Critical strategic analysis of general electric

GE Healthcare (GEHC), this is one of the business units of General Electric Company, it is global medical service provider that is into production, developing, designing, distribution and diagnosing of clinical systems for drug innovation, biopharmaceutical production, cellular technologies; imaging agents that are used during medical scanning procedures and various range of healthcare IT devices used to provide solutions. The company also engaged in services such as performance improvement and solutions services, online data management and remote diagnostic and medical equipment repair services for equipment manufactured by other companies and GE. The company operations in more than 100 countries, through subsidiaries. GEHC is an American multinational conglomerate with its headquartered in Chicago, Illinois, the US, GEHC is both a manufacturing and distribution company.

At the end of 2007, GEHC recorded a revenue of $16, 997 million with an increase of 2. In a nutshell, it can be said to be an action used by an organization to differentiate itself from competitors. Porter (1980) described competitive strategies as "taking offensive or defensive actions to create a defendable position in an industry, to cope successfully with the five competitive forces and thereby yield a superior return on investment for the firm" from his research, it was concluded that there are three/ four Porter’s generic strategic approach that describes, how organizations hunts for competitive advantage within a given industry. Cost leadership 2. Differentiation 3. Focus. The resources can be in various form and are not limited to visible items alone, the resource audit of an organization is unique to an organization.

Akio (2005), said that focusing on an organization’s resources has helped researchers to clearly identify that valuable resource act as a source of competitive advantage for an organization. He also argues that the resources of an organization determine the performance of such organization. Barney (1991), stated that the perception of resources includes all the assets, information, attributes, knowledge, processes, capabilities controlled by an organization and which enables it to develop and implement strategies that increase its effectiveness and efficiency. He also stated that it is important for the resources of an organization to be heterogeneous, as it helps the organization to gain competitive advantage. In GEHC newsletter for February 2010 “GE Healthcare Expands Portfolio of ecomagination Products” states that in their quest to reduce cost, they decided to creatively tackle energy consumption and reduce environmental impact for its customers through the expanded portfolio of ecomagination product.

The ecomagination portfolio comprises of more than 85 products was consolidate into two new healthcare products and three product categories, including the Centricity Enterprise Electronic Medical Record (EMR), the solution was described as an addition to the clinical and financial solution which enables hospitals and healthcare workers to save time, lives and money. Chapter 3 VALUE SYSTEMS Values: A coherent set of morals adopted by an organization, person or society as a standard to guide its behavior. It can be said to be business ethics, which defines what an organization stands for and its reason for existence. Luis et al. Marketing and sales – GEHC now focus on a human-centered approach with heavy dependence on sales and trade shows. Service – GEHC engage in various activities such as after-sales services, customer support, repair services, e.

g. The use of Asset plus- a new computerized maintenance management system (CMMS) used for tracking service activities and maintenance Support activities – these are activities that support the primary activities. The activities are associated with primary activities and the full value chain. The portfolio composition is a function of the balance between cash flow Margins and cash generated are a function of market share. " The Forbes Group (2018) analysis on the portfolio stated that it is a connection between strategy formulation and implementation. Smartsheet (2018) describes PP has a group of items, both product and services that are sold by an organization while product portfolio management (PPM) can be defined as an organization’s management practice that is used by managers to evaluate a products levels of success, it also assists managers to foresee future opportunities on growth and profit, increased ROI, better resource allocation and possible risk, in order to attain the best result.

The principle of PPM is that different product requires a different strategy and financial stake depending on the market it operates in. e. Chapter 5 THE BCG MATRIX Bruce Henderson (1970) created The Boston Consulting Group Matrix (BCG matrix), he said it will help organizations to analyze their business units or product lines. The BCG matrix allows organizations to allocate their resources which in turn is used as an evaluation tool in product management, brand marketing, strategic management, and portfolio analysis. BCG matrix is a graphical planning instrument, in which an organization’s products or services can be plotted in such a way that helps make key business decisions, which includes whether to keep a business unit, sell it or invest more in it.

The graph can be illustrated as follows: The Y-axis represent the market growth rate, X-axis represents the market share. The Cash cows: these are business units with high market share in a slow-growing industry. The product lines earn just the amount of cash required to maintain its market share, which makes it to "break even. " Though this unit may be worthless to the organization in terms of revenue but may be of benefit in other cases such as job creation and assisting other business units. Sometimes it is suggested that it should be sold off. The Stars: these are business units with the largest market share in a fast-growing industry. This product has carved a niche for itself, and it requires huge investment for it to maintain its position in the market.

The four strategies are: Figure 5: Ansoff Matrix Growth strategy can be categorized into Internal and external growth strategies The internal growth strategy is when a business enlarges its operations by using its internal resources and capabilities. This is done by developing new products, hiring the right staff, increasing efficiency, better marketing etc. Fig 6 Growth Strategies (Chand, 2018) Internal growth strategy can be in form of expansion, diversification, and modernization. Between 2011 – 2013, GE employed various strategies to accomplish a successful growth in its healthcare business. And this was done by expanding its footprint in the emerging markets such as Asia-pacific and Latin America, this increased the revenue of the company at a compounded annual growth rate of 4. It identified the company's huge investment in innovation by their ability to offer technologically driven solutions to healthcare providers which have accorded them the success in the healthcare industry as they have been able to match the growing changes in our technologically driven world.

These solutions can be said to be the company's stars in line with the BCG Matrix. GEHC delivers transformational medical technologies and services that are modeling a new age of patient care. Expert in medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, specializes in performance improvement and performance solutions services assistance to customers to render better care to people around the world at a reduced cost. It was identified that the GEHC did a lot of huge investment innovation by offering technological solution to customers. ritsumei. ac. jp/acd/re/k-rsc/ras/04_publications/ria_en/03_8. pdf (Accessed: 27 October 2018) Analysis of business growth strategies and their contribution to business growth; a Tanzania case study. Available at: https://www.

(1991), “Firm Resources and Sustained Competitive Advantage,” Journal of Management, 17(1), pp. Biederman, R. (2015) 7 Key Steps to a Growth Strategy That Works Immediately. Entrepreneur. Available at https://www. genewsroom. com/press-releases/ge-healthcare-expands-portfolio-of-ecomagination-products-230416 (Accessed: 28 October 2018). General Electric (2015) Healthcare challenges meet promising opportunities: GE Healthcare offers more outcome-driven solutions to support quality care. Available at https://www. genewsroom. Harvard Business Review’s 10 Must Read on strategy. Available at https://www. scribd. com/read/353493971/HBR-s-10-Must-Reads-on-Strategy-including-featured-article-What-Is-Strategy-by-Michael-E-Porter. (Accessed: 20 October 2018). E. (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors, Free Press, New York. Rothaermel, F. T. Strategic. com/definitive-guide-to-product-portfolio-management (Accessed: 28 October 2018) Thompson, A. (2017) General Electric’s (GE) Generic Strategy & Intensive Growth Strategies. Panmore Institute. Available at http://panmore. com/general-electric-ge-generic-strategy-intensive-growth-strategies (Accessed: 27 October 2018) Trefis Team (2014) Ge Healthcare Is Focusing On Emerging Markets, R& amp; D And Cost Cuts To Drive Growth Available at https://www.