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MIBS6001
AU
Western Sydney University
Strategic analysis refers to a process in which a company is operant in an environment to formulate an effective goal. It focuses on changes made in a business environment that has a positive or negative effect. The chosen business unit for the analysis of this study is General Electric Power Unit. GE Power is a world energy forerunner that provides resolutions, services, and equipment through value chains starting from generation to consumption. This study will focus on the resource audit and the strategic position of the company. The following paragraphs will identify the BCG matrix and make future directions by applying the Product/Matrix Model. Also, suggestive recommendations will be made to improve the strategic development of the company.
General Electric is a world energy forerunner that generates different kinds of services and equipment’s to the consumers. General Electric Co. makes an engagement for the generation of technology as well as monetary services. It operates through differing sections such as power, renewable energy, aviation, healthcare, and capital. The Power section provides technologies, solutions, and services related to energy construction and gas turbines, and services of power generation. The technology makes provision of creating 1/3rd of electricity by preparing 90% of power efficacies universally and the software accomplishes more than 40% of the world’s energy (Jobs.gecareers.com., 2021).
General Electric Company is a diversified company with a diverse range of technology as well as financial services. The company’s products and services make inclusion for power generation, aircraft engines, water processing, and medical imagining, business and industrial products. The company, as a result, was founded in 1878 with headquarters in BA Boston (Ge.com., 2021). Through multi-divisional business units, companies at GE manage products and services through prospects. GE manages multi-dimensional units for offering products and services with different product range. As a global leader in research, development, and improvement of technological services, the company offers products and services with different prospects.
In 1889, the company was founded by the leader Thomas A. Edison who collaborated with two others to form the America’s leading industries in the world. During World War II General Electric made supplies for equipment manufacturing as well as military executives. GE’s people consisted of a diverse and dedicated team to fulfill the mission and GE’s mission to deliver to customers (Owles., 2017). The management team as well as board members are dedicated to a task with innovation in making transitions and changes to improve the lives of billions. By constantly aiming to support customers and employees, they are proud of GE employees rising to challenge. GE’s main purpose is to create a challenge for building on the world that it works for.
The behavior in GE leadership is to act with humility and lead transparency for delivering a focused objective. As the value is on developing a lean culture transformation, there is a chance to reflect on an aim to drive progress. In order to work with high-level integrity and compliance culture, there is a need to respect human rights and reduce the impact created through technology and environmental footprint. Upon making constant support for customers and employees from an unprecedented time. GE became globally successful from business unit systems to meet on desires of customers. The shared core GE competencies lie in shared knowledge and skilled labor facilitated from corporate diversification.
GE has been globally successful from its business unit schemes through which sector-wise units to act upon as insignificant commercial owners by accomplishing requirements as well as desires of customers. In power division, the present GE strategy lies in enhancing global recognition for creating products that are technology-based in its services. In order to enhance market recognition, a relevant instance is that of 7H.A gas turbine (Lohr., 2020). The instance of equipment in product development facilitates robust brand credit by creating an effective market value in the international market. GE’s competence levels have assisted GE's power to implement a strong foundation in financial and strategic resources for better marketing opportunities.
A value system is a series of consistent measures and values. It acts as a means through which individuals and cultures are valued across individuals and cultures aligned on belief systems. The resource-based model considers a need to identify the capitals that are rare, valuable, difficult to imitate, and non-substitutable in terms of attaining the best position for long-term success. VRIO analysis is regarded to have competencies to understand current competencies and resources.
