Mba - Ge - S.M - G.242

General Electric
Strategic Audit
Prepared By : Mohamed Elwaya

Supervised By : DR . Amer EL- Baradie
GENERAL ELECTRIC
introduction
• General Electric is a multinational conglomerate with a long, storied history full of
innovation and revolution. Originally founded in 1890 as the "Edison General Electric
Company", the company quickly merged with their competitor Thomas-Houston
Company in 1892 after both companies began to experience increased difficulty trying to
produce complete electrical installations relying solely on their own patents and
technology. Whether they were inventing the latest innovation of lighting technology, a
way to allow consumers to still purchase appliances during the great depression or
developing radar and aviation technology during World War 2, General Electric has
always had an important place in history.
• GE Healthcare, a world leader in medical diagnostic and interventional imaging

technology and services;
• GE Infrastructure, which is involved in high-technology protective and productivity

solutions in such areas as water purification, facility safety, plant automation, and
automatic environmental controls;
• GE Transportation, the largest producer of small and large jet engines for commercial and
military aircraft in the world, as well as the number one maker of diesel freight
locomotives in North America
• GE Commercial Finance, which provides businesses, particularly in the mid-market

segment, with an array of financial services and products, including loans, operating
leases, and financing programs;
• GE Consumer Finance, a leading financial services provider, serving consumers, retailers,

and auto dealer in about three dozen countries;
• GE Insurance, which is involved in such areas as life insurance, asset management,

mortgage insurance, and reinsurance. The staggering
• General Electric, ranked as fifth in the Fortune 500 in 2003,

• GE operates in more than 100 countries worldwide and generates approximately 45
percent of its revenues outside the United States.
• Over the course of its 110-plus years of innovation, General Electric has amassed more
than 67,500 patents, and the firm's scientists have been awarded two Nobel Prizes and
numerous other honours.
GENERAL ELECTRIC
VISION
• General Electric Company’s corporate vision is “to become the world’s premier digital
industrial company, transforming industry with software-defined machines and solutions
that are connected, responsive and predictive.” In addition to this corporate vision
statement, GE specifies that these machines and solutions are for “executing critical
outcomes for our customers.” The company caters to the needs of a diverse population
of customers. For example, customers in the oil and gas, aerospace/aviation, healthcare,
power, transportation, and electric lighting industries are considered. The following
components are most notable in General Electric’s vision statement:
1. To become the world’s premier digital industrial company

2. Transforming industry with software-defined machines and solutions that are
connected, responsive and predictive
3. Executing critical outcomes for our customers
• The first element of the corporate vision statement shows that General Electric aims to
be not just any digital industrial company, but the premier one. To achieve and maintain
this status, the company continues to evolve to stay ahead of competitors. For example,
GE integrates advanced computing technologies in its healthcare and aerospace/aviation
products. On the other hand, the second component of the vision statement defines
what General Electric Company aims to do in terms of its products. For instance, these
products are software-defined machines and solutions that transform industry. The third
element of the corporate vision states what GE offers to its customers. Specifically, the
company aims to help customers execute critical outcomes. These components of the
corporate vision statement are also reflected in General Electric’s corporate mission
statement, especially in terms of the company’s contribution to industrial progress.
GENERAL ELECTRIC
Mission
• General Electric Company’s corporate mission is “to invent the next industrial era, to
build, move, power and cure the world.” In this regard, the company accounts for the
evolution of industries and markets. For example, large-scale changes in the electric
lighting, power, and transportation industries are considered in the development of
this current corporate mission statement, showing GE’s aims for long-term success, far
into the future. Thus, General Electric’s mission statement has the following major
components:
1. To invent the next industrial era

2. To build, move, power and cure the world
• The first element of General Electric’s corporate mission statement describes what the
company generally does as its main business activity, which is to invent the next
industrial era. To do so, GE ensures that it keeps evolving to introduce new and
advanced products that support industrial progress. This aim influences General
Electric Company’s generic competitive strategy and intensive growth strategies. The
second component of the corporate mission indicates what the company aims to
achieve in inventing the next industrial era. For example, GE’s operations build, move,
power and cure the world. This component of the corporate mission helps define the
products element of General Electric’s marketing mix (4Ps) and shows that the
company has operations in the transportation and aerospace, oil and gas, energy,
electric lighting, and healthcare industries. Considering that inventing the next
industrial era is evident of being a premier digital industrial company, General
Electric’s corporate mission statement and corporate vision statement are strongly
connected to each other.
GENERAL ELECTRIC
VALUE
• The GE Leadership Behaviours – Act with Humility, Lead with Transparency, and Deliver
with Focus – are an essential part of our Lean culture transformation, reflecting how we
each aim to act to drive progress..
• GE core values comprise “passion for our customers, meritocracy, growth-driven, every
idea count, playing offense, and embracing speed and excellence.” GE recognizes the
power of a stable conglomerate to assure its continued growth and development. To
achieve this, the organization promotes an internal culture that respects everyone and
has a winning mentality through its core values.
General Electric Values
• Act with Humility

• Lead with Transparency
• Deliver with Focus
• Unyielding integrity
GENERAL ELECTRIC
Objectives
• Specific
All objectives set by General Electric are specific and clear. This helps employees, as well as
managers, manage and maintain focus on the targets and the end results that need to be
achieved. At the same time, specific objectives help managers determine skill development
and training needs within their departments as well.
• Measurable
Objectives at General Electric are also measurable. This means that all objectives can be
tracked for progress. This is important for General Electric as it helps in meeting deadlines.
The element of measurability is added in objectives by adding quantifiable criteria for
determining progress and objective achievement.
• Attainable
The goal should be attainable that even in stretching the abilities of the employees and
challenging them, it should remain possible to achieve. The objectives at General Electric are
attainable in that they push the employees out of their comfort zones but remain possible to
achieve.
• Realistic
Objectives at General Electric are also attainable in that they are realistic. This means that
General Electric sets objectives keeping in view the organizational resources and constraints
to be able to achieve objectives effectively and within time.
• Timely
Objectives at General Electric are also time-bound in that they have a specified start and finish
date. The timeliness of the objective helps General Electric maintain a sense of urgency in
employees and keep them motivated towards achieving the objective.
GENERAL ELECTRIC
Products & Services
• General Electric produces a wide range of products for homes, businesses and
government, including small and large appliances, lighting, aircraft engines, software,
and products for many types of industries and power-generation technologies. General
Electric’s website lists 26 categories of products and hundreds of individual types of
products.
• General Electric makes business and consumer appliances for the kitchen, clothes
washers and dryers and water heaters. The company manufactures housewares, health
care equipment, geospatial systems, dozens of types of industrial equipment, and
lighting for businesses and homes.
• General Electric is a major military contractor and produces military and marine engines,
diesel engines, commercial engines and aviation engines and systems. The corporation
designs and manufactures small, medium and large power plants, AC/DC power supplies,
and paralleling switchgear and static transfer switches. GE produces motors, meters,
generators and controls. In the category of power and water, GE makes water treatment
systems, gas engines, gas turbines, and nuclear, solar and wind power products.
• The company’s website has a long list of high-technology power conversion products,
including power motors, induction motors, high-speed motors, electronic controllers and
hydro generators. GE also makes locomotives, and railway signalling, control and
communication equipment. GE produces software for several industries, including
railroad, health care, manufacturing, mining and power generation and distribution.
GENERAL ELECTRIC
Products & Services
• Appliances
GE is one of the largest appliance manufactures in the world. GE offers direct to consumer services to
maintain and service their high-quality, energy efficient appliances, but consumers in the market for a new
appliance must go direct to an authorized dealer.
• Aviation
GE is the largest provider of jet engines and aviation services. GE offers these products and services to the
governments and businesses, but none are offered directly to consumers.
• Consumer Products
GE offers a wide range of Consumer Electronics, from Holiday Lights to Digital Cameras to Generators.
These consumer products are sold to retail businesses for resale and not directly to consumers.
• Electrical Distribution
GE's namesake industry, Electric Distribution continues to offer an impressive scope of electrical services
and equipment. Machinery such as motors, switchboards, and transformers are sold direct to businesses
and GE supports this equipment with direct to business maintenance services.
• Energy
GE is helping to lead the way to greener energy solutions. They are working with USCAP to urge the US
Government to enact measures to reduce greenhouse gases. GE is also known for it's Clean Coal and Wind
Energy offerings. Their energy products/services are provided to both the government and the private
sector.
• Finance - Business
GE assists businesses large and small in meeting their financing needs. GE has worked with businesses
across the country to finance capital expansion, keep their workers employed and their doors open.
• Finance - Consumer
GE also strengthens businesses by allowing them to provide financing directly to consumers on the
products they sell. From Walmart to Art Van, GE has backed their consumer credit cards and large purchase
financing offers.
GENERAL ELECTRIC
• Healthcare
GE is on the forefront of healthcare technology. They providing cutting edge X-Ray technology,
Molecular Imagining, and provide products for Cardiology and women's healthcare. These
technologies are sold within the industry and not available direct to consumers.
• Lighting
GE is lighting up homes and stoplights around the country. GE created Energy Smart light
bulbs that are sold to retailers. GE also works directly with public service providers to light
stoplights, streetlights, and other public lighting.
• Oil & Gas

GE's Oil & Gas sector, prides itself on responsible drilling by preventing gas leaks and
minimizing CO2 emissions.
• Rail
As in its other industries, GE prides itself on seeking greener and efficient solutions within the
Railway Industry. GE has sold more than 15,000 locomotive engines that have been used
around the world.
• Software & Services

As with GE itself, their Software & Services sector serves businesses within a great number of
industries. From the Food & Beverage industry to the Energy Industry, GE offers software
solutions that allow businesses to manage efficiencies, maximize profits and enhance the
overall customer experience.
• Water
Providing clean drinking water is a cause to which GE is committed. Everyday, they work
towards solutions to provide this to the billions of people across the globe. GE also works
with business to reduce their water consumption in production and find environmental safer
solutions for disposing of waste water.
GENERAL ELECTRIC
Market Segment
• Since General electric deals in different products & services, therefore, it uses
differentiated targeting strategy.
• General Electric uses a mix of demographic, psychographic and geographic

segmentations strategies to satisfy the changing needs & wants of the customers
accordingly.
• The geographic segmentation divides the market according to geographic areas, like- city,
country and region.
• The demographic segmentation will require General Electric to divide market according
to demographic characteristics, like- gender, age, income and ethnicity.
• The behavioural segmentation, customers will be divided according to their buying

pattern like usage frequency, benefits sought, usage occasions and brand loyalty.
• The psychographic segmentation will result in customers' grouping according to their

lifestyles, interests, attitudes, values and traits.
• The primary role of GE's Board of Directors is to oversee how management serves the
interests of shareowners and other stakeholders. To do this, GE's directors have adopted
corporate governance principles aimed at ensuring that the Board is independent and fully
informed on the key strategic and risk issues GE faces. GE has met its goal to have two-
thirds of its Board be independent under a strict definition of independence. Today, 10 of
the Board's 11 directors are independent. Each independent director is encouraged to visit
at least two GE businesses each year, typically without corporate management present.
GENERAL ELECTRIC
Board of directors
The primary role of GE's Board of Directors is to oversee how management serves
the interests of shareowners and other stakeholders. To do this, GE's directors have
adopted corporate governance principles aimed at ensuring that the Board is
independent and fully informed on the key strategic and risk issues GE faces. GE
has met its goal to have two-thirds of its Board be independent under a strict
definition of independence. Today, 10 of the Board's 11 directors are independent.
Each independent director is encouraged to visit at least two GE businesses each
year, typically without corporate management present.
o H. Lawrence Culp, Jr.

