Competitive Strategy & Innovation Assignment
16 Pages3755 Words55 Views
Added on 2020-05-16
Competitive Strategy & Innovation Assignment
Added on 2020-05-16
ShareRelated Documents
Running head: COMPETITIVE STRATEGY AND INNOVATIONCompetitive Strategy and InnovationName of StudentName of UniversityAuthor Note
1COMPETITIVE STRATEGY AND INNOVATIONTable of contentsIntroduction................................................................................................................................21. Redirecting the strategy adopted by Immelt..........................................................................22. Aligning strategies.................................................................................................................4a) Requirements of 21st-century business...............................................................................5b. Resources and capabilities..................................................................................................63. Organisational changes made necessary for the new strategy...............................................74. Alternative strategies..............................................................................................................9Conclusion................................................................................................................................10Reference..................................................................................................................................11Appendices...............................................................................................................................13Appendix 1...........................................................................................................................13Appendix 2...........................................................................................................................13Appendix 3...........................................................................................................................14
2COMPETITIVE STRATEGY AND INNOVATIONIntroductionTo succeed at a global stage, it is necessary for companies to rely on two veryimportant aspects. These aspects are developing a competitive strategy and focusing oninnovation. To maintain dominance in business it is necessary that every manager formulatestrategies that help in analysing the market. The assignment highlights the situation that existsin General Electric (GE) and the manner in which the new manager has tackled the situation.General Electric is an American multinational company that is situated in New York.The great Thomas Edison established the company in 1892. Some of the famous products ofthe company include aircraft engines, electrical distribution and energy, gas and oil (Ge.com2018). The assignment highlights the new strategies that were adopted by the company underits new manager. The aligning of the company with the strategies of the 21st century is alsodescribed in the assignment. The changes made by the manager keeping in mind thecapabilities and resources possessed by GE are highlighted in the assignment.1. Redirecting the strategy adopted by ImmeltGE is one of the most reputed companies in the world. Hence, being a leader of such acompany can be a challenging factor for any individual. In the case of Jeff Immelt, thechallenge was more as the person had taken over the responsibilities of the company fromJack Welch. Hence, to stamp his authority, the new manager made certain declarations suchas creating a long-term transformational strategy for the betterment of the company. Thebombing of the World Trade Centre in 2001 was the main reason behind the adoption of sucha strategy. According to Hill, Jones and Schilling (2014), this strategy involves thetransformation of managerial strategies as important components of recent business
3COMPETITIVE STRATEGY AND INNOVATIONdevelopments. This strategy requires the co-operation and support of the employees as wellas the managers. The changes are undertaken in the organisation help in enhancing theproductivity.The adoption of the transformational change in GE includedchanging the businessportfolio. Jeff Immelt directed the performance goals towards maintaining goals related to therevenue of organisations. Such a decision was made after New York had suffered a financialcrisis owing to the disaster. Hence, innovation of products was the focus of Jeff Immelt. Thiscan help in satisfying the customers and help in the growth of the company. Jack Welch hadbeen considered as the best manager ever to lead the organisation. Hence, post the period ofWelch, Immelt suggested changes made in the organisational structure and culture. Despitethe huge changes, the biggest strategic move was made in April 2015. It was decided that thecapital of the company would be sold for the betterment of the company for a long-termfuture. However, despite such drastic changes the sale performance of the companycontinuously lagged behind. Some of the changes that were made by Immelt are analysed.After analysing the case study, it is seen that the company failed to meet its salestarget despite the changes made. Immelt had promised to reach global success after takingover GE. Immelt had targeted the increase in sales, Return on Capital and earnings. However,the stock of the company along with the factors failed to see any type of improvement.Between the years of 2001 to 2014, GE reached a new low with the sales of the company.This proved to be unforeseen from the Immelt’s point of view. The approach to maximise theshareholder value also failed due to the insecurity of finances in the company. Immelt wantedto focus on identifying the sources of profit that GE used to earn its revenue. In the words ofSpulber (2017), the manner in which GE makes a profit can help the company to mitigate anychallenges. It was seen that the profit resulted from the implementation of cost reductionpolicy. This implies that the company discarded the invaluable assets of the company. Thus,
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Assignment Competitive Strategy and Innovationlg...
|17
|4080
|104
STRM043 COMPETITIVE STRATEGY & INOVATIONlg...
|16
|4693
|72
Report on Impact of Strategy formulated by CEO of GElg...
|13
|4071
|36
Competitive Strategy and Innovation: Electronicslg...
|23
|4714
|429
Report on Business Level Strategylg...
|16
|5055
|226
The Analysis of Global Leadershiplg...
|14
|4387
|20