General Electric Company

Strategic Analysis-STRA704
Prof. Dr. Saneya El-Galaly

Teamwork

Mohamed Fouad Imam

Mohamed Sayed Amin

Shady Mohamed Nader

Agenda

Introduction
Mission Statement
Vision statement
Organization Chart
Overall Strategy
Services types
Differentiation & positioning
SWOT Analysis
Recommendations

Introduction

General Electric Company or GE , is an American

multinational conglomerate corporation incorporated in
Schenectady, New York and headquartered in Fairfield ,
Connecticut, United States.

The history of GE is a significant part of the history of

technology in USA. GE has evolved from Thomas Edisons
home laboratory into one of the largest companies in the
world.

In 2011, GE ranked among the Fortune 500 as the 26 th largest

firm in the U.S. by gross revenue as well as the 14th most
profitable.

Headed by CEO Jeffery Immelt and has more than

300,000 employees in over 160 countries.
The Nobel Prize has been awarded twice to GE employees at4

Company Overview

General Electric Company has six global massive, diversified

, and profitable conglomerate with a lot of very good but very
unrelated business units.

Mission

General Electric doesnt seem to have an official

mission statement ; Furthermore, these are the
following statements that are on the website for each
of GEs business units:
GE Power & Water- with a full array of advanced
power generation and energy delivery technologies, we
work collaboratively with customers to drive growth &
progress , anticipate energy needs of the future, and power
a cleaner, more productive world.
GE Oil & Gas a world leader in advanced technology
equipment and services for all segments of the oil and gas
industry, from exploration & production to downstream.
GE Capital- Provide smart financing and the know-how
of GE to help its customers capital go further and do

Vision & Beliefs

Vision
We bring good things to life

There are five GE Beliefs. These are the principles we aspire to:
1. CUSTOMERS DETERMINE OUR SUCCESS
This is a statement of fact. Great teams win in the market.
2. STAY LEAN TO GO FAST
Scarcity drives teamwork, will and accountability.
3. LEARN AND ADAPT TO WIN
Good companies make mistakes quickly, but they learn and adjust. And,
winning has to be our goal.
4. EMPOWER AND INSPIRE EACH OTHER
The days of centralized command are in the past. Our teams have the
expertise to accept empowerment and drive results.
5. DELIVER RESULTS IN AN UNCERTAIN WORLD
This is our commitment to you. GE Beliefs drive performance and shape
careers.

Financial Position

GE ranked among the Fortune 500 as the 26th largest firm in

the U.S. by gross revenue , as well as the 14th most profitable.
However the company is listed the fourth largest in the world
among the Forbes Global 2000.

GE is the largest industrial multinational, with about $80 billion

of revenue outside the U.S. This allows GE to execute projects
that others cant.
GE has built a $6 billion position in Africa over the last decade,
virtually from scratch.

GE wins in growth markets.GE has close to $50 billion of

orders in growth markets, up 9% in 2014. And, with $21 billion
of exports, they lead economic development around the world.
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Financial Position (Cont.)

REVENUES
Revenues are classified according to the region to which
products and services are sold. For purposes of this analysis,
the U.S. is presented separately from the remainder of the
Americas.

Operating Segments

10

Porters 5 Forces Model

11

Porters 5 Forces Model

12

Wt.

Weight Rate
External Factor
Factors
Comments
Score
External
Analysis
Summary
(EFAS
Table)
*

Opportunities:
1 Take over & merger opportunities

0.15

0.6

Changes in technology could give GE

2 an opportunity to bolster future
success

0.15

0.6

Environmental leadership . GE is
3
leading the way with green energy

Acquire new customers &enter new

markets

0.1

0.3

Green technology creates great

perception and draws the ethical
employees GE seeks
In the form of grants, allowances,
training

GE could benefit from governmental

support

0.05

0.15

Exploring natural resources to meet

high demand

0.05

0.15

Ex. Solar energy

Threats:
Repeated debt-limit controversy and
1 tax reform negatively impact capital
investment
Political instability and new
2 legalization that weakens
environmental laws
GEs commercial lending and leasing
3 business operates in a highly
competitive environment.

0.12

0.48

50% of GE revenue comes from the

financial
industry

0.12

0.48

Political uncertainty in Europe and

push back against
environmentalism in U.S.