Chairman & CEO, GE
Chairman & CEO, GE since 2018
o Stephen Angel
Chairman and Former Chief Executive Officer, Linde
Independent Director since 2022
o Sébastien M. Bazin
Chairman and CEO, AccorHotels
o Ashton Carter
Director, Belfer Center for Science and International Affairs,
Harvard Kennedy School (since 2017)
o Francisco D'Souza
Former Chief Executive Officer, Cognizant Technology Solutions
o Edward P. Garden
Chief Investment Officer and Founding Partner, Trian Fund Management
o Isabella Goren
Former Chief Financial Officer, American Airlines and AMR Corporation
GENERAL ELECTRIC
Board of directors
o Thomas W. Horton
Partner, Global Infrastructure Partners (since 2019)
o Risa Lavizzo-Mourey
Professor, University of Pennsylvania
o Catherine Lesjak
Former Chief Financial Officer, HP
o Tomislav Mihaljevic
CEO & President, Cleveland Clinic
o Paula Rosput Reynolds

President and CEO, Prefer West, LLC
o Leslie Seidman
Former Chairman, Financial Accounting Standards Board
o Vic Abate
Senior Vice President & Chief Technology Officer, GE
Appointed September 2015
o Nancy Anderson
Vice President and Chief Information Officer, GE
Appointed July 2020
o Linda Boff
Chief Marketing Officer and Vice President,
Learning and Culture and President, GE Foundation
Appointed September 2015
GENERAL ELECTRIC
Corporate Governance
GE’s governance framework guides the Board and management’s oversight of the company
and is outlined in its governing documents.
The Certificate of Incorporation and By-Laws establish fundamental principles about GE’s
capital structure, shareowner rights and its directors and officers.
The Governance Principles provide additional detail on Board operations and key governance
policies. The GE Board has several standing committees, each of which has specified
responsibilities that are set forth in its committee charter.
Our Code of Conduct, The Spirit & The Letter, sets forth our ethics and compliance standards
for all employees and directors.
Competitors
GENERAL ELECTRIC
Siemens AG (Germany)
Siemens [FWB: SIE] is a Germany-based multinational conglomerate corporation. It has a
major presence in energy, transportation, healthcare, and media. Founded in 1847, Siemens is
considered the pioneer of electrical engineering and was largely involved in laying out the
nation’s electrical grid. The company has its presence in more than 200 countries worldwide,
with headquarters in Munich, Germany.
Siemens competes with General electrics in almost every sector. The energy business offers a
wide range of products and services for power generation, transmission & distribution, and
industrial automation to smart cities. Siemens provides patient monitoring systems, medical
imaging technologies, laboratory diagnostics tools, and other related products and solutions
in the healthcare segment.
In 2017, Siemens controlled 23.2 percent of the global diagnostic imaging market, followed
closely by General Electric with 22.2 percent. According to Statista, Siemens’ market share is
expected to grow to 23.5 percent in 2024, while GE’s share might drop to 21.6 percent. If this
metric holds, it also means that other segments in GE’s product line will have to bear the
brunt.
Siemens revenues for the 3rd quarter2021 rose by 21 percent to 16.09 billion Euros from the
previous year. Its total orders for the same period were 20.5 billion Euros with an all-in free
cash flow of 2.3 billion euros.
GENERAL ELECTRIC
Honeywell International Inc

Honeywell International Inc. [NASDAQ: HON] is an American multinational conglomerate
company that operates as a diversified technology and manufacturing firm. It operates in
different segments including, aerospace, automation and control solutions, and performance
materials & technologies. The company has its presence in more than 70 countries worldwide,
with headquarters in Charlotte, North Carolina.
Honeywell’s product portfolio comprises turbochargers and aviation products for transport
and general aviation; controls and system solutions for industrial applications; home comfort
solutions like thermostats, air purifiers, dehumidifiers, etc.; sensing technologies for
industrial, security, and safety applications.
The company competes with GE in aerospace, Automotive, and Control Solutions, Home
Comfort, Turbocharger, and Aviation Management segments. However, its presence in the
Medical Segment is limited to Thermostats and Air-purifiers. Honeywell’s greatest asset is its
track record of earning customer confidence over several years; it has earned a reputation as
a trustworthy player delivering high-quality goods.
While GE’s aviation segment slumped in the 2020 financials, Honeywell saw revenues in this
segment at 11.5 billion despite the global economy taking a hit due to Covid-19. As of
September 16th, 2021, Honeywell’s market value equity was $153.055 billion, with a revenue
of $33.956 billion.
GENERAL ELECTRIC
3M Company (US.)
3M Company [NYSE: MMM] is a multinational company that provides a range of technological
products and services, including industrial, healthcare, security & safety, etc. 3M’s product
portfolio includes materials used in adhesives, sealants, electronics, and various maintenance
operations; patient monitoring systems for surgery, imaging equipment for dentistry, and so
on.
The company’s key competitor is GE, as it operates across a broad range of industries,
including healthcare, aviation, power management, etc. 3M has been concentrating more on
the multi-industrial sector, increasing its presence in the Asia-Pacific region.
Its most significant competitive advantage lies with its superior quality of products, whether
they are protection, health, or home care products; this is something 3M built a reputation
doing. With an increased focus on innovation, research & development (R & R&D), the
company aims to expand its portfolio in emerging markets.
As of September 16th, 2021, GM had a market cap of $106.579 billion. Its revenue for the 12
months ending June 30th, 2021, amounted to $34.734 billion, representing an increase of
10.78 percent Y/Y.
GENERAL ELECTRIC
External Environment
SOCIAL
S •
•
•
Consumption behaviour
Demographics
Social equality
• Cultural and societal norms
TECHNOLOGICAL
T •
•
•
Technological infrastructure
Technological innovations
Research and development
ENVIRONMENT
E •
•
•
Environmental regulations
growing use of renewable energy
industry norms of recycling
• Weather
ECONOMICAL
E •
•
•
The efficiency of financial markets
Economic growth rate
Inflation
• Industry lifecycle stage
POLITICAL - LEGAL
P •
•
•
Stability
Fiscal policy (taxation)
Employment laws
• Consumer protection laws
GENERAL ELECTRIC
Social factors
Consumption behaviour
The consumption behaviour shares a strong link with the economic factors. When consumers have more
disposable income and are willing to spend more on goods and services to improve their lifestyle, it
provides exciting growth opportunities to General Electric , as introducing new products and services to
these customers is easier, and revenue growth chances also remain higher. However, as modern
consumers are becoming more demanding, it is important for General Electric to carefully analyse their
consumption/spending patterns preferences so that the marketing mix strategies could be adapted
accordingly. It is also important for General Electric to understand whether the consumption is driven
by utilitarian or hedonic motivations. Another important consumer behaviour variable that can affect
the General Electric’s performance is the degree of ethnocentrism. Higher ethnocentrism can make the
business environment more challenging for General Electric while operating in the international
markets.
Demographics
High population growth and rising proportion of young population segment are two favourable
demographic indicators for General Electric , when it specifically targets young consumers with its
products/services. Other than that, it is also important for General Electric to study the host country’s
attitude towards migration, as a positive attitude in terms of welcoming the immigrants from different
cultural backgrounds indicates the importance of adopting effective diversity management practices.
General Electric should adapt its marketing strategies to ensure diversity and inclusion. A positive
attitude towards migration also reflects that General Electric can easily recruit staff from diversified
cultural backgrounds. High workplace diversity is often linked with higher productivity, better
innovation, and improved overall firm performance.
Social equality
Social class stratification and respect for hierarchy are some important social factors that can influence
the business, marketing, and human resource management strategies of General Electric . A hierarchal
structure with formal work culture suits General Electric when entering countries with high power
distance. Similarly, higher social stratification also indicates the need to adopt effective market
segmentation strategies, as General Electric cannot target multiple segments from different social
classes with the same marketing mix.
Cultural and societal norms
Each country has its unique cultural norms, values, and traditions, which reflect consumer behaviour.
Inability to adapt the product/service offerings according to local cultural traditions can cause serious
harm to the business. General Electric must conduct extensive research to gain local consumer
knowledge. Being an international firm from a culturally distant home market, it could be difficult for
General Electric management to understand the delicate cultural nuances. For this purpose, General
Electric can develop a business partnership with local market players that could offer in-depth
information about cultural norms and values that influence consumers’ perceptions and attitudes
towards the brand
GENERAL ELECTRIC
Technological factors
Ethnological infrastructure
General Electric should prefer countries with well-developed technological infrastructure, as supportive
technological infrastructure makes it easier for a firm to achieve its cost reduction, innovation, and
value creation objectives. Well-developed technological infrastructure also reflects that it will be harder
for General Electric to derive sustainable competitive advantage from technology, which could be easily
imitated by competitors.
Technological innovations
Technological innovation rate and development can affect the overall market and industry. By studying
the emerging technological innovation trends, General Electric will be able to understand the new
product development rate, product life cycle length, and innovative features being mostly liked by
consumers. Research into consumers’ attitudes towards emerging innovative digital technologies can
help General Electric in understanding whether shifting to e-commerce will benefit more than opening
a physical outlet. Competitors’ investment in automation technologies to reduce costs can compel the
General Electric to shift from manual to automated procedures, particularly when people in general in
that particular society are tech-savvy. By investing in the right technological innovations, General
Electric can optimize the user experience, achieve operational efficiencies, and position itself as an
innovative organization.
Research and development
The research and development trend in chosen industry/region reflects the pro-activeness of firms
towards introducing innovative solutions for consumers’ needs. However, General Electric must refine
its understanding of how emerging technological innovations can benefit the firm besides creating value
for customers. Extensive investment in research and development activities would be required in
markets characterized by disruptive technologies. However, it is important for General Electric to
adopt a long-term horizon, and do not expect a short-term return from its research and development
efforts.
GENERAL ELECTRIC
Environmental factors
Regulations
Stringent environmental regulations in many countries are pressurizing business organizations to

reduce environmental harm. In response, General Electric should adopt responsible production
practices, encourage responsible consumption practices among its targeted consumers, try to improve
its brand image on sustainability grounds, and ensure full compliance with the international and local
environmental regulations, as inability to do so can draw the serious, reputation damaging criticism
from relevant stakeholders.
The growing use of renewable energy
The emergence of renewable technologies to reduce dependence on natural resources has emerged as a
powerful trend in various sectors. General Electric should evaluate the extent to which a country’s
technological infrastructure supports the use of renewable technologies to capture this environmental
trend. In some world regions, governments offer attractive subsidies on the use of renewable energy
sources. By taking the advantage, General Electric can incur investment in renewable energy sources to
achieve sustainable business development objectives.
Industry norms of recycling
waste management, and optimum resource utilization

In some countries, the adoption of the closed-loop, circular economy principle is becoming a common
norm in some industries/regions. Industries with supportive institutional mechanisms can make
material recycling and re-using easier. Similarly, in some countries, customers take an active part in the
recycling process. General Electric can benefit from these sustainability trends and use them as a tool to
not only reduce the environmental costs but also achieve economic objectives in form of reduced
production costs.
Weather
Lastly, weather conditions need to be considered as operational cost, efficiency, and employee
productivity can derive a strong influence from the local weather conditions. Weather conditions also
shape consumer behaviour and require General Electric to integrate flexibility into its supply chain
operations.
GENERAL ELECTRIC
Economic factors
The efficiency of financial markets
High financial market efficiency shares a strong positive relationship with overall economic growth,
making capital accumulation and goods/service production easier. Therefore, General Electric needs to
choose the countries with highly efficient financial markets so that it could easily accumulate financial
and human capital. By keeping an eye on the financial market efficiency, General Electric can
successfully stay ahead of the competition.
Economic growth rate
General Electric should review the economic growth rate of the countries while making international
expansion decisions. Countries with high economic growth rates provide more opportunities to pursue
long-term growth objectives. A slow economic growth rate leads towards more cautious spending by
consumers, which can directly affect General Electric’s revenue growth.
Inflation
The rising inflation rate can have a negative impact on the revenue growth of General Electric as its
decreases the purchasing power of money and discourages consumer spending on goods and services.
Exchange and interest rate
Fluctuations in the exchange rate can affect business profitability. General Electric should study the
exchange rate fluctuations to make accurate anticipations so that the undesired trade and business
performance consequences could be avoided. High-interest rate means General Electric will make high-
interest payments and taken loans will cost more in the long run.
Industry lifecycle stage

Entering in mature industries that are approaching saturation point can achieve growth objectives
more challenging for General Electric . Therefore, the industry lifecycle stage must be considered while
choosing the countries for international expansion.
GENERAL ELECTRIC
Political factors
Stability
Political stability is important for business organizations as it influences customer and investor
confidence, and therefore, has a wide impact on the economy. High political instability has serious
implications for the consumption, investment, and economic growth of businesses. Currently, the
geographic area in which General Electric is actively present is experiencing some political instability
due to internal and external conflicts. Inability to understand and handle the prevailing political chaos
can inhibit the company from achieving its growth objectives, and management will be reluctant to
invest in new capital.
While making the expansion decisions, General Electric should carefully review the industry-specific
taxation policies. . The taxation policies will be more favourable for industries that are on top
government priorities. Currently, governments in many developing countries are interested in reducing
corporate taxes in an attempt to attract foreign direct investment. General Electric should consider
these countries, as it will be easier to make profits and invest in the innovation, new product and
research and development activities due to low tax rate.
Employment laws
Employment law is an umbrella term that covers various laws protecting employees’ rights, such as fair
wage, equality, equity, inclusion, fairness, health, and safety. In some countries, there is no effective
enforcement of employment laws, but some countries impose strict penalties upon violation of any of the
employees’ stated rights. While entering/operating in those countries, General Electric should ensure
work environment safety. Proper mechanisms must be placed to discourage any sort of direct and
indirect discrimination. Effective compliance with the employment laws can help General Electric in
strengthening its employer brand image, which is important for attracting and retaining the top talent
from the market amid the ongoing war for talent.
Consumer protection laws

In many countries, a variety of federal and state-level laws are in place to protect consumers from
potential exploitation by businesses. In the information technology age, the laws have even become
stricter to ensure consumers’ privacy. In the case of online transactions, General Electric must strictly
comply with the data protection regulations to avoid lawsuits. While entering different countries,
General Electric management needs to study the laws related to refund, discount, credit terms, quality,
misleading advertisement, and maximum pricing (particularly in the case of basic essential goods).
GENERAL ELECTRIC
Political - Legal factors

Stability
Political stability is important for business organizations as it influences customer and investor
confidence, and therefore, has a wide impact on the economy. High political instability has serious
implications for the consumption, investment, and economic growth of businesses. Currently, the
geographic area in which General Electric is actively present is experiencing some political instability
due to internal and external conflicts. Inability to understand and handle the prevailing political chaos
can inhibit the company from achieving its growth objectives, and management will be reluctant to
invest in new capital.
While making the expansion decisions, General Electric should carefully review the industry-specific
taxation policies. . The taxation policies will be more favourable for industries that are on top
government priorities. Currently, governments in many developing countries are interested in reducing
corporate taxes in an attempt to attract foreign direct investment. General Electric should consider
these countries, as it will be easier to make profits and invest in the innovation, new product and
research and development activities due to low tax rate.
Employment laws
Employment law is an umbrella term that covers various laws protecting employees’ rights, such as fair
wage, equality, equity, inclusion, fairness, health, and safety. In some countries, there is no effective
enforcement of employment laws, but some countries impose strict penalties upon violation of any of the
employees’ stated rights. While entering/operating in those countries, General Electric should ensure
work environment safety. Proper mechanisms must be placed to discourage any sort of direct and
indirect discrimination. Effective compliance with the employment laws can help General Electric in
strengthening its employer brand image, which is important for attracting and retaining the top talent
from the market amid the ongoing war for talent.
Consumer protection laws

