Programme Title: MBA University of South Wales Programme

Course Title: Strategic Analysis; Tools and Techniques

Summative Assessment Essay 2

Student Name: Awambeng Azeh

Student ID Number: 74111583

Lecturer: Juston Mubwandarikwa

Submission Date: June 2020.

Task: PRESENT A CURRENT CRITICAL STRATEGIC ANALYSIS OF ONE

BUSINESS UNIT WITHIN GENERAL ELECTRIC

Contents
1) Introduction:.......................................................................................................................................3

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2) Strategic Position of GE:..................................................................................................................3
3) An evaluation of GE Aviation resources and value systems:......................................................6
3.1) Resources of the company:.........................................................................................................6
3.2) Value systems:..............................................................................................................................7
5) Analysis and evaluation of GE Aviation future directions for strategic growth:.......................13
Conclusion:..............................................................................................................................................14
Reference:...............................................................................................................................................15

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 1) Introduction:

General Electric Company continues to maintain the leading position in all the business

sectors that form its part. The business has eight segments, namely, power, oil, and

gas, aviation healthcare, transport, renewable energy, and capital. The organization's

sectors solve most problems that people are likely to face in their regular days

(Berthelot, Lasensky and Somers 2019, p10). Therefore, they are likely to realize profits

if the economies of the regions they operate in are stable. As per 2017, the organization

realized relatively high amounts of gains in oil, gas, healthcare, and renewable energy.

As much as some areas had a drop in earnings, the overall view of the company's

performance is excellent. Some of the long terms challenges that the organization is

likely to face include rising protectionism and disruptive innovations. The growing

regulatory and legal controls also pose a significant challenge to the business'

expansion and operations (Berthelot, Lasensky and Somers 2019, p10). The

organization participates in disruptive innovation, taking advantage of its already

established command in the markets.

2) Strategic Position of GE:

The organization has a global market presence. The organization grows significantly in

the services and technologies that it offers. The involvement in technology has helped it

expand its business in many areas. The ability to develop relies upon the low probability

of technological innovations to loose relevance when new. Although the organization

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has a more significant base in the United States, it expands across 180 countries. The

organization employs over three thousand people across the globe. General Electric is

famous for its capabilities in advanced technology. The organization leads to clean

energy innovation, which indicates that it is a better edge than its competitors in

technology. The organization focuses on both aviation and transport, which shows that

it has a higher capability of selling its products to most people (General Electric |

Business | The Guardian, 2020). The organization even plays a role in the Iraq electric

restoration. The organization makes progress in technological industries by ensuring a

good number of inventions and reinventions. Prowess in technology leads to the growth

of the organization's portfolio.

The business has an extensive business portfolio, which makes it have a better

competing edge than other companies. In as much as the company is likely to face

hurdles from one industry to another, the diversity in the portfolio makes the business

unbreakable. There is always a probability to ensure that the company has a survival

portfolio at a time. The organization has been relevant for more than a century. The

organization has a good structure for the management of all the businesses. The

leaders organize meetings regularly, identifying the strengths and weaknesses of every

segment, and ensuring focus on the sections that require more attention. The global

industry and technological taste provide the organization with the ability to gain

excellent financial prowess.

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The financial base of the organization has allowed it to be involved in disruptive

innovations. The disruptive innovation helps ensure that the organization remains

competitive and in the eyes of most consumers (General Electric | Business | The

Guardian, 2020). It consists of getting products at a lower price than the competitors to

ensure that people have a better understanding of the activities that people get involved

in at a time. Innovation is currently the norm in the technological industry. The

business invests in technology whose interests are continuously becoming insatiable.

The organization maintains markets in the US, and the non-US markets, which help in

assisting it to have a better understanding of all the events that they get involved in, are

accurate. Before, 2000 most of its revenues were from the US markets. Today, most of

the income originates from non-US markets. The approaches help in ensuring that the

activities that they get involved in are accurate to their needs. The investment in other

markets helps in ensuring that the organizations have a better competitive edge

(General Electric | Business | The Guardian, 2020). The demands in the United States

are relatively competing. The existence of capitalism, whereby every individual can play

with their market values, makes it even easier to proceed in business. The organization

can identify the new markets that have not been extensively exploited.

