Assignment Competitive Strategy and Innovation

Added on - 21 Apr 2020

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Running head: COMPETITIVE STRATEGY AND INNOVATIONCompetitive Strategy and InnovationName of StudentName of UniversityAuthor Note
1COMPETITIVE STRATEGY AND INNOVATIONTable of contentsIntroduction................................................................................................................................2Redirecting the strategy of GE...................................................................................................2Aligning the strategy..................................................................................................................5Organisational changes initiated by the new strategy................................................................7Alternative strategies..................................................................................................................9Conclusion................................................................................................................................11Bibliography.............................................................................................................................12Appendices...............................................................................................................................15Appendix 1...........................................................................................................................15Appendix 2...........................................................................................................................15Appendix 3...........................................................................................................................15
2COMPETITIVE STRATEGY AND INNOVATIONIntroductionCompetitive strategy and innovation are some of the most important aspects of anorganisation. In order to dominate the business, it is necessary that every manager develop astrategy that helps them to understand and analyse the market in an effective manner. Theessay highlights the strategies adopted by General Electric (GE) under its new manager.General Electric is an American multinational company situated in New York. The companyis a public undertaking that was founded in 1892, by Thomas Edison. It is famous formanufacturing aircraft engines, electrical distribution and energy, gas and so on (Ge.com.2017). The essay analyses the extent to which the new strategies adopted by the companywere aligned with the business environment of the 21stcentury. The resources and capabilitiesof GE are discussed along with the organisational changes that were required forincorporating these strategies. Alternative strategies developed by the company are alsodiscussed in the essay.Redirecting the strategy of GELeading a reputed company such as GE is always a challenging factor for any person.The fact that Jeff Immelt took over the managerial responsibilities of the company from JackWelch proved a bold decision for the company. Some of the declarations that were made bythe new manager included a long-term transformational strategy for the company. The reasonfor adopting this approach was due to the bombing of the World Trade Centre in 2001.According toHill, Jones and Schilling (2014), the transformational strategy involvestransformation management strategy as a critical component of modern programs. It seeks thesupport of the individuals as well as the organisation in order to change the functioning of theorganisation. The acceptance of the changes comes after its implementation. The benefits of
3COMPETITIVE STRATEGY AND INNOVATIONthe changes help an organisation as well as an individual to enhance the productivity andskills.In the case of GE, the transformational change that was adopted by Jeff Immeltinvolved the reconfiguration of the business portfolio of the company. Apart from this, themanager also focused on directing the performance goals towards the revenue goal of theorganisation. This is an important decision given the fact that the city had suffered financialloss due to the bombing of the World Trade Centre. In this regard, the focus of the companywas drawn to an innovation of products, particularly in the technological field. Thecompetitive advantage of the company can be maintained by the introduction of newtechnologies that can help in the growth of the company. The innovative nature of thebusiness can also help in maintaining customer satisfaction by providing proper service. Till2001, GE had been under Jack Welch who had been considered as one of the best managersof the company. Hence, the organisational structure and culture during that period alsoneeded to change. This is mainly because of the advancement in the business world due to theemergence of new technology and competitors.However, the high point of the strategy came in April 2015. A decision was maderegarding the selling of most of the capital of the company. Despite such ambitious changesin the strategies of the company, the sales performance of the company had laggedconsiderably. The below figure highlights the changes that took place in the company sincethe inception of the managerial role by Immelt.From the analysis, it has been seen that despite the efforts of Immelt, the companyhad not been able to meet its target. During the early days of his tenure, Immelt had promisedto reach new heights with GE. The increase of sales, return on capital and earnings had beenthe target by the new manager. Instead, not only these but also the stock of the country failed
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