...Running head: GE STRATEGIC ANALYSIS Strategic Analysis Every organization needs to have ways in which they can meet their objectives. This is needed to demonstrate to shareholders that they have a plan in which they will be using the capital resources that were provided to the firm in a profitable and ethical manner. This is most commonly done through strategic planning. Many firms devote a lot of time and effort into this initiative in order to prove, or demonstrate, to their shareholders that they are indeed using the injected capital wisely in efforts to generate a profitable return. One of the most popular organizations to undertake such an intense endeavor is General Electric (GE). Each year, GE utilizes a lot of resources in order to accomplish their strategic objectives. This examination will look at GE through a strategic lens while looking at their current practices. This author will then include a summary of the findings conducted through research, and also suggestions for improvement. Strategic Planning General Electric (GE) is an organization that has over 130 years of experience. It was started by the famed Thomas Edison. Since its inception GE, as a company, is now comprised of a diverse, global infrastructure which operates in many types of sectors. These sectors include; finance, media, energy and a wide range of other offerings. Each year the leaders of each of these particular division lines meet to discuss the outlook and strategy for the upcoming...
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...GE’s Growth Strategy: The Immelt Initiative 1. When Immelt took over as CEO of GE, he was faced with many unexpected challenges which caused a need for change. Within 4 days of his first day as CEO, the terrorist attacks on the World Trade Center occurred. This act caused a huge downturn in the economy as well as in the confidence of consumers worldwide. Immelt immediately saw the need for action on GE’s behalf as he reassured consumers by reaching out to victims, rescue workers, and their families. He also saw the need for financial reassurance and bought 25,000 shares of GE stock on his own personal account. He remained confident that he could keep the constant growth going even in the face of disaster. Soon after the tragedy of the World Trade Center, the Enron scandal became public. As the public was exposed to the corruption that could occur within large, trusted corporations, investors began to shy away from the larger, more complex corporations like GE in fear of the same thing happening and they lose their investments again. This caused Immelt to look into the operations of the company and what was driving the current growth. He had to consider whether the same strategy would still work, which led to the third reason for a need for change. Immelt knew that he was going to have to keep up the growth that former CEO Jack Welch enjoyed, but Immelt could see that the same strategy of depending on growth from productivity was not going to...
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...Study Case from Modern Banking by Shelagh Heffernan - Kidder Peabody Group – ‘‘But Leo’’, said Alan Horrvich, a third-year financial analyst at General Electric Capital Corporation (GECC) in September 1987: ‘‘I don’t know anything about investment banking. If I walk in there with a lot of amateurish ideas for what he ought to do with Kidder, Cathart will rip me apart. OK, you’re the boss, but why me?’’ ‘‘Look Alan’’, replied Mr Leo Halaran, Senior Vice-President, Finance of GECC: ‘‘we’ve got ten thousand things going on here right now and Cathart calls up and says, very politely, that he wants somebody very bright to work with him on a strategic review of Kidder Peabody. You’re bright, you spent a semester in the specialised finance MBA programme at City University Business School in London, you earned that fancy MBA from New York University down there in Wall Street, and you are available right now, so you’re our man. Relax, Si isn’t all that tough. If you make it through the first few weeks without getting sent back, you’ve got a friend for life. . .’’, he ended with a grin. ‘‘Me.’’ Mr Silas S. Cathart, 61, had retired as Chairman and CEO of Illinois Tool Works in 1986. He had been a director of the General Electric Company for many years and was much admired as a first-rate, tough though diplomatic results-oriented man- ager. After the resignation of Mr Ralph DeNunzio as Chairman and CEO of Kidder Peabody following the management shake-up...
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...revenue), and household appliances (accounting for 6% of the total revenue) to medical imaging (accounting for 12% of the total revenue), business and consumer financing (accounting for 29% of the total revenue), and industrial products (accounting for 10% of the total revenue), it serves customers in more than 100 countries. 2. What is General Electric’s strategy for future? The firm’s strategy for future is to divest consumer-facing assets because of the volatile and highly competitive nature of the consumer facing business, and acquire and boost commercial- facing assets. 3. How does General Electric intend to grow? Does if grow through acquisitions? Yes, the firm grows through acquisitions. Its much-awaited “Alstom” acquisition is set to close halfway through the campaign. The firm’s strategic growth model focuses on building global relationships with sponsors, vendors, Original Equipment Manufacturers (OEM’s), and global mid-market corps. Expanding product franchising is also another key aspect of their model. The firm expects a growth in its EPS in both 2015 and 2016 even as it repositions GE capital and expects gains to equal restructuring. 4. What is General Electric’s competitive environment? Who are its main competitors? The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important. Product development cycles are long...
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...02/24/2013 ACT 563 Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2) This shows...