In many countries, a variety of federal and state-level laws are in place to protect consumers from
potential exploitation by businesses. In the information technology age, the laws have even become
stricter to ensure consumers’ privacy. In the case of online transactions, General Electric must strictly
comply with the data protection regulations to avoid lawsuits. While entering different countries,
General Electric management needs to study the laws related to refund, discount, credit terms, quality,
misleading advertisement, and maximum pricing (particularly in the case of basic essential goods).
GENERAL ELECTRIC
competitive Environment
• The General Electric Company is among high performing companies in the United States of
America and utilizes a strategic differentiation approach to attract more customers. Competitive
advantage places businesses in a favourable position to its competitors, and three strategic
approaches include differentiation, cost leadership, and focus. In cost leadership, a company lowers
its prices while in differentiation. A firm focuses on the quality of products or services and focuses
on a narrow target market part in focus businesses.
• GE operates and competes in five segments; Power & Water, Renewable energy, Aviation,
Healthcare, and venture capital. In 2021, GE ranked 38th on the fortune 500 lists. This ranking is
based on assets, revenues, and capitalization, among others.
• From its 2021 financial reports, GE achieved a revenue of $78.721 billion, a net income of $-2.809
billion, and total assets valued at $237.559 billion. Despite the tough financial year, its debt-to-equity
ratio was 1.69, which shows a strong financial position. In a highly competitive global market, a
company must have a strong positive balance sheet to ensure its longevity. GE’s sales breakdown
shows that this is a well-diversified company with no one main line of business.
• GE competes amidst a highly competitive business landscape. It has to deal with major competitors
in almost every sector.
• The businesses in which GE engage and operates faces competition at various level and the
intellectual assets build upon by the company and its capabilities to support it business is what
helping the company to stand tall from 138 years. Its operations in more than 180 countries and
integration of system & processes across the businesses to create the supportive ecosystem are
helping the company to be ahead of its competitors.
• Digitalization of its operations: To emerge as a dominant player in the market and to become digital
industrial, GE has started integrating its businesses and has installed 200K machines globally
connecting varied functions like Sourcing, processing, engineering, commercial and other functions.
While for customers it has developed more than 100 industrial apps to support its businesses across
different industries.
• Strategic partnerships and acquisitions: Acquiring companies or partnering with them helped the
company in using their technology & expertise to be competitively ahead in the market. Some of the
companies acquired by GE are Alstom, Lufkin industries, Jhon wood Plc’s, Opal Software, Dresser
Inc. and many others. Recently, GE is in talks with oilfield services provider Baker Hughes for
probable partnership.
GENERAL ELECTRIC
Porter Five Forces Analysis
Threat of
New
Entrants
Threat of Rivalry
Substitute Among Bargaining
Products Power of
or Existing Suppliers
Services Firms
Bargaining
Power of
Buyers
GENERAL ELECTRIC
Threat of New Entrants

The economies of scale is difficult to achieve in the industry in which General Electric
operates. This makes it easier for those producing large capacitates to have a cost advantage.
It also makes production costlier for new entrants. This makes the threats of new entrants a
weaker force.
The product differentiation is strong within the industry, where firms in the industry sell
differentiated products rather a standardised product. Customers also look for differentiated
products. There is a strong emphasis on advertising and customer services as well. All of these
factors make the threat of new entrants a weak force within this industry.
The capital requirements within the industry are high, therefore, making it difficult for new
entrants to set up businesses as high expenditures need to be incurred. Capital expenditure is
also high because of high Research and Development costs. All of these factors make the
threat of new entrants a weaker force within this industry.
The access to distribution networks is easy for new entrants, which can easily set up their
distribution channels and come into the business. With only a few retail outlets selling the
product type, it is easy for any new entrant to get its product on the shelves. All of these
factors make the threat of new entrants a strong force within this industry.
The government policies within the industry require strict licensing and legal requirements to
be fulfilled before a company can start selling. This makes it difficult for new entrants to join
the industry, therefore, making the threat of new entrants a weak force.
How General Electric can tackle the Threat of New Entrants?
• General Electric can take advantage of the economies of scale it has within the industry,
fighting off new entrants through its cost advantage.
• focus on innovation to differentiate its products from that of new entrants.
• It can spend on marketing to build strong brand identification.
This will help it retain its customers rather than losing them to new entrants.
GENERAL ELECTRIC
Bargaining Power of Suppliers

The number of suppliers in the industry in which General Electric operates is a lot compared
to the buyers. This means that the suppliers have less control over prices, and this makes the
bargaining power of suppliers a weak force.
The product that these suppliers provide are standardised, less differentiated and have low
switching costs. This makes it easier for buyers like General Electric to switch suppliers. This
makes the bargaining power of suppliers a weaker force.
The suppliers do not contend with other products within this industry. This means that there
are no other substitutes for the product other than the ones that the suppliers provide. This
makes the bargaining power of suppliers a stronger force within the industry.
The suppliers do not provide a credible threat for forward integration into the industry in
which General Electric operates. This makes the bargaining power of suppliers a weaker force
within the industry.
The industry in which General Electric operates is an important customer for its suppliers. This
means that the industry’s profits are closely tied to that of the suppliers. These suppliers,
therefore, have to provide reasonable pricing. This makes the bargaining power of suppliers a
weaker force within the industry.
How General Electric can tackle the Bargaining Power of Suppliers?
• General Electric can purchase raw materials from its suppliers at a low cost. If the costs or
products are not suitable for General Electric, it can then switch its suppliers because
switching costs are low.
• It can have multiple suppliers within its supply chain. For example, General Electric can
have different suppliers for its different geographic locations. This way it can ensure
efficiency within its supply chain.
• As the industry is an important customer for its suppliers, General Electric can benefit from
developing close relationships with its suppliers where both of them benefit.
This will help it retain its customers rather than losing them to new entrants.
GENERAL ELECTRIC
Bargaining Power of Buyers

The number of suppliers in the industry in which General Electric operates is a lot more than
the number of firms producing the products. This means that the buyers have a few firms to
choose from, and therefore, do not have much control over prices. This makes the bargaining
power of buyers a weaker force within the industry.
The product differentiation within the industry is high, which means that the buyers are not
able to find alternative firms producing a particular product. This difficulty in switching makes
the bargaining power of buyers a weaker force within the industry.
The income of the buyers within the industry is low. This means that there is pressure to
purchase at low prices, making the buyers more price sensitive. This makes the buying power
of buyers a weaker force within the industry.
The quality of the products is important to the buyers, and these buyers make frequent
purchases. This means that the buyers in the industry are less price sensitive. This makes the
bargaining power of buyers a weaker force within the industry.
There is no significant threat to the buyers to integrate backwards. This makes the bargaining
threat of buyers a weaker force within the industry.
How General Electric can tackle the Bargaining Power of Buyers?
• General Electric can focus on innovation and differentiation to attract more buyers.
Product differentiation and quality of products are important to buyers within the
industry, and General Electric can attract a large number of customers by focusing on
these.
• General Electric needs to build a large customer base, as the bargaining power of buyers is
weak. It can do this through marketing efforts aimed at building brand loyalty.
• General Electric can take advantage of its economies of scale to develop a cost advantage
and sell at low prices to the low-income buyers of the industry. This way it will be able to
attract a large number of buyers.
GENERAL ELECTRIC
Threat of Substitute Products or Services

There are very few substitutes available for the products that are produced in the industry in
which General Electric operates. The very few substitutes that are available are also produced
by low profit earning industries. This means that there is no ceiling on the maximum profit
that firms can earn in the industry in which General Electric operates. All these factors make
the threat of substitute products a weaker force within the industry.
The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which General Electric operates sell at a
lower price than substitutes, with adequate quality. This means that buyers are less likely to
switch to substitute products. This means that the threat of substitute products is weak within
the industry.
How General Electric can tackle the Threat of Substitute Products?
• General Electric can focus on providing greater quality in its products. As a result, buyers
would choose its products, which provide greater quality at a lower price as compared to
substitute products that provide greater quality but at a higher price.
• General Electric can focus on differentiating its products. This will ensure that buyers see
its products as unique and do not shift easily to substitute products that do not provide
these unique benefits. It can provide such unique benefits to its customers by better
understanding their needs through market research and providing what the customer
wants.
GENERAL ELECTRIC
Rivalry Among Existing Firms

• The number of competitors in the industry in which General Electric operates are very few.
Most of these are also large. This means that firms in the industry will not make moves
without being unnoticed. This makes the rivalry among existing firms a weaker force
within the industry.
• The very few competitors have a large market share. This means that these will engage in
competitive actions to gain position and become market leaders. This makes the rivalry
among existing firms a stronger force within the industry.
• The industry in which General Electric is growing every year and is expected to continue to
do this for a few years ahead. A positive Industry growth means that competitors are less
likely to engage in completive actions because they do not need to capture market share
from each other. This makes the rivalry among existing firms a weaker force within the
industry.
• The fixed costs are high within the industry in which General Electric operates. This makes
the companies within the industry to push to full capacity. This also means these
companies to reduce their prices when demand slackens. This makes the rivalry among
existing firms a stronger force within the industry.
• The products produced within the industry in which General Electric operates are highly
differentiated. As a result, it is difficult for competing firms to win the customers of each
other because of each of their products in unique. This makes the rivalry among existing
firms a weaker force within the industry.
• The production of products within the industry requires an increase in capacity by large
increments. This makes the industry prone to disruptions in the supply-demand balance,
often leading to overproduction. Overproduction means that companies have to cut down
prices to ensure that its products sell. This makes the rivalry among existing firms a
stronger force within the industry.
• The exit barriers within the industry are particularly high due to high investment required
in capital and assets to operate. The exit barriers are also high due to government
regulations and restrictions. This makes firms within the industry reluctant to leave the
business, and these continue to produce even at low profits. This makes the rivalry among
existing firms a stronger force within the industry.
• The strategies of the firms within the industry are diverse, which means they are unique to
each other in terms of strategy. This results in them running head-on into each other
regarding strategy. This makes the rivalry among existing firms a strong force within the
industry.
GENERAL ELECTRIC
How General Electric can tackle the Rivalry Among Existing

