General Electric

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Executive Summary
General Electric (GE) is a global market leader which is well known for its technological innovation, leadership and world class quality in the conglomerate industry. For the purpose of analysing strategic management in action, this report focuses on its Aircraft Engines (hereinafter referred to as “AE”) and Medical Systems (hereinafter referred to as “MS”) business units – a subset of its ‘Technology’ segment.
Its macro-forces (sluggish economy, advent of e-business, ageing demographics) combines with the industry forces (where degree of rivalry is intense and degree of attractiveness to entrants is low-moderate) to identify 3 sets of critical success factors (CSFs) in each industry.
Findings from the internal analysis identified GE as pursuing a successful related linked diversification strategy. Results from the VRIO assessment and value-chain analysis suggest that AE and MS pursue a differentiation strategy which strongly matched the industry CSFs.
The ESC gap analysis contains insights and potential gaps, derived in relation to its: environment-strategy; strategy-performance; strategy-capability. Overall, GE’s remarkable performance and brand prestige has put them in good light. However, the gaps identified (slow conformance to e-business; inadequate preparation to meet future medical demands; inconsistent strategy to fend off rivalry and entrants) needs to be addressed to concretize its market standing. Finally, a brief recapitulation on issues identified therein completes the analysis. Contents Page 1.0 Introduction
General Electric is the world’s leading diversified industrial firm widely recognised for its world class quality, innovation and technological expertise, leadership, and brand prestige. Under Welch’s leadership, it has endured massive restructuring efforts (i.e. acquisitions, divestitures, retrenchments, shaping GE’s culture) – the pillar for its success today.
Its AE unit –

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