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...rightfully forced some changes in the deal structure. To win the approval from the French government, GE’s newest proposition involved setting up joint ventures in renewable energy, electricity grid equipment and nuclear power. In fact, the value of the stakes Alstom will own in the three joint ventures is estimated to be about €2.6bn which means that the net cash cost of the deal for GE is about €9.7bn. Moreover, the US and European regulators required the sell-off of part of the GE’s turbine business to the Italian Ansaldo Energia in order to keep the market competitive. Before GE got the “green light” from Paris, there was lot of competition between GE and the joint offer of Siemens and Mitsubishi Heavy Industries for the acquisition of Alstom, even though the board of Alstom favoured GE’s clear and simple offer. Moreover, GE promised to add about 1000 new jobs in France, where it has had large existing operations for decades. On the other hand, the government liked the fact that Mitsubishi-Siemens offer was based on forming a partnership and was not going to be a takeover. Finally, when GE modified its proposal, it won the war. About General Electric General Electric, headquartered in Fairfield, Connecticut (US), is a multinational leading corporation with a highly diversified business. General Electric is a key player in the...
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...Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2)...
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...ID number: 0971546 Paper in: MBA 23901 Corporate Strategy and Global Business Policy - GE Wind Strategy Study - Date turned in: 05.01.2014 For: BI Norwegian Business School-Fudan University MBA Programme 05.01.2014 Content Table of Contents Content ............................................................................................................................ i Introduction .................................................................................................................. ii 1. Industry Analysis ................................................................................................ 1 2. Competitive Analysis ......................................................................................... 4 3. Value chain analysis ........................................................................................... 7 4. Strategy core analysis ........................................................................................ 8 5. Advantages and disadvantages ...................................................................... 9 6. Conclusion .......................................................................................................... 10 7. Reference ........................................................................
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...the General Electric Company INTRODUCTION The General Electric Company (GE) is ranked among Fortune 500 as the 6th largest firm in the U.S. by gross profit as well as the 14th most profitable, #7 for executives, #5 best global brand, #82 green companies, #13 most respected companies and #19 most innovated firms. GE divisions include GE Capital, GE Energy, GE Technology Infrastructure and GE Home and Business Solutions. Through these divisions, GE is able to participate in a wide variety of markets, from industrial to lending and insurance. It sells a variety of products like lighting, industrial automation, medical imaging, motors, railway locomotives, jet engines and transmission/distribution of electricity. The company is headquartered in Fairfield, Connecticut and incorporated in Schenectady, New York. It employed 301,000 (131,000 in the U.S.) people as of December 2011. (http://www.ge.com/ar2011/pdf/GE-20120224-10K-20111231.pdf) The company recorded revenues of $142.24 billion during the financial year ended December 2011 (FY2011) this is a 4.58% decrease from FY2010. The decrease in net sales for FY2011 reflects the impact of the current economy here in the U.S. The operating profit of the company was $14.07 billion in FY2011, an increase of 8.9% over 2010. The net profit was $1.45 billion in FY2011. (http://www.marketwatch.com/investing/stock/ge/financials) HISTORY OF THE COMPANY GE was founded in 1878 by Thomas Edison in Menlo Park, NJ. In 1890 Edison started...
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... Indian CA Languages: English, Hindi, Gujarati USA 92301 Date of Birth: September 25th 1983 Mobile: 0413232560 OBJECTIVE: Seeking a mutually rewarding position in accountancy & finance, which will utilise my skills and ability and provide a room for personal growth. SUMMARY: Ability to pay attention to the details. Strong organisational methods. Well developed interpersonal skills. Effective as a team member and comfortable in leading one. Self motivated and determine. EMPLOYMENT AJ GROCERY ( Australia) Working as part time, doing customer service sell of the goods to the customer taking cash. GE CAPITAL (CUSTOMER SERVICE) (CARDS UNDERWRITING) – U.K March 2007 – February 2008 GE capital bank/ GE Money, as card underwriter associate. My main responsibilities are checking customers credit history, taking decision about credit limit. Also I got authority to accept or decline application. My team leader name was Linda Brook My main duty was to handle the call of the high street store and check the credit history of the customer and issue them the store card or the master card if there credit rating are fine. Halifax plc (HBOS)(May 2006 –May 2007) Administrator – U.K I was appointed as administrator where I have to do Scaning and sorting the documents and also working with other departments like data enty, microfilming as a part of the administration work. Orange (September 2004...
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...Q1. What is resource based view of a firm? Ans. The resource-based view (RBV) is a way of viewing the firm and in turn of approaching strategy. Fundamentally, this theory formulates the firm to be a bundle of resources. It is these resources and the way that they are combined, which make firms different from one another. It is considered as taking an inside-out approach while analyzing the firm. This means that the starting point of the analysis is the internal environment of the organization. Resources of the firm can include all assets, capabilities, organizational processes, firm attributes, information and knowledge. In short resources can be considered as inputs that facilitate the organization to perform its activities. An organization’s resource should have four attributes to provide the potential for competitive advantage. These form the VRIN characteristics. Valuable - When resources are able to bring value to the firm they can be a source of competitive advantage. Rare - Resources have to deliver a unique strategy to provide a competitive advantage to the firm as compared to the competing firms. Consider the case where a resource is valuable but it exists in the competitor firms as well. Such a resource is not rare to provide competitive advantage Inimitable - Resources can be sources of sustained competitive advantage if competing firms cannot obtain them. Consider the case where a resource is valuable and rare but the competing organizations can copy them easily...
