Strategic Analysis of GE Healthcare: Tools and Techniques

This report analyzes the strategic position of GE Healthcare using various tools and techniques. It includes internal and external analyses, SWOT analyses, evaluation of resources and value systems, portfolio analysis, and future directions. The report provides recommendations for the company's growth and success.

Running head: STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES
SStrategic analysis: Tools and techniques

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 1
Table of Contents
Introduction:...............................................................................................................................2
Strategic Position of GE healthcare:..........................................................................................2
Internal Analyses:...................................................................................................................3
External analyses:...................................................................................................................3
Competitor Analyses:.........................................................................................................3
Industry Analyses:..............................................................................................................3
SWOT ANALYSES...........................................................................................................4
Evaluation of resources and value systems of the company:.....................................................4
Strategic resources of the company:.......................................................................................4
Value Systems of the company:.............................................................................................5
Leadership, growth and learning:.......................................................................................5
Community involvement:...................................................................................................5
High Integrity organizational practices:.............................................................................5
Total Rewards:....................................................................................................................6
Portfolio Analysis and Critical Evaluation:...............................................................................6
Strategic Business Unit:.........................................................................................................6
Evaluation of Portfolio within the SBU:................................................................................6
Analysis and evaluation of key future directions:......................................................................7
Strategy context and future:....................................................................................................7
Centricity of customers:.........................................................................................................7
Making investment in talent:..................................................................................................7
Focusing on strengths:............................................................................................................7
Verifying and adding new revenue streams:..........................................................................8
Considering Feedback from customers and employees.........................................................8
Recommendations:.....................................................................................................................8

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 2
Conclusion:................................................................................................................................9
References................................................................................................................................10

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 3
Introduction:
GE Healthcare is a subsidiary company of General Electric, an international company of New
York that focuses on new and innovative development in health information technology. The
headquarter of GEHC is located in Chicago, IIIinois. The company is working as a
manufacturer and distributor of various diagnostic agents for imaging and
radiopharmaceuticals for the purpose of imaging modalities that are frequently used in the
procedures of medical imaging. The company is also involved in the manufacturing of
medical diagnostic equipment which also includes CT scan machines and MRI machines.
Along with this. It also develops healthcare technological resolutions for medical information
and imaging technologies, drug discovery, patient monitoring systems, medical diagnostics,
disease research and biopharmaceutical manufacturing. GE Healthcare was incorporated in
1994 and at present, it is working successfully in more than 100 nations worldwide
(Healthcare, 2015).
This report will reflect the strategic position of the company with the help of strategic
analytical tools of strategic analyses. For this purpose, information is gathered from the
official site of the company as well as form authentic sources like journal articles and
periodicals. Further, the report includes critical evaluation of the available resources of the
company. The value systems used by the company has also been critically evaluated to create
a better understanding of the strategic position of the company. Furthermore, the report
includes the evaluation of product mix within the strategic business units of the organization.
The evaluation of its future key growth strategies of the business has been evaluated to find
out the effectiveness of its business strategies in long run. On the basis of all findings and
evaluations, some recommendations are provided that can be used to understand the use of
strategies in the best possible way (Bowers, 2014).
Strategic Position of GE healthcare:
The global business environment is continuously changing and presenting new challenges
and opportunities. This generates the need for competitive strategies to remain competitive so
that such challenges and opportunities can be faced and utilized in the best possible way.
Strategic position analyses include both, internal as well as external analyses of the company.
Both can be described with the help of SWOT analyses and Porter's Five Forces Framework
(Anna, 2015).

