Strategic Analysis of GE Power Business Unit: Coursework 2, Report

This report provides a detailed strategic analysis of GE Power, a business unit of General Electric. It begins with an executive summary and introduction, followed by an overview of the GE Company. The analysis includes a resource audit, examining leadership, physical resources, technology, and ...Read More

Running head: MANAGEMENT
Management
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Executive Summary
The report has helped in identifying the different kinds of strategic aspects through strategic
analysis for understanding the position of GE Power, which is considered to be the business
unit of General Electric Company. In analysing the same, the different kinds of aspects such
as understanding the value chain system along with the strategic objectives have been
analyzed that helped in managing the effectiveness of the company successfully. Through the
application of BCG matrix, the position of the company has been analyzed which is Cash
Cow and it assisted them in understanding their issues which are faced by them.

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Table of Contents
Introduction................................................................................................................................3
Overview of GE Company.....................................................................................................3
Analysis of Resource Audit and Value Systems........................................................................3
Resource Audit.......................................................................................................................3
Value Chain Analysis of GE Power.......................................................................................5
Product/Service Portfolio...........................................................................................................6
Potential Future Strategic Growth: Identification of Options and Evaluation of Options.........8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Strategic Analysis of General Electric Business Unit of GE Company
Introduction
The report throws light on strategically analysing as well as identifying the General
Electric Company as the multi-division organization wherein the main focus has been given
on Power Division. In the current scenario, the gas and oil stores are getting depleted in the
entire business world, the scarcity of the resources is becoming a huge challenge in different
parts of country in the current scenario of the business environment (Warren and Jack 2018).
The different organizations are struggling as to utilise the limited type of resources in the best
effective manner wherein the scarcity of resources affects the business decision-making
prospects of managers. The different companies such as GE usually manage the different
business portfolios which are complex with various products as well as services and in the
respective assignment, the BCG matrix will be utilised for determining the future prospects of
the company as to improve the scenario which can be divested.
Overview of GE Company
General Electric Company is considered to be the multi divisional organization that
was incorporated in the year 1892 wherein the company has various segments that has been
competing with wide range of the industries in the entire worldwide. The respective study
mainly emphases on the division of power of GE and in the next chapters, the main focus will
be on business units across GE (GE.com 2019).

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Analysis of Resource Audit and Value Systems
Resource Audit
In the Resource Audit analysis, the resources of the company will be identified and
the importance of the same in creating value in the entire system.
Leadership- The Motivational along with transformational type of leadership of the
CEO of GE has been capable of transforming the leadership style effectively. Due to the
guidance provided by him, the company has been able to generate an innovative culture
which differentiates them from the other competitors (Suksantilap, Leelasantitham and
Glesner 2017). Under the leadership of Jim Immelt, the different investors along with third
parties have been successful in yielding the relationships with the customers which resulted
in operational cost efficiency as well as operational efficiency in a successful manner.
Physical Resources- GE power has the high level of brand reputation in the entire
industry and the organization has been capable of developing gas along with stream turbines
which helps in consulting essential resources which is multiplying to the developed type of
infrastructure that will be allowing to serve customers from 140 or more countries (Shanbhag,
Dutt and Bagwe 2016).
Technology and Innovation- General Electric has been always become more focused
towards providing the innovation type of platform that made the company innovative in
nature. There has been introduction of mapping process, retreats for employees which
assisted GE in coping with the complexity in the environment (Rothaermel 2017).
Customer Care- It is the last aspect which is managed by GE through transformation
of different functions of marketing within GE and managing the customer deployment
programs successfully (Papulova and Gazova 2016). The company tried to invest in

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technological advancement programs and developed more unique products for entering new
markets and improve the experience of customers.
Value Chain Analysis of GE Power
Figure 1: Value System of GE Power
(Source: Noe et al. 2017)
Outbound Logistics: GE Power has been capable of offering more than 1/3rd of the
electricity which helps in supporting more than 100000 people. The innovative technologies
of the company have made more than 60% digital along with efficient offerings for making
power affordable and cheap (Mohajan 2017). The web-based transformation as well as
logistics management has helped in supporting GE logistical execution as well as planning.
Inbound Logistics- GE has complex type of inbound logistics that includes the
business operations that includes supply of various raw materials wherein the energy
expenses helps in constituting large share in costs of production (Motyčková and Richter
2017).

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Operations- General Electric tries to cooperate with Power Costs Inc for managing
the different kinds of solutions smoothly. The R&D aspects have been effective which makes
the company feel that they are the cost leader and maintain the quality type of products
utilising the different kinds of innovative technologies (Knapp and Kronenberg 2016).
Services- The differentiation and cost leadership strategies are the two major options
which are being used by GE for improving the business operations and gain effectiveness in
the management of solutions. The focus of the company is to generate the diversified kind of
products for the customers that creates high value which will be accredited to the satisfaction
among customers (Keelson 2017).
Marketing and Sales- The intensive kind of strategy of marketing helps them in
gaining customers and the diversified products create more value in comparison to the other
competitors present in market. The focus of the company on managing promotional strategy
is the key element which helps them in managing their efficiency.
Product/Service Portfolio
Figure 2: Analysis of Products and Services of GE

