General Electric: Strategic Change Management

The paper discusses General Electric Company and its strategic change management. It includes PESTLE and SWOT analysis, factors driving the need for change, two change management models, and stakeholder analysis.

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General Electric
General Electric
Strategic Change Management
6/18/2018

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Executive Summary
The paper discusses General Electric Company. It is an American based company.
The PESTLE analysis of General Electric determines the major opportunities to grow
business operations. General Electric has the opportunity to raise its level of penetration in
the development of America. The SWOT analysis of General Electric present threats to
business success in the macro environment. Shifting of renewable energy is the threat against
General Electric oil and gas production. The performance of an organization is greatly
influenced by external environment. General Electric undergoes a strategic change in search
of new opportunities and threats. There is a need for change in General Electric policy so that
company can cope up with the problems such as a continuous decrease in revenue and
diverse portfolio of the company are the major internal and external factors which drive
change in the organization. Therefore, General Electric needs new CEO for the
implementation of new strategies. Then John L. Flannery appointed as the new CEO of the
company in place of old CEO Welch. Then the two change management model i.e. Kotter's
and ADKAR model enhanced the working structure of General Electric. Kotter's model helps
General Electric to focus major on building adequacy so that employees get easily mold in
the change. ADKAR model is used in General Electric to be effective: aware, desire,
knowledge, ability, reinforcement an individual must follow for the change. Stakeholders
help in change management strategy as they keep customers satisfied, manage problems
closely, monitor and keep informed.
In the end, John L. Flannery controls the leverage performance of the diverse
portfolio of General Electric. This execution of policies caused in a continued economic
advantage for General Electric in relation to the image that Jack Welch had established for
General Electric. Now the condition of General Electric is improved and the company is
known by the worldwide digital manufacturing company.

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Table of Contents
Introduction................................................................................................................................4
History....................................................................................................................................4
Vision and Mission.................................................................................................................4
PESTLE of General Electric (GE).........................................................................................5
Political Factor....................................................................................................................5
Economic Factor.................................................................................................................5
Social Factors......................................................................................................................6
Technological Factors.........................................................................................................6
Environmental Factor.........................................................................................................6
Legal Factors.......................................................................................................................6
SWOT Analysis of General Electric (GE).............................................................................7
Strengths.............................................................................................................................7
Weakness............................................................................................................................7
Opportunities......................................................................................................................7
Threat..................................................................................................................................7
Need for change in General Electric..........................................................................................8
Factors that drive the need for strategic change.........................................................................9

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External Factors......................................................................................................................9
Internal Factors.....................................................................................................................10
Measure the resource suggestions for not replying to strategic changes.................................12
Two change Management models: Kotter’s model and ADKAR model and its relevance to
the General Electric (GE).........................................................................................................13
Kotter’s Model......................................................................................................................13
ADKAR Model....................................................................................................................16
Change Management strategy involving the stakeholders.......................................................18
Strategies to overcome resistance to change............................................................................19
Shareholder Analysis – The Power/Interest Grid.....................................................................21
RACI Matrix............................................................................................................................22
Conclusion................................................................................................................................24
Recommendations....................................................................................................................25
References................................................................................................................................26

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Introduction
On 15th April 1892, General Electric Company (GE) was incorporated in New York
and headquartered in Boston (Reuters, 2018). The CEO of the company is John. L. Flannery
since 1st August 2017. General Electric includes goods and facilities like airplane
locomotives, power generation and oil and gas manufacture tool for financing and
manufacturing products. Segments of GE Company contains renewable energy, control on
oil, gas, medical, conveyance, and investment (Sanders and Kandrot, 2010). In relations to
gross revenue, General Electric is most powerful business across the world. General Electric
is registered as the 26th industry according to Fortune 500. General Electric has its name
registered among the top business company because of its exclusive business procedures and
customer satisfaction.
History
Earlier Mr. Welch was the CEO of General Electric. GE began to be involved in
electrical technology. GE made major changes for car and airplanes, in 1920 (Reuters, 2018).
In 1940 GE manufactured jet engine and become a major manufacturer of electric trains.
General Electric manufactured many large locomotives. Now General Electric is one of the
major productions of military and commercial jet airplane engines.
Vision and Mission
The vision of the company is “General Electric vision is to develop the company
world’s major digital manufacturing company in America and across the globe. General
Electric converts the business with software’s designed machines and descriptions and that
are associated, responsive and analytical in nature” (Panmureinstitute, 2018).