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 4
Internal Analyses:
The firm is considered as the best one in developing strong leadership in the organization.
The HR department of the firm is always willing to develop a responsive workforce
according to the changing needs. The company invests a sum of more than $100 million
every year in educating and training the staff. It includes technical training, leadership, and
their applications. One of the main strengths and competencies of the firm are its managers.
Approximately 70 laboratories having latest equipment provide its employees global level
instructions in the areas of equipment operation and management. The challenge in front of
the company is maintaining motivation among employees through better remuneration during
the time of worldwide economic failure and decreasing profits of the firm (Qehaja, et al.,
2017).
The firm has always proved itself with its capability of changing and regularly reinventing its
strategies to deal with new standards of international business management. The
organizational design, setting out new standards and policies for management. Research and
development are the main strength of GE Healthcare. The culture of the organization always
ensures that employees and management continue with development and innovation of new
ideas (Blackwell & Eppler, 2014).
External analyses:
Competitor Analyses:
This analysis argues that competitors must ensure that their similar organizations may remain
productive as well. The existence of competitors and substitutes can be beneficial for the
customers. For example, Siemens AG is the main competitor of GE group in power,
communication, medical, lighting, and transportation industries. Siemens Medical Solution is
the largest supplier of healthcare equipment at international level with the workforce of
440,000 employees. It is the competitor firm that cannot be ignored at the time of considering
the external environment of the firm. Other major competitor includes Hitachi Medical
Corporation Nihon, HUJIFILM Medical Systems, USA, TOSHIBA Medical Systems
Corporation, Kohden Corporation, and Philips Respironics Inc. (Kalkan & Bozkurt, 2013).
Industry Analyses:
Industry analyses of GE Healthcare have been performed by using Porter's Five Forces
Framework to determine the most attractive industry. The industry is confronted by new
entrants and competitors. Intensive bargaining power of the customers can be seen by

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 5
constantly demanding high quality at low prices. Retailers need to bargain with the suppliers
in order to fix the prices of desired products. The retail industry of GE Healthcare also facing
the threat of availability of substitute products. The strategic environment of the company can
be understood in a more precise manner with the help of SWOT Analyses:
SWOT ANALYSES
Strengths
Innovation and R&D.
Broad business units and product portfolio.
Brand Image
Global orientation.
Organizational culture and motivated
employees
Training and development programs
Technological advancements
Adoption of changes and challenges.
Weaknesses
Fluctuating profits/revenues.
Warning letters form FIDA
Legal environmental constraints
Product recalls voluntarily.
Opportunities
Growing in aged population.
Emerging markets
Inorganic strategy for growth.
Introduction of new products
Potential of markets.
Threats
Failure of innovative strategies.
Deficit Regulation Act.
Outsourcing.
Strong brand image of competitors.
FIDA rules and regulations.
Evaluation of resources and value systems of the company:
Strategic resources of the company:
 Enhancing the value of services offered to the communities and patients.
 Align their leadership teams systematically based on priorities.
 Assessment of current system clinical, operational and financial performance.
 Development values enhancement plans with well identified industrial strategies.
 Creating and facilitating integration plans for existing and new healthcare systems in
both types, vertical as well as horizontal.
 Management of organizational costs and resources efficiently.

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 6
 Provide training to leaders so that they can enhance organizational value effectively
and adopt changes in a positive manner (Metzger, 2014).
Such resources of the company are used in the best possible way to increase its profitability.
This can be seen through the improvement of the financial performance of the company is
last five years. But in order to achieve competitive advantage in the environment where a
number of rivals exist, these strategic resources are not sufficient to work effectively. The
organization should also provide its attention in developing more strategies like providing
better services than its competitors at a low rate, making an investment in human resources,
developing its global business strategy (Jones, 2012).
Value Systems of the company:
The value systems of the company define its vision, mission, goals, and objectives because
these create the values on which the whole organization and its workings are depended. The
main value systems of the company include following:
Leadership, growth, and learning:
GEHC believes that learning matter a lot in the improvement of an employee's performance.
Learning is included in the core value system of the company as it forces change, develop
skills of the employees so they can get recognized. The company spends a huge sum on
annual basis in the training and development of employees. The people, functions, processes,
and culture are structured to support the individuals and providing them opportunities to
develop their skills and to move throughout the company (Ramarez & Mannervik, 2016).
Community involvement:
GFHC strongly believes that an organization working at international level can only perform
well when it pays back to the community. This belief is the base of all the organizational
practices, activities, generous efforts and uncountable volunteer hours invested by the
employees globally (Ramdorai & Herstatt, 2015).
High Integrity organizational practices:
The culture of GEHC involves high-performance environment that highlights the high level
of integrity in business practices. The goal of the company is to lead the workplace and
marketplace by giving respect to human rights related to the business and social ethics. The
company also ensures to follow legal and financial compliance as well.

