Critical strategic analysis within general electric: the power business unit

A strategic and critical analysis of the power business unit of General Electric will help uncover the information on resource audit, value systems, product/service portfolio, and the potential strategic growth of the firm. Managing a business venture like General Electric is not always an easy task because there are a lot of issues involved in the entire firm’s operations. Right from the process of auditing resources to assessing the values of the multinational organization. Such a firm has a lot of resources to take care of several business units available. As such, a thorough audit has to be carried out to ensure the business is on the correct track. According to Jolly (2018), this firm is currently undergoing tough times, which can be attributed to the huge debt it has.

It remains to be seen how it will salvage itself from the situation. The Evaluation of the Resources and Value Systems of the General Electric Power Resources in business terms refer to the staff, material, and capital available in the disposal of a company, which aid in the functioning of the firm. Resources are important because they ensure that a company carries out its activities effectively and efficiently. Resource audit, on the other hand, refers to the process taking into account all the resources available to a company. 24) because the crucial activities will not lack people to run them and make sure the business grows significantly. As such, General Electric power business unit has what it takes in matters concerning labor force to ensure a smooth running of activities.

The Intangible Resources In as much as the physical and human resources are vital to an organization, there are intangible resources that a firm largely depends on for prosperity. General Electric Power, just like many other multinational business ventures, also relies on the intangible resources to grow. One of the intangible resources is reputation. This has made a lot of electricity consumers trust the company and thereby contracting its services. It is important t understand that the length of service is a vital resource to General Electric Power. Leadership Leadership is very vital in General Electric Power because it ensures that the business is run the right way and that the objectives and goals are achieved. This helps the firm to grow at a much faster rate and this is evident from the impact General Electric Power has had ever since its establishment.

Through the leadership by the staff, this unit of business in General Electric has been able to embrace creativity and imagination thereby making General Electric Power look distinct from other similar companies in the same industry it operates in. Whenever other players in the industry become competitive, General Electric Power has always turned to technology and this move has paid off over the years. The business environment involving power generation is often complex but by the help of technology, General Electric Power has been able to maneuver around all the dynamics and prosper. This justifies the importance of investing in technology because the returns are rewarding. Customer Care Adapting the customer care approach of addressing to the consumers’ needs has proved to be very helpful for General Electric Power.

Being customer oriented has helped the power business unit of General Electric get to its consumers and understand their needs. With the market growth rate being relatively slow, it is justifiable to classify General Electric Power in the category of cash cows (Mohajan, 2017 p. These product lines are often the market leaders of the multinational corporations that venture into business, which entail a variety of products and services. General Electric Power has proved to be very vital to this firm because of the contribution it does to the overall revenue annually. With an increasing market share, General Electric Power provides hope for the future for the entire General Electric firm. This is because the contributions of this business unit show that the company participates more in the generation and provision of power on the global scene.

This means that whenever there a rise in the prices of this important commodity the businesses like General Electric Power feel the weight in the market. This explains the fluctuations in the performance of General Electric Power and other related businesses. The BCG matrix plays an important role in the evaluation of the product portfolios within strategic business units. The Evaluation of Key Future Directions for Strategic Growth The current state of affairs in almost all industries is that businesses are adapting technology because it has proved to be very helpful. There have been technological advancements that have forced many firms into devising methods of keeping up with the pace so that they do not fall out of business. Merging serves to increase the market share of both firms in the sense that the effectiveness and efficiency of production and offering services will attract more clients.

The companies will be in a position to handle more work than they previously were able to because of the bringing of efforts together. Once the market share increases significantly growth and success become inevitable (Monastyrenko, 2017 p. From such a point, General Electric Power can rule the power business for a very long time to come. For the mergers to be effective, General Electric Power can collaborate with foreign in the countries in which it chooses to invest in. Looking towards the future is vital for the growth and sustenance of the company because it helps the firm invest in future opportunities. This report shows how vital General Electric Power is to the entire firm of General Electric because of the huge demand that is expected globally, of power.