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The mission of the company is “To capitalize the next manufacturing era, to develop,
change, cure and control the world” (Insight, 2013).
General Electric employees worldwide are committed to manufacturing jet engines to
power, monetary services to plastics, and health imaging to new and information. General
Electric statements are not a conservative mission and vision statement but it attains what it is
proposed to “interconnect corporate determination or motive for being to its investors.”
Managers in the organization use company mission statement to change policies for the
various zones of actions throughout the organization in America. General Electric vision
statement displays the objective to be not digital manufacturing enterprise but the leading
unique amongst all the competitors. The next aim of the company vision statement defines
objectives to do in terms of its goods. The company motive is to help clients perform actions
with the problems. And all these elements of the company vision statement are replicated in
General Electric company mission statement (Insight, 2013).
PESTLE of General Electric (GE)
Political Factor
 The government of America supports for digitization of businesses in the
organization.
 The government also support for the move to renewable energy in General Electric.
 Increasing of knowledgeable information for the security in the organization by
American government support (Yılmaz and Ustaoğlu, 2013).
Economic Factor
 For the development of America economic growth is important.
 Disposable revenues of General Electric are growing (Fem for the university, 2016).
 Worldwide trade of General Electric from industrialized countries is growing.

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Social Factors
 Approval for the green standard of living is growing in the environment of General
Electric.
 Increase in the organization for acceptance of mobile machinery.
 Maintenance is there in the company for renewable energy use (Fem for the
university, 2016).
Technological Factors
 General Electric has increased in digital technology.
 Acceptance of operational mobile services is growing among the employees of
General Electric.
 Increase in accessibility of renewable energy equipment with the workers in the
company (Fem for the university, 2016).
Environmental Factor
 General Electric has limited oil reserves.
 There is an increase in availability of recycling materials in the organization.
 General Electric has risen in global energy consumption (Fem for the university,
2016).
Legal Factors
 The company provides knowledgeable information for security laws.
 Growing difficulty of waste removal laws in the organization.
 There is the difficulty of online invention regulations in the firm (Fem for the
university, 2016).

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SWOT Analysis of General Electric (GE)
Strengths
 Diversified: - GE Company has a varied collection and helps in diverse markets with
all its corporate products.
 Income Stream is balanced: - GE’s varied range is kept with balanced income streams
which reduce business risk.
 Strong R&D:- GE has a tough research and development. The tough R&D allows GE
to bring in advanced products (Bas, 2013).
Weakness
 Lawful Records: - GE has been a matter to various lawful records. The company has
various legal cases pending.
 A high quantity of borrowed reserves: - GE has an important quantity of
responsibility level which disturbs the company’s processes (Abhijeet, 2018).
Opportunities
 Strong overlook for GE Capital in the US: - Optimistic viewpoint in the US for GE
capital. The demand for GE capital products can produce.
 Increasing demand in the airline business: - Through the world air transportation
business is rising and increases in demand for a new airplane in General Electric
(Jaber et al., 2015).
Threat
 Government Policies: - GE has to fulfill numerous eco-friendly and administrative
regulations for the American government.
 Intense Struggle: - GE faces strong rivalry from numerous investment banks and
economic organizations (Basin, 2018).

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Need for change in General Electric
For various reasons, the organizations go for a strategic change. The performance of
the organization is greatly influenced by the external environment. Companies undergo
strategic change because of the forces of new opportunities or threats. Sometimes,
organizations need to adopt change for financial issues to solve the problems. Management
problems also sometimes act as the driving force for applying the strategic change (Hartung,
2017).
The major reason for the change in GE is the requirement of the new policy to modify
the portfolio of the company and to concentrate on revenue and a new CEO to control the
working structure as the organization day by day bearing the losses. General Electric
company stock also needs a bigger change to survive. Former CEO Jeffery Immelt topped
our list of CEOs who needed to go and finally in July CEO changed (Hartung, 2017). By
introducing slashing guidance and resetting investor expectations General Electric Company
tried to get ahead of the weakness of stock. New CEO John Flannery tried to control
investors with a new detailed update of investor, in which the company highlighted its
strengths and laid out plans to address its weakness (Hartung, 2017). The systematic working
presentation was not sufficient. General Electric has to manufacture. In order to have faith in
long-term value formation investors needed to see a route to get advanced incomes. Below
Immelt, the former CEO of GE has concentrated on profits. The approach was twisted from
watching outside for new development markets and opportunities to observing inside for
conducts to enhance the company via corporate sales, asset sales, and other saving. Sales
were declining continually whereas leadership followed with higher margins. One of the
world countless investor, innovator, and organizer of General Electric, Thomas Edison was
shocked. At this point, it was important to save General Electric. General Electric continues
to demolish which was once a great invention engine (Hartung, 2017).

