Module Code: STRM043

Module Name: Competitive Strategy & Innovation

Name: Anil Kumar
Lecturer Name: Ganessen Chinnapen
UON Module Tutor: Adrian Pryce
Student ID: 16444036
Word Count: 2900
TOPIC: GE Case Study

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List of Figures
Figure 1: Value chain concept
Figure 2: GE organization structure till 2001-while Jack was CEO
Figure 3: GE organization structure till 2012-while Immelt was CEO
Figure 4: Ansoff’s Matrix
Figure 5: Kaplan's Balanced Scorecard
Figure 6: A Six-Part Process strategy for growth of GE

Figure: 7,8,9,10 and 10 Outline of two incredible CEOs of General Electric

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Table of Content
1.0. Introduction of GE ............................................................................................................................. 4
2.0. Question 1. What are the GE’s core competences and capabilities? ..................................................... 4
2.1. Splendid Leadership capacities. ......................................................................................................... 5
2.2. Human Capital Development ............................................................................................................. 6
2.3. Hierarchical structure ........................................................................................................................ 6
2.4. Technology and Innovation ............................................................................................................... 8
2.5. Client Focus and Integrated Solutions ................................................................................................ 8
2.6. Worldwide Presence and expansion ................................................................................................... 9
3.0. Question 2: SWOT analysis of General Electric ................................................................................ 10
4.0. Strategic Options ............................................................................................................................. 11
4.1. Market development ........................................................................................................................ 12
4.2. Product development ....................................................................................................................... 12
5.0. Kaplan’s Balanced Scorecard and General Electric .......................................................................... 13
6.0. Question 3: Comparison between Jack Welch and Jeff Immelt’ leadership ........................................ 14
7.0. Conclusion ...................................................................................................................................... 17
8.0. References ....................................................................................................................................... 18

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1.0. Introduction of GE
General Electric (GE), in full General Electric Company, significant American organization and one
of the biggest and most-expanded companies on the planet. Its items incorporate electrical and
electronic hardware, airplane motors, and financial administrations. Headquarters are in Boston
(Encyclopedia Britannica, 2019). The company was unified in 1892, locking all unique returns of the
Edison General Electric Company and two additional electrical establishments. Edison General was
established as the Edison Electric Light Company in 1878 by Thomas Alva Edison to showcase his
radiant bright and other products. Edison had to stay with GE due to its licensing and consulting
responsibilities (Encyclopedia Britannica, 2019).

GE started its own mechanical research lab in 1900, with its own lab many of the items were
created in house researchers. It harvests major lines of electrical client merchandise on the globe and,
through its GE and Hot point machine products, twisted into a top vender of diverse types of home
apparatuses. In 1986 GE acquired the RCA Corporation (which it had served to establish in 1919),
including the RCA-possessed TV station, the National Broadcasting Company (NBC), Inc. In 1987,
notwithstanding, GE sold RCA's buyer hardware division to Thomson SA, a state possessed French
firm, and bought Thomson's restorative innovation division. In 1989 GE consented to join its
European business interests in machines, therapeutic frameworks, electrical conveyance, and power
frameworks with some time ago inconsequential British partnership General Electric Company
(Encyclopedia Britannica, 2019).

2.0. Question. 1 What are the GE’s main competences and capabilities?
So as to find and examinations the center capacities and abilities of G.E, Porter's Value Chain Study is
the fitting scholarly prototypical because of its complete system and ethics. The prototypical is
utilized to decide the bases of good compensations a firm collects.

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Figure 1: Value chain concept

2.1.Splendid Leadership capacities.

