The general electric group (GE) is an American international firm integrated in New York and the headquarters in Boston. The business as of 2018 operates through the following sections: renewable energy, power, lighting, oil and gas, aviation, transportation, healthcare, capital venture and finance, digital industry and additive manufacture.

The general electric company was ranked the 18th largest firm that is in the United States in 2018 by the fortune 500 by the gross revenue. GE Company in 2011 was rated by luck 20 as the 14th company that is mainly lucrative. As of 2012, the organization was filed to be the 4th leading firm globally amid the Forbes global 2000, taking into accounts extra metrics (Joshi, 2008). The Nobel Prize was awarded to two workers of the company in 1932 for chemistry Irving Langmuir was assigned, and then Ivar Giaever was granted in 1973 for physics.

Thomas Edison had interest in many electricity-related firms in 1889 consisting of a lamp producer in East Newark, New Jersey, Edison Lamp Company and Edison engine jobs, which was a maker of dynamos as well as electric glides that are large. Drexel, Morgan, and co. In 1889, a corporation created by Anthony J. Drexel and J. P. Morgan, financed the research of Edison and helped merge the companies to form Edison global company under one corporation, and it co-operated in 1889 April in New York (Mattingly, 2002). The company that was created as well in the same year acquired Sprague electrical railway & and motor company.

The formation of general electric happened through a merger that occurred in 1892 of Thomson- Houston electric business of Lynn, Massachusetts and the Edison public electric company of Schenectady, with Drexel, Morgan & co offering support to merge. Up to the critical day, both companies carry on to function under the GE poster. The incorporating of the corporation in New York with the plant of Schenectady after that employed as the headquarters of the firm for several years (Morris, 2006). The common electric’s Canadian complement was created around the same year, and it is the Canadian general electric.

General electric in 1896 was among the imaginative 12 corporations that were scheduled on the down Jones industrial standard that was newly formed, where for 122years it remained a part of the index, though not on a continuous state. The national electric lamp association was absorbed by the general electric in 1911 into the business of lighting. The lighting division headquarters of public power was established at Nela Park. The separation of light has stayed in the identical site ever since.

The general electric moved into the fresh ground of airplane turbo supercharge Sanford Alexander Moss leading the move. The primary set of supercharging was introduced by GE at the times of World War 1, and the development continued during the period of interwar. In the days that were directly before World War 2, the supercharges became indispensable. Around 300000 turbo superchargers were distributed by the general electric for usage in the fighter as well as bomber engines (Tung, 2001). The work after the war led to the army air corps of the United States to pick GE to be the developer of the foremost jet locomotive of the country during the combat. The selection, on the other hand, made the general electric an ordinary range of developing the whittle W.1 jet locomotive that in 1941 was verified in the United States. The ranking of the public electric was ninth among the corporations f the United States in the period of war manufacture agreements value. The premature job of general power with whittle design was handed to Allison engine company later. The emerging of the public electric aviation came to be as among the world’s manufacturers of engines, evading Rolls-Royce plc, which was a British company.

The GE refrigerators, light bulbs, and other products were boycotted by some consumers in the 1980s and the 1990s.  The sole reason for the boycott was for protesting on the role of the GE in the production of nuclear weapons.

The GE obtained the wind power benefits in 2002 of Enron in the proceedings of its insolvency. the merely United States large wind turbines manufacturer at that time that was surviving, this made GE increase manufacturing and provisions of the separation of wind, and the yearly trades were doubled in 2003 to $1.2 billion, was Enron wind (Morris, 2006). In 2009 the GE acquired the scan wind.

The GE power gained the attention of the press in 2015 at the time when a model 9FB gas turbine that was located in Texas was shut down for almost two months for the blade of the turbine had broke. The model employed the same model that is for the GE blade technology that is newest and as well most effective, the 9HA. The new protective coatings were developed by GE after the break as well as the methods of hat treatment. The turbines of the gas represent a portion that is significant in the power generation fleet of several companies of utility that are in the United States (Joshi, 2008). The japans chibi electric, and the electricity de France were also impacted in some of their units.  GE initially, did not come to terms the turbine blade issue of the 9FB group would affect the 9HA units that were new.