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Factors that drive the need for strategic change
There are many factors according to which there is a need for new strategy in General
Electric (Millar, Hind and Magala, 2012). General Electric first step for change is appointing
new CEO John L. Flannery. John made major changes in the brand positioning of a product.
John also tried to create certain provisional changes as chairman, and he was somewhat
successful in his change. John created a way for the expansion of business of General
Electric. The change he made included a new company color palette (range of colors),
modification in the General Electric logo, then new personalized font for the organization,
changes in the company saying from “imagination at work” to changing with the slogan “in
life we bring good things” (Joseph, 2012).
External Factors
External Environment of General Electric includes the customers, dealers, unions,
stakeholder, management and many others. The organization has its own objectives and tasks
associated with each other in the surroundings. Changes in political, social, financial,
expertise and authorized atmosphere force the administration to change themselves
(Syracusecoe, 2017).
Following are the points how external factors affect the need for strategic change in General
Electric:-
Technology: - The modification of technology in the organization and other administrations
follow the new technology. Under pressure, the administration becomes less lucrative and
weakens its modest position. Therefore, General Electric is working on this technology
(Syracusecoe, 2017).

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Promotion conditions: - Every group in General Electric has to face a struggle in the market.
It includes factors involved in producing, distributing and promoting the products.
Community Changes: - People’s ambitions, he wants and their conducts of working all
reflect community changes. Because of numerous services the level of instruction,
development, feeling of independence and influence on new evidence sources due to
international factor. These community variations affect the nature of individuals in the
environment of General Electric (Syracusecoe, 2017).
Governmental and lawful changes: - American Government and its lawful factors usually
describe the actions which the organization can accept and procedures which will be
monitored by in achieving those actions. Any modification in these governmental and lawful
factors may disturb the business procedure of General Electric (Syracusecoe, 2017).
Internal Factors
The inner environment of General Electric contains all the services and issues inside
the business which can affect its marketing strategies. This factor includes the sales
department, marketing department, managers, directors, employees, staff and the
manufacturing unit (Syracusecoe, 2017).
Change in the administrative employees: - In addition, because of modification in
executive employees of General Electric, there are ecological changes. New executives
swapped the seat with old executives, which are important as of superannuation, elevation,
and transmission. Every new executive brings new innovative concepts and a different
technique of working in the society. Therefore, the end result is that a business has to alter
accordingly (Syracusecoe, 2017).

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Shortage in the existing business: - Occasionally it is essential to change because of lack of
the current administrative procedure. These shortages may lead to the uncontrollable span of
the organization, a huge amount of decision-making levels, lack in coordination among
numerous divisions, difficulties in communication, lack of regularity in policy, the absence of
teamwork among the line and staff, and so on (Adkar et al., 2012).
Nature of the workforce: - Over the passage of period the nature of workforce has altered in
General Electric. Through diverse groups, dissimilar work values have been expressed. In
mid-thirties to forties, workers are trustworthy to themselves only. The worker from the
younger generation is more dedicated to their work. The new group gives more emphasis on
human values because they have a better educational qualification. The employee’s
expenditures are also very high which again put a stress on General Electric
(Syracusecoe, 2017).
To escape emerging apathy: - To avoid developing inflexibility organizational changes in
General Electric. The business should be self-motivated because we cannot use any single
technique of administration every time. Therefore change is important so that individual
grows a habit for modification. Other factors which create an impact on the business of
General Electric include:-
 Many products of the organization have long product development cycle and produce
worth and effectiveness are dangerous for growth.
 Investigation and expansion expenses are very important to the organization industry.
 Numerous product of the organization questions a number of regulatory values
(Grant, 2016).

