ST4S38-V1-Strategic Analysis; Tools and Techniques R1805D5376972

Assessment 2

Topic: Critical Strategic Analysis of a Business Unit within General Electric-

Heathcare Division

Rasha Elbanna
R1805D5376972
Tutor: Rajeev Bali

MBA - Master of Business Administration V2

Module- ST4S38-V1
24/02/2019

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ST4S38-V1-Strategic Analysis; Tools and Techniques R1805D5376972

1-Introduction
General Electric Co. a technology and financial services company operating for more
than a century, and has masterminded the future of industry was founded by Thomas A.
Edison in 1878 and is headquartered in Boston, MA. Today, it leads new prototypes in
additive manufacturing, materials science, and data analytics. GE is ranked among
Fortune 20 as one of the most profitable companies worldwide operating in various
segments including Power, Oil & Gas, Aviation, Healthcare, Transportation,
Appliances & Lighting and GE Capital. Its products and services include aircraft engines,
power generation, water processing, security technology, medical imaging, business
and consumer financing, media content and industrial products. GE serves customers in
approximately 180 countries.

General Electric (GE) is one of the largest diversified multinational corporations in the
world. GE Healthcare is a business unit within General Electric. GE Healthcare's
headquarters is in Waukesha, Wisconsin. GE Healthcare has revenue of $19.1B, and 52,000
employees. GE Healthcare's main competitors are Siemens, Canon, Philips, Boston Scientific,
Medtronic and Thermo Fisher. GE’s Healthcare segment products include diagnostic
imaging systems such as magnetic resonance, computed tomography and positron
emission Tomography scanners, X-ray, nuclear imaging, digital mammography and
molecular imaging technologies. Moreover, the company's Life Sciences impart
products and services for drug discovery, the biopharmaceutical industry and cellular
technologies. It also experiments, fabricates, and markets imaging agents employed
throughout medical scanning procedures to highlight organs, tissue and functions within
the human body, assisting physicians in the early detection, diagnosis and management
of disease through in-vivo diagnostics. In addition, Healthcare Digital provides medical
technologies, software, analytics, cloud solutions, implementation and services. The
objective of this essay is to strategically analyze the position of general electric as a
whole while focusing on GE healthcare as a SBU. This requires to carry out a Resource
Audit and Value Systems, Product/Service Portfolio (BCG Matrix), Potential Future
Strategic Growth (Identification of Options and Evaluation of Options) of GE
healthcare.

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ST4S38-V1-Strategic Analysis; Tools and Techniques R1805D5376972

2.0 Strategic positioning of GE Healthcare

Healthcare segment has always been hot bread for most investors. Due to the
continuous discovery of diseases and wide spread day to day illnesses; there is always
a race in identification of new technologies and procedures in various healthcare
segments. GE healthcare is one of the outstanding business units within GE.As per the
CEO, in GE Q4 2018 performance financial results and company highlight , he stated
that the healthcare section had a solid performance and was a strong franchise.
Moreover, the highest segment within GE in terms of profit % after GE capital is
healthcare segment generating 21.8%. GE Healthcare endures a dynamic position ,
covering the widest customer range globally, with its expanding life-sciences division
endowed in almost all diagnostic and clinical IT markets. Flannery CEO of GE

Healthcare , stated that “GE Healthcare is industry leader with financial strength, global

scale and cutting-edge technology. Moreover the presence of talented Healthcare team
aids in continual delivery of high quality health solutions, constructing on our heritage of
technology innovation that favors patient outcome.
Moreover, GE Healthcare leadership team and vision, has a significant expertise in
health care across global markets. According to Murphy,GE Healthcare vision is to drive
more individualized, precise and effective patient outcomes. As Wide spread and firm
business , this would impact future growth and flexibility to be fast reactive to changes
and invest in innovations We will build on strong customer demand for integrated
precision health solutions and great technology with digital and analytics capabilities as
we enter our next chapter.
1.1STRATEGIC POSITIONING OF GE HEALTHCARE
any companies have become very innovative in the upgrade
o r improvement of their products and services in order to match the growingchange in the
needs of their clientele. The Institute for Strategy and Competitiveness (2018) expressed
strategicp o s i t i o n i n g a s a b u s i n e s s s t r a t e g y t o o l t h a t g u a r a n t e e s
s u p e r i o r performance within the specified industry. They defined it as a list
choices made by a company with regards to the value they intend to create and
how those values would be different from those of competitors.They argued that companies
that tends to be everything often end upbeing stuck- a phenomenon described by
Porter as “the kiss of death”.

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ST4S38-V1-Strategic Analysis; Tools and Techniques R1805D5376972

Resource audit and value systems

Reform efforts not only effect health systems, payers, healthcare providers, and patients but
also directly impact the pharmaceutical, biotechnology and medical device manufacturers and
are an integral component of the healthcare ecosystem. These key stakeholders must also
navigate the waters and demonstrate a strong value proposition under new reimbursement and
delivery models.
a) Physical resources:
b) Leadership
c) Talent management
d) Technology and innovation
e) 1st handheld pocket-sized, color ultrasound device
f) modular biopharmaceutical factory
g) mammogram that puts women in control
-ray fluoroscope
h) Diversified portfolios

f) Customer care

. Value Chain Analysis for GE-Power

Product/Service portfolio (BCG Matrix)

Potential future strategic growth

o Identification of options

o Evaluation of options

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ST4S38-V1-Strategic Analysis; Tools and Techniques R1805D5376972

REFERENCES

CNN Business General Electric Co (NYSE:GE Feb 15 2019

https://money.cnn.com/quote/profile/profile.html?symb=GE

General Electric Co (GE.N) https://www.reuters.com/finance/stocks/company-

profile/GE.N

https://corporate.gehealthcare.com/about-us/
https://www.ge.com/sites/default/files/ge_webcast_presentation_03112016_0.pdf

GE Focuses Portfolio for Growth and Shareholder Value Creation

https://www.genewsroom.com/press-releases/ge-focuses-portfolio-growth-and-
shareholder-value-creation-284411 june 26 2018 ge news room