This report analyses GE's growth strategy, mainly regarding the new management style: since Immelt's appointment as the Chairman and CEO of the American multinational conglomerate, new initiates have been launched. We aim at analyzing GE's businesses and determine how they are driven and how they suite with GE's five-element growth strategy.
Firstly, the study will analyze the whole activities of the firm, the common capabilities and the potential synergies that could be implemented between them and then, we will focus on two specific businesses.
We will base our analyzing on the case prepared by Christopher A. Bartlett from Harvard Business School.
[...] In July 2002, Immelt divided the GE capital into 4 separate businesses, each with its own balance sheet and explicit growth strategy, and he decided to communicate more frequently with the investors. The principal strength of this company is that they are able to conceptualize the future, to identify unstoppable trends and to develop new ways of growth. As it is clearly said in the text by Immelt, “Growth is the initiative, the core competency of What is the extent of fit among GE's present businesses? [...]
[...] At the same time it formed a billion relationship with Emirates Airlines to “help modernize the aircraft and make its assets and people more productive”.[10] Globalization: building on an old Welch initiative, Immelt committed to expanding GE's sourcing strategy and market access worldwide, in particular focusing on its underexploited opportunities in developing world countries such as China and India. It was around 1994 that globalization reached the double digit top-line growth in key emerging markets of Mexico, India, China and Southeast Asia. [...]
[...] Immelt personally implicated in these forums and discussions and answers f the questions. He is convinced that he should never let the consumer decide and set strategies. He prefers to hear them, and consider it their words while creating strategies. Team spirit and employee motivation is a capability shared by every business of the company. It is also served by the strong personality of the leader, Immelt, who succeeds in motivating every employee. Another important capability is innovation. This is the key competitive advantage of the company since its inception. [...]
[...] In this part we will try to identify the important external factors of each one AVIATION GE is one of the pioneers in the aviation sector. It is among the major companies who produce and furnish engines. Today it supplies engines for all the domains: commercial, corporate, military and marine industry.[2] The Political factor is obviously a very important one, especially regarding the military and marine industries. These sectors are conducted by politic and the decisions to purchase, to conclude deals or to establish a partnership are directed by the government. [...]
[...] Growth Platforms This part is very well explained in the GE's strategy text: first of all, a sentence summarizes the idea of GE about growth: key GE strength is our ability to conceptualize the future, identify growing trends and develop ways to grow” As a consequence, GE defines several steps to expand the growth: 1. Segmented the broad market and identify high growth segment 2. Launch initiative with an acquisition in that growth platform 3. Integrating it to GE and transform it by applying initiative model of GE 4. [...]
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