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Measure the resource suggestions for not replying to strategic changes
If the administration does not completely answer to strategic change it may seriously
affect them. The organizations also must respond at the right time. In a strategic change of the
organization the main resources involved are the human resources (HR), financial resources
and physical resources (Feedough, 2018).
Human Resources: - Human Resources of General Electric include interviewing, hiring,
training, redundancies, restricting, etc. Human Resource is vital. Unnecessary expenditure
and time lag is the result of lack of co-operation in Human Resources of the organization. If
the HR manager would not act as it is scheduled, then no planned variation can be effective in
the company. The individual nature is to enjoy the static environment and they always look
comfortable in what they do. Human Resource in the organization always has a tendency to
struggle to change. Therefore if the administrative team is not inspired about their new
strategic change, their enthusiasm level will be little which will have an influence on
competence and excellence of the project (Tilles, 2018). The HR of General Electric is
motivated by creating them part of variation technique and providing proper training
sideways with looking for contribution will encourage them and create things relaxed for
workers as well as the association. Sometimes, it is a time-consuming and costly process to
hire new employees or staff and give training to them. So steps should be taken at the right
time so that General Electric will not be affected by time management and operation of a
change strategy (Wheelen and Hunger, 2011).
Training: - Training process includes a lot of expenses and is too timewasting for the
organization. If the employees understand the importance of tactical change then there is no
requirement for General Electric to expend money on training.

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Financial Resources: - Cost incurred by the organization for the renovation of existing
buildings infrastructure, repositioning, costs in new buildings, redundancy costs and training
cost (Tilles, 2018).
Physical Resources: - Physical resources of General Electric are concerned with machines,
vehicles, buildings, equipment etc.
Two change Management models: Kotter’s model and ADKAR model and its relevance
to the General Electric (GE)
Change is an unavoidable aspect of life. The strategic, operational and everyday
aspect of the organization leads to the successful change. According to the circumstances,
managers of General Electric need to consider how to balance the different approaches to
strategic change (Appelbaum et al., 2012).
Kotter’s Model
Kotter’s Model is an easy-going systematic model which delivers a strong explanation
and control of the complete procedure of alteration. Give importance to the training of
employees for the success of the organization. Kotter gives major focus on building
acceptability for change so that the employees get mold easily. Kotter’s model is a step by
step model (Mishra, 2013) therefore; skipping a single step can cause a serious issue for the
organization. The procedure is very time-consuming and expensive. Kotter recognized eight
stages of changes; General Electric can be successful by managing the change and can
achieve a goal and business improvements (Appelbaum et al., 2012). Following are the steps
for the relevance of the model to General Electric:-
Step1: Create Determination

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 General Electric can recognize and emphases on the possible threats and the impacts
which could happen in upcoming.
 Investigate the changes in the organization which could be selected to expand the
business (Kotter, 2012).
 Recruit honest discussions in the organization to make people think over the prevalent
issues and give substantial reasons.
 General Electric demand for funding from customers, outside investors, and industry
people.
Steps 2:- Form a Powerful Coalition
 Recognizing the active modification of leaders in General Electric and also the
investors, demanding their participation and promise towards the entire process
(Kotter, 2012).
 Work on team building to form a powerful change union in the organization.
 Identify the organization weak areas to safeguard that the association has a decent
combination of employees from dissimilar departments and dissimilar levels.
Step 3:- Produce an Idea for Modification
 Determining the basic values of General Electric, defining the ultimate goal of GE
and the strategy for understanding the change in the company.
 Ensure that strategy change coalition can define the vision of General Electric
(Kotter, 2012).
Step 4:- Communicate the vision:-
 Communicate the change in the vision of General Electric in a convincing way.

