Report on Impact of Strategy formulated by CEO of GE

GE Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Manner in which Jeff Immelt redirected the strategy of GE..................................................1
TASK 2............................................................................................................................................2
a. The requirement of 21st century business environment.....................................................2
b. GE's resources and capabilities..........................................................................................4
TASK 3............................................................................................................................................5
What organizational changes has the new strategy necessitated? Will GE be able to
successfully execute the new strategy?..................................................................................5
TASK 4............................................................................................................................................8
What alternative strategies should GE consider?...................................................................8
CONCLUSION:...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategies are usually formulated by the top management of organisation so that
the organisation can sustain in competitive environment. These strategies are formulated with the
motive to enhance the performance of business and reduce the impact of external forces that
drags business down (Finnegan, 2017). In accordance with this context, the present report will
demonstrate the understanding about impact of strategy formulated by CEO of GE (General
Electric) Jeff Immelt on the organisation. Whether the strategies aligned with other elements of
the organisation or not is going to be assess in this report. Current resources and capabilities of
the organisation will be identify in the assignment. (Clauser and Ewert 2017).
TASK 1
Manner in which Jeff Immelt redirected the strategy of GE
After becoming Chief Executive Office of GE in 2001, Jeff Immelt has faced numerous
challenges which includes attacks of 9/11, subsequent increase in high profile corporate scandals,
increase in competition and global financial crisis of 2007 – 2008. After analysing those
challenges and issues, he realised that there is need to bring transformation in the organisation so
that they can sustain in the market (Gao, Schlosser and Morgan 2018). He diverted
organisational focus from cost cutting and introducing new products, services and market to
organic growth, customer centred and innovation. Immelt concentrated on redirecting the
strategy of General Electric so that impact of external challenges can be reduced and
organisation can provide products and services according to the global trends. GE divested
electrical engineering business. In 2002, Jeff got committed towards increasing the organic
growth rate of 8% per year. He identified numerous global trends which includes ageing
population, increase in demand of sustainable energy and products, needs to improve
infrastructural facilities and opportunities in the emerging market. For example, Jeff proposed
that attitudes on globalisation have been transforming rapidly and GE remain agile to move on
their own.
By taking advantage of core competencies of General Electric, Jeff Immelt aim to
establish values of customers (Singh, 2015). The core competencies of General Electric
identified by Jeff was use of advance technologies, delivering excellent and first class services to
the customers, providing products that increases sustainability, customised products and potential
for high growth market. Jeff implemented growth strategy in the organisation in order to assess
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the needs and expectations of the customers and to maximise the growth of organisation. His
idea of growth strategy focuses on two areas which were either improve or enhance the existing
business facility or establishing new business for commercial area. Through identifying a new
growth platform, it would then be executed through a series of divestment and strategic
acquisitions in sectors with high growth potential. Jeff Identified that technology was considered
as key element which can drive GE towards sustainable growth and development (Boldea and
Nasar, 2016). In order to enhance the growth, management needs to implement and make use of
new and innovative technologies, that can reduce the efforts of management and enhance the
performance of the employees. Thus, GE immediately expanded its research and development
department and provided it with adequate financial banking. Customer Focus Initiative has been
considered as vital implementation of Immelt's growth strategy. This lead to the revitalisation of
GE's marketing functions most notably through establishment of GE's commercial Council and
number of programmes which were customer oriented (Haran and Rajashekara, 2017).
Customer centred approach became Immelt's value creation strategies. Through this, the
management were able to provide customised and sustainable products and services to the
customers that eventually benefits the organisation and they were able to sustain in the
competitive environment (Madsen and Walker, 2015). The strategy was focusing on providing
different types of innovative products and services which were merely focuses on the needs and
expectations of the customers. (Qolipour, Mostafaeipour and Tousi, 2017) With the help of good
decision the company is able to develop the innovation and core competencies framework so that
profitability of the firm can be enhanced in the effective manner.
TASK 2
GE strategy aligned with:
a. The requirement of 21st century business environment
In order to assess the requirement of 21st century business environment, PESTLE-C
model will be implemented. The model is used to analyse external environment along with the
competitor positions. In this context, the conclusion will be made that demonstrates whether
Immelt's growth strategy has addressed the requirements or not. The description of PESTLE – C
model is described below: Political Factor: Political factors influences the organisational growth and development.
These are the governmental activities that affects the operations of organisation greatly.
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