Firms?
• General Electric needs to focus on differentiating its products so that the actions of
competitors will have less effect on its customers that seek its unique products.
• As the industry is growing, General Electric can focus on new customers rather than
winning the ones from existing companies.
• General Electric can conduct market research to understand the supply-demand situation
within the industry and prevent overproduction.
Implications of Porter Five Forces on General Electric
By using the information in General Electric five forces analysis, strategic planners will be able
to understand how different factors under each of the five forces affect the profitability of the
industry. A stronger force means lower profitability, and a weaker force means greater
profitability. Based on this a judgement of the industry's profitability can be made and used in
strategic planning.
GENERAL ELECTRIC
Industry Evolution
• The history of General Electric Company is a significant part of the history of technology in the
United States. General Electric (GE) has evolved from Thomas Edison’s home laboratory into one
of the largest companies in the world, following the evolution of electrical technology from the
simplest early applications into the high-tech wizardry of the turn of the millennium. The company
has also involved into a conglomerate, with an increasing shift from technology to services, and with
ten main operating units: GE Aircraft Engines, the largest producer of small and large jet engines
for commercial and military aircraft in the world; GE Appliances, one of the world’s leading
appliance manufacturers; GE Capital Services, which provides its clients with an array of financial
services, including various types of insurance, mutual funds and annuities, consumer and
commercial financing, credit services, and equipment management; GE Industrial Systems, a
leading supplier of products related to electrical power and equipment; GE Lighting, a preeminent
global maker of lighting products for consumer, commercial, and industrial customers; GE Medical
Systems, a world leader in medical diagnostic imaging technology and services; National
Broadcasting Company, one of the four major U.S. broadcast television networks, which has
interests in numerous other media ventures; GE Plastics, a specialist in high-performance
engineered plastics used in the office equipment, automotive, building and construction, and high-
tech industries; GE Power Systems, which is a world leader in gas, steam, and hydroelectric
turbines and generators for power production and other applications; and GE Transportation
Systems, the number one maker of diesel freight locomotives in North America. GE operates in
more than 100 countries worldwide and generates approximately 43 percent of its revenues outside
the United States.
GENERAL ELECTRIC
Industry Evolution
• Late 19th Century: The Edison Era
• Thomas Edison established himself in the 1870s as an inventor after devising, at the age of 23, an
improved stock ticker. He subsequently began research on an electric light as a replacement for gas
light, the standard method of illumination at the time. In 1876 Edison moved into a laboratory in
Menlo Park, New Jersey. Two years later, in 1878, Edison established, with the help of his friend
Grosvenor Lowry, the Edison Electric Light Company with a capitalization of $300,000. Edison
received half of the new company’s shares on the agreement that he work on developing an
incandescent lighting system. The major problem Edison and his team of specialists faced was
finding an easy-to-produce filament that would resist the passage of electrical current in the bulb
for a long time. He triumphed only a year after beginning research when he discovered that
common sewing thread, once carbonized, worked in the laboratory. For practical applications,
however, he switched to carbonized bamboo.
• Developing an electrical lighting system for a whole community involved more than merely
developing an electric bulb; the devices that generated, transmitted, and controlled electric power
also had to be invented. Accordingly, Edison organized research into all of these areas and in 1879,
the same year that he produced an electric bulb, he also constructed the first dynamo, or direct-
current generator.
• The first application of electric lighting was on the steamship Columbia in 1880. In that same year,
Edison constructed a three-mile-long trial electric railroad at his Menlo Park laboratory. The first
individual system of electric lighting came in 1881, in a printing plant. But the first full-scale public
application of the Edison lighting system was actually made in London, at the Holborn Viaduct. The
first system in the United States came soon after when Pearl Street Station was opened in New York
City. Components of the system were manufactured by different companies, some of which were
organized by Edison; lamps came from the parent company, dynamos from the Edison Machine
Works, and switches from Bergmann & Company of New York. In 1886 the Edison Machine Works
was moved from New Jersey to Schenectady, New York.
• While these developments unfolded at Edison’s company, the Thomson-Houston Company was
GENERAL ELECTRIC
Industry Evolution
• Early 20th Century: Bolstering Electrification Operations And Moving Beyond Them
• By the turn of the century General Electric was manufacturing everything involved in the
electrification of the United States: generators to produce electricity, transmission equipment to
carry power, industrial electric motors, electric light bulbs, and electric locomotives. It is important
to any understanding of the evolution of GE to realize that though it was diverse from the
beginning, all of its enterprises centered on the electrification program. It is also worth noting that it
operated in the virtual absence of competition. General Electric and the Westinghouse Electric
Company had been competitors, but the companies entered into a patent pool in 1896.
• Company Perspectives:
• We begin this century with a GE totally focused on the customer, utterly energized and rejuvenated
by e-Business, and driven by the relentless beat of a unique operating system and social
architecture. This Company is poised to move forward to levels of performance, growth and
excitement undreamed of in the past.
• In 1900 GE established the first industrial laboratory in the United States. Up to that point,
research had been carried out in universities or in private laboratories like Edison’s Menlo Park
laboratory. Initially, the lab was set up in a barn behind the house of one of the researchers, but the
lab was moved in 1900 to Schenectady, New York, after it was destroyed in a fire. The head of the
research division was a professor from the Massachusetts Institute of Technology. The importance
of research at General Electric cannot be underestimated, for GE has been awarded more patents
over the years than any other company in the United States.
• During the early decades of the 20th century General Electric made further progress in its
established fields, and also made its first major diversification. In 1903 General Electric bought the
Stanley Electric Manufacturing Company of Pittsfield, Massachusetts, a manufacturer of
transformers. Its founder, William Stanley, was the developer of the transformer.
GENERAL ELECTRIC
Industry Evolution
• By this time GE’s first light bulbs were in obvious need of improvement. Edison’s bamboo filament
was replaced in 1904 by metalized carbon developed by the company’s research lab. That filament,
in turn, was replaced several years later by a tungsten-filament light bulb when William Coolidge, a
GE researcher, discovered a process to render the durable metal more pliable. This light bulb was so
rugged and well suited for use in automobiles, railroad cars, and street cars that it was still
employed in the 1990s. In 1913, two other innovations came out of the GE labs: Irving Langmuir
discovered that gas-filled bulbs were more efficient and reduced bulb blackening. To this day
virtually all bulbs over 40 watts are gas-filled.
• The first high-vacuum, hot-cathode X-ray tube, known as the “Coolidge tube,” was also developed
in 1913. Coolid GE’s research into tungsten had played an important role in the development of the
X-ray tube. The device, which combined a vacuum with a heated tungsten filament and tungsten
target, has been the foundation of virtually all X-ray tubes produced ever since, and its development
laid the foundation for medical technology operations at General Electric.
• Perhaps GE’s most important development in the early part of this century was its participation in
the development of the high-speed steam turbine in conjunction with English, Swedish, and other
inventors. Until this invention, all electricity (except hydroelectric) had been produced by
generators that turned at no more than 100 rpm, which limited the amount of electricity a single
unit could produce. An independent inventor had come up with a design for a very-high-speed
steam turbine before the turn of the century, but it took five years of research before GE could
construct a working model. By 1901, however, a 500-kilowatt, 1,200-rpm turbine generator was
operating. Orders for the turbines followed almost immediately, and by 1903 a 5,000-kilowatt
turbine was in use at Chicago’s Commonwealth Edison power company.
• Such rapid progress led to rapid obsolescence as well, and the Chicago units were replaced within
six years. As a result, GE shops in Schenectady were soon overflowing with business. By 1910 the
volume of the company’s trade in turbine generators had tripled and GE had sold almost one
million kilowatts of power capacity. At the same time, General Electric scientists were also
researching the gas turbine. Their investigations eventually resulted in the first flight of an airplane
GENERAL ELECTRIC
Industry Evolution
• No other American company can claim a heritage of innovation as deep and broad as GE. From
Thomas Alva Edison’s first incandescent light bulb to the latest jet engine brimming with internet-
connected sensors and 3D-printed parts, GE has pioneered technologies that have spurred world-
transforming changes and improved the lives of billions. We’ve encapsulated GE’s global impact in
nine different industries, highlighting four key technological transformations where we have
consistently led the way. Together, these moments trace an arc of innovation that has no parallel—a
proven 150-year commitment to progress that will help propel a brighter future for the world.
International Industries
• It's a Global industry – operates worldwide, with Multi-National Corporations (MNCs) making
only small adjustments for country- specific circumstances
• In 1896, General Electric was one of the original 12 companies listed on the newly formed Dow
Jones Industrial Average,[21] where it remained a part of the index for 122 years, though not
continuously.[22]
• General electric products and services can be found in more than 125 countries around the world
GENERAL ELECTRIC
industry rivals positioned

• Further analysis of competitor strengths and weaknesses, objectives, and strategies can
enable general electric to formulate a response to anticipated predatory actions by helping
the company understand, interpret, and predict competitor behavior. Comparative
information for general electric largest competitors is accumulated and presented in the
table below. Collecting and discussing this information should provide insight into
potential competitive actions and prepare the company to address forthcoming threats
and competitive challenges.
GENERAL ELECTRIC
Strategic group map
High
• Boeing
• Textron
• United
Technologies
• GE
• Siemens
• 3M
Price
• Philips
• Honeywell
• Samsung
• Hamilton
Beach
Low
extensive products and services extensive

products products
line Breadth
• In this map of strategic groups, GE is located among companies with very
extensive products and services and moderately high prices.
Strategic type
• Prospectors: they are a company with fairly broad product
lines that focus on product innovation and market
opportunities (they tend to emphasize creativity over
efficiency
GENERAL ELECTRIC
industry matrix
The industry matrix summarizes key success factors within an industry. As shown in
this table, the matrix gives a weight for each factor based on how important that
factor is for success within the industry. In this table, GE Energy is key success
factors ratings are compared to those of its biggest competitor—ABB. GE Energy is
such a well-managed division with such exhaustive resources and capabilities, that
I saw no justification to give it lower than a perfect score. ABB will have a difficult
time keeping up with GE Energy now and in the future within the energy industry.
GENERAL ELECTRIC
future Scenarios
The pessimistic scenario is based on a bear case scenario, using JPMorgan Chase &
Co. and Gordon Heskett Research Advisors estimates for asset sales, which in some
cases expect no proceeds (e.g., health-care spinoff and sale of jet leasing unit), and
a JPMorgan estimate for free cash flow.
The optimistic scenario is based on the bull case scenario using best market prices
for shares already traded, a Barclays Bank estimate for the jet leasing unit, and a
free cash flow estimate from Moody’s Investors Service.
Both scenarios include GE Capital’s current cash reserves as of September, as
reported by the company, but exclude the rest of GE’s cash reserves because of the
company’s intra-quarter financing needs, as evidenced by surging commercial
paper borrowings during each quarter.

GENERAL ELECTRIC
External Factors Analysis Summary
An EFAS (External Factors Analysis Summary) table is one way to organize external factors
into the generally accepted categories of opportunities and threats as well as to analyse
how well a particular company’s management (rating) is responding to these specific
factors in light of the perceived importance (weight) of these factors to the company.
Because GE is one of the most competently managed companies in the world with
strategies that indicate that its executives are deliberately responding to these
opportunities and threats to the best of their ability, I gave the company high scores.
GENERAL ELECTRIC
Financial strength and profitability of the company
General Electric revenue history and growth rate from 2019 to 2022.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services.
General Electric revenue for the quarter ending March 31, 2022, was $17.040B, a
0.18% decline year-over-year.
General Electric revenue for the twelve months ending March 31, 2022, was
$74.165B, a 1.02% increase year-over-year.
General Electric annual revenue for 2021 was $74.196B, a 2.16% decline from 2020.
General Electric annual revenue for 2020 was $75.833B, a 15.95% decline from
2019.
General Electric annual revenue for 2019 was $90.221B, a 7% decline from 2018.
Sector: Multi-Sector Conglomerates

Industry: Diversified Operation
Market Cap = $85.852B
Revenues = $74.196B
GENERAL ELECTRIC
Revenue Breakdown
GENERAL ELECTRIC
General Electric gross profit history and growth rate from 2019 to 2022.
Gross profit can be defined as the profit a company makes after deducting the
variable costs directly associated with making and selling its products or providing
its services.
gross profit for the quarter ending March 31, 2022, was $4.587B, a 1.17% increase
year-over-year.
General Electric gross profit for the twelve months ending March 31, 2022, was
$20.353B, a 16.75% increase year-over-year.
General Electric annual gross profit for 2021 was $20.3B, a 13.02% increase from
2020.
General Electric annual gross profit for 2020 was $17.962B, a 29.2% decline from
2019.
GENERAL ELECTRIC
General Electric operating income history and growth rate from 2019 to 2022.
Operating income can be defined as income after operating expenses have been
deducted and before interest payments and taxes have been deducted.
General Electric operating income for the quarter ending March 31, 2022, was
$0.295B, a 72.66% decline year-over-year.
General Electric operating income for the twelve months ending March 31, 2022,
was $5.176B, a 224.72% increase year-over-year.
General Electric annual operating income for 2021 was $5.96B, a 236.91% increase
from 2020.
General Electric annual operating income for 2020 was $1.769B, a 73.92% decline
from 2019.
General Electric annual operating income for 2019 was $6.783B, a 152.18% decline
from 2018.
GENERAL ELECTRIC
Resources & Capabilities

GENERAL ELECTRIC
VRIO Analysis
VRIO analysis of Electric Ge is a resource-oriented analysis using the details provided in the
General Electric: Compliance Systems case study. Resource-based strategic analysis assumes
that strategic resources can provide Electric Ge an opportunity to build a sustainable
competitive advantage over its rivals in the industry. This sustainable competitive advantage
can help Electric Ge to enjoy above average profits in the industry and thwart competitive
pressures.
GENERAL ELECTRIC
VRIO Analysis
GENERAL ELECTRIC
Business model
General Electric Co. (GE) is a global industrial company that provides power
generation, renewable energy, industrial aviation products, and healthcare
products and services. The company also offers various financial products
and services, although it has scaled back this part of its business significantly
in recent years.1 GE serves customers in 130 countries and has
manufacturing and service operations globally.2
GE operates in industries that require continual investment in research and

development.3 Major competitors include Honeywell International Inc.
(HON), 3M Co. (MMM), German-based Siemens AG (SIEGY), and France-
based Schneider Electric SE (SBGSF).
Aviation generates the most revenue and profits
Note that on Nov. 9, 2021, GE announced that it plans to split into three
public companies corresponding to its aviation, healthcare, and energy
businesses. The healthcare spinoff is planned for early 2023. The energy
business spinoff, scheduled for early 2024, will contain its businesses that
manufacture turbines for power plants and for wind farms. GE will then
focus on its aviation business.
GENERAL ELECTRIC
Value-Chain Analysis
• Inbound Logistics
Primary •
•
Operations
Outbound Logistics
Activities • Marketing and Sales
• Services
• Firm Infrastructure
Support • Human Resources Management
Activitie • Technology Development
• Technology Development
s • Procurement Activities at Immelt Ge
GENERAL ELECTRIC
Primary Activities
Inbound Logistics
These activities of Immelt Ge are associated with receiving, storing and disseminating the
inputs of the products. It can include warehousing of physical products, material handling, as
well as architecture to receive and store customer information for digital media company.
Immelt Ge at present has outsourced most of its inbound logistics activities.
Operations
Activities that help the organization to transform raw material into finished products. For the
purpose of this article the definition is broad – it can mean using customer data to serve
advertisements based on usage behaviour to clients, moulding plastic to make products etc.
Outbound Logistics
Immelt Ge undertakes these activities to distribute the finished products to channel partners
and final buyers. Outbound logistics activities include – scheduling, warehousing, distribution
network, processing, and wholesalers and retailers order fulfillment.
Marketing and Sales
These activities are undertaken by Immelt Ge to create means through which the buyer can
buy a firm’s products. These activities include – marketing, advertising and promotion, pricing,
channel selection, sales force management etc.
Services
Immelt Ge needs to provide after sales services and maintenance for successful usage of the
product. Service activities of Immelt Ge can include – part supply, post sales maintenance,
training, product forward and backend alignment of software, and installation services.
GENERAL ELECTRIC
Support Activities
Firm Infrastructure
Firm infrastructure support activities at Immelt Ge consists activities such as – planning,

quality management, legal services, finance and accounting and general management.
Firm infrastructure activities at Immelt Ge supports entire value chain though the scope varies
given that Immelt Ge is a diversified company even within the industry. For example the
finance and planning at Immelt Ge are managed at corporate level while quality management,
accounting and legal issues are managed at business unit level.
Human Resources Management
In an environment where each organization is striving to become a learning organization,

