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Management

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Introduction:

Throughout the course of this 5-year strategy review, the report will extensively delve into a scrupulous analysis of General Electric Company's (GE) business simulation activity. As a renowned US-based multinational corporation, GE has been able to secure the vanguard position in the annals of history, dating back to its inception in 1892. The organization came into being from the amalgamation of the Thomson-Houston Company along with the Edison General Electric Company, from where it spearheaded a spectacular endeavor to become a global powerhouse, spreading its business horizon across four pivotal segments namely Aerospace, Healthcare, Power, as well as Renewable Energy.

The following evaluation comprehensively inculcates GEs multifaceted dimensions of working function across diverse operations, extrapolating its intricate participation in producing critical equipment and furnishing solutions that cater to diverse sectors. The influence of GE is far reaching in nature owing to the fact that from aircraft engines that power both commercial as well as military aircraft to technologies that propel the healthcare industry so that precision health advancements can be delivered, GE's impact is truly outstanding. The study also elucidates the gravity of each segment, concentrating upon their respective contributions to GE's overall revenue stream.

In the subsequent section, the study intricately dissects GE's performance and operational intricacies within each segment, so that evidence-based insights can be derived that illustrates the conventional stratagems inculcated by the firm and their respective accomplishments. Conclusively, this review intends to furnish shareholders with a comprehensive cognizance of GE's business simulation activity over the past five years, thereby empowering them to formulate decisions accordingly regarding the company's future trajectory.

Business Description:

The distribution of GE's revenue stream is diverse in nature, owing to the reason that 45% of the revenue originates from US operations. For instance, 35% of the total revenue is contributed by the Aerospace segment, which is located in the US. Not only it is entrusted with the responsibility of designing aircraft engines, but at the same time, it also manufactures components as well as systems(Wise 2020).On a similar note, 25% of the entire revenue generation comes from the healthcare segment, where medical imaging devices, diagnostic as well as solutions oriented towards drug recovery are also provided by GE. 20% of revenue stream entails revenue generated from the power segment, where energy services and products including steam and gas turbines are generated(Wise 2020).Ultimately, 15% revenue generation is contributed by the renewable energy sector, where GE has been able to concentrate upon delivering quality clean energy solutions. If a meticulous analysis of the financial performance of GE is carried out, it would reveal that the revenue generation of the organization has increased by 3% in 2022, thereby making it $76.6 billion. In a similar vein, a notable change is also observed in its net income, since it has augmented from a loss of $6.6 billion to a profit of $292 million, which can necessarily be attributed to higher sales volume. GE maintains a strong cash position of $19.1 billion and engages in strategic investments and new product development (Zhuang et al. 2019).

Vision and Values:

As far as vision of GE is concerned it can be stated that the organization is known to leverage technological progress to furnish meaningful impact in the society Simply put the organization envisions a future where global challenges are not only resolved with state of the technology but at the same time efficiency is oriented towards sustainability.

The core values which are predominantly emphasized by the organization's managerial authority are hereby listed below:

Innovation has always been a paradigm which is taken as a frame of reference in GE, where new ways of developing values as well as solving critical problems are carried out with unique innovative approaches.

Upholding integrity as the highest standard of ethics is the benchmark of GE, which not only demonstrates that honesty and transparency should be maintained across all strata of the organization, but at the same time, accountability of all employees working in the organization is also ensured in all its branches(Sturgeon 2021).

Being consumer centric has assisted GE to fulfill their long-term vision and it also assists the organization to propel towards development, so that impactful solutions can be tailored as per consumer preferences.

The organization has successfully embraced diversity, where creativity is fostered by including diverse perspectives, which not only enriches the companys ability to resolve critical solutions, but at the same time, it also secures the company, a vanguard position in the industry.

Synergizing among the workforce and extensive collaboration with business experts in the industry has opened up new horizons for the organization to deliver exemplary results.

Mission and Strategy:

The mission of General Electric primarily revolves around radically transforming its industries, all while augmenting lives with the help of state-of-the-art innovation and quality leadership. However, for the sake of accomplishing this mission, the organization has devised a strategy comprehensively, which inculcates diverse dimensions, which are mentioned as follows:

Placing paramount significance on consumer centric approaches for gaining cognizance regarding preferences among target market assisted the organization to tailor its solution accordingly. Not only does it enhance consumer loyalty, but this approach also plays a quintessential role in fostering long term partnerships.

Investing heavily in innovative products significantly broadened the business horizon of GE.This notion of continually involving in extensive research and development creates services that are groundbreaking in nature, not only empowers societies, but the brand equity of GE is spread across industries in today's competitive business ambience.