| Resources | Value | Rare | Imitation | Organization | Competitive advantage |
| Alignment with organizational strategy | Yes | No | Each firm is implying its strategy. | Yes, the company acquires assistances to gain most from it. | High potential to do for it |
| Financial resources | Yes | No | Financial instruments, as well as liquidity in the market, are applicable for nearby competitors. | The company establishes a sustainable financial position | Temporary competitive advantage |
| Brand Positioning | Yes, the firm has a robust relationship with wholesalers | Yes, devoted to channel associates | Hard to duplicate as it is unmanageable | Over the years, the company used it successfully | Sustainable competitive advantage |
| Suppleness in the supply chain network | Yes | Yes | Nearby participants to have a bendable supply chain to be shared with suppliers | Full utilization | Helps to ensure business operations |
| Access to raw materials in a fruitful accomplishment | Yes | Yes, as there are additional entrants to align with the leading market location of the firm. | Can be copied from contenders | Yes | Provides a sustainable competitive advantage |
| Leadership tracking based on business name | Yes | Yes | Cannot be copied from rivals | Yes | Provides a robust economic advantage |
| Talent Management legal and obligatory standards | Yes | No | Can be imitative from entrants | Yes | Delivers a stout competitive benefit |
As influenced by Obeidat et al. (2021), to produce quality products, segments need to promote physical resources for maintaining a high level of investment. GE Power has been able to influence a profitable segment through high investment levels and a diversified workforce. In ensuring a global presence, quality brands and images, individual market page, and GE Physical Resources.
Leadership can successfully ensure corporate reign for creating a leadership thinking to imitate useful and accessible research. Under Jeff’s leadership, a participative form of leadership is often regarded as “Imagination to Work”. Jeff Immelt has been capable to make changes to create a culture for GE Power. Leaders need to create a culture that provides a priority in decision making and culture setting. During the leadership of Jeff, significance had been given to investors as well as third parties for making an enhancement in customer relationship as well as loyalty (Warrick., 2017). Therefore, emotional intelligence has led to the creation of high motivation for employees in which high-quality standards are achieved.
“GE Global Training” has made a demonstration to make a commitment to skills training and education for staff. Implementing the “Brilliant Learning” curriculum will pursue to train greater than 150,000 global supply chain staffs to fulfill the slits of a digital industrial labor force (Ge.com., 2017). GE also announced focusing on advanced and multiple languages at all levels in manufacturing roles.
Industry concentration has resulted in the enforcement of needs to be strengthened for making policy changes to enhance competition levels. As a result, firms earn high-level profits to realize a high market share from greater innovation and benefit (Bessen., 2017). GE Power has enhanced market contact, reduce its prices, enhance product quality and bring better worth for its products. As a result of enhanced market demands, GE Power is retorted by investing in nominal inventions.
GE portfolio uses wind, gas, oil, and power turbines, nuclear sector, and aircraft engine offshoots for water purification systems and values among the manufacturing and civic systems. In 2019, gas power had separated from making improved visibility and accountability. As a result, GE Power’s change is in making and effective purification systems, pumps, and valves for industrial and municipal systems.
Customer care focuses on attitudes that cover the basic aspect of an organization's leadership for covering an aspect of organizational leadership. It is a process through which an organization’s deeds cover the aspect of how customers feel satisfied with meeting their own needs (Isoherranen and Majava., 2018). GE power has a continuous requirement for specialized production and penetrating newer markets. It helps customers to meet on their brand portfolios and create optimization tools among them.
The high level of success determined from GE power is that it comes in terms of individual and specific activities for the organization around the value chain.
GE’s strength is in understanding the internal competencies that have evolved through time to sustain competitive advantages. Generic Electric has a diversified portfolio for being present in differing business segments. The company acquires a distinguishable portfolio serving different markets in business verticals (Porter and Heppelmann., 2017). GE has strong skills in research and development for making innovative products and maintaining technological leadership in different fields. GE has a brand name with joint ventures like Hitachi and Toshiba for excellent management.
The weakness of General Electric lies in how legal cases affect the company’s position that affects financial position and conditions in countries. However, there is a comprehensive to be built upon core functions in documentation and debt (Odubiyi and Oke., 2016). As a result, financial performance is affected by how suppliers have weak raw materials with weak level performance. In addition to that, GE diversification also facilities lower authority in the aspect of the decision-making process.
The external strategic factor in presenting growth and development is GE power. As a result, this makes inclusion for growth in digital technology for the potential for connection for increased demands in equipment and services. The outlook in renewable energy is ensuring that renewable energy is used to enhance revenues and market share for the company (Namugeny Nimmagadda and Reiners., 2019). GE is positioned to generate revenues and market share for a company. Due to increased growth in digital technology, there is a potential to create increased demands for enhanced demands equipment and services.