Human Resources Management is key to the success of any organization. HRM support
activities include – Recruiting, Skill Assessment, Training & Development, Selection, Hiring,
People Planning and Compensation at both business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in some
industries, it is defining factor. For example, in the consulting companies HR is the main source
of competitive advantage.
Technology Development
Technology supports almost all activities in modern day organization. In the technology
industry, technology development has become a source of competitive advantage. Technology
development at Immelt Ge may include activities such as - feature design, field-testing,
process engineering, component design, and technology selection.
Procurement Activities at Immelt Ge
Procurement activities at Immelt Ge include activities that are undertaken to purchase inputs
that are used by Immelt Ge’s value chain. It doesn’t include purchase inputs themselves.
Purchased inputs may include - raw materials, supplies, machinery, laboratory equipment,
office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things such as –
procedures, vendor management, information system, and supply chain partner qualification
rules and ongoing performance evaluation.
GENERAL ELECTRIC
Internal Factors Analysis Summary

GENERAL ELECTRIC
SWOT Analysis
Strengths
S
• Overall revenues from emerging markets are growing
• General Electric Company has a Strong Distribution network with many outlets.
• It has a low-cost structure, which provides it with an advantage over the competition.
• It has a strong financial position with positive profits reported in the past few years. It also
has a strong asset base.
• It has a skilled labour force that is highly qualified, innovative and diversified..
Weakness
W
• Stock prices lower owing to the financial downturnLow amounts of spending on
research and development as compared to the competition.
• It has a high employee turnover rate, with low employee motivation and working
morale.
• It has liquidity problems with low quick ratio; the level of current assets is less than
current liabilities. It also faces cash flow problems.
Opportunities
O
• The number of those who connect to power grids is going to increase dramatically by
2050
• Internet users are increasing around the world. E-commerce is also growing with the
increase in internet usage.
• Social media users are increasing worldwide.
• Household income is increasing and so is the consumer spending. Inflation in the
economy is expected to remain low.
• Interest rates are low, which provides an investment opportunity for large projects..
Threats
T
• Capital investment is negatively affected by tax reforms
• There is a threat of new entrants coming into the market.
• The exchange rate has been devalued.
• Fuel price has risen in recent years making inputs expensive.
• Competition within the industry is increasing.
• More substitute products are now available..
GENERAL ELECTRIC
Internal Assessment
Strengths
• Distribution and Reach: General Electric Company has a large number of outlets in almost
every state, supported by a strong distribution network that makes sure that its products
are available easily to a large number of customers in a timely manner.
• Cost Structure: General Electric Company’s low-cost structure helps it produce at a low
cost and sell its products at a low price, making it affordable for its customers.
• Dealer Community: General Electric Company has a strong relationship with its dealers
that not only provide them with supplies but also focus on promoting the company's
products and training.
• Financial Position: General Electric Company has a strong financial position with
consecutive profits in the past 5 years, along with accumulated profit reserves that can be
used to finance future capital expenditures.
• General Electric Company has a large asset base, which provides it with better solvency.
• Return on Capital Expenditure: General Electric Company has been successfully able to
generate positive returns on the capital expenditure it has incurred on various projects in
the past.
• Automation: of various stages of production has allowed the more efficient use of
resources and reducing costs. It also allows for consistency in quality of its products and
provides the ability to scale up and scale down production as per the demand in the
market.
• Skilled Labour force: General Electric Company has invested extensively in the training of
its employees that has resulted in it employing a large number of skilled and motivated
employees.
• General Electric Company has a diversified workforce, with people of many geographical,
racial, cultural and educational backgrounds that help the company by bringing in diverse
ideas and methodologies of doing things.
• General Electric Company has qualified and accredited professionals working under in its
team.
• Entering new markets: General Electric Company’s innovative teams have allowed it to
produce new products and enter new markets. It has been successful in past, in most of
the initiatives it has taken in new markets.
• Social Media: General Electric Company has a strong presence on social media with more
than millions of followers on the three most famous social media platforms: Facebook,
Twitter and Instagram. It has high levels of customer engagement on these platforms with
low customer response time.
• Website: General Electric Company has a well-functioning and interactive website that
draws many internet traffic and sales.
GENERAL ELECTRIC
Strengths
• Product Portfolio: General Electric Company has a large product portfolio where it
provides products in a large range of categories. It has a number of unique product
offerings that are not provided by competitors.
• The geography and location of General Electric Company provide it with a cost advantage
in serving its customers, when compared to that with the competition.
• General Electric Company has a well-established IT system that ensures efficiency in its
internal and external operations.
• General Electric Company owns a number of intellectual property rights that include
trademarks and patents. These allow it exclusivity over its products and competitors
cannot copy or reverse engineer them.
• General Electric Company is a brand that has been in the market for years, and people are
aware of it. This makes its brand awareness high.
• Its products have maintained quality over the years and are still valued by customers, who
find it as good value for money that they pay.
• Partnerships: Strategic partnerships are established by General Electric Company with its
suppliers, dealers, retailers and other stakeholders. This allows it to leverage them, if need
be, in the future.
Weaknesses
• Research and Development: Even though General Electric Company is spending more than
the average research and development expenditure within the industry, it is spending way
less than a few players within the industry that have had a significant advantage as a result
of their innovative products.
• High Day Sales Inventory: The time it takes for products to be purchased and sold are
higher than the industry average, meaning that General Electric Company builds up on
inventory adding unnecessary costs to the business.
• Rented Property: A significant proportion of the property that General Electric Company
owns is rented rather than purchased. It has to pay large amounts of rent on these adding
to its costs.
• Low current ratio: The current ratio that shows the company’s ability to meet its short
term financial obligations, is lower than the industry average. This could mean that the
company could have liquidity problems in the future.
• The company has low levels of current assets compared to current liabilities, and this can
create liquidity problems for it in operations.
GENERAL ELECTRIC
Weaknesses
• Cash flow problems: There is a lack of proper financial planning at General Electric
Company regarding cash flows, leading to certain circumstances where there isn’t enough
cash flow as required leading to unnecessary unplanned borrowing.
• Integration: General Electric Company's current structure and culture have resulted in the
failure of various mergers aimed at vertical integration.
• Diversification in the workforce: The workforce at General Electric Company is
concentrated with mostly local workers, and low amounts of workers from other racial
backgrounds. Lack of diversification makes it difficult for employees from different racial
background to adjust at the workplace, leading to loss of talent.
• Market Research: General Electric Company has not conducted market research within the
market that is serves since the past 2 years. As a result, it is making decisions based on 2
years old data, while customer needs may have evolved over time.
• High employee turnover rates: General Electric Company has a higher employee turnover
rate compared to competitors. This means that it has more people leaving the job, and as
a result, it is spending more on training and development as employees keep leaving and
joining.
• Quality Control: General Electric Company has a lower budget for its quality control
department than competitors. This leads to lack of consistency and the possibility of
damage to quality across its various outlets.
• Lack of legal experience and legal department employees are not highly qualified.
• A few products have a high market share, while most of the products have a low market
share. This reliance on a few products makes General Electric Company vulnerable to
external threats if these few products suffer for any reason.
• The workload is a high per worker as there are fewer workers than the actual work
required. This puts workers under psychological stress and is likely to be less productive.
• Worker morale is low due to company culture and politics that have grown in recent years.
• Competition and qualified employees have been leaving the organisation in recent years,
which could mean a shortage of good talent for the company in the upcoming years.
• The decision making is highly centralized, and decisions by teams need to be approved by
certain officials. This reduces efficiency in operations by making them more time
consuming. It also leads to reduced innovation.
• The performance appraisal is not in a systematic manner. People are often not appraised
for their performance. This leads to lower work morale and lack of promotion
opportunities for employees.
GENERAL ELECTRIC
External Assessment
Opportunities
• Internet: there has been an increase in the number of internet users all over the world.
This means that there is an opportunity for General Electric Company to expand their
presence online; by using the internet to interact with its customers.
• E-commerce: There has been a new trend and a growth in sales of the e-commerce
industry. This means that a lot of people are now making purchases online. General
Electric Company can earn revenue by opening online stores and making sales through
these.
• Social Media: there has been an increase in the number of social media users worldwide.
The three social media platforms; Facebook, Twitter and Instagram, have shown the
greatest number of increase in monthly active users. General Electric Company can use
social media to promote its products, interact with customers and collect feedback from
them.
• Technological developments: technology comes with numerous benefits among many
departments. Operations can be automated to reduce costs. Technology enables better
data to be collected on customers and improves on marketing efforts.
• There has been an increase in average household income along with an increase in
consumer spending following the recession. This will result in growth in General Electric
Company’s target market with new customers that can be attracted towards the business.
• Population: the population has been growing and is expected to grow at a positive rate for
the upcoming years. This is beneficial for General Electric Company as there will be an
increase in the number of potential customers that it can target.
• Inflation: The inflation rate has been low and is expected to remain low in the next two
years. This is an opportunity for General Electric Company as its cost of inputs would
remain low for the next two years.
• Interest rate: Lower interest rates than compared to previous years provides an
opportunity for General Electric Company to undergo expansion projects that are financed
with loans at a cheaper interest rate.
• Green government drive: this provides an opportunity for General Electric Company for
the sale of General Electric Company's products to federal and state government
contractors.
• Transport Industry: the transport industry has been flourishing in the past few years, and
shows growth potential in the future. This has reduced the costs of transportation, which
is beneficial for General Electric Company as it will lower its overall costs.
• Tax policy: the governments’ reduction in tax rate is beneficial for General Electric
Company as a lower amount would be expensed out as a tax.
GENERAL ELECTRIC
Opportunities
• The government has also announced a subsidy on the sale of environmentally friendly
goods in this sector. General Electric Company can focus on these environmentally friendly
products and make use of this opportunity.
• Tourism: growth in tourism is beneficial for General Electric Company as it will provide
new potential customers that it can target in order to gain market share.
• Skilled workers: increase in education and training by numerous institutes has increased
the amount of skilled labor available within the country. This means that if General Electric
Company is able to hire skilled labor, it would have to spend less on training and
development, therefore, saving costs.
• The growth in consumer spending in the economy is likely to increase consumption for
General Electric Company's products.
• Several new niche markets have opened up that are growing. General Electric Company
can sell products in these markets and take advantage.
• Globalisation: Increased globalisation does not restrict General Electric Company to its
own country. It can extend its operations to other countries, entering into these markets
and making use of the opportunities that lie in these markets.
• Consumers within the industry are becoming more conscious of health, and this is a
segment that is growing. General Electric Company can take advantage by manufacturing
products that are beneficial to customer's health.
• Trade barriers have been reduced on the import of goods. This will reduce the costs
incurred on inputs for production.
• Regulations have loosened in recent years making it easier for businesses to carry out their
operations.
Threats
• Technological developments by competitors; New technological developments by a few
competitors within the industry pose a threat to General Electric Company as customer
attracted to this new technology can be lost to competitors, decreasing General Electric
Company’s overall market share.
• Suppliers: The bargaining power of suppliers has increased over the years with the
decrease in the number of suppliers. This means that the costs of inputs could increase for
General Electric Company.
• New entrants: there have been numerous players that have entered the market and are
gaining market share by gaining existing companies’ market share. This is a threat to
General Electric Company as it can lose its customers to these new entrants.
•
GENERAL ELECTRIC
Threats
• Increasing competition: there has been an increase in competition within the industry
putting downward pressure on prices. This could lead to reduced revenue for General
Electric Company if it adjusts to the price changes, or loss of market share if it doesn’t.
• Exchange Rate: the exchange rate keeps fluctuating, and this affects a company like
General Electric Company that has sales internationally, while its suppliers are local.
• Political uncertainties in the country prove to be a barrier in business, hindering
performance at times and making the business incur unnecessary costs.
• The fluctuating interest rates in the country do not provide a stable financial and economic
environment.
• Consumer tastes are changing, and this puts pressure on companies to constantly change
their products to meet the needs of these customers.
• Regulations on international trade keep changing, and this requires compliance by
companies if they are to operate globally.
• Substitute products available are also increasing, which is threat collectively for the whole
industry as consumption of current products decrease.
• The rise in prices of fuel has increased in the input costs for General Electric Company.
These costs have also increased as other industries that provide inputs for this company
also have suffered from increasing fuel prices, thereby charging more.
• Increased promotions by competitors have been a threat for General Electric Company. On
most media, there is more clutter than ever, and customers are bombarded with multiple
messages. This reduces the effectiveness of promotional messages by General Electric
Company.
• Constant technological developments require the workforce to be trained accordingly as
the inability to keep up with these changes can lead to loss of business for General Electric
Company.
Conclusion
• General Electric has been a long yet strong standing organisation with the help of their stagnant
revenue flow, diverse product portfolio and consistent inventions. Some of the factors they can
control are borrowing huge amounts of funds and protecting their brand image but fewer to no
lawsuits. Despite already being a global multinational, to keep their status they have to expand their
offering and work on advancing technological abilities.
• General Electric will benefit from the budget-friendliness of digital marketing and its ability to reach
a broad audience via channels like SEO, emailing, content marketing, and social media marketing.
• Mastering the principles of digital marketing and completing Certified Courses may lead to
possibilities to work for large retailers such as General Electric. IIDE’s short-term certification courses
may get you up to speed in as little as five days on a variety of digital skills and expertise.
GENERAL ELECTRIC
TOWS matrix
General Electric Company SWOT analysis lists down the strengths, weaknesses, opportunities
and threats to any organisation, but does not tell management what can be done by these. To
overcome this limitation and help develop strategies that are appropriate, an advanced SWOT
analysis or TOWS matrix is used. This lists down the Strengths-Opportunities (SO) strategies
that involve using strengths to take advantage of opportunities. It lists the Strengths-Threats
(ST) strategies that involve using strengths to fight of threats. It involves the Weaknesses-
Opportunities strategies that involve converting weaknesses to strengths by using
opportunities. Lastly, Weakness-Threats (WT) strategies involve overcoming weaknesses to
avoid threats.
GENERAL ELECTRIC
(SFAS) Matrix
General Electric Company SWOT analysis lists down the strengths, weaknesses, opportunities
and threats to any organisation, but does not tell management what can be done by these. To
overcome this limitation and help develop strategies that are appropriate, an advanced SWOT
analysis or TOWS matrix is used. This lists down the Strengths-Opportunities (SO) strategies
that involve using strengths to take advantage of opportunities. It lists the Strengths-Threats
(ST) strategies that involve using strengths to fight of threats. It involves the Weaknesses-
Opportunities strategies that involve converting weaknesses to strengths by using
opportunities. Lastly, Weakness-Threats (WT) strategies involve overcoming weaknesses to
avoid threats.
GENERAL ELECTRIC
Competitive Advantage
• General Electric's main generic strategy for competitive advantage is differentiation. In this
strategy, the company's goal is to attract target customers to products that are special and
unique. These products are made special and unique through research and development
that GE is known for.
• The three conventional strategic approaches to competitive advantage include cost
leadership, focus, and differentiation.
• Cost leadership approach focuses on economies of scale where a firm offers products at a
relatively low cost while in distinction, firms concentrate on the product to ensure
difficulty in replication and focus companies contemplate on the market (Forest & Fred,
2016). These explanations illustrate that firms adopt a different mechanism to ensure that
they gain a competitive advantage, considering the tremendous advancement in the
industrial and technological revolution. Moreover, globalization has facilitated
international trade, influencing the entrance of many firms in the market, increasing
competition level. The three competitive advantage strategic approaches majorly
concentrate on prices, market, and quality to ensure customer satisfaction, and General
Electric Company (GE) utilizes one of these approaches.
• General Electric Company (GE) is a multinational company that has operated for
approximately 128 years focusing on various industries for diversity. GE operates
worldwide with around two hundred and five thousand employees, and in 2019 it made a
revenue equivalent to 95.214 billion dollars (“Generic Electric Company,” 2020). This data
justifies that the company has been successful in its operations, hence, utilizing
competitive advantage strategic approaches. The company focuses on various products
such as Wind turbines, Software, lightning, health care, finance, energy, electric motors,
electrical distributions, and aircraft engines. Therefore, the General Electric Company has a
competitive advantage over its competitors justified through high profits.
GENERAL ELECTRIC
• The General Electric Company utilizes a differentiation strategic