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 7
Total Rewards:
GEHC use the strategy of total reward package to engage, attract and retain highly talented
and experienced professionals. It has the structure that rewards behaviors, values, and
performances of the employees. The management of the company feels proud to offer such
competitive and beneficial plans at each level of the functions (Heide, 2013).
Portfolio Analysis and Critical Evaluation:
GE healthcare prefers to invest in innovative and efficient solutions. It makes an investment
in such applications which creates a positive impact on the partners and customers of the
company. The company exists to leverage in digital expertise and best class technology to
deliver solutions to the customers. It core focusing area includes value-based care, increase in
practice efficiency, increase in care quality and providing satisfaction with minimizing per
capita cost. Jon Zimmerman, the General Manager and Vice President at GE healthcare is
highly excited by the organizational effectiveness to ensure that right persons are performing
right roles with the use of right skills in the right quantity and at the right time (More, 2016).
But, in order to achieve the desired standards, a sophisticated and detailed strategic vision is
required. GE healthcare has set a vision for it that is not related to its parent company as well
and it includes, consolidating the resources into a light, a horizontal and streamlined platform
where it can lead the market without any fear of any rival or competitor (Metzger, 2014).
Strategic Business Unit:
A strategic business unit is a portion of the organization that is enough large to stand and
operate on its own. For example, a person may be operating within his current market but
also has a chance to offer a new product or services to the new industry on his own basis. GE
healthcare uses an easy diagram of nine boxes with three important designations for the
purpose of defining the importance of each business unit in terms of its attractiveness and
uniqueness to the industry. It also defines the strength of that individual unit with respect to
the overall strength of the organization (Westermeier, 2016).
Evaluation of Portfolio within the SBU:
The portfolio of the company indicates that the company prefers to provide the technology
and equipment that may provide digital expertise to the customers which should be
trustworthy also. For this purpose, it has divided its busi8ness in the form of strategic
business units which all are individually capable to develop and functions in their markets. It
increases the productivity and profitability of the business. But at the same time, there may a

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 8
problem regarding the management of such SBU's at central level because at the end all
SBU's are the part of a parent company. Thus the problem may occur regarding the
management and it may require huge sum to invest in the training and development of the
employees working in different SBU's.
Analysis and evaluation of key future directions:
Strategy context and future:
The innovation and growth strategy of GE Healthcare is the direct outcome of an actionable,
well-articulated and clear corporate strategy. An unclear strategy and lack of direction and
focus can be problematic because the corporate strategy is responsible for the overall
direction of any business. Resource allocation of various SBU’s, prioritization of investment
in human and strategic resources and fulfillment of specific requirements of the employees
can be managed by considering the corporate strategy with the growth strategy of the
company (Dossel & Schlegel, 2010).
Centricity of customers:
As a growth-oriented company. GEHC understands that they operate to deliver the real value
by considering the requirements and needs of its customers. For the purpose of growth, in the
long run, the company is always committed to making significant efforts in near future to
constant understand and track customer dynamics. According to the management of the
company, it is required to know that all need of all the customers is not same. Thus, GEHC is
looking forward to analyses its customers and find the most profitable segment to develop the
strategy accordingly (Blaivas, 2009).
Making investment in talent:
Although the company is known for its training and development activities which enables an
employee to become more productive. The management of the company will try to invest in
the human resource that may need the minimum amount of training so that time and money
both can be saved and utilized in other areas of business expansion. But hiring experienced
employees may also result in an increase in the payout of the employees because experienced
professionals would not like to work for the salary equal to inexperienced employees
(Kirchen, 2016).
Focusing on strengths:
The company has a number of strengths as shown in the above SWOT Analyses. As per the
analyses, GEHC will try to utilize its strengths in the maximum possible way so that it can