Global expansion has always been pivotal criteria which assisted GE capability to serve diverse cultures and markets around the world. However, extensive operational efficiency is required to be demonstrated by the organization to maintain control over expensive network where fostering collaboration with international players and capitalizing on growth opportunities, which are yet to be tapped, are carried out seamlessly by the organizations managerial authority (Gebauer et al. 2021).

Human Resources and Culture:

At the heart of GE's success lies its tendency to nurture a culture of inclusivity which empowers the workforce to prove themselves and contribute towards the betterment of the firm through continuous learning. In this manner, GE fosters an ambiance, where the workforce is motivated to unleash their full potential. The company's commitment to diversity and talent development is not only a testament to its ethical values but also a strategic imperative that fuels innovation and drives superior performance(Reid and Sanders 2019).GE's commitment to cultivating a culture of operational excellence and accountability has been instrumental in its journey. This culture, combined with an agile mindset, allows the company to adapt swiftly to changing market dynamics while maintaining the highest standards of quality and customer satisfaction.

Performance review:

Porters Five Force Analysis:

1. Threat of New Entrants:

GEs business operation is spread across diverse industries as a consequence of which the notion of entry barrier due to high capital requirement as well as technological complication is negligible in nature. For instance, in the aerospace industry or power industry, gaining new foothold is quite challenging, given the current economic landscape. With GEs extensive research and development expertise and investment to harness new technology establishing significant brand equity that could challenge GE is of meagre feasibility (Li 2020). On top of that, the company's global footprint assists the organization to gain a competitive advantage over its potential rivals as well as newcomers.

2. Bargaining Power of Suppliers:

The bargaining power of suppliers varies from one segment to another in the case of GE. For instance, in the aerospace industry, GE has fostered relationships with suppliers on a vast scale, giving the organization an exemplary leverage over its supplier, where it can potentially mitigate any sort of manoeuvre exerted by its suppliers. However, in the segment of renewable energy due to extensive dependence on certain raw materials, such as wind turbines and other panels for generating electricity supplier exert extensive power over GEs working function in order to tackle, such hindrances GEs management has inculcated proactive efforts to diversify suppliers, so that supply chain can be optimized accordingly(Li 2020).

3. Bargaining Power of Buyers:

The bargaining power of buyers across all industry segments of GE is considerably moderate in nature.In view of the fact that due to limited alternatives, GEs brand reputation gives the organization an edge, where it can mitigate power extensively. Although buyers have a certain degree of power in seeking solutions that are cost effective in nature. However, the quality services and products delivered by GE captivate buyers extensively, which further consolidates its competitive position.

4. Threat of Substitutes:

The concept of substitute across all industries where GE operates is minimal in nature. Since these segments require specialized expertise. For instance, the aircraft engines or medical imaging technologies ameliorated by unique capabilities of GE cannot be substituted. Since the massive proportion of technological amendments inculcated in this product opens up new horizon for its intended consumers, which is why the target market of GE always prefers cutting edge solution which eradicates the concept of substitution completely.

5. Intensity of Competitive Rivalry:

In Aerospace, GE competes with global giants like Rolls-Royce and Pratt & Whitney, leading to high rivalry. In Healthcare, Siemens and Philips pose strong competition. However, GE's longstanding presence Coupled with its extensive and diversified portfolio, as assisted the organization to get ahead of the competitive curve swiftly and seamlessly.

Conclusion:

To conclude it can be stated that although the organizations strengths in R&D as well as developing innovative products have been able to captivate a target market seamlessly. However, they were changing landscape of competition across diverse industries the organization should focus on sustainability, which could potentially draw the line of distinction from its rival organization with quality products developed by GE in the ever-evolving landscape.

Market Choice and Share:

As of the fiscal year 2022, GE's total revenue registered at $76.6 billion, substantiating a substantial and formidable market presence. Within the realm of Aerospace, GE's prowess lies in the utilization of its aircraft engines and intricate components, permeating more than 64,000 commercial and military aircraft, thereby solidifying its stature as a preeminent industry participant (Gebauer et al. 2020).

Competitors:

In the Aerospace domain, the conglomerate finds itself in contention with stalwart industry entities such as Rolls-Royce and Pratt & Whitney. In the sphere of healthcare, prominent rivals manifest in the form of Siemens Healthineers and Philips. Within the expansive domains of Power and Renewable Energy, the competitive landscape encompasses entities ranging from Siemens Energy to Vestas and Siemens Gamesa, particularly within the realm of wind energy (Gebauer et al. 2020).

Internal Capabilities:

Apart from having an exemplary legacy of propelling innovation technological expertise that drives the research and development of GE is also known for its comprehensive solutions across different segments, where it has been successfully exerting a strong emphasis among the target market, by captivating intended market niche through excellent operational efficiency and satiating consumer preferences.