Among the critical eight computer companies was GE in the 1960s along with IBM, NCR, RCA, and UNICAV among others. GE had a general purpose line as well as particular purpose computers. The company designed a determent 500 computer but did not sell it.  GE began rising operating system of a GECOS in 1962, for set dispensation originally but extended afterward to the transaction and timesharing dispensation. The GCOS versions up to today are still in use. GE, as well as the bell laboratory, joined with MIT from 1964 to 1969 in developing the Multics working structure on the GE 645 mainframe workstation. The venture that was initiated took more than it was imagined and it did not become a significant profitable victory, but notions such as the single level amass, hierarchical file system, active linking, and ring-oriented safety were demonstrated (Mattingly, 2002). The energetic Multics growth took place continuously pending 1985.

GE got into the mechanized of processors since they were the user of computers who were the largest outside the federal government of the united state, besides being the primary industry that was to possess a computer globally. The essential appliances of GE industrialized company Appliance Park became the foremost site that was nongovernmental to have a computer. GE sold its computer division in 1970 to Honeywell, getting out of the equipment built-up business, however, for some years it maintained its timesharing processes subsequently. GE was a supplier that was major in the services of computer time sharing, giving computer services online such as Genie. GE made a counteroffer in 200 when the united technologies corp. Planned to buy honey and honey approved the proposal of GE. The European Union stated in July 2001 that made it illegal for the acquisition that was proposed by the general electric company of Honeywell (Morris, 2006). The union gave reasons that the addition would create dominant strength position on many bazaars and the preparations that are projected by the GE were not sufficient in the resolving of the distress of competition that was resulting from Honeywell recommend acquisition.

GE united with a joint design business Quirky on June 2014 to proclaim its linked LED bulb the wink. The design of the ring is to converse with Smartphones and tablets by the use of a mobile app that is called wink.

 

The objectives of GE

Besides aiming at being the primary influencer of development in the industries, the company focuses much on becoming the premier digital industrial company in the world that transforms industries with machines that are software-defined as well as solutions that are linked, predictive and also responsive. The company also wishes to produce a critical executive outcome for the customers they have (Tung, 2001). The corporate vision of the company is not just any digital industrial company, but instead being the premier company.

Strategies of the company

Today GE is highly honored due to their products and services, moreover their goal plan of being extremely the best, and this makes them implement the strategies for developing their products and their market base. One of their big goals is pervasively spreading of their products and opening up new markets everywhere around the globe. The company is looking forward to implementing a strategy for developing their products; they plan to come up with new products. On the other hand, GE strategic goal plan is bringing together their market strategies, having a vision of opening up new markets at the international level. Also, GE is laying down a strategy of expanding its stores around the world, to increase its sales volume in different countries. The company is also designed to bring the business to the frontline of progress in the industries (Tung, 2001). GE Company also is indicating leadership as a digital industrial company, and they are willing to implement industrialization digitally.

General electric always has to ensure that the mission, as well as the vision statements, is forever changed to be relevant to the current situation of the industry as well as the dynamics of the market to maintain the position that it is having as being among the largest conglomerates in the globe.

The Organizational Structure and Operation analysis

The general electric company has a structure of the organization that supports the business transformation into a premier digital industrial company.  The leading industry position and the strategy is highlighted in the mission and vision of the GE company. The corporate structure of GE has changed in many ways to enable support for separate subsidiaries operations. The company has a feature of construction that will allow and allows each of the operating segments of the company in product development and implementing marketing campaigns that are industry specific. The structure of the company as ell promotes the improvements of products through research and programs of development pertinent to the condition that is unique of the energy, healthcare, oil and gas industry, aviation, electric lighting, and transportation (Moir, 2011). With such a strategy, GE Company continues to grow as one of the largest conglomerates in the market globally.

General Electric Corporation maximizes its productivity in the ten areas of the decision of operations management through strategic technological integration. The operations management approach applied by the company is appropriate, putting into consideration that the company heavy relies on digital technologies to ensure the competitiveness of its multinational business is maintained (Mattingly, 2002). GE applies approaches that are varied to its industries as well as markets. The operation manager of the company implements industry-specific strategies and tactics and the broad generalized policies of the operations management.

Strengths-Weaknesses-Opportunities-Threats (S W O T) Matrix

For the evaluation of a firm’s weakness, strength, viable opportunities and the threats of, we usually use a matrix known as SWOT matrix analysis. The SWOT matrix analysis on the other also hand helps in the placement of similar strengths and weakness to its equal viable opportunity and threat. Usually, there are always threats which always come along with chance; this threat can severely damage the firm in the future. It is then necessary for a company to implement SWOT matrix in its operation because it helps in the analysis and evaluation on the areas which needs to be given more attention to ensure efficient service of the firm. The framework of swot analysis enables the firm to recognize internal strategic issues, strengths and weaknesses, and the vital external factors, threats, and opportunities.

