Reference no: EM132233722
How does GE’s framework give it the opportunity to be at the forefront of the markets in which it participates?
Examine your own firm or a firm you would like to work for in the light of GE’s framework and respond to the following:
Does this firm have the means to execute like GE?
Which type of resources would the firm require?
How could GE’s lessons be applied to this firm?
When Thomas Edison founded the General Electric Company (GE), he instilled a mentality within its framework. This mentality has enabled GE to be at the forefront of the markets in which it participates. This mentality he instilled is innovation. This is seen throughout the organization and through their various segments.
Innovation is what drove GE to enter the numerous markets it competes in. GE has the ability to recognize a growing market and know how to strategically enter the market. For example, it has been estimated that manufacturers and distributors will have five to ten percent growth of compound annual earnings before interest tax depreciation and amortization (EBITDA) (Singhal, S., Latko, B., & Martin, C. P., 2018). This information could have been a determining factor as to why GE has their Healthcare segment.
Furthermore, their innovation is what enables them to have a presence in the healthcare market. In fact, according to their 2017 10-K report, they had $19.1 billion in revenues solely from the Healthcare segment (GE, 2018). In 2017, GE had a consolidated revenue of $122.1 billion (GE, 2018). However, their innovation is not limited through their segments. GE continues to seek innovation through their GE Ventures program. This program “invests in startups that develop transformational technologies and applications to solve big problems” (GE, n.d.). This allows them to continuously look for new ways to advance in different areas.
The current firm that I have does have the means to execute like GE. I work for a water treatment manufacturing company. Innovation is present within the company. However, innovation is slowly growing throughout the company. Various segments are slowly coming to work together on projects that have never been done before. The ability to work cohesively will enable the company to rise to new heights.
One of the biggest challenges is logistics. The chemicals that are being manufactured are highly corrosive and must be shipped according to the rules set by the department of transportation (DOT). This results in expensive shipping costs from the rail roads. The company needs find an innovative way to ship chemicals by railroad or truck at cheaper costs while still following rules set by the DOT. The company could look to GE to see how they operate their transportation segment. If the company could acquire this resource, it could lead to higher profit margins.