Rowe, G. and Nejad, M.H., (2009) expressed that proficient pioneers are the ones who deliberate
human capital as an essential aspect in 'development and the making of center capabilities' and
henceforth, endeavors ought to be headed to support it. Throughout Immelt’s tenureship at G.E, he
demonstrated his strength by remolding the G.E’ structure for a supportable future. Immelt was a fair
and a persuasive leader just as an impetus of progress. As indicated by (Ali, S.A., 2016), the capacities
of a decent leader are as per the following:

I) "Leaders ought to have the option to connect advancement to methodologies (Immelt had
patched up GE portfolio around two fundamental organizations, for example, Financial
administrations and Infrastructure by utilizing mechanical initiative);
II) Make center, responsibility and enthusiasm for development (Immelt was both client and
representative driven while intending for reception of new advances and procedure,
dispatch of 'imagination' and Healthy imagination imitative);
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 III) Efficient designation of assets to great development programs (venture of about 6% of
income into R&D);
IV) They accelerate the procedure of new item improvement and commercialization (dispatch
around 880 items one year from now…);
V) They likewise survey the development procedure in the light of maintainable
advancement (Use of six section development procedure and Six sigma idea and Balanced
Score Card to audit techniques)."

2.2. Human Capital Development

Immelt tactic was a representative well-disposed leader. The supreme devotion and backing to
preparing and advancement of his employees led him to be a great leader as well as he was known
to be a ‘god-man' by his staff. In addition, the approach of 'Worldwide Learning Centers' under his
leadership has additionally strengthen the explanations mentioned above as they are topographically
spread focuses, for example, USA, UAE, Germany and Japan, creating instruction at the doorstep of
his workers. Moreover, every year almost $1 billion are spent on yearly preparing, nevertheless
during the financial subsidence of 2007 till 2009. (Bucifal, S., 2009). The return on investment of the
preparation have been sure for the Immelt since the representative's inspiration and duty became
greater. Additionally, GE has teamed up with certain schools so as to guarantee the aptitudes of the
representatives which has supported the certainty of the last just as invigorating the general inventive
reasoning. Thus, the expense of development has contracted since it is far less expensive and powerful
to have prepared and qualified workers instead of purchasing out outside ability. Subsequently, the
development that is accomplished is increasingly sensible and also considered the expertise gained
will improve the business of General Electric.

2.3. Hierarchical structure

It was well noted that Immelt has strengthened the overall structure and business of GE while
protecting the way of life, the executive’s frameworks and procedures which had shaped piece of GE
personality. In any case, Immelt had switched a portion of the strong key moves of his ancestor. He
separated GE modern part into littler however more extensive separations. Immelt made the
hierarchical structure progressively runny.

Jack's and Immelt's hierarchy organogram while their residency as CEO of GE.

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Figure 2: GE organization structure till 2001-while Jack was CEO

Source: Adapted from Grant (2008)

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Figure 3: GE organization structure till 2012-while Immelt was CEO

It can be seen that Immelt has creatively limited the separations into more extensive segments. It
required of diminishing various unrewarding business with the point of accomplishing collaborations
through the cross-business combinations. Immelt created an open-type business design which has
self-rule and regionalization of basic leadership reinforcing the cross business joining process. Idea of
regionalization and an open type business was to have more engagement of the representatives
which will cut down in the cost of work force and less administrative work from the decrease of
detailing lines, therefore, being environment friendly. (Grants, 2010).

2.4.Technology and Innovation

Immelt was technology driven and recognized that GE’s growth depends on adapting new
technologies among GE which will change the corporate R&D center into an academic hothouse
(Give, 2010).. His dedication and commitment toward technology was a indication by expanding
GE’s R&D funds. He upgraded the R&D center by investing $100 million in Niskayuna, New
York which afterwards followed the create of Global R&D centers in china, Shanghai, Munich
and Rio de Janeiro (Sandra, 2013). GE announced in 2012 that they have 37,000 IT professionals
working in its business & research centers. He considered that by improving the product quality
will lead the company to growth and progress for which innovation is crucial factor as far as
development is concern. Truth be told, development is the grain of upper hands particularly in
the circle of sciences and innovation. Hence, GE's method of lifecycle has transformed from
"being a six sigma, accountant and primary concern driven organization to an inventive
organization." (Hitt, M.A., Ireland, R.D. and Hoskisson, R.A., 2009). A portion of the product of
the venture through the "Creative mind Breakthrough' ventures are: Development hybrid
locomotives, sodium batteries and savvy networks. All these 'healthy imagination' advancements
was viewed as a 'blue sea' technique as it concentrated on making new market for unique items
instead of beating rivalry.