Aviation and Oil strategic business units have been some of the areas in which the

organization performs better. It is not that other business units are not performing well;

they are faced with occurrences that interfere with their operations most of the time. For

example, the technological industry faces many challenges from hacking and the ability

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to develop new software with better capabilities in the market. Every individual is at a

better hand when it comes to defining the kinds of lifestyles that they are likely to adopt

at a particular time (General Electric | Business | The Guardian, 2020). The aviation and

oil industry requires more significant amounts of capital to enter and run. The

regulations of every region concerning the aviation industry involvement are a vital

barrier to most of the activities that people may opt-in most cases. This paper considers

the aviation strategic business unit in general electrics. Aviation is a relatively

demanding business and has most of its operations dictated by the legal rules.

Organizations that eye to invest in the market have to ensure that they can satisfy the

specific interests that people have at a time. 

3) An evaluation of GE Aviation resources and value systems:

3.1) Resources of the company:

The company is ranked among the top-performing companies in the United States and

is named among the companies in the United States stock markets. The organization

has been able to have great prowess due to the available resources. The human

resources have been of great concern to the organization due to the global interest. The

leaders need to understand the key activities that they get involved in at a time. The

leaders have high confidence in commanding the events that take place in all the

regions (General Electric | Business | The Guardian, 2020). The organization also has

a tremendous financial command from a diversified portfolio, which makes it have the

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common across the business equally. The profits are taken to the segments which find

it difficult to have most of its activities completed. The organization can hire and

maintain competent employees who can keep the pace of the organization.

The organization deals with oil and gas, technology, and renewable power. The

business ventures complete one another to help improve aviation—for example, oil and

gas help in the provision of power in the aviation industries. The provision of renewable

energy acts as a corporate social responsibility. Corporate social responsibility help in

gaining more profits as the probable consumers are frequently shifting to the needs of

the green economy.

3.2) Value systems:

The organization has its norms, goals that help in ensuring that its targets are met. Its

standards act as its strength in providing that the organization is relevant in many

activities that they get involved in. The people have the best approaches to ensuring

that all the events that people get involved in require a better understanding of most of

the activities that people get involved in at a time.

The organization has a substantial backlog. By 2017, the organization has been able to

have a backlog of over 300 billion. The approaches have made it possible to ensure that

the organization is always relevant to the markets that it focuses on. The method has

more investment in research and development (General Electric | Business | The

Guardian, 2020). It has made research and development a culture that has enabled it

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has more impact on the activities that it gets involved in at a time—the organization

researches in all areas of its investments. Aviation is the area with the highest

investment in research. It is probably one of the key reasons why the organization has

excellent command in the aviation industry. Healthcare is also an area where more

research is done to improve health. The competitions are rapidly growing, leading to an

increased focus on research. The aviation industry is becoming more lucrative to more

investors due to the increase in the number of the individual in the middle class, which

has attracted most people to move to transport. Currently, the major blows that the

organization is likely to suffer are the decrease in oil prices.

The organization has its headquarters in the United States, which makes it have a

competitive advantage to other providers of similar practices. Most investors believe in

the economy of the United States (General Electric | Business | The Guardian, 2020).

Therefore, in the case of world political or economic problems, they drive their

investments towards the United States. The United States is currently having a better

approach towards ensuring the health of the people. The turn to the United States

gives the company an advantage as more people invest with them.

The organization suffers a significant blow with the pandemic due to the falling revenue

across the business segments that it has invested in. For example, the aviation industry

suffers a significant setback due to travel restrictions. Most people have the variability in

ensuring that the activities that individuals get involved in are accurate according to the

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demands that they have. The best that people may get involved in requires a better

understanding of all the events that they get involved in at a time.

