Ge Case Analysis

GE Case Analysis

Da Shao

MBA 664

Northwood University

2012/5/8

GE Case Analysis

Problem Statement

For more than a century, General Electric (GE) had been recognized as one of the world's leading diversified businesses, and regularly found itself at or near the top of America's and the world's most admired corporations. What are the factors lead GE to such a glory, and how GE sustains its long-term growth in the changing business world?

Introduction

As the final paper in MBA 664, I'd like to analyze how GE successfully ran diversified lines-of-business to achieve its strategy intent and used simply rules to seize every opportunity. On the other hand, what were the boundaries that drove GE to leave some business completely? Finally, with talking about the legendary leader: Jack Welch, I'd like to discusses how the two important capabilities: leadership and talents were taken into account in GE's human resource strategy.

Analysis

Strategy Intent and Multiple Lines-of-Business

Strategy intent indicated the leading position that a company wants to achieve, it is the final goal of the company. All the strategies, vision, mission and operating/management activities in the company should be consistent with the strategy intent and well serve it. For GE, Jack Welch has set the strategy intent as "to become the most competitive company in the world". Base on this strategy intent, GE continuity built its competitive advantages step by step, and finally became the world's largest diversified service company.

One of the GE's main growth measures is well-known as running multiple diversified lines-of-business. Nowadays, GE devotes itself to create a better life for customers through a number of technologies and services. GE's divisions include GE Capital, GE Energy, GE Technology Infrastructure, and GE Home & Business Solutions. Its business covers from the plane engine to financial services, from medical products to the TV programs, from power generation equipment to plastic merchandise.

GE's diversification strategy enhanced GE's core competitive advantages, which means GE's main strategy was serving its strategy intent. GE successfully added different lines-of-business to take full advantage of its resources. Like GE's energy business related to its lighting business and electrical distribution business. Both of GE's plane engine business, electrical equipment business are belong to the mechanical designing and manufacturing