General Electric Strategic Analysis

They are also used in controlling electricity consumption. It is headquartered in Boston and was founded in 1878. Over time, it has grown into a multinational hence diversifying its services provision geographically and across business units (Bloomberg , 2018 ). After nearly a century in operation, General Electric had 190 departments. Focus on strategic business units (SBUs) started during this period when the management engaged consultants to aid it in redesigning its corporate strategy and structure. This SBU is also responsible for power networks that are used today. Strategic position In terms of positioning within the energy sector, General Electric has adopted a simple yet effective tagline – powering forward. This tagline specifies its focus within this unit since it indicates that all its underlying activities will be directed at generating power.

The power will also make implications for its consumers since they will benefit from efficiency that allows them to move forward. For competitors, the tagline signals that the unit intends to move forward with power hence indicating momentum. com/sites/default/files/Strategy_Page_121714. pdf Figure 2: Portfolio composition in 2017 Source: https://www. ge. com/sites/default/files/Strategy_Page_121714. pdf As can be seen in figure 1 and figure2, changes to portfolio composition have been marked by an increase in the industrial component from 40% to 60%. These efforts have ensured that the power strategic business unit has functioned as a whole. Resources and value systems Resources The power strategic business unit has engaged new digital technologies as main resources within its production activities.

Digital resource productivity has been enabled through increases in output, promotion of efficiency in the usage of natural resources and decrease in negative environmental impact. The resource use has been deemed of essence since there are more opportunities for growth, product differentiation and cost savings (GE Worldwide Partners, 2018). This point relates to strategic positioning since effective resource use ultimately improves market performance. This model is relevant since it incorporates job demands and job resources. Job demands relate to aspects relating to the job at hand and it comprises of the tasks that require sustained physical or even mental efforts. As a result, job demands are closely associated with physiological and psychological costs. Contrastingly (Schaufeli, 2017) states that job resources are the items that are functional in achieving the goals of the tasks.

They also reduce psychological and physiological costs by stimulating personal growth and development. On the proactive front, the management at this strategic business unit utilizes financial resources for compensation and investment in adequate working space. These initiatives have generated superior work performance and enhanced safety. These aspects are critical in the energy SBU to ensure that production is optimum. In the end, effectiveness and efficiency realized from the job demands resources model enhance the strategic outlook at this SBU. They have ensured that the SBU powers forward by leveraging on its human resources. One of these is social intelligence. For employees who are required to be accurate and have proper relations, the skill stands out since it gives them the capability to connect with others deeply and directly.

Such employees are able to sense and stimulate reactions that promote intended outcomes. Through the skill, such employees engage in teamwork better. They also generate solutions that improve customer experience. Commitment to performance is spearheaded by the policy that all activities must be growth driven and globally oriented. In this case, performance is achieved when growth is for the people as well as markets worldwide. Given that work engagement is enhanced as indicated in the job demands resources model, performance is achieved through the motivational process. Figure 4: Value Chain Model at GE Energy At the energy SBU, the porter’s value chain is applied. The energy unit has been relevant owing to provision of innovative products. Among the support activities is the acquisition and expansion strategy.

GE utilizes its size and power to buy some competitors hence integrating vertically and further diversifying across products and geography. A case is the $3. 2 billion acquisition of France-based Converteam in 2011 (General Electric, 2018). The corporation makes automation and electrification equipments. It is clear that external links are interrelated since value is derived when the whole chain is efficient. Portfolio mix within GE Energy Figure 5: BCG matrix From the BCG matrix, the GE energy SBU is falls under cash cow. The SBU is a leader within its market that is already mature. Since its founding in 1878, GE Energy has recorded growth accompanied with a reputation of innovativeness and product quality. It also has a widespread geographical coverage that spans across all continents. Future directions for strategic growth Given that the BCG matrix indicates that growth in this unit is low, the option for GE Energy lies in product line expansion.

In this case, variations of core products can be offered to ensure that the SBU reaches a wider audience (Miller, 2017). Possible variations in this case include complementary products that will be used along with the existing products or variations that will meet unfilled gaps within the buyer audience. According to (Miller, 2017)additional product lines have the benefits of entrenching the relationships with customers as well as widening the reach of the corporation. Viewing it critically, the model will be effective for GE Energy since it will use the current infrastructure. Portfolio realignments have been fruitful since the focus is directed towards the industrials under the SBU. Even though benefits in market penetration have been realized, the management has dedicated resources to enhancing skill development to match with the changes in the work environment.