Introduction

Strategic Analysis-STRA704 Prof. Dr. Saneya El-Galaly 1General Electric Company

1Mohamed Fouad ImamMohamed Sayed AminShady Mohamed NaderTeamwork 2Introduction Mission Statement Vision statement Organization Chart Overall Strategy Services types Differentiation & positioning SWOT AnalysisRecommendations

Agenda3General Electric Company or GE , is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield , Connecticut, United States.

The history of GE is a significant part of the history of technology in USA. GE has evolved from Thomas Edisons home laboratory into one of the largest companies in the world.

In 2011, GE ranked among the Fortune 500 as the 26th largest firm in the U.S. by gross revenue as well as the 14th most profitable.

Headed by CEO Jeffery Immelt and has more than 300,000 employees in over 160 countries. The Nobel Prize has been awarded twice to GE employees at 1932 & 1973.

Introduction 4General Electric Company has six global massive, diversified , and profitable conglomerate with a lot of very good but very unrelated business units.

Company Overview 5

General Electric doesnt seem to have an official mission statement ; Furthermore, these are the following statements that are on the website for each of GEs business units: GE Power & Water- with a full array of advanced power generation and energy delivery technologies, we work collaboratively with customers to drive growth & progress , anticipate energy needs of the future, and power a cleaner, more productive world.

GE Oil & Gas a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from exploration & production to downstream.

GE Capital- Provide smart financing and the know-how of GE to help its customers capital go further and do more.

Mission 6Vision We bring good things to life

There are five GE Beliefs. These are the principles we aspire to:1. CUSTOMERS DETERMINE OUR SUCCESSThis is a statement of fact. Great teams win in the market.2. STAY LEAN TO GO FASTScarcity drives teamwork, will and accountability.3. LEARN AND ADAPT TO WINGood companies make mistakes quickly, but they learn and adjust. And, winning has to be our goal.4. EMPOWER AND INSPIRE EACH OTHERThe days of centralized command are in the past. Our teams have the expertise to accept empowerment and drive results.5. DELIVER RESULTS IN AN UNCERTAIN WORLDThis is our commitment to you. GE Beliefs drive performance and shape careers.

Vision & Beliefs 77 GE ranked among the Fortune 500 as the 26th largest firm in the U.S. by gross revenue , as well as the 14th most profitable. However the company is listed the fourth largest in the world among the Forbes Global 2000.

GE is the largest industrial multinational, with about $80 billion of revenue outside the U.S. This allows GE to execute projects that others cant. GE has built a $6 billion position in Africa over the last decade, virtually from scratch.

GE wins in growth markets.GE has close to $50 billion of orders in growth markets, up 9% in 2014. And, with $21 billion of exports, they lead economic development around the world.

Financial Position 88 REVENUES Revenues are classified according to the region to which products and services are sold. For purposes of this analysis, the U.S. is presented separately from the remainder of the Americas.

Financial Position (Cont.)9

9Operating Segments 10

10Porters 5 Forces Model 11

11Porters 5 Forces Model 1212External Factor Analysis Summary (EFAS Table)

13External FactorsWeightRate*Wt. ScoreCommentsOpportunities:1Take over & merger opportunities 0.1540.6Acquire new customers &enter new markets2Changes in technology could give GE an opportunity to bolster future success 0.1540.63Environmental leadership . GE is leading the way with green energy 0.130.3Green technology creates great perception and draws the ethical employees GE seeks4GE could benefit from governmental support0.0530.15In the form of grants, allowances, training5Exploring natural resources to meet high demand0.0530.15 Ex. Solar energy Threats:1Repeated debt-limit controversy and tax reform negatively impact capital investment0.1240.4850% of GE revenue comes from the financialindustry2Political instability and new legalization that weakens environmental laws 0.1240.48Political uncertainty in Europe and push back against environmentalism in U.S.3GEs commercial lending and leasing business operates in a highly competitive environment.0.130.3Banks are loaded with liquidity and interest rates are lower than ever4Extra competition and new competitors entering the market 0.0830.24 5Price wars betweens competitors 0.0830.24Price cuts could damage profits for GE Total Scores1.03.54Internal Factor Analysis Summary (IFAS Table)

