. Its mission is to usher in the next industrial era and to build move, power and cure the world. It wanted to innovative and creative work in the company by which they can earn the maximum customer attraction and market share. Its vision is to consider on the businesses through which it can develop its core competencies. It another vision is to be the market leader in the world. General electronic main strategy is to reshape its company portfolio by its innovative and creative idea and wanted to become the industrial leader of the conglomerate. Company have reshaped the portfolio from a broad conglomerate to a more focused infrastructure leader and took important steps in that pivot last year. The company is believed in imagine, build, solve and lead by deliver the extra advanced product and services to its customers.
Following are SWOT analysis of the General Electronic organisation
Its major strength is its well balanced revenue stream among the various sectors which aid in overcome the business risk in the market. General electronic company's product and services are used in the 160 companies and it is hailed as one of the most innovative, green and best place of work. It has high quality machinery, staff, office and equipment which assist in improving the standard of the organisation. It has high market share and international operation. Its another strength is its strong research and development function by which it aids in developing the high quality and innovative product and services in the market.
Company have major weakness is its low stock prices due to the financial downturn. Fluctuation in the fuel prices and energy sector is another major weakness of the cited venture as it is a electronic company and its directly affected by the changes in the natural resources like fuel, gas, energy etc. In addition to this fluctuation in the prices of oil ans gas have mostly been caused by supply shortage and this is threatened for the organisation revenue
Technological changes can give the opportunity to general electric to bolster future success. In addition to this, involvement in the corporate social responsibility is another major opportunity of the cited organisation. Furthermore, merger and joint venture with other electric organisation is another important opportunity for the company by which it can gain the effective success and improve its market share (Doeksen and Symes, 2015). Furthermore, emerging economies give a huge scope provided to the company for its business expansion.
Political factor is one major threat for the general electronic organisation because strict governmental policies and environmental regulatory norm can affect the operation. In addition to this enhancement of the information technology security may create the issue for the cited venture. Continuous changing in the currencies and economic recessions can influence global business. Extra competition and new competitors entering the market could unsteady general electronic and it is the major threat for the company.
Resources and capabilities
General electronic company have high skilled and qualified staff member whose gives their best contribution in developing the strategic position of the company in the market. Immelet motivational and democratic leadership style implemented has successfully reshaped the leadership culture into an innovative culture within the general electronic organisation. He used his innovative and creative idea in the business expansion and use the democratic leadership style for lead the member of staff .In addition to this, in this organisation, high quality of training and development programs has organised for the employees so as they can gain the opportunity for developing their personality and contribute in the business for gain the success. Organisation structure has also maintained in an effective manner. There are rigorous decentralization of the organisation structure within the general electronic. Immelt has designed the organisation result oriented structure so as every one should delegate about their responsibility and attain the organisation objective. This strategy facilitate in getting closer to the business structure process. In the context of the innovation and creativity, Immelt has also contributed in effective manner in the business as general electronic uses various operation management approaches such as six sigma, , bean counter, lean production, total quality management and bottom line driven for the organisation quality and successes. With assistance of these methods, owner of the GE has put the various most innovative approaches for improve the quality and potentiality of the work in the company.
In order to improve the quality and innovativeness in the company, various operation ma management approaches used in the company is another major strategy of the organisation for compete in the marker in an effective manner. In addition to one another major capability of the general electronic company is its customer care services. GE is major focused on the customer oriented programs deployments. The customer focus initiatives started from the welch, era in 1980 workout which major concentration on the productivity, improvement in the operation, overcome the wastage and develop the healthy relationship with customers. The continuously invest in the technology and improve its operational management by use of approaches, GE enable to develop the more qualitative and innovation product and services. This strategic consider creates differentiation advantage by producing innovative good and services and increase customer focus.
In order to compete in the changing and high competitive business environment, General electronic have to analyse its business environment which consist with some of the internal and external components.
External analysis of the General electronic are as follows-
In the international market, General electronic company have faced various rules, regulation, code of conduct and legislation related to the business. Some countries have effective political system by which business organisation may beneficial. Governmental intervention in the US is minimal while in other countries such as china, Japan etc.
This factor includes the countries' inflation, recession, inflation in the prices, interact rate etc. While any General electronic company operate its business in the market then it has affected by the economical condition.
Social and cultural
This factor is related to the customer choice, preferences, taste, culture, region, value etc. With general electronic being a multinational corporation and it has to adapt to various country determine the working hour, employment policies, procedure for appointing manager and the type of goods to be produced. In order top meet the expectation of the customers in the market, company required to identify the taste, culture, value of the customer.
General electronic is a electronic organisation so it is largely affected by the technological component in the business environment. It has to adopt the technology according to the new development. This factor is largely affected to the operation of business of general electronic. It rates of technological; advancement varies with each country in which GE has invested in depending on the amount of resources available.
This factor included natural resources such as weather, climate, energy, water, solar and nuclear power. As environment change then it have to change and operate its business accordingly. This factor is also affect the business in the large context because general electronics various business activities and operation is based on the natural resources such fuel, power, energy, gas etc.
This factor includes the governmental rules, regulation, business law etc which apply on the employees, customer and business. General electronic have to follow this aspect at the time of business operation.
Cooperative strategy of GE
Division of the GE headquartered in Atlanta, Georgia and united states. It have 82000 employees and its divided into the major three part that is GE energy management, GE oil and gas, GE power and water. Its electronic engineering company based in franse and its key components are motors and generators, variable speed drive, automation and process control. The major advantage of the general electronic is adds products to GE portfolio, expansion into the marine and mining industry, edge over competitors.
GE plastics divestment to Saudi basic industries corporation. In this strategy, GE plastic will sell its plastic division to Saudi Arabia. The major reason for GE to sell plastic division is its high cost of raw material and reducing sales and profit margin , high competition, environmental obligation, changing business line.
From this project report it has been concluded that strategy is one of the important aspect by which company can compete with rival in the market. In the absence of effective planning, tactics and strategy, no business enterprise can survive in the competitive market. General electronic, it is a global industrial company and it deals with various kinds of product and services like aircraft engine, power generation and oil and gas production equipment to medical imaging, financing and industrial products, security technology, consumer financing, media content etc. It CEO has considered the on effective and competitive strategy for gain the effective success in the market. From this report it has been alos ascertained that Immelt has also contributed in effective manner in the business as general electronic uses various operation management approaches such as six sigma, , bean counter, lean production, total quality management and bottom line driven for the organisation quality and successes. With assistance of this method, owner of the GE has put the various most innovative approaches for improve the quality and potentiality of the work in the company.