Reference no: EM13784545
Determine the impact of the company's mission, vision, and primary stakeholders on its overall success
General Electric Corporation (GE) is an American multinational company incorporated in Schenectady and whose headquarter is at Fairfield, Connecticut in United States.The Corporation is divided into four segments namely; Capital Finance, Energy, Technology Infrastructure and fourthly, Consumer & Industrial.Mission:"To create intelligence throughout the business supply chains of our customers around the world by combining Six Sigma process disciplines with an innovative electronic commerce technologies."Vision:"Be the world's largest provider of electronic commerce solutions that create intelligence for business supply chains."
The vision and the mission of the companyare shown by the distinct business initiatives it takes. Just like the 1981 CEO Jack Welch transformed the company's business strategy by gaining and realizing performance management and the corporate's internal efficiency. He targeted on the profits rise and growth of several folds of the GDP growth rate. He created and articulated his philosophy and idea in the slogan; "Speed, Simplicity, and Self-Confidence." This slogan was in the context of the company's mission statement and its impacts are easily noticeable in the GE's organizational systems, services, and products by simple still functional designs. The General Electric Corporate's strategy is totally based on the efficiency and performance. The mission and the vision encourage the employees to go after the set ambitious targets and continuously improve their processes.
Analyze the five (5) forces of competition to determine how they impact the company.
The Existing Rivals: The level and degree of competition in the industry is influenced and controlled by the Government and limited competition experienced by the General Electric acts as a positive force for the Company. The size of the industry is large and because offew numbers of rivals, General Electric Corporation does not fight for the available market. Therefore, the threat of the existing business players is very little(Hitt, Ireland, & Hoskisson, 2012).
The suppliers' bargaining power: General Electric Corporation controls and regulates the power to bargain with the suppliers due to the enormous purchase volume.Therefore, the General Electric Corporation enjoys good and synergistic relations with its suppliers because of the bargaining power it has and exercises over them.
The customers' bargaining power:The customers of GE get the products made and customized according to their specific specifications and hence they don't switch to the products from other companies who cannot meet their need and demands. This customization of products for their clients positively boosts GE so much. The large number of customers again tends to give limited bargaining leverage to the customers that assist General Electric Corporation.
Threat of the new entrants:The industry requires any new business entrants to invest ahuge amount of money so as to compete in the market, and this acts as a positive force in the market for the General Electric Corporation. There is huge amount of sunk costs that make it so difficult for the new entrants and competitors to enter into the market as they lack the enough money to commit and invest without assurance of return. Advanced technologies employed in the GE Enterprise also thwart new entrants and competitors to enter into the market and again the economies of large scale greatly favor the General Electric Corporation. Patents covering crucial technologies don't allow any new Company to enter into the market since the learning curve is high, and there is usually a lot of time wasted before a new competitor can learn how to handle and deal with the market.
Threat of substitute products:Customers don't turn to other products as other companies' products are of lower quality. Again there are few substitutes which mean that the customers don't turn easily to other products. Furthermore, there is high switching cost that favors the General Electric. The customers don't easily find other services and products that fully meet their needs and specifications.
Create a SWOT analysis for the company to determine its major strengths, weaknesses, opportunities, and threats
SWOT Analysis and Business Strategy of GEStrengths:
1. Diversified business roles
2. Intense research and development
3. Order backlog of the company guarantees the business flow and continuity in the future
4. Effective management and favorable business culture regarding the people, measures, technology, and systems.
Weaknesses
1. Bets on the GE's financial market have proved unsuccessful with the current economic turmoil
2. Weak growth rate in the revenue of the industrial section
3. Underachieving in the Asian markets
4. Leveraged
5. Generates more than half of its profits returns from its capital services segment and it was hit very hard by the economic depression of 2008.
Opportunities
1. Development of infrastructure
2. Contributes greatly to the aviation industry growth
3. Increased global production and exploration
4. The customer services initiative facilitate the servicing of commercial airplanes around the globe
Threats
1. World economic crisis in US and Eurozone, the two of the most significant markets for GE products and services.
2. Exposure to the financial markets
3. The current's rising products' prices
4. Weak Senior management-weak managerial performance by the GE's CEO, Jeff Immelt has put a lot of doubts on his ability to be the next Jack Welch
Levels and Types of Strategies for Profitability and Competitiveness
General Electric Corporation has several positive points regarding the increase in its profitability and products' brand recognition. With global recognition, its strengths and their competitiveness, GE has been capable of putting itself in a more favorable position in the industrial sector operates. General Electric Corporation has used business units to aid in themanagement of its various businesses which has proven very effective in the management of its wide range of products (Charan, 2006). This ensures that the top management is free for huge decisions, and the day-to-day decisions are done by the heads of various business units with improved accountability. GE has diversified its business operations by acquisitions and mergers that enable it to enter into a wide range of products and services and hence gets improved benefits.
