Introduction
and Background
The case introduces us to the general
electric (GE) which is an American MNC conglomerate corporation which head
office is Fairfield, Connecticut. It has a long history of more than 100 years
and more the main segments they work for the care appliances, power and water,
oil and gas, energy management and many more. They make different forms of
electronics product and they have differentiated themselves to many other
fields.
It has successfully ranked themselves
as one of the largest firm in U.S. they have listed in fortune 500 list too. It
is also fourth largest companies in the whole world. It is also one of the most
profitable companies they ranked at 14th most profitable company. It
is one of the prestigious organization which have a long history of more than
one hundred years, it has develop its vision and strengthen its strategic
through that way that it has remained profitable till the date and it also
belongs among the best industry this is what we say company incorporated with a
good strategic unit and a best vision and mission to be incorporated with.
They have started their operations with
a very small scale association with small numbers of products they are mostly
electric and now they have diversified their
products and have other products in their place like power ,water e.tc.
Every company small or big has its own
strength and weaknesses lets overlook to the SWOT analysis of GE
Strength
·
Their brand name, they
are already recognized in the world with their goodwill.
·
Diversification to the
products and services has also let them be a leader in their products as this
will minimize their loss in case of anything happens to the company’s one product.
So diversification is also considered as their strength.
·
They have gone global
and they have global recognition as MNC being a multinational company and a
global framework has added their value and it is even easier to compete with
other local products it gives threat to other local similar products.
Especially in Europe, Asia, America and Australia
Weakness
·
As they are focused on
many units it can lead them to not to focus on one product where competitors
can be profited looking at the weakness
·
Even if any day
company shown inflexibility then other companies especially neck competitors
will come to their place.
Opportunities
·
Continuous global
market expansion
·
As they have already
got a good brand name thy can go the merger and acquisition to any of the
competitor with the good price.
·
They can establish
them to any of the countries as they also have the good experience of the going
global
·
As they are one of the
profitable organizations they can afford to pay on new invention and innovation
they can pay to the research and development to the development of the products
and services.
Threats
·
Even environmental
threats and the bound by the rules and regulations of the countries can be
considered as their threat.
·
Diversification to the
product has added them new threats of serving to the market
·
Threat of new entrants
·
Threat of new
innovation to the products and services they are offering.
Past
present and future strategy of GE
GE has its more than a 100 years of
history in the period of that they have incorporate different strategy so that
they could offer the best products and the best growth for the company could be
possible.
Before 1990 they have made strategy of
process management for growth of the company and also company was so
prosperous. Organization development was their strategy to develop the scale
and production of the products they offer to the people. Product
diversification as they have made different diversifications so that they could
minimize their risk and do the market analysis. Organization productivity as
they were focused on the productivity of the products and services they offer
to the markets.
With addition to that they from 2000 to
2010 they have made themselves focused on R and D investment and also they were
focused on innovation of the product and services and lastly they were focused
on organization development.
At present they are taking strategy of
research and development as they are continuous focusing on new research and
Development of the products not only that they are very focused on the
customers side, as they are offering the products to the customers now they are
making them focus to the customers side. Whereas for the future I think being
adoptive o situation and challenging attitude for the company will again lead
them to be the best for the next 100 years more.
Conclusion
and recommendation
Looking at the company and its growth
strategies what we see is the massive, diversified and lots of products which
are different from what they have done before they are totally different from
each other like aero plane engines and commercial financing which are totally
opposite from each other and they have done lots of cost reduction and
economies of scale.
So for the MNC Company with its long
history of the operations I see more than one path to obtain for the company
they can divide their operation and also distribute their money in new and
other firms so that every product would be specialized and taken care by the
shareholders. To minimize the complexity and risk to the shareholders they can
have fragmented strategy and by divined the company into GE capital, Energy,
NBC, aero planes and Industrial totally different making all the strategy
differently setting the plans in the different way. Not having one size fits
all strategy. Valuing the different products differently will let them
specialized in every field and there will be the big threat to the competitors.
They
also can go to the acquisitions and mergers to other famous brand and
organization so that they can more prosper and have more growth opportunity.
Bibliography
Agrawal, G. R. (2010). Strategic Management.
Kathmandu: M.K. publishers.
Gorowitz, B.
(1999). Hall of Electrical History. The General Electric story: a heritage
of innovation 1876-1999 .
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