Effective Utilization of Resources: A Key to Business Success

Effective utilization of existing resources is crucial for management to achieve its objectives. GE has invested in diverse units, leading to business expansion into sectors such as technology, energy, and automotive. This diversification reduces the level of risk and contributes to the company's impressive success.

COMPETITIVE
STRATEGY &
INNOVATION: GE Case
Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................2
CORE COMPETENCIES AND CAPABILITIES....................................................................................................2
STRATEGIC OPTIONS ...................................................................................................................................5
OUTLINE OF OPTIONS..................................................................................................................................6
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Competitive strategy has been perceived as critical feature for the organisation as it aids
ensuring that long term objectives are being accomplished effectively. With an assistance of
competitive strategy the business firm can gain better competitive advantage in the industry. It
also allows to gain better position in the market and enhance the ROI. In order to provide better
support to overall development, effective consideration of innovation is also significant
(Schwarz, 2011). It assists in meeting work standards and supports in attaining success. In order
to have better understanding in regard to the subject the work culture of General Electronic
Company is being evaluated in the study. Learning will provide understanding in regard to
strategic options which allow to ensure about sustainable development.
CORE COMPETENCIES AND CAPABILITIES
Based on study, this is evident that General Electronic Company is holding better brand
image in the market which allows to enhance the work opportunities. It is further found that
through appropriate application of varied strategic options the business firm is attaining fruitful
prospects in the competitive market. Further, one of key competency that business holds is
impressive leadership. It allows to ensure that work activities are being managed effectively to
attaining goals (Teece, 2010). It allows to focus on new market accessibility and value added
services of company. Along with this, it can be stated managers are focused towards democratic
leadership. It allows to share information with members in critical manner for achieving goals. It
is found that improved emphasis on leadership aspects allows to reshape the cultural values so
that long term sustainability can be advanced. With an assistance of democratic leadership the
managers are looking forward to advance the innovative culture (Thompson, 2001). Emotional
intelligence within organisation is also being advanced effectively for developing sound
opportunities. Furthermore, it is evident that high level of motivation and high level of work
standards allows to advance the management practice so that growth can be ensured.
External Analysis Of General Electronics As Core Competencies.
In External analysis PESTLE analysis is conducted. PESTL analysis include Political,
Economic, Social, Technological and Legal and Environmental analysis are conducted.
 Political Factor: Government rules and regulations have huge impact on automotive firms
because they are huge obliged by environmental laws and safety rules. Also, custom

duties,quotas trade regulation affect the motor companies marketing from one part of
country to another. If government buys share it has to obey the government rules and
regulation. Political factor have proportionate relationship with core competencies. If
Political factor are supportive core competency of company increases.
 Economic Factor: This company hugely affected by oil price and huge demand of
customer as they want economic solution. Automotive companies have to find solutions
and research on middle solution for high end car or solutions on hybrid cars. So core
competencies of companies rely on economic factor as well.
 Social Factors: General Motors know the need of customers and provide them with high
end vehicles according to their preference, keeping in mind social needs of customers. So
core competencies are strong point of General Motors.
 Technological Factor: As technology is changing in today's world environment GE
motors are using advanced robot technology, and whole production process goes through
automatic computer and advanced software engineering. It is providing latest and
advanced vehicle using technology and getting best competitor in market and highly
advance in core competency.
 Legal factors: Business has to obey rules set in market and violating them can be a huge
panelty by government so it needs to pay attention to environmental and constitutional
laws.
 Environmental factors: As other motor companies , GM has to obey environmental laws,
since 1994 GM is paying huge attention on environment and pollution control laws and
policies. It leads to great core competencies for GM
Core Competencies of GE:
Companies operate in Energy, Technology, Infrastructure, Capital Financing, and
consumer and industrial goods. GE sales multiple of product that span several different
industries. The company produce aircraft, locomotives, and other transportation equipment,
kitchen and laundry appliences, lighting, electric distribution, and control equipments, generator
turbine, and medical imaging equipments. GE offers seven different services in the financial
industry for individual customers.
Table 1SWOT matrix
Strength Weakness