At GE, the main threats lie in complying with environmental as well as legislative standards subject to local and foreign laws of a business. A high level of competition leads to intense competition and investments (Vlados., 2019). For instance, in a company like GE, currency fluctuations become a significant issue that strengthens or weakens against US dollars. The power industry is becoming increasingly complex, and there has been an increase in global warming with a high level of competitors. Due to the increase in global warming, there has been a complexity power industry and enhancement in production technologies.
Boston Consulting Group (BSG) is a strategic tool applied in analyzing distinguishable portfolios for the allocation of resources in multinational corporations. BCG helps strategic planners identify the optimal strategy in an individual product consistent with overall corporate objectives (Nica, Chiriță and Ionescu., 2021). In the context of Stars, it ensures that products at GE are growing rapidly to make huge investments for maintaining its position in the market. On the other hand, it is advisable that Question Mark indicates how products acquire a low market to ensure heavy investment in the market (Madsen., 2017). In order to be question mark and finally a star, GE power should ensure focus on development of its product, generate innovation in technologies and make expansion in worldwide market.
GE aims to restructure its plan to fight low oil prices and slow global growth as plummeted in previous year earnings. GE has aimed to enhance operating profit to exclude effects on acquisition and focus on service sales and enhanced margin levels. The company’s shares had gone down by 1.3% to $28.4 after reducing to 3.1% in an earlier session (Scott., 2016). Restructuring measures improved supplier relationships and making plants more sufficient can help reduce cost in a product. Cash Cows are products in which growth is low, and there is a high market share for expansion.
As a consequence, they require high finance for expansion. Dogs represent products that have a peak share and growth rate. From this aspect, dogs generate a high level of cash to survive on a long-term basis. By restructuring on consolidated factory and real estate, improving customer relationships, and creating an effective product cost is needed to reduce production costs. The emphasis lies in ensuring complex machines function and monitor them. GE's diversified units emphasize operations in oil and gas where profitability had tumbled down to 19% in the fourth quarter (Scott., 2016). GE also has plans for supplies in energy prospecting as well as production companies. Sung upon by restructuring costs, GE expects to make power operations in business to accomplish planned moves for 2017 and 2018. By planning to transform in digital complexities, it makes complex machines to be technically fluent in the workforce.
Market penetration in General Electric makes use of offers to keep maintenance and after-sales service that summarizes comfort for customers in and subsequent purchase. The mainstream customers in General Electric are commercial and industrial customers, which creates a need for after-sales service. The business also frames planned associations with contractors to deploy equipment that help to enhance sales.
General Electric can make use of diversifying manufacturing components to procure from suppliers. As per Loredana (2017)., it can also lead to the establishment of own sales and installation systems apart from engaging suppliers for errands. Each opportunity for diversification will provide industries to have worked in consumer electronics and sports equipment.
General Electric establishes its products by making new launches to equipment into a current market. These models initiate an improved level of innovation and bring on detailed research as well as developmental efforts. General Electric makes scope for large customers through direct sales that have greater value.
As a company establishes new products, General Electric creates products that are not sold earlier. The company also generates products in diverse volumes to target renowned market segments (Sukma, Lubis and Utami., 2019). In case General Electric purchases from the same motor in a larger company, different pricing in new segments can help promote existing products for new markets.
In an aspect of market penetration, GE Power upholds valuable market share by establishing energy segment in the market. By being a leader in advanced power generation equipments, IGCC has become the major and most effective gas turbine (Cleberg., 2019). On the other hand, diversification is needed to maintain investments for newer products and serve clean and renewable energy like gas, solar, and wind energy (Sukma, Lubis and Utami., 2019). The aspect of product development deals with adopting high technologies, digitization, and quality control to focus on GE Power. The market penetration aspect ensures that energy share is made from being the largest provider in advanced services for maintaining its energy share in the market.
Therefore, from the above study, it can be determined that strategic analysis helps drive a business to reach its ultimate goal. GE power makes use of a large range of products for meeting power plant needs. In this study, an evaluation of the strategic position of the business and resource competencies have been described. The key future directions and identification of the options are illustrated in the study. Market strategists need to ensure effective implementation of policies for free and effective execution of activities. In this study, an evaluation of external links to the company and future direction are presented. Additionally, suggestive recommendations to enhance the position of the business in the business environment to make effective change within the organization.
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