[Solved] general electrics corporate strategy

1. Describe GE’s corporate strategy on the following aspecrs. Businesses

Intergration—it combines product differnantion and lower cost. One of GE value statements is “live quality, and drvie cost and speed for competitive advantage.” Innovation—techenolgy and innovation is its core competency. Strategic entrepreneurship— Welch, a CEO of GE(1981-2000) slashed layers of management and began a series of internal initiatives, such as Six Sigma.

Core business
Innovation is the most important strategy of General Electric Type of diversification:
(circle one of these types)
1. Related constraint —– Related lunked —– Unrelated
2. Product —– Market —– Product-Market
What is the strength of GE’s corporate strategy

Unrelated Diversification—it has six main business: infrastructure, industial, commercial finance, healthcare, consumer finance and NBC Universal. All of these generate less than 70% revenues. Their economies of scope are generated through their core competences. For instance they are able to enter all of the consumer services and appliances industries because of their innovation, technological advancements and service sector.

Outline 3 principles of successful acquisitions made by GE
Only acquiring business is industry leader and profitable Investing in the new and sustainable business while devesting the old, enivriomental cost and less profit business Accpectting the fact that a perfect plan doesn’t mean it will lead a succssful acquisition. It needs to experience it. Give an example of restructuring of GE

General Electric sold its traditional business– palstic and invested in one of the largest tenewable energy businesses in the world.

2. What are the strategic principles of GE to achieve growth and sustainability? Ch Strategic principles
Vision, mission, and value are clean, meausreable and motivative. It has very clear value statment which exactly explains how to accomplish its goals which is to strengthern GE’s global presence and create a more collaborative culture; and there stragtegic planning refelects the value statement 4

Valuable resource: great people
Rare resource: growth as a process, unique resources
Costly to imitate resource: invest in leadership business
Organized to capture vaule: organic growth
Resource heterogeneity: GE’s resource and capablities are differnet than other firms

3. Session C: Evaluation and ranking the GE employees

Based on the case decription, outline the most important 4 general characteristics of the assessment process Classification of employees potentials based on performance. e.g. top 10, bottom 10 and middle 70 It drives employess to perform and compete, thus identify their best talents It is capable of sharing the talented employees due to highly effecient succession planning Based on discovered talents, the company moves their to the appropriate jobs to maxmize their talents and effeciency. What is the strategic meaning of this session

To discover the very best employees, and expend their pentials with appropriate jobs.

4. What is the main strategic difference in the focuses of GE initiatives, listed in tables 4 and 5. Table 4 fouces on the changes and improvements internally while table 5 addresses on GE’s approaches with external eniornments and interactions, such as acquistions, customer relationships and marketing.

5. List the beliefs of GE’s entrepreneurship mindset.

Initiative and creative Strategic thinking; e.g.restrucucturing
Motivated his team
Risk taker


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