The following tabulation shows the Internal Factor Evaluation matrix for the GE Organization

Strengths of GE    Weakness of GE

Presence of global market    High pension liabilities

Technology that is advanced    Revenue that is falling across certain business segments

Large portfolio of business    Dependence for raw material

Strong financial position    Legal proceedings

 

Internal Factor Evaluation Matrix (IFE) is a matrix used in the “identification and evaluation of the main strengths and weakness and assesses their relationship in the different operations of a business concern GE company applies the Internal Factor Matrix for making its analysis on the internal resistance and vulnerability within the organization (Tung, 2001).

The following tabulation represents the weighted score indicating how GE Company is responding to the external factors influencing its operation.

 

Internal Assessment using the IFE matrix

Internal Factors    Weight     Rate    Weight score

Presence of global market    0.23    4    0.92

Technology that is advanced    0.19    3    0.57

Large portfolio of business    0.13    3    0.39

Strong financial position    0.12    2    0.24

 

High pension liabilities    0.13    3    0.39

Revenue that is falling across certain business segments    0.05    1    0.05

Dependence for raw material    0.12    4    0.48

Legal proceedings    0.03    1    0.03

 

Totals     1        3.07

 

 

From the table, GE Corporation is at 3.07 when it comes to responding to the internal factors around the organization; this weighted score is above average. This weighted score significantly portrays that the company reacts efficiently to different internal changes this, for this reason, the company’s position is at its best level.

The type of matrix structure used in assessing the capability of a firm to deal with external factors is known as the External Factor Evaluation EFE. GE usually uses this type of matrix to evaluate the external factors which influence its operation. The External Factor Matrix usually takes into account the threats and opportunities affecting organizational performance. The risks and opportunities are generated generally from the analysis of SWOT. The weights of the opportunities vary in terms of importance (Mattingly, 2002).

The following tabulation represents the weighted score indicating how GE Company is responding to the external factors influencing its operation.

The following tabulation represents the potential opportunities with their similar threats for GE Company.

Opportunities of GE     Threats of GE

Entering new segments of business     Higher tax associated liabilities

growth by mergers and gaining’s    Geopolitical adjusts

Further development in middle eastern and Asian markets     Competitive pressure

Legal pressures

 

 

The following tabulation represents the weighted score indicating how GE Company is responding to the external factors influencing its operation.

External Assessment using the EFE matrix

External factor     weight    rate    Weight score

Entering new business  segments    0.22    4    0.88

growth through mergers and acquisitions    0.18    2    0.36

Further Expansion in middle eastern and Asian markets     0.19    3    0.57

 

Higher tax related liabilities    0.11    2    0.22

Geopolitical changes    0.13    4    0.52

Competitive pressure    0.10    2    0.20

Legal pressures    0.07    2    0.14

 

Total     1        3.11

 

From the tabulation above, the GE Company weighted score is at 3.11. This is very close to the above average-level; thus position indicates that the company is responding appropriately to the external factors.

It has its weighted scores at 3.11 for EFE and 3.07 for IFE. Generally, it indicates that the company is on the right track when it comes to the formulation and implementation of the marketing strategies, which in turn creates room for expansion because the company stays in a hold and firmly maintains the plan for the periods that are coming (Joshi, 2008).

The internal strategies factors that are identified in the swot analysis of the GE Company reflect the capabilities of the business that are supporting growth in the long term, given the current condition of the industry. The sound research skill of the company and the processes of development are time tested strengths that are supporting competitive advantage as well as leadership in many markets. On the other hand, the weakness of general electric presents barriers to getting dominance in the operations of the company in the long term. For instance, a performance that is weak in the oil and gas segment is a barrier for which there is a problematic development of solutions. However, the weak performance of the company in the Asian markets can be addressed. The identified external strategic factors in the swot analysis create conditions wherein the company can grow. For instance, the company can raise through operations that are expanded in the market of renewable energy, despite the oil and gas industry instability. The electric general manager must take such opportunities strategically in the environment of external business to counteract the threats consequences facing the company (Moir, 2011).

In today’s business world competition is considered to be the most certain issue. Whether a firm is small or big, it has competitors in the field; the competitors’ strategies affect the formulation strategy plan for the company itself.