There is a vast portfolio of the business of GE.
Firm is currently operating in finance, energy
and various other sectors.
50% of revenue is received by the firm outside
USA. Thus, it can be said that revenue is
earned in balanced way.
Governance system is excellent.
Firm is dependent on other entities for raw
items. Thus, if relationship will be tarnished
with suppliers then it may prove costly to the
firm.
Opportunity
Firm can acquire other firms globally to
expand its business.
Firm can enhance its operations in the
emerging economies and can increase its
revenue at rapid rate.
Threat
Government tough rules and regulations may
create problem for the firm.
Currency and economic recession may severely
affect the firm.
Table 2TOWS matrix
Opportunity Threat
Strength Firm have strong presence
across the globe and good
financial position which it can
use to acquire firms in any
nation of the world.
Firm have good governance
system which will ensure that
all rules are followed in the
business.
Weakness Firm main weakness is that it
is dependent on suppliers for
raw material. Thus, it can
acquire supplier business and
can reduce risk.
Separate team can be prepared
which will ensured that all
rules and regulations of the
nation are followed in respect
to acquisition of any firm in
any nation of the world.

Figure 1Ansoff matrix
On analysis of General electrics it can be seen that firm is operating number of business in the
current time period. Market development and market penetration strategy will be best for the
firm because firm need to increase its depth in the market where it already exist. Moreover, it
need to develop its market in the nation where it newly entered. Thus, it can be said that firm
must follow mentioned strategies in its business.
GE core competency is its vast product line that it give edge to it over its competitors.
Firm can use its core competency in number of ways. In respect to some products it can develop
research and development cell and can add innovative feature in its product. By doing so firm
can further increase its capability to compete with its competitors.
STRATEGIC OPTIONS
It has been noticed that company is basically focused towards four key elements in order
to attain better opportunities. Classification of factors can be as technology infrastructure,
energy, consumer industrial and capital finance. It has been witnessed that General Electronic
Company focuses on the sales of multiple products and services so that better opportunities can
be attained effectively (Uggla, 2008). General Electronic provide its services to different
industries in order to gain better competitive advantage. In addition to this, it can be said that
product line of business firm is also impressive which enhances the brand image in the market.
Classification of product line can be as engines of aircraft, equipment related to locomotives,
kitchen appliances, control equipment, generators, medical accessories.
On the basis of case study, it can be stated that General Electronic also well focused
towards diverse services in context to financial industry. It means by having improved focus on
the customer needs the business entity offer wide range of services. GE delivers operating leases,
loans, equipment leasing, financing programs and other associated services for supporting
business across globe. It can be referred as core competency of business entity because it allows
to ensure that aims are being accomplished efficiently (Verbeke, 2013). It has been noticed that
General Electronic is well focused towards building better relationship with customers in order
to accomplish goals. By having better relationship with customers, the environmental aspects

within organisation are also well maintained. Human resource development elements
consideration is also efficient for every business entity. As same the General Electronic is also
focused towards human resource development. Employees are well skilled that aids in meeting
organisational objectives (Zahra and Covin, 2003). With sound development of human resource
development, company is providing better support to work activities. It can be referred as key
competency of the organisation. It has been noticed that training and development session is also
being organised by the company in order to advance the knowledge level. It has been witnessed
that improved level of skills among members regarding business knowledge, functional
activities, leadership elements and growth traits is beneficial for company. It allows to ensure
that work activities are being developed effectively in order to meet goals and objectives.
Improved level of focus on the talent management is significant to meet with the organisational
objectives (Andersson, 2011). With an assistance of talent management the business entity like
GE is advancing work performance and productivity. It also improves the organisational culture
and aids in attaining success. Company is also focused towards communication activities so that
long term opportunities is achieved. With an assistance of this, training standards are also being
advanced. It is because communication with employees allows to enhance the understanding
about employee needs. It helps in improving strategies application which is beneficial to meet
long term objectives (Hansen and Smith, 2006).
Along with this, GE is also well focused towards hiring of skilled workforce in order to
ensure that long term opportunities are being attained effectively. With an improved focus on the
standard based recruitment system the company is ensuring regarding improvement in
capabilities. Improved knowledge of functional activities among employees allows to meet the
goals and objectives. It helps in make sure that long term sustainability can be advanced which
will have direct positive impact on the business model. In addition to this, it can be said that GE
is focused towards improvement in motivation level among employees (Harvey, 2004).
Innovation in product line also helps in attaining competitive edge in the marketplace. By having
an improved focus on the innovation the service quality is being advanced. It allows to gain
better competitive advantage in order to meet the impressive level of success. Further,
technology is one of the most crucial aspects that helps organisation in heading ahead in the
competition. By having an assistance of technological use the business entity can advance the
work productivity. Continuous improvement in performance due to technological use is key

