General Electric: Strategic Change Management

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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
External Factors......................................................................................................................9
Internal Factors.....................................................................................................................10

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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).