competitive advantage approach to ensure that it maximizes profits. In
a differentiation approach, a firm’s products can be easily be
distinguished from its competitors by delivering quality products and
services (Forest & Fred, 2016). This clarification implies that in the
differentiation approach, a company concentrates on product value to
ensure customer satisfaction. In this respect, GE’s purpose is, “We rise
to the challenge of building a world that works” (“Generic Electric
Company,” 2020). This purpose statement justifies that the company
concentrates on innovation to ensure they guarantee customer
satisfaction. Through research and development, the firm has managed
to create unique and exclusive products to attract more customers.
Innovation is a vital aspect of a differentiation approach since, through
it, a company’s products can be easily be distinguished from those of
the competitors. General Electric has concentrated on innovation in
aviation and healthcare industries, matching products with
technological advancement to ensure customer satisfaction. Therefore,
the company utilizes a strategic differentiation approach to competitive
advantage to attract more customers.
• Competitive advantage places businesses in a favorable position to its

competitors, and three strategic approaches include differentiation, cost
leadership, and focus. In cost leadership, a company lowers its prices
while in differentiation. A firm focuses on the quality of products or
services and focuses on a narrow target market part in focus businesses.
The General Electric Company is among high performing companies in
the United States of America and utilizes a strategic differentiation
approach to attract more customers.
GENERAL ELECTRIC
Strategic alliances
Honda and General Electric Form Strategic Alliance in the Business Jet Engine Market
February 16, 2004
TOKYO - Honda Motor Co., Ltd. and General Electric Co. (GE) today announced the formation
of a strategic alliance to produce a new jet engine for light business jets.
The basic agreement was signed today at Honda Motor headquarters in Tokyo, Japan, by
Takeo Fukui, President and CEO of Honda Motor, and David Calhoun, President and CEO of GE
Transportation, a business unit of GE. GE is headquartered in Fairfield, Connecticut, USA.
Today's agreement establishes the framework under which Honda and GE will further develop
and certify Honda's new HF118 turbofan jet engine. Honda launched its jet engine and aircraft
project in 1986, and has been developing the lightweight HF118 engine, in the 1,000- to 3,500-
pound thrust class, since 1999.
The HF118 has run more than 1,400 hours, including ground tests and more than 200 hours in
flight tests on an existing test aircraft. In addition, two HF118 engines have powered Honda's
new experimental compact business jet, the Honda Jet, in flight tests that began in December
2003.
The Honda/GE basic agreement includes joint certification of the HF118, joint marketing
activities under both companies' joint brand with airframe manufacturers, and continued
discussions on the business structure under which the two companies will mass produce the
engine. Honda and GE have been in discussions for more than a year, and expect to sign a
formal definitive agreement later this year.
"We have great respect for the technology, design and performance built into Honda's HF118
engine," said GE's Calhoun. "There are tremendous benefits to Honda and GE entering the
business jet engine market together. Honda is the world's leading producer of engines for
motorcycles, automobiles, and power products with superb technology. We are delighted to
form a strategic alliance."
"This is a great step forward for Honda to enter the aviation business, which has been a dream
of the company since its creation," said Honda's Fukui. "We aim to commercialize our
compact jet engine business by merging mutual strengths: Honda's HF118 turbofan engine
technology, and GE's technology, sales, and support through a spirit of equal partnership. We
are confident in forming an alliance with GE, which is the leading manufacturer in the jet
engine industry."
GENERAL ELECTRIC
Strategic alliances
The emergence of smaller, relatively inexpensive business jets, which seat from four to eight
passengers, creates the potential for considerable engine sales for future business and
personal travel. Honda and GE envision an annual market in the future for approximately 200
or more of these business jets. Small business jet applications include owner operators and
fractional owners, as well as potential "air taxi" operations. The "air taxi" business involves
micro-jets flying passengers on short hops, using the vast number of small airports not
serviced by major airliners.
Jet engine technology is also driving market change. In the 1990s, GE took its jet engine
designs for large airliners to regional jet passenger aircraft, an arena previously dominated by
propeller-driven and turboprop aircraft. Now, Honda and GE will bring their expertise to a
new generation of smaller, lightweight, low-cost, and highly efficient turbofan jet engines with
the lowest operating costs.
Honda is one of today's leading manufacturers of automobiles and power products, and the
largest manufacture of motorcycles in the world. Honda has always sought to provide genuine
satisfaction to people worldwide. The result is over 120 manufacturing facilities in 30
countries worldwide, producing a wide range of products, including motorcycles, ATVs,
generators, marine engines, lawn and garden equipment and automobiles that bring the
company into contact with over 17 million customers annually.
GE is a diversified technology and services company dedicated to creating products that make
life better, from aircraft engines and power generation to financial services, medical imaging,
television programming and plastics. GE operates in more than 100 countries and employs
more than 315,000 people worldwide.
GENERAL ELECTRIC
Strategic alliances
SINGAPORE -- The GE-P&W Engine Alliance represents the strengths of the two leading
aircraft engine manufacturers in the world, backed by two of the world's most successful,
financially stable companies, General Electric and United Technologies, parent of Pratt &
Whitney.
Created in 1996, the Engine Alliance is a 50/50 joint venture between GE Aircraft Engines and
Pratt & Whitney to develop, manufacture, sell and support a family of engines for the new
class of high-capacity, long-range aircraft, such as the Airbus A380.
The Engine Alliance is using state-of-the-art technology from GE and Pratt & Whitney, building
on both companies' long history in commercial aviation to deliver engines with
unprecedented reliability, performance, proactive environmental compatibility and value.
To date, airlines such as Emirates, Air France, FedEx and leasing giant International Lease
Finance Corporation have purchased 200 GP7200 family engines for their A380s. Emirates will
be the first to put the engine into service in 2006.
The Engine Alliance enjoys the full backing of General Electric and United Technologies which
gives the GP7000 family a firm foundation. The strengths of GE and UTC-Pratt & Whitney
include:
- Some 35,000 large commercial aircraft engines with hundreds of millions of hours of service
at airlines worldwide.
- A customer support network that covers the world.
- Overhaul, repair and service centers at more than 50 locations around the globe.
- Partnerships with MTU of Germany, Snecma Moteurs of France and Techspace Aero of
Belgium for the GP7000.
The GE-P&W Alliance is currently focused on developing and validating two models of the
GP7000 family. The GP7270, rated at 70,000 pounds of thrust, will be used on the A380-800
passenger model and the GP7277, at 77,000 pounds of thrust, will power the A380-800
freighters. The base engine will be certified at more than 81,000 pounds of thrust so that it
accommodates future growth of the A380 family.
GENERAL ELECTRIC
Strategic alliances
Seven companies, including GE Gas Power, have formed an alliance aiming to establish a low-
carbon and hydrogen “industrial hub” for the tri-state area. The goal is to help decarbonize
the industrial region by focusing on two technology pathways: hydrogen utilization and
carbon capture, utilization and storage (CCUS)—both of which can help reduce or mitigate
carbon emissions from industries including power generation.
GE has decades of experience in using hydrogen-based fuels in power plants worldwide, and is
helping lead projects from the United States to Australia to demonstrate hydrogen’s
application as fuel blended with natural gas. Establishing a hydrogen ecosystem could drive an
economic resurgence across the region, creating thousands of new jobs. The group hopes its
regional collaborative approach becomes a national model for making the energy transition.
The northern Appalachian region alliance is planning to work with an array of interested
parties, from industry, labour and universities to local government and nonprofit
organizations. “The energy transition can only be accomplished swiftly through the industry-
wide collaboration, policy support, and public demand garnered by organizations such as this
alliance,” said Jereme Wetherby, global decarbonization partnerships leader at GE Gas Power.
The member companies, in addition to GE, are EQT Corp., a natural gas producer; Equinor, a
Norway-based energy company; Marathon Petroleum and partner MPLX; Mitsubishi Power, a
maker of power-generation systems; Shell Polymers, which is building a petrochemical plant
near Pittsburgh; and U.S. Steel, headquartered in Pittsburgh.
The alliance selected the Ohio-Pennsylvania-West Virginia region because it has world-class
universities and national laboratories, as well as strong industrial roots in manufacturing,
materials and energy. Its workforce is highly skilled and experienced. And it has built a strong
and growing start-up ecosystem.
While the work of the alliance is still in the planning process, these components are ideal for
building a future of efficient, automated manufacturing powered by cleaner energy
technologies, including hydrogen-fueled electric power.
GENERAL ELECTRIC
Growth strategy
One of the strategic objectives in using the differentiation generic competitive strategy is to
intensify General Electric Company’s research and development programs. This objective
supports product uniqueness necessary to capture and retain customers in GE’s target
markets. Another strategic objective based on this generic strategy is to strengthen the
company’s presence in market segments. For example, General Electric can utilize its
competitive advantage to maximize customer loyalty to the GE brand in the electric lighting
industry. Moreover, a strategic objective is to implement intensive strategies that contribute
to General Electric’s business growth while enabling the successful application of the
differentiation generic competitive strategy.
Product Development (Primary).

Product development is the primary intensive growth strategy in General Electric Company’s
business. Growth is achieved through new products that increase the company’s sales
revenues. For example, under this intensive strategy, GE maintains high-productivity research
and development processes. These processes ensure a leading edge against competitors in
the aerospace, energy, oil and gas and other industries, thereby contributing to the strengths
identified in the SWOT analysis of General Electric. The differentiation generic competitive
strategy requires that product development must focus on product uniqueness. In this regard,
a strategic objective based on product development is to integrate cutting-edge technologies
in every new product that General Electric develops.
Market Penetration (Secondary).