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(Source: Clarkson 2019)
Based on the respective table of the products and services of GE Company, it can be
analyzed that the company has been experiencing as well as managing the slow market share
in the period of recession in the last few years. However, in case of the power segment, there
has been increase in the market share specially in power industry. Therefore, from the same,
it can be seen that the company is in the CASH COW position due to the high level of market
share as well as slow growth in the market. It can be supported by the analysis that GE Power
is capable of contributing more than 28% of industrial segment profit through the annual
reports of company and the company will be delivering their best in the near future as well
(Clarkson 2019).
Figure 3: BCG Matrix of GE
(Source: Clarkson 2019)
However, on contrary, there has been highly deteriorating performance of the entire
power industry as a whole, it was mainly which is caused to the fluctuations in pricing which

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occurred in the year 2015 as well as 2016. For GE power, in order to become the Question
Mark and Star, the innovation in the different kinds of products and services which are
delivered by them needs to be effective through optimising the resources successfully.
Potential Future Strategic Growth: Identification of Options and Evaluation of Options
While discussing regarding future direction of General Electric Company and Power
Business Unit in the long run, the advancement towards the technology and digital aspects
play a suitable role for enhancing value chain of the company. The organization is capable of
adopting to the different technologies which are newly introduced and enter the different
other markets. GE Power has the capability to be characterized by developed type of
technology that has been deployed for efficient usage of the different natural resources. The
entire strategic direction of entire organization is mainly focusing on the different Research
as well as Development Programs and adopting new level of technologies that will be relying
mainly on the following:
 Digital consumption, wherein in which the today’s energy market is needed to be
characterized in energy as well as solar storage that will be contributing towards
lowering demand and help with storage (Keelson 2017)
 There can be digital grid which will be easing multidirectional ways for flowing of
energy which will be ensure the equilibrium among supply as well as demand through
price transmitting as well as information related signals
 Digital Central type of Generation for entire mix of different kinds of renewable type
of resources will be increasing supply of power with the help of strong system of
power generation (Keelson 2017)
From the analysis of the different kinds of options which can be adopted by General
Electric Power Department, it can be concluded that the digital technological advancement is

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the most critical element that needs to be implemented by the company for managing their
position and increase the sales in a strong manner within stipulated time period.
Conclusion
Therefore, from the overall analysis of strategic analysis of particular General Electric
Company specially in segment of power, it can be inferred that the value chain analysis will
be helpful for giving them the new direction. Through the help of the research and
development aspects and strategies, it will be suitable for the industrial growth in the market
successfully. In addition, the developed kind of infrastructures, effective kind of systems of
energy along with fuel related diversification will be securing the reliable power. From the
side of the customers, it can be seen that the digital consumption is the key and vital element
that needs to be balancing the supply as well as demand in marketplace and through
integration of the new technologies, the best type of technology needs to be incorporated by
GE Power, wherein more investment is required and the consumers will be capable of
shifting their interest and the strong type of coordination for turning the challenges into
opportunities successfully.
From the respective business unit of General Electric which is the power segment, it
can be inferred that there has been high level of insecurity in the entire power industry that
impacted the effectiveness of the company and it impacted the technological strength of
company. In such scenario, the GE Power Department can increase their efficiency through
research and developmental strength by creating growth opportunities and improve the
position of the company in a successful manner in the competitive business environment.

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References
Clarkson, A., 2019. Toward effective strategic analysis: new applications of information
technology. Routledge.
GE.com 2019 GE Power-General Electric (Online) Retrieved from https://www.ge.com
[Accessed on 24th December 2019]
Keelson, S.A., 2017. An examination of the program mix at technical universities of Ghana:
the application of the Boston Consulting Group Matrix. Journal of Emerging Trends in
Economics and Management Sciences, 8(6), pp.284-293.
Knapp, J.L. and Kronenberg, C., 2016. Strategic Analysis of SMEs' Early Internationalisation
Process. Journal of Entrepreneurship, Business and Economics, 1(1/2), pp.35-71.
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
Motyčková, M. and Richter, J., 2017, December. Research of Strategic Analysis Methods
Application in the Department of Defence. In European Conference on Management,
Leadership & Governance (pp. 602-604). Academic Conferences International Limited.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Papulova, Z. and Gazova, A., 2016. Role of strategic analysis in strategic decision-
making. Procedia Economics and Finance, 39, pp.571-579.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Shanbhag, M., Dutt, M.L. and Bagwe, S., 2016. Strategic talent management: A conceptual
analysis of BCG model. Imperial Journal of Interdisciplinary Research, 2(7), pp.552-556.

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Suksantilap, P., Leelasantitham, A. and Glesner, M., 2017. A Survey of Demand Factors
Utilized in the Facial Surgery Service Business Using BCG Matrix. INTERNATIONAL
JOURNAL OF APPLIED, 10(2).
Warren, L. and Jack, L., 2018. The capital budgeting process and the energy trilemma-A
strategic conduct analysis. The British Accounting Review, 50(5), pp.481-496.