2.5. Client Focus and Integrated Solutions

Since the entry of Immelt at GE, he has changed the association into a client driven one by traveling
from offering help to making an incentive for clients. In addition, Immelt confirmed that each business
that increases the value of its items and clients will develop certainly. Subsequently, he'd underlined
much on 'receiving area' as opposed to 'back room' as the previous will carry the business faster to the
client just as occupying more assets to 'Receiving area' so as to improve the client esteem creation.
(Bucifal, S., 2009). Renewal of the advertising capacity was viewed as a panacea to cross over any
barrier among the clients and organization. In this procedure, Immelt had enrolled top advertising
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administrators for targeting undiscovered market place and neglected client requirements. This
prompted the production of GE's Commercial congregation which is a conceptualizing area whereby
cross useful business pioneers traded and test thoughts. In this way, the packaging of items with help
administrations to give 'tweaked client arrangement' came into the real world. Furthermore, activities,
for example, the six sigma by Jack welch which is the DNA of GE to zero blunders further fortify the
responsibility of the organization towards economical client esteem creation. At long last,
measurements and client examination apparatuses has been utilized so as to check the dimension of
fulfilled clients just as urging inputs so as to convey better.

2.6. Worldwide Presence and expansion

Immelt has dependably pushed internationalization so as to guarantee and continue achievement. Be
that as it may, one can't door collide with any arbitrary market, particularly in developed economy.
Along these lines, Immelt ventured into the developing nations which had more noteworthy potential
and extent of development. It was a wise key move for what it's worth far less expensive to move the
competitive favorable circumstances of the organization into the developing districts as opposed to its
partner. They've savored accomplishment with the Beijing Olympic rounds of 2008 as a supplier of
foundation which got them $ 2 Billion of incomes over different GE stages while reinforcing the
relation with China. In addition, the nearby group pioneers of the specialty unit were self ruling in
vital basic leadership as they were already acquainted with the market well henceforth, are well
suited at tweaking items/explanations for the clients as per the marketplace requirements. The
organization profited both remotely and locally because of 'Turn around Innovation' that happened
throughout the purchasing and retailing of items crosswise over boundaries, for example "an ease,
convenient, battery worked ultrasound machine intended to address the issues to doctors in India and
China, turned into a business accomplishment in the US." (Grant, 2010; Bucifal, S., 2009).)

3.0.Q 2: SWOT analysis of General Electric

Before inspecting two vital choices within reach for GE all through the 2014-2018 and suggesting
which one is suitable a SWOT investigation is carried out to see how GE will efficiently it will
meet its goal and do its central goal before assessing the general odds of achievement of the
alternatives.

STRENGTHS

• GE is one of the organization which is well appreciated and known globally for its
competitiveness and is the world's greatest foundation organization.
• GE has its presence around the world.

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 • Globally GE is having 304,000 representatives of which 37,000 skilled and imaginative
engineers are employed in its organizations and research focuses. Gigantic venture realized
new innovations and new methods of the board, in this manner bringing about a wide scope of
enhanced ranges from energy, car, water handling, social insurance, household machineries,
money related administrations to airplane motors.
• GE has increased worldwide acknowledgment for the nature of its items.
• GE has a focused edge over its rivals as it has what it takes to draw in numerous customers.
• GE is exceptionally touchy to client care.
• GE has improved the proficiency of store network and diminished overhead expenses.
WEAKNESS

• GE posses many items in its portfolio. Having to many items is considered as a blemish
and a great deal of venture is essential to transform weakness into strengths.
• GE has every now and again had plan of action to the Voluntary Recall Products since 2004.

• GE's energy area achieved underneath desire considering serious varieties in the costs of oil
and gas.
OPPORTUNITIES

• Countries like India, China and Latin America are developing quickly so as their market
• Numerous combinations and procurements everywhere the globe brought about a solid
worldwide existence.
• GE has put almost 6% of its spending limit in its settled R&D Center along these lines giving
chances to broaden and enhance its product offerings. All things considered, numerous
inventive items that have been propelled have gotten full clients' fulfillment, GE has in this
manner kept up an upper hand over its competitors in numerous fields, for example, social
insurance for the aged people, investigation of characteristic assets, the blue economy and the
air travel business.