14Internal FactorsWeightRate*Wt. ScoreCommentsStrengths :1Overall revenues from emerging markets 0.1540.6For Long term success 2Global Market leader possess economies of scale ,higher revenues and good brand 0.130.3Double annual revenue 3Strong workforce makes huge difference in profit0.140.4Essential for developing economies 4Strong market penetration0.0830.24GE diversified successfully 5R&D investment for developing the innovation0.0740.28 innovated P/S increases revenues. Weaknesses :1Unstable international economy provides unknowns for a large company that has diverse interests abroad.0.1540.6slowing economic situation in Asia & Europe 2The energy industry is incredibly unstable0.1240.48Petroleum and other energies account for a large profit3Large & diverse businesses might overstretch the company . 0.0830.24reduce reaction times to shifts in targeted markets4Low stock prices due to financial downturn 0.0830.24 is far outweighed by GE strengths & oppt. 54th Largest Corporate Producer of Air Pollution in the United States0.0730.21Total Scores1.03.89Situation Analysis 15Key Success FactorsWeightRate*Wt. ScoreCommentsS1Overall revenues from emerging markets 0.1240.48For Long term success S2Global Market leader possess economies of scale ,higher revenues and good brand 0.130.3Double annual revenue W1Unstable international economy provides unknowns for a large company that has diverse interests abroad.0.1540.6slowing economic situation in Asia & Europe W2The energy industry is incredibly unstable0.1240.48Petroleum and other energies account for a large profitO1Take over & merger opportunities 0.1340.52Acquire new customers &enter new marketsO2Changes in technology could give GE an opportunity to bolster future success 0.1540.6T1Repeated debt-limit controversy and tax reform negatively impact capital investment0.1240.4850% of GE revenue comes from the financialindustryT2Political instability and new legalization that weakens environmental laws 0.1140.44Political uncertainty in Europe and push back against environmentalism in U.S.Total Scores1.03.9Based On Future trend, GE should have a clear vision to implement strategies that will help its core industrial businessRotate most skilled managers globally, in order to maintain a strong knowledge based on varies market they will operate inGE should integrate managers when they go to Acquisition strategies, to seamlessly the workforce.The implementers are everyone in the organization from executive down to first line, they all should be involved in the implementation of corporate, business and functional strategiesThe programs are financially feasible. GE makes more than enough money to undergo restructuringthe procedures will need to be updated to reflect any changes in technology, strategy, or external conditions. Implementation Plan16the following eight types of standards have been set by General Electric :

Profitability standards : These standards indicate how much profit General Electric would like to make in a given time period.Market position standards : These standards indicate the percentage of total product market that company would like to win from competitors.Productivity standards : These production-oriented standards indicate various acceptable rates which final products should be generated within the organization.Evaluation and Control17Product leadership standards : Product leadership standards indicate what levels of product innovation would make people view General Electric products as leaders in the market.Personnel development standards : Personnel development standards list acceptable of progress in this area.Employee attitude standards : These standards indicate attitudes that General Electric employees should adopt.Public responsibility standards : All organizations have certain obligations to society. General Electric's standards in this area indicate acceptable levels of activity within the organization directed toward living up to social responsibilities.Standards reflecting balance between short-range and long-range goals . Standards in this area indicate what the acceptable long- and short - range goals are and the relationship among them.

Evaluation and Control18GE uses PeopleSoft, SAP, and a number of other ERP systems in its different business segments. Even though it doesnt integrate the entire company's operations through a single system because of the immense cost and complexity that would be involved in implementing it.GE was listed by Forbes as being one of the top 21 companies that are making IT a competitive advantageGEs former CEO from 1981 2001 Jack Welch, can be recognized the most for creating a culture of meritocracy in GE by implementing his 20-70-10 rule which ranked employees into performance categories of the top 20%, middle 70%, and bottom 10%. With this system, the top 20% are rewarded in an outsized way that is both soul-satisfying and financially satisfying; the middle 70% is developed with training and coaching; and the bottom 10% are moved out so that better talent can be brought in.

Evaluation and Control19Thank you

Any Questions

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