General Electric Company implements market penetration as its secondary intensive growth
strategy. In market penetration, the company grows by increasing its customer base in current
markets. For example, General Electric applies this intensive strategy through marketing
campaigns that aim to add new customers and corresponding accounts. In this way, GE grows
its revenue base despite competitive forces. The generic strategy of differentiation enables
General Electric to succeed in implementing market penetration. For instance, through
competitive advantages based on product uniqueness and advanced features, GE penetrates
the electric lighting, healthcare, and aerospace/aviation industries. A strategic objective based
on market penetration is to increase General Electric’s aggressiveness in marketing its
products against the products of competitors like 3M and Siemens.
GENERAL ELECTRIC
Growth strategy
Diversification.
Diversification is a minor or supporting intensive growth strategy in General Electric
Company’s operations. In diversification, growth occurs through new businesses. For example,
through this intensive strategy, General Electric has entered multiple industries throughout its
history. As a result, the company now operates in the energy, aerospace/aviation, healthcare,
electric lighting, oil and gas, and transportation industries. However, diversification has only a
minor role in contributing to GE’s growth because it is applied only infrequently, as it entails
major investment and organizational change, among other considerations. General Electric’s
differentiation generic competitive strategy is applied every time diversification happens, such
as when the company develops new products upon adding a new industry to its portfolio. A
strategic objective based on diversification is to spread risk across various industries and
markets. The PESTEL/PESTLE analysis of General Electric shows that various industries develop
business opportunities based on technological advancement. In diversification, GE
continuously searches for such opportunities in industries where it currently does not
operate.
Market Development.
General Electric Company implements market development as a supporting or minor
intensive growth strategy. In this strategy, the company grows by establishing new
applications, new markets or new market segments for its current products. For example, this
intensive strategy is applied whenever GE introduces its aviation technologies into the
transportation industry and creates a new market or market segment, accordingly. However,
market development has a minor role in the business because General Electric focuses on
advancing products in its current industries of operations. The generic strategy of
differentiation helps facilitate market development for GE products. For instance,
differentiation creates competitive advantage that General Electric uses to successfully enter
new markets or market segments. A strategic objective based on market development is to
create new revenue streams by developing hybrid or new applications of General Electric’s
current products.
GENERAL ELECTRIC
Corporate Strategies
GE organized its operations in seven main businesses: power and water, oil and gas,
energy management, aviation, healthcare, transportation, home and business
solutions, and GE Capital. Exhibit 1 provides a summary of
each of the businesses. The exhibit shows that each of the businesses employed
tens of thousands of employees
and was a highly diversified business. If spun off from GE, the businesses would be
among the
largest and most profitable companies in their respective sectors.
Given the diversity of businesses, what was the strategic logic that held the
company together? The CEO’s
letter to the shareholders in the 2003 Annual Report stated:
We are another year along with our five-initiative strategy to create high-margin,
capital-efficient
• Technical Leadership:
Technology and innovation are at the heart of our initiatives. Technical

leadership produces high-margin products, wins competitive battles, and creates
new markets.
• Services: Technical leadership has created a massive installed base of more than
100,000 long-lived GE jet engines, power turbines, locomotives, and medical
devices for which we can provide
high-margin services for decades.
• Customer Focus:
One of our successes is in “vertical selling,” the practice of aligning our offerings in
four industries that are critical to GE: healthcare, energy, transportation, and retail.
They represent $47 billion of industrial revenues and $169 billion of financial
services assets. GE
brings a unique array of capabilities to these industries, including products,
services, information,
and financing. On this broad foundation, we can build deeper partnerships with our
customers.
GENERAL ELECTRIC
Corporate Strategies
• Globalization:
We can take every growth idea and multiply its effectiveness through globalization.
Globalization is a GE core competency. We have made and sold products outside
the U.S.
for 100 years, and one-third of our leadership team is global. Our global revenues
were almost
$61 billion in 2003, up 14%, and should grow 15% in 2004. We succeed because we
recognize
one central fact: global growth requires more than simply shipping products. You
must be equally
committed to developing capabilities and relationships in the markets where you
want to succeed.
• Growth Platforms:
A key GE strength is our ability to conceptualize the future, identify “unstoppable”

trends and develop new ways to grow….We follow a disciplined process for growth.
First,
we segment broad markets and launch with a small platform acquisition. Then we
transform the
business model using our growth initiatives, such as services and globalization.
Finally, we apply
our financial strength to invest in organic growth or acquisitions. We can get big
quickly while
generating solid returns.
GENERAL ELECTRIC
Marketing strategy
General Electric or GE is an American Company that is considered as the most diversified
company that has contributed to the powerful innovations of the world. It has its glorified
impact on sectors like power, aviation, renewable energy, healthcare, transportation, home
appliances, etc. and many more. This company owns one of the most extensive electric
consumer product lines. For nearly 125 years, it’s continuously proving its worth and
competing with other global leaders. And GE made it possible because it has successfully
transformed and adapted its business and marketing strategies with the changes in situations.
Even though it’s an old company, GE is way ahead in doing contemporary marketing activities
than most other new entrants.
Product Strategy of General Electric
Product is what a business offers in the response of market demands. Successfully satisfying
the needs of the target market with a suitable product is the primary focus of the marketing
mix.
GE works with power and innovation that can change and have a significant impact on the
future. Since the establishment, this company has done wonders and presented the world
with numerous products and technologies in different sectors with its efficient workforce and
resourceful laboratories. Some of GE’s offered products and services are home appliances,
transportation, business equipment, mining, healthcare, energy connection, aviation, power
economics, software products, consumer electronics, industrial solution, lighting, capital,
power conservations, and many more. And if you ask what these categories serve, you’ll be
amazed by the versatility. You’ll find refrigerators, washer, AC’s, ovens, etc. on its consumer
products line, as well as wind turbines, water purification systems, gas turbines, etc. on its
renewable energy category. Also, in the capital division, there’re services of commercial loans,
credit cards, home loans, etc. The aviation part of GE produces high-quality helicopters,
commercial aircraft, bombers, tankers, military jets, etc. It’s tough to find a company that can
compete with the superfluous resources and varieties of GE.
GENERAL ELECTRIC
Price Strategy of General Electric
Price is the monetary value that a customer or a market gives in return for purchasing a
product or service. The marketing mix ensures the product’s acceptable cost so that both the
buyer and seller find it beneficial.
The versatile products and services offered by GE have made it to bring versatility in their
prices as well. The cost of their products and services depends on power and technology is
being used there. Wellbeing innovative energy activities embraced by GE combines lessening
costs on its operating activities. This company has taken various strategies to balance their
price strategies so that people don’t lose their trust and dependency on its products and
service. Products and services that are similar with other companies have a price that
matches the competition, On the other hand, innovations on which GE has the patent right,
have the price tag based on the value it provides. Also, to make people know the high-quality
of its aircraft engines, it has taken a strategy of “power by hour” reflecting the concept that
people are not only buying GE’s products, but also the superior power and technology.
Although this company has faced some complications as well, such as in 2004, it must increase
the price of its power division due to the pressure of changing water processing technology.
GENERAL ELECTRIC
Place/Distribution Strategy of General Electric
Place or distribution works for the business so that the products and services can get visible
and available to the market. The marketing mix ensures people get the right product at the
right time at the right place though place/distribution strategies.
The different product and service offerings have made GE establish a large number of
manufacturing plants, workplaces, laboratories, offices, etc. worldwide. The network of its
suppliers, both wholesalers, and retailer, are extensive as well. Its operations are circulated
over 160 countries including, Australia, Africa, Southeast Asia, Latin America, Europe, etc.
There are both authorized sales representatives or distributions and online stores of GE,
where people can easily find their products. Either online or offline, in each store, this
company is determined to provide more customized and “micro-experience” to its customers.
It believes that each customer has their own preferences and wants to pursue their own
journey. GE intends to send a personalized message to each customer so that their experience
with GE’s products gets more relevant to their life.
GENERAL ELECTRIC
Promotions Strategy of General Electric
The promotional strategy focuses on the informative side of the marketing mix. Through this
factor, a business can reach to people of every corner with its message and make them
connected with its products/services.
GE is primarily considered as a B2B organization. And this type of business struggles to create
a mass promotion among people. But GE has proved this concept wrong. In fact, it’s the first
company to create a social media presence among its competitors. Unlike other B2B’s, this
company has a strong and active presence on social media sites like Facebook, Google+,
Twitter, and Pinterest. It tells people the experience, challenges, and innovations it is facing
and creating and invites people to share theirs. On Facebook, this company shares various
data, info, and quizzes about the latest technologies. There’s also an activity where people can
ask their questions to the chief scientists of GE named “Stump the Scientist.” In Twitter, GE is
always creating a buzz with interesting tweets that are the combination of technology and
humor. GE has always focused on the long-term plan when it comes to promotion.
Humanizing the brand, connecting with real-life, generating conversations all are some of its
great promotional activities.
In Summary
General Electric is a brand that is always trying to relate itself with modern ideas. And its
effective marketing strategies have helped it to achieve many breakthroughs. This company
always had a clear picture of what it wants to present or wants to be. Each innovation and
contribution from this brand has always created a powerful impact on the world. And that’s
what made this company lead the world for almost 125 years, and people believe there’s
more to come.
GENERAL ELECTRIC
R&D strategy
At GE, research has been the cornerstone of innovation for over a century. Today, GE has approximately
36,000 technicians working across our business and global research centers at the intersection of
technology and industry to solve some of the world’s toughest problems.
At GE Research, research and development has been the cornerstone of innovation for more than century.
With more than 300,000 square feet of lab facilities and collaboration spaces,
Domain-specific labs enabling deep scientific research or development of custom solutions.
Spaces designed for assembling or co-locating interdisciplinary teams focused on a key mission or
outcome.
During much of the 20th century, GE used corporate-level R&D mainly to improve the performance of
products or occasionally to create new ones. In the past ten years, global competition has forced GE
corporate R&D, without sacrificing performance and innovation, to also emphasize speed, low cost and
high quality. To do this, it has made a number of fundamental changes in the way it operates. Those
changes range from its funding system, to the way of thinking and speaking about its place in GE, to its
mission statement and strategy. The people of corporate R&D are becoming leaders of GE's vital corporate
initiatives of the 1990s: globalization, quality and growth through services.
GE makes R&D investments for three reasons
1) To gain market share:
When we gain market share, it means that we are meeting the needs of our customers better than our
competitors - that we are offering great value and outcomes for them. This leads to topline growth.
2) To improve margins:
Improving margins means that we are improving the efficiency of our operations and reducing costs. This
helps topline growth translate into bottom line results.
Our investment in something like 3D printing has made us a leader in the industrial 3D printing space - a
process we are using to reduce waste and increase part durability.
3) To grow our Services business:
Some investors don't realize that Services - the servicing and maintenance of machines and equipment
already delivered to customers - make up ~75% of GE's backlog and have ~32% margins.
It's very important to our operating model because as we service machines throughout their lifespans, we
can provide continuous value to customers and shareowners alike. To grow this lucrative activity, we are
investing in the future of Services with software. Our industrial software innovations will not just maintain
our installed base, they will make it operate better.
GENERAL ELECTRIC
Financial strategy
General Electric’s consolidated revenues were $17,040 million, reflecting a year-over-year

decline of 0.2%. The quarterly sales suffered from weakness in the Power and Renewable
Energy segments. A gain in Healthcare and Aviation was a relief.
The performance of Aviation, Healthcare, Renewable Energy and Power is discussed below:
Aviation revenues increased 12% year over year to $5,603 million and orders grew 31%.
Organically, growth rates for revenues and orders were 12% and 32%, respectively. The high
volume of shop visits significantly benefited Commercial Services revenues, partially offset by
a decline in Commercial Engines revenues due to supply chain constraints.
Healthcare revenues in the reported quarter totaled $4,363 million, increasing 2% year over
year. The segment’s orders grew 8% on an organic basis. The segment gained from a 3%
increase in services organic sales while equipment revenues were flat. Supply shortages in the
industry played spoilsport in the quarter.
Renewable Energy revenues totaled $2,871 million, down 12% year over year. Organically, the
segment’s sales were down 10%. Its orders decreased 21% in the reported quarter. Weakness
in Onshore Wind revenues and softness in Grid adversely impacted the segment’s
performance. Growth in services revenues was a relief.
The Power segment’s revenues were down 11% year over year at $3,501 million. Organically,
sales decreased 6%. However, the segment’s orders increased 14% year over year (or were up
19% organically). The segment suffered due to lower shipment volumes.
Margin Profile
General Electric’s cost of sales was down 0.7% year over year to $12,453 million. It
represented 73% of the quarter’s revenues versus 73.4% in the year-ago quarter. Selling,
general and administrative expenses decreased 26.2% to $3,651 million. It was 21.4% of the
quarter’s revenues versus 17% in the year-ago quarter. Research and development expenses
totalled $641 million, reflecting an increase of 14.3%. It represented 3.8% of the quarter’s
revenues versus 3.3% in the year-ago quarter.
GENERAL ELECTRIC
Financial strategy
The company’s adjusted operating profit was $946 million, up 19% year over year. Margin in
the quarter was 5.8%, up 90 basis points (bps).
On a reported basis, the Power segment recorded operating earnings of $63 million against a
loss of $87 million in the year-ago quarter. Renewable Energy recorded a loss of $434 million
compared with a loss of $234 million in first-quarter 2021. The Aviation segment’s earnings
were $908 million versus $641 million in the year-ago quarter. The Healthcare segment’s
profits decreased 23% to $538 million.
Interest and other financial charges decreased 19.6% year over year to $390 million.
Balance Sheet and Cash Flow
Exiting the first quarter of 2022, General Electric had cash and cash equivalents of $12.8
billion, down from $15.8 billion recorded at the end of the previous quarter. Borrowings were
$28.6 billion, down from $30.8 billion at the end of the previous quarter.
Non-GAAP free cash outflow totaled $880 million in the first quarter compared with $3,361
million cash outflow recorded in the year-ago quarter.
2022 Outlook
For 2022, General Electric anticipates organic revenue growth in the high-single digits on a
year-over-year basis. Adjusted organic profit margin is predicted to expand 150 bps from the
previous year.
Free cash flow will likely be $5.5-$6.5 billion for the year. Adjusted earnings per share for 2022
are anticipated to be $2.80-$3.50 per share, suggesting a rise from $1.71 recorded in 2021.
GENERAL ELECTRIC
HUMAN RESOURCES MANAGEMENT (HRM)