benefit that a business firm attain (Joseph and Eshun, 2009). It also helps in gaining competitive
advantage which is essential to advance core competencies. In order to improve the use of
technology the management of GE is focused towards application of quality management. It
means application of Six Sigma is also being referred in order to improve the work capabilities
within organisation.
In addition to this, Six Sigma is considered as a process that allows to advance the work
standards to attain objectives. Use of technological tool allows to identify solutions which might
overcome the issues. It reflects that innovation platform is also considered as key competency
which allow business firm to receive success. By having an improved focus on the technology,
the process mapping of company is also advanced. It aids in refining the work conditions and
lead business firm to sustainable opportunities (Kim and Mauborgne, 2013). It also allows to
accept the challenge and make sure that working is being accomplished effectively. Along with
this, the organisational structure is also critical aspect that required to look appropriately from
management. In General Electronic the organisational structure is well maintained because
managerial standards are also considered by the management. Centralised working is being
promoted within organisation which allows to improve work performance. Functional
departments are there in the organisation which ensure that specific team is there to meet the
standards of specialized activities. Effective consideration of communication activities is also
essential so that objectives can be attained (Wickramasinghe and Jayaweera, 2011). Regular
basis interaction with members allows to understand customers needs on the basis of which
overall work standards are used to transformed in order to meet goals and objectives. Moreover,
diversified portfolio of organisation is also benefited which helps in gaining competitive
advantage. It means product line according to customer needs is also a critical element of core
competencies. This is even evident has been noticed that by having an appropriate understanding
about the services the issues can be overcome in desired manner (Hui and Tsang, 2004).
Customer service is also well structured within organisation which allows to meet the objectives
so that goals and objectives can be accomplished effectively. By having an assistance of
customer service the level of satisfaction among customers can be advanced in critical manner.
Productivity is also being improved for accomplishing goals. Customer service allow business
firm to make sure that service quality is being advanced.

STRATEGIC OPTIONS
Strategic planning is considered as formation of ROA framework so that managers can have
effective application of tools. By having an effective selection of options the managers can have
advancement in context to the performance of organisation. By considering an effective application of
strategic options the uncertainty can be resolved in appropriate manner so management need to ensure
about it effectively. Work flexibility can also be advanced effectively through effective application of
strategic tools (Cantrell, 2001). It has been noticed that GE must consider the aspect that issues are being
identified effectively so that strategic options can be accomplished in desired manner. It has been noticed
that environmental values also need to be understand effectively. It assist in meeting key goals and
objectives for sustainable development.
Effective management of RO also need to be referred effectively because it allows to make sure
that business is having impressive level of success. Strategic options also enhance the analysis of product
line and portfolio because it helps in meeting key goals and objectives. Diversification of work activities
is also essential because it allows to meet objectives. With an assistance of this, business firm can easily
develop the success factors. If company is having specific diversification then it will influence the work
activities in positive manner so that sustainable opportunities can be attained. It is necessary for business
entity to consider investment decisions effectively as it helps in meeting key goals and objectives. Use of
existing resources is also significant to refer by the management because it allows to ensure that goals and
objectives can be accomplished (Zachariassen, 2008). In addition to this, it can be stated that manager
of GE is considering investment decision as a critical aspect. It is one of key reason that business firm has
recently expanded its business in diverse manner which lead business firm to critical success.
Improvement in services and operational activities is also being referred effectively from the management
for better opportunities in the market. In 2008, GE downgraded its earnings forecasts, cut its dividend,
suspended its share buyback program, and sought a $3 billion equity injection from Warren Buffett.
Effective involvement of stakeholders in the decision making process is also strength for organisation
which allows to meet key goals and objectives. R&D division of company is also offering high revenue
which helps in boosting opportunities. It also reflects that strategic option selected by business entity is
which might enhance the opportunities for the GE. Diverse analytical approaches are also being taken
into account by the experts in order to ensure that sustainable development opportunities can be attained
(Mehrjerdi, 2013). It has been witnessed that risk can be measured in desired way because it helps in
meeting long term sustainability values. Investment options also allows to ensure that by analysing risk
the business is expanded effectively in order to meet objectives. Strategic investment of company allows
to ensure that business is having better future which assist in gaining competitive advantage. Dependency
of investment strategic option of company is on NPV (Net Profit Value) which allows to ensure that