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 Link the idea statement of General Electric with all the features like employee
appraisal, training, etc.
 General Electric deal with the subjects of individuals honestly and with full
concentration (Small et al., 2016).
Step 5:- Removing Obstacles:-
 Ensure that the process of General Electric and its organization are in place and are
associated with the complete company idea.
 Continue check for obstacles and start practical activities to remove the problems
included in the company procedure (Eayrs, Cadrin and Glass, 2014).
 Reward employees for support and change in the process of General Electric.
Step 6:- Create short-term wins:-
 In the change process, if we create short-term wins in the early stage, the
organization can feel of victory.
 Instead of one long-term goal, we can create many short-term targets, which are easy
to achieve, less cost-effective and lesser possibility of failure (Kleber et al., 2013).
 General Electric reward people who achieve the targets.
Step 7:- Construct on the transformation
 By analyzing the achievement stories General Electric achieve constant
development.
 Keep thoughts new by conveying in a new modification in the organization.
Step 8:- Translate the variation in company culture

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 Safeguard that the variation becomes an essential part of the organization
environment and is noticeable in every department of the organization.
 Ensure that the company leaders should support the organization and moreover new
leaders last to spread the business and helps towards modification (Kotter, 2012).
ADKAR Model
The ADKAR Model is an objective-oriented change organization model to help
employees and the organization change. ADKAR includes the five outcomes to be effective:
awareness, desire, knowledge, ability, reinforcement an individual must follow for change in
the organization (General Electric). When functional to the organization, this model permits
leaders and change organization teams to an emphasis on their actions that will achieve the
organization goal (Worley, and Mohrman, 2014). ADKAR Model is simple and easy to use
for everyone in the company. Workers, executives and senior leaders all can use ADKAR
Model to discuss and describe change composed. Change is often a complex and problematic
procedure. Therefore to manage change on the personal and the organization level it is
important to require new ideas, a new model for alteration and innovative agendas and tools
to allow the level execution of the anticipated alteration. ADKAR can be useful to a varied
diversity of change to drive variation accomplishment (Bragard et al., 2010). Following are
the five outcomes relevant to the organization:
1. Awareness: - Awareness of the need for change in the business or the organization is
very important. Clarifying to the employees that customer will not support old
software, and to meet the needs and wants of consumers new software is important
and will improve efficiency these all include awareness. The awareness messages
send by the senior manager in the organization will be more effective for the
employees (Worley, and Mohrman, 2014).

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2. Desire: - Desire is the inspiration for employees to involve with the change in the
organization. To create desire executive can also help by understanding the variation
in the significant terms and serving them so that they can contribute more in the
change. The executive performs a key character here, as the employees will take an
own decision to contribute to the variation or not will be based on the motivation
given by the manager (Worley, and Mohrman, 2014).
3. Knowledge: - Knowledge is the relevant skill that the participant of General Electric
will have for the change. Training should be provided to employees to train them and
involve in awareness building. Ensure that the training is detailed to the worker's role
in the modification of the organization (Zhao et al., 2013).
4. Ability: - General Electric perform in the upcoming altered the environment and
having the capability to really execute in the upcoming transformed environment are
very dissimilar. To understand a variation, personnel need time and when the
capability is accomplished, the transformation takes place, and the organization will
determine fresh actions (Worley, and Mohrman, 2014).
5. Reinforcement: - Reinforcement is the determining and evaluation that is put in place
to safeguard the modification and workers do not fall back to the older way of
working. Performance appraisal is the best method in the organization to reward
workers for the manufacture of the variation and to explain to them that their
involvement is important (Worley, and Mohrman, 2014).
Therefore change management is compulsory in General Electric to plan management.
Project management safeguards the project explanation is calculated established and
distributed, while change management guarantees the project explanation is efficiently
approved and used. Driving positive individual evolutions must be the main attention of
the actions taken in administrative change organization.

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Change Management strategy involving the stakeholders
In planning strategic changes for General Electric stakeholders needed to be involved.
Stakeholders involve the development of the changes lies upon the variety of issues such as
their impact, their significance and the number of changes which going to affect them
(Dudovskiy, 2012).
Change management approach with shareholders
General Electric organization approach with shareholders mainly lies on the level of
control of each shareholder. The company is recommended to an agreement with its
shareholders on the basis of the following figure (Tinypulse, 2018):
(Dudovs
kiy, 2012)
According to the figure (Dudovskiy, 2012), General Electric stakeholders need to be
closely managed by more power and more level of concentration. Customers with a more