The people have a better understanding of all the events that people get involved in at a

time. They are also a restriction to the oil and gas industries, making it difficult for the

organization to continue realizing an equal amount of revenues all through. The

transportation industry is also limited as people feel that there is a need for lockdown

and safe distance to limit the spread of the virus. The significant factors that help the

organization to have a better competitive edge are entering into new businesses. The

approach helps in ensuring that all the activities that they get involved in at a time

(General Electric | Business | The Guardian, 2020). The specifics in life include the

understanding of most of the events that they are likely to adopt at a time. The

organization identifies business opportunities and invests in them.

The organization gets into business segments that are paying. For example, the

organization could be currently focused on the healthcare system to help find ways to

curb the problems that people may suffer from regarding the pandemic. The

organization is strategic in ensuring that all the activities that people get involved in are

critical in ensuring the activities of the organization is stable. Currently, the organization

has some ventures that it holds less than half. The mergers and acquisitions help in the

sharing of risks that are incurred in a particular business. Therefore, it can ensure that

most of the activities that they get involved in are well accommodated in most of the

events that people get involved in at a time (General Electric | Business | The Guardian,

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2020). The organization believes in expansion beyond America, which acts as a

competitive advantage. The markets beyond America also provide a market that is

growing. Currently, the Asian, Middle East, and Africa are realizing growth in the middle

class, which shows an increase in the regions' purchasing powers. Therefore, there is a

high probability that the organizations have a better competitive edge on the types of

activities that they get involved in at a time.

The significant factors that may influence the business operations are the legal

pressures from the governments that govern the services. It is not that the organization

does not care about the health of its customers; there is a need to ensure that most of

the activities that they get involved in are relevant to the organization. The stoppage in

the aviation industry may not deny some people employments but may make the

organization have a burden on the organization. The organization might have to incur

a lot of costs trying to cover up for the employments that may be affected by all the

events that could have occurred at that time. The need to promote local activities may

significantly limit most of the activities that the organization may get involved in.

Geopolitical changes also present as a challenge to the organization. Some geopolitical

problems may interfere with business, which results in significant differences in how the

organizational activities are completed.

The company is less likely to face threats from new entrants into the company as most

of the activities it gets involved in require high capital to start. For example, the aviation

industry may need much capital to prove its relevance to the authorities. The

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organization also has a diversified portfolio. The entry of new organizations into a single

business may not have a significant impact on the operations of the organization.

4) An evaluation of GE Aviation product/portfolio mix:

The BCG matrix helps identify the products that are performing well in an organization

and try to figure out how to improve the underperforming products. The organization's

cash cow is the aviation industry. The aviation industry has helped in the realization of

higher profits in the organization. The department performs better than other

organizations. A cash cow is the most profitable brand. The cash cow is identified and is

greatly milked by the organization. The organization spends a lot of capital trying to

ensure that it does research and development in the aviation and healthcare industries

(Dong, et al. 2019, p.101). The rising numbers of the people in the middle-class

populations indicate that one needs the ability to ensure that all the interests of the

people are well taken care of at a time. The aviation industry has a potential to grow due

to the rising middle class. The healthcare industry grows with the new inventions in the

disease treatments. The innovation makes more people get to know their health

conditions, which call for further treatments. The health industry also only relies on

governmental regulations, which may not have the capacity to offer some health

services. The fact that the entry to the aviation level makes the organization has a

better hand in competing for the services provided to the people.

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The stars include the departments that have a significant market share and are capable

of ensuring that all the activities that people get involved in are essential in running all

the organizational events. The Healthcare industry remains as the area that spends a

lot of capital as it takes. The digital industry also follows the line. In as much as the

technology industry has a lot of money to put through, it can ensure that most of the

organizational activities are met within time.

The organization believes that the digital industry has a higher probability of growing in

the future. The digital sector is significantly diverse and has not been fully exploited.

Every individual looks for ways in which the services offered can be in line with their

interests and demands. They have to ensure that they get the best for the

organizational performances at all times.