Even though there are numerous positive points connected to GE, there are usually several constraints to run in the dynamic industry which is characterized by ever-changing technologies and very short products' life cycle. The opportunities and strengths nevertheless, usually have business constraints. Several weaknesses and threats jeopardize the performance of the Corporation by posingconstraints and challenges on its management. Furthermore, the low productivity of the energy segment and flexibility affects the company's growth negatively. This threat is decreased by the Corporation's strong and well-established research and development units that are aimed at coming up with innovative products that can totally beat the challenges arising from the energy segment(Hitt, Ireland, & Hoskisson, 2012). Also, business strategies like the implementation of appropriate control measures to get rid of loss of data to the competitors and the knowledge of their technology going out of the company are prevented so as to maintain its competitive edge.
Communication Plan
GE made a decision to ensure that the top management is involved with intense and deep relations with its customers after the 2008 worldwide economic depression. Again, there was anelevated focus on the value creation so that its customers have no other choice except to go the GE's products. To realize this business strategy, there were two approaches adopted.
The Differential Value Proposition (DVP) business system: This is computer software-based communication avenue and platform to enhance conversations between GE and its customers. The exchange of information ranges from basic problems to complex questions. The conversations are used to make anassessment of the value of the GE's products create for its clients in comparison to its competitors. Then GE and its customers work together towards the creation of mutual-benefit and value relationship. Also, there is a communication plan to arrange all the promises that the Company will meet at a specified time and the value of money promised. General Electric ensures that each and every bit of data and information is analyzed and a trend is established on thebasis of their behavior and company knows its clients better than the clients do themselves. GE also ensures that marketing brings various viewpoints to the existing challenges. Data analytics can then provide the customers' insights to address the customers' needs in an innovative and creative manner (Byrne, 1998).
Corporate Goverance Mechanisms Evaluation
There are several entities in GE that look after the corporate governance namely: Board Committees: The Company's Board established four committees to help in the performing of its duties and obligations efficiently and the board is only responsible for the supervisory of the management and the performance of classified and particular functions such as:
Compensation, evaluation and selection of the CEO and the CEO succession planning
Supervision of the compensation, evaluation, selection and development of the top management.
Board Compensation: The compensation is paid to the directors of the work in the General Electric Corporation, and it is in line with the interests of the directors with the long-term interests of the shareholders.
Board Succession Planning and Evaluation: The NCGC and the board perform a yearly self-evaluation. The directors produce the assessments of their effectiveness and the benefits of the committees they work with (Prahaladand Gary, 1990). The summary and the organization of the individual assessment are performed by an independent corporate management expert, and it is examined by the Boardand the committees. The board sanctions and maintains the succession arrangements for the CEO and the senior executives that are based on promptings of MDCC.
Leadership Effectiveness
General Electric Corporation has often emphasized the importance of holding leadership programs schemes to make sure that talent acquisition and retention are not a problem and there is no hiring of employees from outside for making up the top management team.The new graduates together with the experienced professionals both constitutes separate leadership programs that are afocus on nurturing their talents to be able to fit in the GE's environment. These training programs lay an excellent foundation for improving the development and learning in specific domains, and this program is intended to give exposure and maximum learning. The functions and responsibilities provide aplatform for learning varied aspects and elements of business at all phases of the organization and acquire the best out of their careers. The leaders to also acquire global exposure based on the paradigm shift encounters and interactions with great peers and mentors who ensure that every employee of GE accelerates the Company's growth.
Jack Welch had a key and fundamental corporate strategy to nurture and improve the qualities of leadership through delegation of duties and giving incentives for encouragement and motivation which is greatly incorporated into the top and middle management teams especially for recognition of talents and rewarding remarkable achievements.Experienced Commercial Leadership Program is the introductory externally focused Leadership program which is a 2-year post-MBA program with objective of developing future leaders is considered as a mutual learning and training experience where graduates give their perspective and bring out distinct .
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