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level of control and less level of interest stakeholders of the company management require to
be reserved fulfilled. Suppliers using a low level of power and more level of attention
stakeholders in the organization are essential to be kept informed about the change through
various communication channels. General public with a little level of power and little level of
attention stakeholders require to be kept observed with minimum determinations and
properties. The system proposed for the company (GE) to include stakeholders in change
planning, establishing a well-organized method for developing an actual change plan and
participate in its organized implementation. In the process of ‘co-creating’ involves
improvement of employees and managers and develop joint scenario analysis (Freeman,
2010).
Strategies to overcome resistance to change
Change is never easy. It is important for survival, and those companies that struggle for a
change too long will be left in the dust. Not every individual in the organization committed to
change. Many employees hate to change their surrounding and will react negatively every
time (Dukes, 2018).
1. Be upfront about the reason for the change: - To reduce or to prevent rumors from
spreading, the organization should clearly communicate with the entire workforce
(like the staff, employees, workers, labors) the need for change. The organization
should explain what the problems the company is trying to solve and the options that
are considered (Dudovskiy, 2012).
2. Demonstrate enthusiasm for the change: - In the organization, if the management
is not dedicated to the change, then employees at every level will hesitate
(Dukes, 2018). Therefore shoe employees that the management of the company is
concerned about the change. Actions always speak louder than words, so it will be

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easy to win the confidence of employees about how the change will benefit them. If
management commits to becoming an expert in the process and helps employees feel
more confident about the success of the project (Taher, Krotov and Silva, 2015).
3. Over-communicate throughout the process: - Forecasting the information and
process for implementing the change, will make easily available for the employees.
Share all the updates about process frequently and what needs to be improved. This
kind of authenticity and transparency encourages the trust and faith in their employer
and have confidence the organization has their best interests (Dukes, 2018).
In stakeholders struggle, there are four types of major reasons i.e. self- awareness, less
patience for modification, dissimilar calculations of the condition and misinterpretation.
Self- Awareness: - Concern with how variations will disturb the organization attention,
in place of concerned the effect of the achievement of the company.
Less Patience for Modification: - Many individuals are very busy with safety and
constancy of their effort in the organization (Davis, 2012).
Changed Valuations of the Condition: - Dissimilarity on the motives for the variation
and on the benefits and drawbacks of the variation procedure of the organization.
Misinterpretation: - Communiqué issues, lack of evidence.
After the identification of the kinds of alteration resistance that are currently in the
association. Following are six approaches for allocating with change resistance use them
to create steps for a plan that resistance in the organization (Mohsenian-Rad and Leon-
Garcia, 2010).
 Education and Communication: - We should educate people about the change
and communicate them it is one of the greatest methods to overwhelmed

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resistance. To educate as well as communicate information helps workers and
changes their logic towards the task. This controls the inappropriate rumors
regarding the properties of change in the association (Dukes, 2018).
 Contribution and Engrossment: - Workers are complex in the variation effort
they are further likely to accept rather than struggle it.
 Facilitation and Support: - During difficult times managers support employees.
Administrative support helps workers deal with anxiety and nervousness
throughout the task. Special training for employees, counseling and time off work
are the factors this approach is concerned (Dukes, 2018).
 Negotiation and Agreement: - Managers can offer incentives to employees for
their work. Transformation regulators can be offered motivations to go to another
place in the company in order to escape transformation power. This method will
be suitable where those struggling changes are in a place of control.
 Management and Co-optation: - Co-optation involves the superior gesture of
carrying an individual into a variation management. These leaders can be given a
representative role in judgment creation without threatening the change effort
(Dukes, 2018).
 Obvious and Understood Coercion: - Managers can make clear that the resisting
variations can cause to losing employment, firing from the company, or not
promoting workers. This is how implicit and explicit force individual. (Gonzalez-
Zapata and Heeks, 2015).
Shareholder Analysis – The Power/Interest Grid
The modern-day manager of General Electric key skill is Stakeholder management
and helps to get people on board with new ideas. Stakeholder Analysis is useful in searching

