Strategic Change Management Report: A Case Study of General Electric

This report examines the strategic changes implemented at General Electric (GE), an American-based company, focusing on the period when John L. Flannery took over as CEO. The report uses PESTLE and SWOT analyses to understand GE's external and internal environments, highlighting opportunities for growth and threats to its business. It identifies the need for strategic change due to declining revenue and a diverse portfolio, prompting the appointment of a new CEO to implement new strategies. The report then delves into the application of two change management models, Kotter's and ADKAR, to enhance GE's working structure and facilitate employee adaptation. Furthermore, it discusses the importance of stakeholder engagement in driving successful change, emphasizing strategies to overcome resistance. The report concludes by assessing the impact of Flannery's policies on GE's performance and its transformation into a worldwide digital manufacturing company.

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

1 | P a g e General Electric
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

4 | P a g e General Electric
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).