General Electric New Strategies

General Electric New Strategies:

GE goes through to facilitate innovation from company-wide perspective. Innovation breakthrough is his new strategy which works for improve existing products and developing new ideas. All the business leaders need to work out at least 3 ideas per year under the innovative program. In order to ensure that these new ideas from employees are quantified under the program, the ideas need to lead GE into a new line of business, new geographic area or a new customer base, or even have the potential bring $100 million incremental revenue for GE. GE has invested $5 billion to 80 projects with this innovation program, and Jeff Immelt announced the innovated products would generate $25billion to their company ( Aron, 2010).

Jeff Immelt stated that his current main job is “pick initiatives and business to get involved in, shape the company culture and pick great people”. Picking initiatives and business can be understood as actions like creation and allocation the right resources to the right places in right way over time (Bradt, 2011). Jeff also believes that there are going to be multiple investment opportunities with attractive returns. GE is always rebalancing their portfolio as they are looking for the opportunities to put capital into new business. Their ever-changed portfolio is the essence of strategy decide which business to be in.

GE’s signature environment effort “ecomagination” was conceived in 2004, which has influenced a majority of strategies and core businesses. Ecomagination aims at driving innovation and generating superior returns, energy efficiency. From GE’s annual strategic planning review in 2004, management team realized that their six core businesses were deeply involved in environment and energy-related projects. When ecomagination was announced, investors’ reactions were mixed, some of investors thought the strategy is sensible and intelligent, and also well aligned with the market demand. However, some investor were worried about the projects could be more profitable and whether the environmental market is actually materialize (Jeffrey Immelt and the reinvention of GE, 2011).