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for who to get on board, who to target and where to capitalize energy in developing a strong
relationship. Employed with the right person we can get their thoughts and contribution to
gain a contract with others. This will benefit the organization to get more incomes for the
assignment and new concepts. First, we need to understand the stakeholders of the
organization to conduct stakeholder analysis. Think how new idea or project will benefit the
organization in their work, what is important to the organization, what the company wants to
know and what they do not want to know (Eskerod and Jepsen, 2016).
RACI Matrix
RACI matrix is used in a place where General Electric needs to represent
responsibilities to individuals or want to arrange incomes (Ackermann, 2011). Allocation is a
necessary portion of a task where executive recognizes roles and responsibilities in a task
which is essential. As a project executive, it is necessary that the organization set the
opportunities of an individual involved in the organization project. RACI model is a method
helps in recognizing person work and duties and also helps in decreasing misunderstanding
during a task. RACI stands for (Ackermann and Eden, 2011):
Responsible: - The individual in the organization who will be made answerable for
performance/carrying out the assignment. They can make judgments on how to do it but are
accountable for carrying the correct end outcome.
Liable: - The individual of General Electric who carries the liability for the assignment and is
usually the individual who passed on the task to the creature accountable. They check the
final conclusion and approve their work (Ackermann and Eden, 2011).

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Consulted: - The person who gives advice, guidance and with whom there is double- way
communication. They generally do not do the assignment but are usually skilled or need to
give their contract and finishes the task or a component of it is being done properly.
Cognizant: - Every individual in the organization wants to be informed about the
development and updated when the assignment is accomplished. They should have
information about the task (Ackermann and Eden, 2011).
Steps of RACI Matrix
1. In delivering the project identify all the task involved and right them on the leftward
side of the diagram in completing the demand.
2. Recognize and list the task activities at the top of the chart (Ackermann and Eden,
2011).
3. By completing the lockups of the chart we can identify who has the obligation, the
liability and who will be accessed and educated for each assignment.
4. Define the role accountable and role responsibilities for every assignment.
5. Role accountable should not be there in more than one assignment. Solve problems if
there is the extra role that only one role for a specific task (Ackermann and Eden,
2011).
6. Deliberate, share and decide with the stakeholders of the organization on RACI
Matrix before the assignment starts.

24 | P a g e General Electric
Step
Project
Initiation
Project
Executive
Project
Manager
Business
Analyst
Technical
Architect
Application
Developers
1 Task 1 C A/R C I I
2 Task 2 A I R C I
3 Task 3 A I R C I
4 Task 4 C A I R I
Conclusion
From the above discussion, it has concluded that General Electric faced a lot of
problems to become one of the world’s largest digital industrial manufactures of armed and
commercial jet airplane locomotives. The American economy faced recession when General
Electric appointed John L. Flannery; he is the new CEO of the company. To control the
leverage presentation of the varied portfolio of General Electric, the new CEO directed in
new determination to be better and to restructure the company. He started breaking down of
workers working in General Electric to improve the working environment. Various models
are being used to change the company. Kotter's Model and ADKAR Model improves the
working structure of the organization and creates effectiveness, desire, awareness,
responsiveness among the employees. The company made investments in areas where there is
a major economic downturn and this was the unique pattern of globalization in the company.
From the SWOT analysis of the company, it can be analyzed that the products and services of
the company are offering a demand in the market. And from PESTLE analysis of the
company, it is concluded that the company is fulfilling ethical and legal requirements which

25 | P a g e General Electric
support for digitalization of business in the organization. This successful execution of
strategies brings about in a continued change in the company and enables the company to
survive in the environment for the long run.
Recommendations
The SWOT of General Electric highlights the important method to produce and enlarge
the industry in the face of quickly altering business surroundings. The company executives
require focusing on development and constancy that exploit on company powers and chances
and creative ways to keep General Electric from the effects of weakness and fears. General
Electric is extremely expanded company. The products range includes from technology,
automotive, home appliances, aviation to financial services and insurance services. More
diversification leads to too difficult to manage. If the company grows too rapidly it may
create a problem. It is recommended that General Electric continue to invest in research and
development in order to grab competition. It is also recommended that it would be
advantageous to have the CEO and Chairman of the Board positions separate. Most
companies in the United States have the same person for their positions. It is also
recommended that General Electric:
1. Improve and enlarge its procedures in the renewable energy manufacturing.
2. Spread its procedures established on the digitalization this will create new
development chances established on businesses industrial improvement.
3. Raise its level of saturation in emerging the market.
4. Improve modest benefits and goods through industrial modernization that reflects
gadgets machinery.

26 | P a g e General Electric
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