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 9
take advantages of all the opportunities at the same time handling the threats without any loss
to the organization. For example, its strength of ease in adopting the changes in challenges
may be used to fulfill the changing demands of customers and industry. In future, the
company would mainly focus on taking advantages of its strength so that it may result in
strategic growth as well (Cheng, et al., 2015).
Verifying and adding new revenue streams:
The company will verify its current revenue making streams that either they are working with
their full capacity or not. It will include analyses of all strategic business units in depth and
development of new strategic business units to increase the efficiency of the business. An
increase in efficiency would automatically result in achieving strategic growth in a positive
manner (Healthcare, 2014).
Considering Feedback from customers and employees
In order to achieve strategic and corporate growth, the company will consider feedbacks from
its ideal customers and employees. Customer's feedback will help in identifying an issue in
services and products so that the company will be able to take corrective actions. Feedback
from the employees will help the organization in identifying the human resources issues
within the organization. Identifying and solving these issues are more important because
human resources are the one who is responsible for carrying out all activities and functions of
the organization. An effective and efficient management of human resources may lead to the
success of an organization along with its strategic growth (healthcare, 2017).
Recommendations:
On the basis of above study, there are some recommendations that can be helpful in
increasing the profitability of the business. These recommendations can be described as
follows:
 The company is required to consider the capabilities of the organization and
accordingly consider the strategic goals that are required to achieve within the period
of next 12, 24, 36 months. It would make easy for the organization to perform
operational activities. For example, if the company aims to acquire market share by
offering better competitive products and services, than referral managing and network
utilization are the main areas for this purpose (Rocker & , 2010).
 Instead of facing all areas at a time, the company should focus its key areas and
problems that are required to be solved on priority basis. It will help the organization

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 10
in removing the root causes of the problems. This would allow the company to shift
away from regular demonstrations to specific, meaningful and tailored discussions
about how the technology platform will identify needs of the ideal customers (Dey, et
al., 2017).
 The company should establish a multidisciplinary selection department that may
conduct the assessment of the product and services form various perspectives
including technical, financial, administrative and clinical. It would in the decrease in
chances of product failure or supply in defective products.
 GEHC should carry out meetings on its current projects and developments to know
the effectiveness of management and operational practices. This would help the
company to alter and changes its strategic planning accordingly.
 A proper attention to the management of human resources should be given in order to
save the extra cost involved in the training and development programs. Further, in this
context, the company should also pay attention to the involvement of diversified
employees in the organization. As the company is providing its services at the global
level, thus in order to understand the needs of people from different religions, it is
required to have the employees and people from different religions and beliefs
(Omachonu & Einspruch, 2010).
Conclusion:
On the basis of above study, it can be concluded that GE Healthcare is a leading organization
in the developing healthcare information technology. As it is a multinational company, it
prefers to use to strategic management techniques and strategies that can be applied in
managing a number of its strategic business units. Although it has some strengths that makes
it different from the other companies in the same countries, yet it has to face some threats in
its environment due to some of its strong competitors. The company has its well-developed
resources in terms of both, strategic resources and human resources which can lead the
organization to the path of great success. The study also concludes portfolio analyses of the
company which shows that its portfolio includes developing such type of technology which is
different from other and will totally depend upon the digital expertise instead of the need of
any professional expertise. The report also concludes some key directions stated by the
company in order to attain strategic growth in long run. Such directions are gathers form the
official website of GE Healthcare. These directions include initiating such steps that are to be
taken by the company with the help of available resources. Furthermore, on the basis of entire

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 11
understanding of the report, some recommendations have been provided to show the gap
where the company can perform better by utilizing its strengths and resources. Such
recommendations have been provided on the basis of the performance report and opinions of
the stakeholders that are easily available on the official website of the company. All
information mentioned in the report are based on the study of authorized journal papers,
books, and information published either on the company website or in the authorized online
resources. This report has drawn a conclusion about resources, portfolio mix, future
directions and recommendations for the effective global strategic management of GE
Healthcare.

