Strategic Analysis of General Electric Report 2022

RUNNING HEAD: STRATEGIC ANALYSIS OF GENERAL ELECTRIC
0
Strategic Analysis of
General Electric
Report
System 0032
[Pick the date]

Strategic Analysis of General Electric 1
Table of Contents
Introduction......................................................................................................................................3
Strategic analysis of General Electrics............................................................................................3
Resource Audit.............................................................................................................................5
Value Chain Analysis...................................................................................................................7
Product Portfolio..............................................................................................................................9
Future Strategic Growth................................................................................................................10
Conclusion & Recommendations..................................................................................................11
References......................................................................................................................................11

Strategic Analysis of General Electric 2
Introduction
The main aim of this report is to analyze the strategic position of a unit of General Electric (GE),
for that analysis, its Power Business is chosen. Multinational companies pushed their
management to use limited resources efficiently that started affecting the decisions of managers
in today’s business world. This report will analyze the value system, resources audit and product
portfolio of GE. With that analysis report also includes future alternatives available with the
company for growth. GE is a multinational company that deals in various products and service
and has a diversified portfolio. Each unit has its services and products and requires different
resources and that differ all the units in their performance and that leads to different future
opportunities and growth. The main problem with MNC’s is that they have a diversified portfolio
that makes it difficult for the investors to decide which one is the best portfolio amongst all the
portfolios. This report includes strategic analysis tool such as the BCG matrix to know the level
of attractiveness of GE-Power product folio of the company.
Lasserre (2017) identified three levels in competitive marketing that are; Strategic business unit
(SBU), functional level and corporate level. The below sections focuses on the SBUs of General
Electric and to know the competitive strategy used by the company information is taken from the
company sources and market news. Further information is taken from the articles and journals of
authors that give a brief view of the theoretical background of the company.
The structure of this report consists of a brief description of the strategic position of GE in the
market. Other sections focus on the evaluation of the company’s resources, values system, and
product portfolio within the SBU. At last, the report includes analysis of future directions and
growth opportunities available with the company followed by recommendations.
Strategic analysis of General Electrics
General Electric was founded in 1892 in New York and is a multinational company with various
business segment and offices across the world. Looking into the power division of the company,
the current strategy that they are using is based on technology advancement and delivering
technology-based services and products to capture the global market. Throughout the company

Strategic Analysis of General Electric 3
life and development stage under the leadership of Welch and Immelt's, GE has undergone
through various changes and that resultant in the development of potential competencies.
Further, the company improved its portfolio that leads to the growth of the company for the long
term. Under the leadership of Welch, the company took the decision of downsizing and that
resultant of efficient management and improved productivity (O'Boyle, 2011). Even after GE got
a new CEO in 2001, the company chooses to remain focused on these techniques for the success
of GE in the future. Kenny (2012) argued that General Electric becomes globally aggressive, the
reason behind this was the business unit system of the company where divisional business act as
a small business owner by understanding the desires and needs of the customers. The
diversification decision of the company leads to core competencies like increase in the number of
patents, resources, skilled labor and shared knowledge. General electric diversified its business
to China and India through building a good relationship that resulted in the improved brand
image of the company in these regions and affected the profitability and efficiency of the
company and that help in maintaining the consistency and customer satisfaction. In spite of the
above-mentioned situations, more factors contributed to the success of General Electric (Joseph
& Ocasio, 2012).
On the basis of the information given above, it will be analyzed that how the current strategy of
the company will work in future growth and development. It is noted by many authors that the
current strategy of GE will be successful in the current environment also in the global market
because of its use of advanced technology for product development which leads to a strong
image of GE in the global market or at the international platform. This helps the company to
become a leader in the market because of its continuous innovation that increases the sales of all
the products of the company in the global market. Further, the acquisition by GE with its six
sigma strategy leads to easier expansion of the company and maintenance of their services and
product quality. In a nutshell, on the basis of all the information discussed above the
competencies that the company developed leads to a strong foundation of strategic and financial
resources. As this report is based on the Power unit of General Electric, the discussion, and
analysis of the segment is discussed in further sections below (GE, 2016).