0.1

0.3

Banks are loaded with liquidity and

interest rates are lower than ever
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Internal Factor Analysis

Summary
(IFAS Table)
Weigh
Wt.
Internal Factors

Rate*

Score

Comments

Strengths :
1

Overall revenues from emerging

markets

0.15

0.6

For Long term success

0.1

0.3

Double annual revenue

0.1

0.4

Essential for developing

economies

0.08

0.24

GE diversified successfully

0.07

0.28

innovated P/S increases

revenues.

Unstable international economy

provides unknowns for a large
1
company that has diverse interests
abroad.

0.15

0.6

The energy industry is incredibly

unstable

0.12

0.48

Petroleum and other energies

account for a large profit

Large & diverse businesses might

overstretch the company .

0.08

0.24

reduce reaction times to shifts in

targeted markets

Low stock prices due to financial

downturn

0.08

0.24

is far outweighed by GE strengths

& oppt.
14

Global Market leader possess

2 economies of scale ,higher revenues
and good brand
3

Strong workforce makes huge

difference in profit

4 Strong market penetration

5

R&D investment for developing the

innovation

Weaknesses :
slowing economic situation in Asia
& Europe

Situation Analysis
Key Success Factors

Comments

Weight

Rate*

Wt. Score

0.12

0.48

For Long term success

0.1

0.3

Double annual revenue

S1

Overall revenues from emerging

markets

S2

Global Market leader possess

economies of scale ,higher
revenues and good brand

W1

Unstable international economy

provides unknowns for a large
company that has diverse
interests abroad.

0.15

0.6

slowing economic situation in

Asia & Europe

W2

The energy industry is incredibly

unstable

0.12

0.48

Petroleum and other energies

account for a large profit

O1

Take over & merger opportunities

0.13

0.52

Acquire new customers

&enter new markets

O2

Changes in technology could

give GE an opportunity to
bolster future success

0.15

0.6

T1

Repeated debt-limit controversy

and tax reform negatively impact
capital investment

T2

Political instability and new

legalization that weakens
environmental laws

0.12

0.11

0.48

50% of GE revenue comes

from the financial
industry

0.44

Political uncertainty in Europe

and push back against
environmentalism in U.S. 15

Implementation Plan

Based On Future trend, GE should have a clear vision to

implement strategies that will help its core industrial business
Rotate most skilled managers globally, in order to maintain a
strong knowledge based on varies market they will operate in
GE should integrate managers when they go to Acquisition
strategies, to seamlessly the workforce.
The implementers are everyone in the organization from
executive down to first line, they all should be involved in the
implementation of corporate, business and functional strategies
The programs are financially feasible. GE makes more than
enough money to undergo restructuring
the procedures will need to be updated to reflect any changes in
technology, strategy, or external conditions.

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Evaluation and Control

the following eight types of standards have been set by General

Electric :

Profitability standards : These standards indicate how much profit

General Electric would like to make in a given time period.
Market position standards : These standards indicate the
percentage of total product market that company would like to win
from competitors.
Productivity standards : These production-oriented standards
indicate various acceptable rates which final products should be
generated within the organization.

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Evaluation and Control

o

Product leadership standards : Product leadership standards

indicate what levels of product innovation would make people
view General Electric products as leaders in the market.
Personnel development standards : Personnel development
standards list acceptable of progress in this area.
Employee attitude standards : These standards indicate attitudes
that General Electric employees should adopt.
Public responsibility standards : All organizations have certain
obligations to society. General Electric's standards in this area
indicate acceptable levels of activity within the organization
directed toward living up to social responsibilities.
Standards reflecting balance between short-range and long-range
goals . Standards in this area indicate what the acceptable longand short - range goals are and the relationship among them.

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Evaluation and Control

GE uses PeopleSoft, SAP, and a number of other ERP systems in its

different business segments. Even though it doesnt integrate the
entire company's operations through a single system because of
the immense cost and complexity that would be involved in
implementing it.
GE was listed by Forbes as being one of the top 21 companies that
are making IT a competitive advantage
GEs former CEO from 1981 2001 Jack Welch, can be
recognized the most for creating a culture of meritocracy in GE by
implementing his 20-70-10 rule which ranked employees into
performance categories of the top 20%, middle 70%, and bottom
10%. With this system, the top 20% are rewarded in an outsized
way that is both soul-satisfying and financially satisfying; the
middle 70% is developed with training and coaching; and the
bottom 10% are moved out so that better talent can be brought
in.
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Thank you
Any Questions

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