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...Chapter 8 – Implementing six sigma at GE Fanuc I. PROBLEM Capturing failures in a more timely and cost-effective manner II. OBJECTIVES 1. To improve efficiency and reduce variance in internal operations 2. To focus on reaching and exceeding customer satisfaction through six sigma 3. To train more skilled and motivated employees to match the expected changes of the organization’s operations III. ALTERNATIVE COURSES OF ACTION a. Strategic planning and systematic evaluation for final tests of products Advantages: * It provides a regular evaluation of company operations and directions, with opportunities to make improvements to actions, activities, and strategies, and most of all, it is very efficient in reducing cost. Drawback: * it will take time and is hassle to accomplish b. Assessment on the costumers preferences if it fits to the company’s Advantage: * It will help the company decide well if their innovations brought good effect to their company and if it meets what customers’ preferences. Drawback: * It consumes much time and cost c. Evaluate skilled workers if they match the changes in performance and motivation Advantage: * will be very useful to ensure they qualify and follow certain standards Drawback: * some employees might be found not productive and contributing enough IV. CONCLUSION I conclude that the company needs to get an overall picture in reducing their cost while focusing on the performance...
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...evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment. ------------------------------------------------- Strategic Management – An Ongoing Process by GE Consult on Wednesday, December 16, 2009 at 8:59am December 16, 2009 by Fred Victor The term “globalization” is not new, what is more, it is more rapid and pervasive nowadays. Significant reductions in barriers to international commerce since the mid-1970s have resulted in markets and industries becoming increasingly integrated across nations. In fact, distance is becoming a shrinking barrier. Markets are globalizing rapidly, due to technological advancement particularly in computer technology, as are the firms that competing. As a result, strategic management will be more significant as the pace of business nowadays. Managing change has become the "silver bullet" in seeking the final component of successfully managing strategy, process, culture and people in most modern organizations. Furthermore, staying competitive in the face of demographic trends, technological...
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...PLANNING Learning Objectives – module 2 At the end of the session the student should be able to understand the decision making process, the various types of decision making and the planning process in an organisation. They are also expected to comprehend the outcomes of a planning process like vision, mission, objectives & strategy. The module has 4 sessions Topics – Module 2 (4 sessions) Decision making Types of planning The planning process/ framework Strategic planning in an organisation Outcomes of planning process Hierarchy of strategy MBO – Peter Drucker Decision Making ‘the process of identifying & selecting a course of action to solve a problem / take advantage of an opportunity’ Problem – the discrepancy between ideal & actual situation ‘Problem – something that that endangers the organisations ability to reach its objective Opportunity – some thing that offers a chance to exceed objectives’ Peter F Drucker Problem finding process Deviation from the past experience Deviation from set plan Other people Performance of competitors intuition Problem finding - errors False association of events False expectation False self perception & social image Other factors Threshold of problem recognition Setting priorities Selecting the right ones – leave the easy ones Allow self solutions Types of DM STRUCTURED Made under established situation i.e. definable, predictable & analysable Called programmed DM Routine problems Application of rules/ procedures/...
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...INTEROFFICE MEMORAND UM TO: FROM: SUBJECT: DATE: XXXXXXXX, CEO-MAKERBOT CORP XXXXXXX, BUSINESS STRATEGIST-MAKERBOT CORP STRATEGY PLAN FOR MAKERBOT CORP SEPTEMBER 8, 2014 This memorandum is aimed to highlight a few important strategies Makerbot needs to adapt that would help it in creating a revolution in the 3D desktop printing space which would result in an increase in the market share and total revenue which would subsequently make Makerbot an undisputed leader in the 3D Printing space and place themselves in a winning position. The company has to focus on their core strength and work towards targeting a larger customer base and affordable printing solution with unparalleled innovation as the main driving force resulting in a substantial advantage in the competitive landscape of 3D printing. To begin with, Makerbot should adopt the Microsoft model for business. Microsoft always believed in the licensing model for its software services (Windows & office software suite) which is the biggest revenue generating factor for the American Multinational. Makerbot should venture into a licensing model for its software. If the end user experience is good, reliable & affordable, there is no reason why Makerbot as an OEM would not enter into the league of high performance players in the 3D printing market space. The best always comes from the best resources and Makerbot, as always, should invest time and energy to recruit the best in the business and develop the OS which would not only...
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