GE has strong career development programs to develop the core competencies that it values
in employees. They range from entry level leadership programs offered to college graduates to
continual leadership development for all levels of the company.
In addition, the employs the following practices:
On-campus recruiting
Internships and Co-ops
Offers new grads the ability to defer working for GE for two years in order to join the Teach for
America program.
Every year, thousands of GE’s employees ranging from entry-level employees to its highest
performing executives make a trip to Croton Ville, NY which, as GE describes it, is a
transformative learning experience that, for many, becomes a defining career event. For more
than 50 years, this centre has been considered a forefront of real-world application for
cutting-edge thinking in organizational development, leadership, innovation and change. It
provides learning opportunities and comradeship for its employees in such a way that other
companies may want to duplicate it to attain similar results.
Diversity
GE claims on its website that relies on a culture of leadership and diversity to drive innovation
and productivity. GE has what it calls Affinity Networks‖ that comprise of the following
organizations:
African American Forum

Asian Pacific American Forum
Additionally, GE has won the following award & accolades:

Top 10 of Diversity MBA Magazines 50 Out Front Companies for Diversity Leadership
Woman Engineer Magazine's Top 50 Employers
Equal Opportunity Magazine's Top 50 Employers
Minority Engineer Magazine's #1 Employer
CAREERS & the Disabled Magazine's Top 50 Employers
GENERAL ELECTRIC
BCG
MATRIX
Stars
• The financial services strategic business unit is a star in the BCG matrix of General Electric
Company. It operates in a market that shows potential in the future. General Electric
Company earns a significant amount of its income from this SBU. General Electric
Company should vertically integrate by acquiring other firms in the supply chain. This will
help it in earning more profits as this Strategic business unit has potential.
• The Number 1 brand Strategic business unit is a star in the BCG matrix of General Electric
Company, and this is also the product that generates the greatest sales amongst its
product portfolio. The potential within this market is also high as consumers are
demanding this and similar types of products. General Electric Company should undergo a
product development strategy for this SBU, where it develops innovative features on this
product through research and development. This will help General Electric Company by
attracting more customers and increases its sales.
• The Number 2 brand Strategic business unit is a star in the BCG matrix of General Electric
Company as General Electric Company has a 20% market share in this category. It also the
market leader in this category. The overall category is expected to grow at 5% in the next 5
years, which shows that the market growth rate is expected to remain high. General
Electric Company should use its current products to penetrate the market. This could be
done by improving its distributions that will help in reaching out to untapped areas. This
will help increase the sales of General Electric Company
GENERAL ELECTRIC
Cash Cows
• The supplier management service strategic business unit is a cash cow in the BCG matrix of
General Electric Company. This has been in operation for over decades and has earned
General Electric Company a significant amount in revenue. The market share for General
Electric Company is high, but the overall market is declining as companies manage their
supplier themselves rather than outsourcing it. The recommended strategy for General
Electric Company is to stop further investment in this business and keep operating this
strategic business unit as long as its profitable.
• The Number 3 brand strategic business unit is a cash cow in the BCG matrix of General
Electric Company. This is an innovative product that has a market share of 25% in its
category. General Electric Company is also the market leader in this category. The overall
category has been declining slowly in the past few years. General Electric Company has the
power to influence the market as well in this category. It should, therefore, invest in
research and development so that the brand could be innovated. This will help the
category grow and will turn this cash cow into a star. The overall benefit would be an
increase in sales of General Electric Company.
• The international food strategic business unit is a cash cow in the BCG matrix for General
Electric Company. This business unit has a high market share of 30% within its category,
but people are now inclined less towards international food. This change in trends has led
to a decline in the growth rate of the market. The recommended strategy for General
Electric Company is to invest enough to keep this strategic business unit under operations.
If it no longer remains profitable and turns into a dog, then General Electric Company
should divest this strategic business unit.
GENERAL ELECTRIC
Question Marks
• The local foods strategic business unit is a question mark in the BCG matrix for General
Electric Company. The recent trends within the market show that consumers are focusing
more towards local foods. Therefore, this market is showing a high market growth rate.
However, General Electric Company has a low market share in this segment. The
recommended strategy for General Electric Company is to invest in research and
development to come up with innovative features. This product development strategy will
ensure that this strategic business unit turns into a cash cow and brings profits for the
company in the future.
• The Number 4 brand strategic business unit is a question mark in the BCG matrix for
General Electric Company. This strategic business unit is a part of a market that is rapidly
growing. However, this strategic business unit has been incurring losses in the past few
years. It has also failed in the attempts made at innovation by research and development
teams. The recommended strategy for General Electric Company is to divest and prevent
any future losses from occurring.
• The confectionery strategic business unit is a question mark in the BCG matrix for General
Electric Company. The confectionery market is an attractive market that is growing over
the years. However, General Electric Company has a low market share in this attractive
market. The low sales are as a result of low reach and poor distribution of General Electric
Company in this segment. The recommended strategy for General Electric Company is to
undergo market penetration, where it pushes to make its product present on more outlets.
This will ensure increased sales for General Electric Company and convert this strategic
business unit into a cash cow.
GENERAL ELECTRIC
Dogs
• The plastic bags strategic business unit is a dog in the BCG matrix of General Electric
Company. This strategic business unit has been in the loss for the last 5 years. It also
operates in a market that is declining due to greater environmental concerns. The
recommended strategy for General Electric Company is to divest this strategic business
unit and minimise its losses.
• The Number 5 brand strategic business unit is a dog in the BCG matrix for General Electric
Company. This is operating in a market segment that is declining in the past 5 years. The
company also has negative profits for this strategic business unit. However, it is expected
that the market will grow in the future with environmental changes that are occurring. The
recommended strategy for General Electric Company is to invest in the business enough to
convert into a cash cow. This will ensure profits for General Electric Company if the market
starts growing again in the future.
• The synthetic fibre products strategic business unit is a dog in the BCG matrix of General
Electric Company. The market for such products has been declining, and as a result of this
decline, General Electric Company has been facing a loss in the past 3 years. The market
share for it is also less than 5%. The recommended strategy for General Electric Company
is to divest this strategic business unit to minimise any further losses.
• The artificially flavoured products strategic business unit is a dog in the BCG matrix for
General Electric Company. These products were launched recently, with the prediction that
this segment would grow. However, with increasing health consciousness, people are now
refraining from consumption of artificial flavours. The market is shrinking, and General
Electric Company has no significant market share. The recommended strategy for General
Electric Company is to call back this product
GENERAL ELECTRIC
Stakeholder priority matrix
General Electric has a three-pronged strategy to fulfil its corporate social responsibilities.
In this strategy, the company focuses on three aspects of its business: social, environmental, and
governance. These aspects represent the stakeholder groups considered in GE’s corporate citizenship
efforts. For example, employees’ interests are addressed under the social aspect of the CSR strategy. In
managing its corporate social responsibility strategy, General Electric implements programs and
initiatives in relation to global business goals. For instance, the interests of employees, customers,
communities, and the natural environment are significant to GE’s sustainability programs. General
Electric Company groups its stakeholders and related corporate responsibilities as follows:
1.Social (employees, customers and communities)
2.Environmental (natural environment and resources)
3.Governance (investors and government)
GENERAL ELECTRIC

Social – Employees, Customers and Communities.
General Electric’s CSR strategy prioritizes the social impact of the multinational business.
The social aspect covers the interests of various groups of people as stakeholders of the
conglomerate, with consideration for human rights, health, and employment. For example,
General Electric addresses the employment and health concerns of employees, the health
interests of customers, and the health and human rights interests of communities. The GE
Foundation is a major means for satisfying the interests of communities. Such social
interests are significant because the corresponding stakeholders affect brand image,
employee performance, and customer satisfaction. In this regard, GE’s corporate
citizenship programs are based on prevailing corporate social responsibility principles on
social development. Also, these CSR initiatives support
General Electric’s generic strategy for competitive advantage and intensive strategies for gr
owth
. The company achieves strategic alignment between various business strategies and the
social aspect of its corporate responsibility strategy by developing its organizational culture
accordingly (Read: General Electric’s Corporate Culture and Its Characteristics). For
example, the company employs HR management programs that educate about health,
human rights, and employment principles. As a result, human resources support the
success of GE’s corporate social responsibility programs in various industries, such as
sustainability enhancement in the energy, aviation, and electric lighting industries.
Moreover, a Porter’s Five Force analysis of General Electric Company indicates
competitive rivalry as a strong external force involving firms like 3M and Siemens.
Successful CSR implementation helps address this strategic issue.
GENERAL ELECTRIC

Environmental – Natural Environment and Resources. Stakeholders’
environmental concerns and interests are included in General Electric’s approach to its
corporate social responsibilities. These interests are significant because they impact brand
and corporate image, as well as the company’s access to the materials needed in its
multinational business. GE satisfies these interests through a CSR strategy that identifies
and uses the environmental concerns of stakeholders, such as concerns on sustainability
and resource management. For example, the GE Ecomagination strategy enhances
resource productivity and minimizes the environmental impact of the company and its
customers. The company’s corporate citizenship approach also addresses relevant trends
affecting its industries (Read: PESTEL/PESTLE Analysis of General Electric Company). The
conglomerate has CSR programs for sustainable operations in the oil and gas industry.
Considering effects on operations, such corporate responsibility initiatives affect
General Electric’s operations management, such as in the aspect of supply chain
management. In addition, corporate social responsibilities for environmental interests
influence General Electric Company’s marketing mix or 4P. For instance, product design
and promotion consider the
environmental expectations of target customers.
Governance – Investors and Government. The third aspect of General Electric’s corporate
social responsibility strategy involves business governance and relations with governments.
The stakeholders addressed in this CSR aspect are governments and the investors of the
global business. Governance is significant because it determines General Electric’s
leadership and management practices. For example, governance approaches for satisfying
investors’ interests determine GE’s strategic management initiatives for improving its
financial performance in various industries, such as the electric lighting industry and the
energy industry. Such link to strategic management means that the corresponding
corporate citizenship programs influence General Electric Company’s corporate structure.
In addition, the satisfaction of corporate responsibilities to investors and governments
contributes to GE’s strengths, such as its strong brand (Read:
SWOT Analysis of General Electric Company). The company’s main thrust for these
stakeholders’ interests is to maximize profits through differentiation and diversification
based on technological innovation. For instance, GE’s corporate social responsibility
strategy involves sustainability programs that strengthen brand image for improved
penetration of target markets.
General Electric
THANKS
Prepared By : Mohamed Elwaya

Supervised By : DR . Amer EL- Baradie

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General Electric

Prepared By : Mohamed Elwaya

• GE Healthcare, a world leader in medical diagnostic and interventional imaging

• GE Infrastructure, which is involved in high-technology protective and productivity

• GE Commercial Finance, which provides businesses, particularly in the mid-market

• GE Consumer Finance, a leading financial services provider, serving consumers, retailers,

• GE Insurance, which is involved in such areas as life insurance, asset management,

• General Electric, ranked as fifth in the Fortune 500 in 2003,

1. To become the world’s premier digital industrial company

1. To invent the next industrial era

General Electric Values

• Act with Humility

Products & Services

Products & Services

• Oil & Gas

• Software & Services

• General Electric uses a mix of demographic, psychographic and geographic

• The behavioural segmentation, customers will be divided according to their buying

• The psychographic segmentation will result in customers' grouping according to their

thirds of its Board be independent under a strict definition of independence. Today, 10 of

o H. Lawrence Culp, Jr.

o Paula Rosput Reynolds

Honeywell International Inc

Research and development

Stringent environmental regulations in many countries are pressurizing business organizations to

The growing use of renewable energy

Industry norms of recycling

waste management, and optimum resource utilization

Economic growth rate

Exchange and interest rate

Industry lifecycle stage

Fiscal policy (taxation)

Consumer protection laws

Political - Legal factors

Fiscal policy (taxation)

Consumer protection laws

Porter Five Forces Analysis

Threat of New Entrants

How General Electric can tackle the Threat of New Entrants?

Bargaining Power of Suppliers

How General Electric can tackle the Bargaining Power of Suppliers?

Bargaining Power of Buyers

How General Electric can tackle the Bargaining Power of Buyers?

Threat of Substitute Products or Services

How General Electric can tackle the Threat of Substitute Products?

Rivalry Among Existing Firms

How General Electric can tackle the Rivalry Among Existing

Implications of Porter Five Forces on General Electric

only small adjustments for country- specific circumstances

industry rivals positioned

Strategic group map

extensive products and services extensive

a JPMorgan estimate for free cash flow.

free cash flow estimate from Moody’s Investors Service.

Both scenarios include GE Capital’s current cash reserves as of September, as

company’s intra-quarter financing needs, as evidenced by surging commercial

paper borrowings during each quarter.

External Factors Analysis Summary

Financial strength and profitability of the company

Sector: Multi-Sector Conglomerates

Resources & Capabilities

GE operates in industries that require continual investment in research and