global standards are well maintained. It helps in continuous development within organisation is being
taken into account through application of strategic option.
OUTLINE OF OPTIONS
In order to have better understanding about the strategic options, business firm need to focus on
environment analysis. One of key strength of company is that it offers wide range of unique products and
services in the market. It provides company a global recognition because it holds a better brand image in
the competitive market. With an assistance of this, GE has advanced competitive edge in the market
which allows to deal effectively with the competitors. Product quality is also impressive which helps in
meeting customers needs. Such kind of positive aspects within organisation is beneficial to make sure that
company is holding global strength and competitiveness (Zachariassen, 2008). Company is having
effective sources of funds which allows to invest in diverse sectors so that goals and objectives can be
accomplished. GE has extremely invested in its diverse unites to improve the business performance. It is
one of key reason that company has expanded its business in sectors like technology, energy, automotive,
home appliances, etc. such kind diversification in business also reduces the level of risk. It is also
beneficial for business to attain better success and meet objectives.
In addition to this, the key weakness that business holds is that global crises has diverse
fluctuations. It means any kind of changes in international pricing and policies impact the performance of
company. Supplier relationship is not appropriate within organisation which might affect the development
activities negatively in conditions where they face issue regarding supply for raw material. It impacts the
level of production which assist in long term sustainability (Cantrell, 2001). Business firm like GE is
currently having operation in diverse sectors which enhances the level of working. It means work
flexibility management is not appropriate due to improper coordination. It impacts the overall
performance of company which need to be considered effectively in order to meet the objectives.
Businesses are having great opportunities in the present market conditions. GE can have merger
and acquisition with diverse companies so that opportunities can be advanced. It has been witnessed that
the brand image and market share of company can be advanced effectively so that business firm can have
better opportunities in the market. It allows to meet the success and ensure that business is gaining
competitive advantage. Merger with global market organisation is more beneficial because it allows to
advance the work sustainability in diversified form (Hui and Tsang, 2004). Research and development
investment can be advanced in critical manner because investment in R&D has continuously advanced
the revenue of company. It will also allow the management of GE to employ innovation within
organisation so that long term sustainability can be advanced. Current customer demand can also be
accomplished by having improvement in supply chain. It allows to ensure that long term sustainability
can be advanced. One of key threat company faces is regarding high ratio of competition which might

affect the overall outcome. It has been noticed that high ratio of competition in the market impacts the
customer base so management need to employ diverse strategies in order to advance opportunities
(Wickramasinghe and Jayaweera, 2011).
Application of strategies like market development through merger and acquisition is significant
for management of GE. By having a proper understanding of Ansoff model the issue can be understand in
desired manner. With an assistance of this, the market development objectives can be accomplished. With
an assistance of penetration the issues can be overcome in order to lead business towards better
opportunities in the market (Kim and Mauborgne, 2013). Investment planning strategy can also be
employed by the management of GE in order to ensure about goals and objectives accomplishment.
Company can also enter in new market to advance the strategic opportunities. By having an consideration
of such values the key objectives of business firm can be attained effectively.
CONCLUSION
It has been found from this study that General Electronic Company is holding better brand
image in the market which allows to enhance the work opportunities. Through effective
application of diverse strategic options the business firm can attain better opportunities in the
marketplace. It has been noticed that company is basically focused towards four key elements in
order to attain better opportunities. Classification of factors can be as technology infrastructure,
energy, consumer industrial and capital finance. General Electronic is well focused towards
building better relationship with customers so that goals and objectives can be accomplished. By
having better relationship with customers the environmental aspects within organisation are also
well maintained.
Further, through effective selection of options the managers can have positive impact in
the performance of organisation. From effective application of strategic options the uncertainty
can be resolved in appropriate manner so management need to ensure about it effectively. Use of
existing resources is essential to refer by management because it allows to ensure achievement of
objective. Company is having effective sources of funds which allows to invest in diverse
sectors. GE has extremely invested in its diverse unites to improve the business performance. It
is one of key reason that company has expanded its business in sectors like technology, energy,
automotive, home appliances, etc. such kind diversification in business also reduces the level of
risk and lead business firm to impressive level of success.

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