General Electric's Corporate Strategy
1. Describe GE’s corporate strategy on the following aspecrs.
Businesses
Intergration—it combines product differnantion and lower cost. One of GE value statements is “live quality, and drvie cost and speed for competitive advantage.”
Innovation—techenolgy and innovation is its core competency.
Strategic entrepreneurship— Welch, a CEO of GE(1981-2000) slashed layers of management and began a series of internal initiatives, such as Six Sigma.
Core business
Innovation is the most important strategy of General Electric
Type of diversification:
(circle one of these types)
1. Related constraint ----- Related lunked ----- Unrelated
2. Product ----- Market ----- Product-Market
What is the strength of GE’s corporate strategy
Unrelated Diversification—it has six main business: infrastructure, industial, commercial finance, healthcare, consumer finance and NBC Universal. All of these generate less than 70% revenues. Their economies of scope are generated through their core competences. For instance they are able to enter all of the consumer services and appliances industries because of their innovation, technological advancements and service sector.
Outline 3 principles of successful acquisitions made by GE
Only acquiring business is industry leader and profitable
Investing in the new and sustainable business while devesting the old, enivriomental cost and less profit business
Accpectting the fact that a perfect plan doesn’t mean it will lead a succssful acquisition. It needs to experience it.
Give an example of restructuring of GE
General Electric sold its traditional business-- palstic and invested in one of the largest tenewable energy businesses in the world.
2. What are the strategic principles of GE to achieve growth and sustainability?
Ch
Strategic principles
2
Vision, mission, and value are clean, meausreable and motivative.
It has very clear value statment which exactly explains how to accomplish its goals which is to
Businesses
Intergration—it combines product differnantion and lower cost. One of GE value statements is “live quality, and drvie cost and speed for competitive advantage.”
Innovation—techenolgy and innovation is its core competency.
Strategic entrepreneurship— Welch, a CEO of GE(1981-2000) slashed layers of management and began a series of internal initiatives, such as Six Sigma.
Core business
Innovation is the most important strategy of General Electric
Type of diversification:
(circle one of these types)
1. Related constraint ----- Related lunked ----- Unrelated
2. Product ----- Market ----- Product-Market
What is the strength of GE’s corporate strategy
Unrelated Diversification—it has six main business: infrastructure, industial, commercial finance, healthcare, consumer finance and NBC Universal. All of these generate less than 70% revenues. Their economies of scope are generated through their core competences. For instance they are able to enter all of the consumer services and appliances industries because of their innovation, technological advancements and service sector.
Outline 3 principles of successful acquisitions made by GE
Only acquiring business is industry leader and profitable
Investing in the new and sustainable business while devesting the old, enivriomental cost and less profit business
Accpectting the fact that a perfect plan doesn’t mean it will lead a succssful acquisition. It needs to experience it.
Give an example of restructuring of GE
General Electric sold its traditional business-- palstic and invested in one of the largest tenewable energy businesses in the world.
2. What are the strategic principles of GE to achieve growth and sustainability?
Ch
Strategic principles
2
Vision, mission, and value are clean, meausreable and motivative.
It has very clear value statment which exactly explains how to accomplish its goals which is to