Strategic Management Analysis: GE Renewable Energy Unit

This report provides a critical strategic analysis of GE Renewable Energy, a business unit of General Electric. The analysis begins with an introduction, followed by an assessment of the company's strategic position, emphasizing its alignment with sustainable practices and its B2B and B2C operations. It then delves into the resources and competencies of GE Renewable Energy, highlighting its reliance on renewable energy sources (wind, solar, and hydro) and its commitment to sustainability, affordability, and accessibility. The report also examines the company's value system, including market research and employee skill-set enhancement. The analysis includes a value chain model to determine the primary and supporting activities. Furthermore, a BCG matrix is utilized to evaluate the product portfolio, and potential future strategic growth options are discussed. The report concludes with recommendations for the strategic development of GE Renewable Energy, aiming to provide insights into its long-term success and sustainability.

Running head: STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
Strategic Management: GE Renewable Energy
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1STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
Table of Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................2
Strategic Position.........................................................................................................................2
Resource/ Competences...............................................................................................................4
Value System...............................................................................................................................6
BCG Matrix.................................................................................................................................8
Future directions........................................................................................................................10
Conclusion and Recommendation.................................................................................................10
REFERENCES..............................................................................................................................12

2STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
Introduction
There are various perspectives that companies abide by while catering to operations.
Thus, it can be said that there are various aspects that are associated with the development of the
rational or operations of the company that determines the smooth operational workflow. The aim
of the paper is to critically evaluate the strategic operational perspective of GE Renewable
energy. It can be said that the nature of operations of that the company intends to stick to is
sustainable in nature that helps in boosting the competency of the company (Ge.com 2019). The
paper will evaluate the strategic position of the company, the resource competencies, and the
value system functionality of the company and the future direction of the company. Moreover, a
BCG matrix will be used to evaluate the product portfolio of GE renewable energy. Finally,
recommendation will be provided for the strategic development of the said business unit of
General Electric.
Analysis
Strategic Position
Strategic Positioning refers to the approach that a company has adopted in order to satiate
the needs associated to the sustainability of the company (Ghorashi and Sabelis 2013). The most
important aspect that is associated with effective strategic positioning is the strategies that
companies must adopt in order to satisfy its organisational needs. Strategic planning refers to the
planning that helps in terms of realisation organisational objectives and goals (Dibrell, Craig and
Neubaum 2014). GE Renewable energy has been able to align itself with a strategy that helps the
company in gaining a sustainable competitive advantage in the industry that they are operating
in. The rationale of the nature of operations of the company is aligned to sustainable needs of the

3STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
environment. The company has incorporated various values in their regular nature of operations.
The values that have been instated into the daily nature of operations of General Electric
Renewable Energy unit are affordability, reliability, accessibility and sustainability (Ge.com
2019). These are the factors that are prioritised by the company while they operate in the
industry. GE renewable energy is one of the most important business units in the conglomerate
company. GE renewable energy is a division that has been positioned as a company that
contributes to the daily lives of the consumer community. The company serves as both a B2C
and B2B
company while
offering their
services in the industry that they are operating in. The company provides solutions based on the
need of the clients of the company regardless of the size and location of the latter.
The company proudly states that the Renewable Energy business unit of the company is
aligned to contribute to the sustainable needs of the society and the environment. The company
harnesses energy from wind, solar and hydro power (Ge.com 2019). It can be said that the
company uses only resources that are in abundance in in order to gain effectiveness in operations
through generation of limitless amount of energy while they operate in the industry. It has been
identified that the same rationale not only applies for current business unit that is being analysed,
however it is applicable for all the business units that fall under the jurisdiction of the
conglomerate company. Be it operations with respect to the GE Additives or GE Aviation, GE
Capital, GE Healthcare, GE Lighting, GE Digital or any other business unit of the company, the
main nature of operations of the company is perfectly aligned to a sustainable mind-set (Ge.com

4STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
2019). All the business units of the company ensure that there is the nature of operations of the
industry are supported using resources that are renewable in nature.
GE Renewable energy is the business unit that has helped in positioning the stature of
operations of the company while it operates in the industry through provision of services that are
affordable, accessible and sustainable in nature. The main motives of operations of the company
along with the strategic business model of the company has been able to effectively position the
company in the minds and perception of individuals hence, justifying the strategic position of the
company in the market that they are a part of.
Resource/ Competences
There are diverse resources that are used by the company while they are operating in the
industry. From the perspective of production, the company utilises resources that are abundant.
The name of the business unit of the company itself helps in justifying the nature of resources
that are used by the company while they are operating. Wind, Water and Sunlight are sources of
energy that considered to be abundant (Tie and Tan 2013). While there are questions regarding
the abundance of water, the usage of water from the perspective of the company does not deplete
or pollute water. The main value proposition that the company intends to communicate while
providing services in the industry is regarding communication of the fact that the company
intends to carry out activities associated with the daily operations of the company that do not
contribute to the degradation of the abiotic components. As mentioned before, the company has
instated various values in the general nature of operations. The company intends to communicate
the fact that they believe that sustainable nature of operations in the modern context will help in
terms of conservation of the environment for the future generations. Furthermore, the sustainable

5STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
nature of operations of the company is likely to help the company in terms of achievement of
favourable amount of appreciation from the part of the consumer community. The whole
business unit of the company revolves around the value that people should abide by sustainable
nature of operations that help them in securing a better future for the generations to come.
Furthermore, there is alignment of the same in terms of generation of favourable nature of
outcomes that the company will be subject to as a result of the latter activities. Even though
sustainability is the prime aspect valued by the company, profitability is an aspect that cannot be
neglected when it comes to sustainability of the company and achievement of corporate
governance while the company operates in the industry in the long run. The company aims to
achieve a perfect balance between sustainability and profitability through the effective business
model that the company has employed in use. It can be said that the aim of the company has been
to satiate the needs associated to the development of the diverse groups of stakeholders. The
company not only realises value in its customers, the company has also realised importance in
the bolstering the efficacy of diverse communities. As a result of this, inclusion and diversity
have been placed high up the priority of the company. The company aims to help in betterment
and provide value to communities, stretching to remote locations not only through the provision
of affordable services, but also with the help of inclusion and diversity through which the
company helps the latter communities in gaining employees. Through this the company aims to
gain a competitive position in terms of development of the competencies in each of the
functional departments (Sabharwal 2014). It can be said that gaining favourable image in the
employment market helps companies in attracting potentially meritorious clients towards the
company. The latter bolster the effectiveness of the company in terms of the human resources

6STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
competencies. With the help of effective human resources, the company can carry out operation
effectively while operating in the market that is deemed to be dynamic in nature.
Value System
It can be said that there are various activities that help companies in achieving their
desired strategic position in the market that they are operating in. The vision of the company that
has been incorporated by into operations by the company has highly influenced the nature of
operations of the company. GE Renewable Energy is company that has a sustainable motive and
hence, the operations that are incorporated into operations by the company are carried out in a
sustainable notion. There are various strategies that have been adopted by the company in order
to satiate their diverse needs. The company has been able to align themselves with value such as
extensive market research. The latter helps the organisations in terms of generation of
competencies through which they can identify the pulse of the market. Market research is a
competency of the organisation through which the company aims to gain awareness about the
prevalent market condition that exist in the dynamic business environment. Skill-set
enhancement is another activity that helped the company in achievement of a desired spot in the
market they are operating in (Gowsalya and Kumar 2015). It has been found that the company
has always realised importance in the employees who are associated with them. The employees
are the individuals who are responsible for the development of the competency of the company
the company. Hence, employees help the company in the achievement of strategic goals that help
in terms of establishment of a strategic position in the market. The latter backed by the effective
strategic planning helps the company in achieving the desired goals that are associated with the
development of the competency of the company in both the short and the long run.

7STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
The value systems incorporated into operations by the company can be determined with
the help of a value chain analysis. The concept value chain model can be evaluated to identify all
the components that contribute to the development of the services. It can be said that the value
chain model concentrates on the activity of pitching a product or service in the market from the
sourcing of the raw materials or resources that will be liable in terms of development of the
products to the establishment or procurement of the services that are offered by the company
while they are a part of the industry. According to the Value chain model, there are two activities
that can be help in segregating the activities that are carried out by the company while aiming to
pitch its products or services to the consumer community (Lindgren and Rasmussen 2013). The
activities are segregated by into primary and supporting activities. The value chain that has been
adopted by the company while it is a service-based value chain and is backed up by the by the
nature of activities carried out by the company.
Fig: Porter’s Value Chain Model

8STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
The main nature of operations of the company involves sourcing resources and
conversion of the same into energy that help in bolstering the lives and activities of the
customers of the company. It should be reiterated that the Renewable energy is one of many
divisions of the conglomerate company. Other business units of the company such as aviation,
appliances, consumer electronic, healthcare, lighting, Oil and gas, software and all other business
units of the company uses services offered by the GE Renewable resources business unit. Thus,
there is correlation between all the business units of the company through extensive value
transfers. The primary activities of the company are to covert renewable resources into energy
that can be used by industries and direct customers. The sustainable notion of the company not
only help in terms of contribution to the protection of the environment, by also for the
conservation of remote communities. The company offers its services in in areas that are remote
and deemed as inaccessible. The company uses its effective and diverse staff to reach locations
that they could not have reached without the support of the latter. Thus, it can be opined that the
company is likely ty o be subject to favourable responses from the part of the consumer
community for the affiliation of the company towards the former along with the sustainable
nature of operations of the company. It is a ground that can help the company in term of gaining
a sustainable competitive advantage.
BCG Matrix
Boston Consultancy Group or BCG
were able to develop a matrix
consisting of four elements in the
1970s known as the BCG matrix
(Mohajan 2017). The BCG matrix is an

9STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
assimilation of factors such as stars, question marks, cash cows and dogs (Mohajan 2017). The
latter are placed in order to gain effectiveness in understanding the degree of market growth and
market share that a business or organisation is subject to. The aim of the latter is to identify the
scope of development of issues associated with the development of activities that are carried by a
company when they are operating in any industry regardless of the nature of the same. The
following section will discuss each component of the BCG matrix and link the same with the
activities associated with the GE Renewable Energy;
Stars: Stars determine the leaders in an industry. It is characterised by high growth of the
company and high market share. Formulation of the latte require heavy investment. The latter
must be heavily invested in and helps in generation of revenue in turn. Efforts are taken to hold
the current market share, so that it does not transform into a cash cow. The main activities of the
GE Renewable energy involve activities that help involve procurement of equipment through
which abundant natural resources can be converted to usable energy. The latter requires high
investment and helps the company in generating revenue.
Cash Cow: This factor determines the scope of effectiveness of the company in the past. It is
characterised by high levels of market share; however, the growth is deemed to be low. Capital is
generated in excess. While the nature of operation of GE Renewable energy can be deemed to be
favourable in terms of generation of extensive amount of revenue, the rate of growth has not
slowed down.
Dogs: It is phase of operations of a company that is characterised by low rate or growth coupled
with low market share. A business that is related to a dog does not have the competency to

10STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
generate capital or revenue. This is not the case for operation of GE Renewable energy as they
have an effective business model that can be used to effectively generate revenue.
Question Marks: This type of operations of a business entity is characterised by growth that is
high, however, is coupled by low market share. The operation of the companies in this state is
deemed to be questionable. Hence, the name has been given to companies operating in such a
state. For companies operating in the said quadrant, investment should be high. The operation of
GE Renewable is not questionable as they have been able to strategically position themselves in
the industry through effective strategies and strategic planning.
The company can eb placed in the position of STARS as they have been able to identify a
sustainable cause through which they have been able to capture the pulse of the market that they
are operating in. Sustainable initiatives help in terms of communication of the fact that the
company cares for the consumer community and the society. Thus, the aim of the company is
likely subject to appreciation of the consumer community, helping in growth in the market
coupled with high market share.
Future directions
As a result of the sustainable nature of operations of the company, it can be interpreted
that the main notion of the company is to provide condition through which future generations
will be able to use resources and live sustainable lives. In the future, people are likely to be
motivated to contribute to the environment and minimise the adverse effects to the environment.
Thus, services offered by the company are likely to be appreciated in the consumer community.
This is likely to help the company in terms expected growth in the future.

11STRATEGIC MANAGEMENT: GE RENEWABLE ENERGY
Conclusion and Recommendation
On a concluding note, it can be said that sustainable nature of operations of the GE
Renewable has resulted in increase in affiliation of the company with the consumer community.
The company has capitalised on a current issue that is protection of the environment. Thus, they
have been subject to favourable outcomes and have been placed in the STAR quadrant of BCG
matrix.
Following are the recommendation:
I. Carry out constant market research to identify consumer needs.
II. Expand to other countries through effective geopolitics.
III. Identify locations that can be bolstered through the service of the company.
IV. Communicate the value proposition of the company with effective marketing and
promotional activities.