THREATS

• GE is in risk of losing its customer due to high level of competition in the market.
• Worldwide Economic Crisis and money related frauds negatively affected GEs development.
• Strict Government Regulations on condition has badly affected on production.
• Currency variance is negatively affecting its income.

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4.0. Strategic Options
Igor Ansoff built up a matrix that spotlights on existing as well as potential items and marketplaces. It
investigates procedures to expand development by means of current/innovative items and
marketplaces. The outcome is 4 conceivable item showcase blends. Below figure depict more on the
Matrix.

Figure 4: Ansoff’s Matrix

From the above Ansoff Matrix GE is proposed the following 2 strategic options;

i. Market Development
ii. Product Development

4.1. Market development

In market development, a stable attempts to venture in brand new marketplaces. The organization
must benefit as much as possible from existing items and grow brand new marketplaces for those
items. Penetrating in brand new marketplaces sections is logical only if every cost is identified
with R&D. GE has to hunt and focus for new markets to invest . All this is possible in trying
various methods which are Mergers and acquisitions, Strategic Alliance and Joint Ventures.
Regular assets and energy age are the brand new markets in developing countries like India,
China and Latin America (Immelt, 2012). GE is notable for its capacity and proficiency in the
improvement of gas turbines and its interest in getting ready for the advancement of vitality

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foundation. GE should concentrate on the advancement of gas turbines in India, an item that GE
experts completely.

Undoubtedly, Gas arm and Oil of GE has been selling without any difficulties "trend setting
innovation hardware and administrations for all segments of the offshore and onshore oil and gas
industry" (GENews, 2011)

This sort of technique is going to bring progress since GE's innovation for this item is special and
will effortlessly regulate the brand-new Market. GE is going to profit by economy of scale as it
builds its yield.

4.2.Product development
In product development plan, an association attempts "to make new items and administrations focused
at its current markets to accomplish growth" (Norris, 2014). This includes ranging the item go
accessible to the company's current marketplace. Numerous types of advancement are accessible: GE
can put resources into R&D for extra items or obtain the privileges to deliver a contender's item.
Coordinated effort with contenders can take two different structures: purchasing in the item and
"branding" it or create it together with responsibility for organization which require admittance to
GE's circulation networks or products.

Since GE has officially made overwhelming interests in R&D as pointed out in the abilities and
capacities analyzed further down advancement and HR improvement, it ought to build up its very own
item or adjust an item which is lately created to the Indian market. One of the flourishing segment for
GE in India is Healthcare and which has a broader scope for GE in India. GE exposed lately as
astounding development in the area of medicinal imaging at the (ECR) European Congress of
Radiology which took place in Vienna mid-2015. The ultra-quick CT scanner can be presented with
high odds of accomplishment in the Indian medicinal framework. To be sure this contraption enables
clinicians to picture the heart in only one heartbeat with amazing picture quality. "The wide inclusion
of Revolution CT enables clinicians to filter whole organs, for example, the mind, heart, liver and
pancreas in a solitary 0.28 sec pivot, lessening breath hold times for patients", says the diary audit of
the meeting. Anyway the item should experience fluctuations: it is possible that it is defeatured to
adjust to Indian costs, an answer that GE's directors don't appear to support, as uncovered by Immelt at
the yearly gathering of administrators in Boca, Florida or an Indian CT Scan with similar attributes can

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be designed to convey an Indian cost and afterward promoted in America and Europe with the brand
of GE.

5.0.Kaplan’s Balanced Scorecard and General Electric

To gauge how GE can advance in the direction of the accomplishment of those strategic objectives,
the Kaplan's Balanced Scorecard (Figures 5) is the perfect administration device subsequently it is
intended to "help mangers to adjust their business exercises to the vision and strategy of the
association, improve inside and outside communication, and screen association" (Kaplan and Norton,
1992). This is finished by the social occasion of both money related and which doesn’t involve money
execution actions and pointers.