GE has many competitors who produce and sells the same products. The competitors include among many ABB Ltd.; ALSTOM; American International Group, Inc.; and AREVA Group. The competitors sell their products at low prices. This causes a threat to the GE Company as the customers who are cutting the cost will go for cheap products that are available in other firms.  GE applies a competitive profile matrix in comparing and evaluating the key areas that they should address to outdo the competitors (Mattingly, 2002). The link between GE and the competitors is determined by the factors of growth and success. By examining the success factor closely, GE can evaluate if they are meeting the customer need appropriately

The following tabulation illustrates the Competitive Profile Matrix for GE Corporation.

GE

Corporation    ALSTOM    American International Group, Inc

Critical Success Factors    Weight    Rate    Weight Score    Rate    Weights     Rate    Weighted score

Satisfying Customer Needs    0.140    4    0.560    4    0.560    2    0.280

Quality of product    0.140    4    0.560    2    0.280    2    0.280

Name of brand    0.0700    4    0.280    3    0.210    2    0.140

Market split    0.090    4    0.360    3    0.270    2    0.180

Price cutthroat    0.120    1    0.120    3    0.360    4    0.480

Financial location    0.090    2    0.120    3    0.180    3    0.180

Global development    0.070    4    0.280    1    0.070    4    0.280

Innovation    0.080    2    0.160    2    0.160    3    0.240

Customer check     0.120    4    0.480    3    0.360    2    0.240

Loyalty     0.080    4    0.320    4    0.320    2    0.160

Total             3.240        2.770        2.460

 

The table illustrates that is above the two main competitors ALSTOM and A American International Group Inc. the ALSTOM have a 2.77 weighed score while American International Group Inc. has 2.46, GE is leading with 3.24 weighed score. GE is seen to be meeting many of the critical success factors in the industry. GE should not stress out in the short run for no one is taking over from them in the market share as well as growth.

Financial ratios or the accounting ratios are the magnitudes that are relative selected from two values from a statement of finance. The rates are vital in measuring company strength. GE Company employs many financial ratios in analyzing the performance of the company and evaluating the financial position.

Ratio type    2017    2016    2015

Inventory turnover    4.1935    3.9135    3.6728

Receivable turnover    2.9724    2.9268    2.5599

Long term debt/capital    0.5698    0.5756    0.5909

Asset turnover    0.323    0.3387    0.2381

Current ratio    1.8733    1.9252    1.6257

ROE    -7.0114    12.2529    1.6978

Free cash flow per share    1.0131    -0.3307    1.5577

ROA     -1.5209    2.5998    0.3448

Net profit margin    -5.0962    6.6099    -5.2349

Debt to equity ratio    1.6175    1.7524    1.9425

Gross profit margin    24.7011    29.2741    29.5546

Operating profit margin    6.7539    13.6233    12.1429

 

In summary, this business analysis report typically provides information on the strategies that GE corporation implements, the report emphasized the business matrix strategies that the company uses in the analysis of its operation and strategy formulation. The grand matrix used by the firm clearly illustrates the strategic position of GE in the industry. On the other hand, the matrix strategies are very informative in demonstrating that GE Company is appropriate and responding decently towards different opportunities and threats. The swot analysis, the strengths, weakness, opportunity, and threats, in this general electric case, stresses the necessity of the strategic approach to expand and grow the business in the fast-changing environment of the industry.  The focus should be put by the managers on the stability and growth of the company that capitalizes on the strengths and opportunities of the business, and also to develop solutions to help protect GE from the threats and weakness effects.  Based on the external and internal factors that are strategically determined by the SWOT analysis, I would recommend that the general electric company should raise its penetration degree in the markets that are developing, more so in the Asian markets. The company also should expand the GE renewable energy segment operation to take advantage of the renewable energy market growth.  Lastly, the company should diversify steadily to include industries where digitization insignificant.

 

References

Joshi, H. (2008). Residential, Commercial and Industrial Electrical Systems. New York :     Routledge.

Mattingly, J. D. (2002). Aircraft Engine Design. New Jersy : Routledge.

Moir, I. (2011). Aircraft Systems: Mechanical, Electrical, and Avionics Subsystems Integration.     Chicago : Routledge.

Morris, T. (2006). If Harry Potter Ran General Electric:Leadership Wisdom from the World of     the Wizards. New York: Crown Publishing Group,.

Tung, R. (2001). Learning from World Class Companies . New York : Routledge.

 

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