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 12
References
Anna, A., 2015. Strategic Management Tools and Techniques and Organizational
Performance: Findings from the Czech Republic. Journal of Competitiveness , 7(3), pp. 19-
36.
Blackwell, R. & Eppler, D., 2014. An Approach to Strategic Situation Analysis: Using
Models as Analytical Tools. The Journal of Global Business Management, 10(1), pp. 80-86.
Blaivas, M., 2009. Critical Ultrasound Journal. GE Healthcare technology column for
Critical Ultrasound Journal, 1(1), p. 25.
Bowers, D., 2014. Medical Statistics from Scratch: An Introduction for Health Professionals.
New York City: John Wiley & Sons.
Cheng, X. et al., 2015. Recent Advances and the Future Generation of Neuroinformatics
Infrastructure. Lausanne: Frontiers Media SA.
Dey, N., Ashour, A. S. & Borra, S., 2017. Classification in BioApps: Automation of Decision
Making. New York City: Springer.
Dossel, O. & Schlegel, W. C., 2010. World Congress on Medical Physics and Biomedical
Engineering September 7 - 12, 2009 Munich, Germany: Vol. 25/V Information and
Communication in Medicine, Telemedicine and e-Health. New York City: Springer Science
& Business Media.
Healthcare, G., 2014. Vscan View. [Online]
Available at: http://www3.gehealthcare.com/~/media/documents/us-global/products/
ultrasound/journal%20abstract/vscan/gehealthcare-vscan-view-september-edition.pdf
[Accessed 7 June 2018].
Healthcare, G., 2015. Achieving Affordable and Sustainable Healthcare. [Online]
Available at: http://globalhealth.org/wp-content/uploads/GE-Healthcare-Ministries-of-
Health-White-Paper-final-dated-5-11-15-002.pdf
[Accessed 7 June 2018].
healthcare, G., 2017. 5 Predictions: Why 2018 Will Be The Future of Healthcare. [Online]
Available at: http://newsroom.gehealthcare.com/5-predictions-why-2018-will-be-the-future-

STRATEGIC ANALYSIS: TOOLS AND TECHNIQUES 13
of-healthcare/
[Accessed 7 June 2018].
Heide, M., 2013. Harvard Business Review Case Study: General Electric Medical Systems
(2002). Munich: GRIN Verlag.
Jones, S., 2012. BRICs and Beyond: Lessons on Emerging Markets. New York City: John
Wiley & Sons.
Kalkan, A. & Bozkurt, O. C., 2013. The choice and use of strategic planning tools and
techniques in Turkish SMEs according to attitudes of executives. Procedia - Social and
Behavioral Sciences, Volume 99, pp. 1016-1025.
Kirchen, R., 2016. Mission: Engineer GE Healthcare's future. [Online]
Available at: https://www.bizjournals.com/milwaukee/news/2016/09/02/mission-engineer-ge-
healthcares-future.html
[Accessed 7 June 2018].
Metzger, K., 2014. General Electric. Corporate Strategy Analysis. Munich: GRIN Verlag.
Metzger, K., 2014. General Electric. Corporate Strategy Analysis. Munich: GRIN Verlag.
More, R., 2016. Marketing High Profit Product/Service Solutions. London: Routledge.
Omachonu, V. K. & Einspruch, N. G., 2010. Innovation in Healthcare Delivery Systems: A
Conceptual Framework. The Innovation Journal: The Public Sector Innovation Journal,
15(1), pp. 1-20.
Qehaja, A. B., Kutllovci , E. & Pula, J. S., 2017. Strategic Management Tools and
Techniques: A Comparative Analysis of Empirical Studies. Croatian Economic Survey,
19(1), pp. 67-99.
Ramarez, R. & Mannervik, U., 2016. Strategy for a Networked World. Singapore: World
Scientific Publishing Company.
Ramdorai, A. & Herstatt, C., 2015. Frugal Innovation in Healthcare: How Targeting Low-
Income Markets Leads to Disruptive Innovation. New York City: Springer.
Westermeier, R., 2016. Electrophoresis in Practice: A Guide to Methods and Applications of
DNA and Protein Separations. New York City: John Wiley & Sons.