Figure 5: Kaplan's Balanced Scorecard

The procedure talked about in the choices portrayed will likewise be observed and assessed with the
assistance of GE's development machine recognized as "Execute for Growth: A Six-Part Process"
(Figure 6)

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Figure 6: A Six -Part Process strategyfor growthof GE

6.0.Q. 3: Comparison between Jack Welch and Jeff Immelt’ leadership

Both Jack Welch and Jeffrey Immelt are in-house items. Welch joined GE in 1960, progressed toward
becoming CEO in 1981 at 46 years old and drove the organization during 20 years. Inmelt joined GE in
1982, progressed toward becoming CEO in 2001 at 45 years old is still in the seat 16 years after the fact.
They are both incredible CEOs of their occasions and acclaimed as models. Their prosperity is
because of the administration advancement they fetched, at various notches, to GE. As Gary Hamel
affirms, "In the course of recent years, the board advancement, more than some other sort of
development, has enabled organizations to cross new execution limits" (Hamel, 2006). But however,
they are different in character with each other, personality and elegances of initiative and the
organization. Figure 7,8,9,10 and 10 gives a near outline of those two incredible CEOs of General
Electric.

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15
16
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Figure: 7,8,9,10 and10 Outline of twoincredible CEOs of General Electric

8.0.Conclusion
The above assignment has endeavored an examination of GE core abilities and capacities to
comprehend the details fundamental its prosperity up to 25th April 2012. Instruments and models
including Value Chain Analysis (Porter, M.E. and Millar, V.E., 1985), SWOT, Ansoff Matrix,
Kaplan's decent scorecard is used to identify GE's center abilities for development. VUCA model
was understood and demonstrated really well by GE as far as problems are concerned and it also
knew where to take necessary precautions to come out from any problem. Jeff Immelt was a
leader who took GE in another level of growth by investing in various areas like research and
development, HR and Technology and innovation which hiked the growth of GE and Immelt
proved to be more successful leader of all times (Denning, 2012).

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9.0.References
Ali, S.A., 2016. Directions to explore the principles of service innovation: With various
companies’ case study. Journal of Research in Business, Economics and Management, 6(3),
pp.971-978.

Bucifal, S., 2009. Corporate Strategy Analysis: General Electric Co.(1981–Present). Available at
SSRN 1487366.

Denning, S. (2012) David Brooks: Competitiveness Vs Creativity: GE vs Apple. Available from:

www.forbes.com/sites/.../04/.../david-brooks-competitiveness-vs-creativity-ge-vs-appl.
[Accessed on 18 June 2019]

Encyclopedia Britannica. (2019). General Electric | History, Acquisitions, Products, & Facts.
[online] Available at: https://www.britannica.com/topic/General-Electric [Accessed 23 Jun.
2019].

GE-News. (2011). Tapping into India’s Growing Natural Gas Supply, New Power Project to
Feature GE Advanced Gas Turbine Technology, Business Wire.

Grant, R.M. and Grant, R.M., 2008. Cases to accompany contemporary strategy analysis.
Malden, MA: Blackwell.

Hamel, G., 2006. The why, what, and how of management innovation. Harvard business review,
84(2), p.72.

Hitt, M.A., Ireland, R.D. and Hoskisson, R.A., 2009. Strategic management: competitiveness and
globalisation: Concepts and Cases. Cengage Learning. OH: Cincinnati.

Immelt, J.R., 2012. The CEO of General Electric on sparking an American manufacturing
renewal. Human Resource Management International Digest, 20(6).

Norris, G., 2014. Powerful movers: GE and Rolls push advanced engine developments for 777X
and final stretch of 787. Aviation Week & Space Technology, 176(24).

Porter, M.E. and Millar, V.E., 1985. How information gives you competitive advantage.

Rowe, G. and Nejad, M.H., 2009. Strategic leadership: Short-term stability and long-term
viability.
Ivey Business Journal, 73(5), pp.2-6.

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Sandra Ferreira, Andy Gamertsfelder, Cassie Hough, Stacey Rothenberg & Rebecca Sherman
(2013), Corporate Analysis: General Electric, University of Pittsburgh. Available at:
http://rebeccasherman.weebly.com/uploads/1/2/3/3/12338621/ge_corporate_analysis.pdf

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