The oil and gas department is some of the departments that have become a dog. They

can allow for more money to the organization but seem to be significantly affected,

affecting the organization's outcomes (General Electric Co., 2020). The oil industry is

growing relatively fast, incurs a lot of losses within a short time. The business is

relatively unpredictable, especially with increasing political uncertainties. Any move

between the major oil and gas producers and the United States makes most people

panic and shy away from the product making its price drop significantly. Oil and gas

require thorough research to ensure that there is market relevance. The product price

fluctuations may substantially affect the activities of the organization. There is a need to

ensure that all the activities that people get involved in at a time. The oil and gas

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industry takes away a lot of money from the organization. It is affected by a wide range

of problems ranging from the activities that people have a better approach to which the

specific variety of activities are completed within time.

General electric hardly invests in the dogs as it tries as much to minimize them. The

organization ensures that it offers the best to its customers at all times. The dogs form

businesses that have slow growth. The growth of the companies is not assured to be

steady. Therefore, the organization ensures that it has the best for ensuring that the

best is achieved for the organization. Every growth has a different perspective in

providing that all the activities in ensuring that most of the activities in ensuring that all

the events that people have to ensure that all the activities that people get involved into

require a better understanding of most of the activities that people get involved into at a

time. Successful companies aim at ensuring that the dogs are minimized to ensure that

the organization grows steadily.

5) Analysis and evaluation of GE Aviation future directions for strategic growth:

The BCG matrix identifies the oil industry to have significant fluctuations, which may

have great uncertainties. It could be okay for the business to get involved in companies

that may allow for calculated risks (GE Power | General Electric, 2020). The possibilities

that regularly strike the oil and gas industry make the organization better understand the

key events that need to be satisfied at a time. The technological sector looks

exceedingly promising than other fields. More people are exhilarated with technology,

which makes it the right investment choice. The people who have different perspectives
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who have been involved in the organizational decisions help to ensure that people get

involved at a time (GE Power | General Electric, 2020). The specific activities that

people get involved in require a better understanding of most of the events that people

get involved in at a time. The people who get involved in the specific sets of activities

that people who get involved in requires a better understanding requires a better

understanding in how they ensure that they have a better understanding of all the

events that people get involved in at a time. There is a need to ensure that all the

activities that an individual gets involved in at a time. The world is moving towards

digitization, which focuses on ensuring that the best exercises that people get involved

in get a better understanding of the activities that people who get involved in at a time.

Conclusion:

In summary, the General Electric Company has a diversified portfolio. The

organization's collection has to ensure that it maintains a steady flow of capital to

ensure that all the organization's interests are met at a time. Not all businesses in the

portfolio can ensure that there is a realization of profits. Some enterprises perform

better than others and help in defining the focus of the organization. The BCG matrix

provides that the cash cow departments should be maintained. It states that the cow

should be milked without harming the cow. The dogs, on the other hand, should be

minimized. General electric has aviation and the health sector as the cash cows. The

digital industry takes money as it brings. The future of the industry relies on digitization.

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Reference:

Berthelot, M.J., Lasensky, N. and Somers, P., 2019. The Board’s Role in Monitoring

Strategy: Lessons Learned from General Electric.

Dong, D., Wagoner, R.G., Ganireddy, G. and Raju, R.N., General Electric Co, 2019.

Switching strategy for increased efficiency of power converters. U.S. Patent 10,205,399.

Ge.com. 2020. GE Power | General Electric. [online] Available at:

https://www.ge.com/power (Accessed: 1 June 2020).

Jones, L. and Mamrak, J., General Electric Co, 2019. Scanning strategy for perimeter

and region isolation. U.S. Patent Application 15/711,808. MarketWatch. 2020. General

Electric Co. [online] Available at: https://www.marketwatch.com/investing/stock/ge

(Accessed: 1 June 2020).

The Guardian. 2020. General Electric | Business | The Guardian. [online] Available at:

https://www.theguardian.com/business/generalelectric (Accessed: 1 June 2020).

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