Industry Trends and Attractiveness:

The industries in which General Electric (GE) operates are currently shaped by notable trends that enhance their allure. The pervasive movement towards sustainability and clean energy propels growth in the Renewable Energy sector, where GE's adeptness in wind and hydro solutions provides a strategic advantage. Concurrently, the assimilation of digital technologies across healthcare and aerospace sectors drives transformative changes, with GE's substantial investments in data analytics bolstering innovative and competitive prowess (Yong et al. 2020). Aging demographics and technological strides underscore the demand for advanced medical imaging and diagnostics within GE's healthcare segment.

Simulation Performance:

All amounts in millions of US Dollars except per share amounts.

Performance Analysis of General Electric (GE):

1. Strategy Evaluation:

Apparently, diversification dilutes the magnitude of risk factors associated with the particular industry. However, extensive diversification brings forth systemic risk which are beyond GE's control, such as stringent economic policies or drastic changes in supply chain schedules, leading to emergence of non-core businesses, which would drain the profitability of the organization, if timely measures are not inculcated adequately.

2. Marketing:

Although GE's technological progress and innovative solution has garnered an exemplary reputation in the industry. However, due to lack of object-oriented marketing campaigns, the company fails to captivate potential target niche appropriately, even if it has its competitive edge in that segment.

3. Human Resources (HR):

The HR strategy inculcated by the organization fails to retain talent over and over again, due to its extensive internal competition, which is detrimental for the organization. In the name of encouraging creativity, the company incentivized and motivates employees to be competitive in nature, which often turns out to be unhealthy. Essential talents often find this sort of challenge to be depressing in nature, subsequently leading to a higher rate of attrition(Yong et al. 2020).

4. Logistics and finance:

Both the notion of logistics and finance are crucial for GE. However, maintaining the supply chain requires extensive financial planning. Although the company has embraced digital technology, it has yet to inculcate data analytics to prognosticate consumer demands and reduce cost across its logistic maintenance, thereby leading to loss of revenue and drastic deterioration of logistic efficiency(de Sousa Jabbour et al. 2019).

5. Event Response:

GE's ability to respond to events, such as market disruptions as well as regulatory changes, is crucial. The company should have agile response strategies that allow quick adaptation to changing circumstances. For instance, in response to market demands for cleaner energy, GE's focus on renewable energy solutions aligns well with global trends.

Conclusion:

General Electric's performance analysis highlights its strengths in innovation, global presence, and brand equity. However, challenges related to past diversification, employee morale, and effective marketing strategies require attention. The company's alignment with industry trends, strategic decision-making, and responsiveness to events will play a vital role in ensuring its sustained growth and competitiveness in the evolving business landscape.

Future Plans and Recommendations:

Over the course of next five years, the fundamental decision that General Electric should concentrate upon in order to capitalize on untapped opportunities, while navigating radically changing business ambiance are as follows:

Refining existing strategy should be the focal point of GE, since it would assist the organization to concentrate upon aligning its resource in a strategic manner, where innovation can be leveraged to develop customer centric solutions, Non core business segments are required to be reassessed and eradicated if necessary, by potentially divesting from underperforming asset to emerging opportunities.

GE should align its business operations to be sustainable in nature. From an apparent vision it would seem that embracing sustainability is an expensive endeavor. However, if adequate measures are taken into consideration, then through innovative solutions, GE can inherently cater to increasing global demand by offering them sustainable solutions that are not detrimental towards the environment. This is actually a strategic measure, since this commitment towards sustainability would captivate consumers extensively.

As far as digital transformation is concerned, GE should invest in artificial intelligence to analyze existing business landscape and interpret consumer preferences, so that a data-driven decision can be formulated with the help of data analytics to undertake predictive maintenance, which would not only optimize operation, but also augment consumer experience associated with the brand equity of the organization.

The organization is known for incentivizing its workforce. However, the extent to which it pushes its workforce is not at all healthy in nature. Hence, rather than using employees as human capital GE should concentrate upon developing the learning curve of the workforce and providing them with an opportunity, so that they can contribute accordingly towards the dynamic growth of the organization. In this manner, the organization can also retain its existing talent and reduce the rate of attrition.

Although, GE has a potential market base. However, its strategies are not tailored towards specific mass. As a consequence of which, the organization often experiences impediments or cannot translate desired outcomes into reality. The reason being that the marketing strategies developed by the organization do not resonate accordingly among the target audience. Hence, enhancing the company's appeal with sustainability would definitely be a better touch through which the company can rebrand its appeal among the environmental conscious mass.

Unpredictability is the biggest systemic risk which GE cannot control. Since it is involved in a lot of industries, the feasibility of experiencing certain hindrances in the supply chain or changes in regulation or stringent economic measures can potentially alter GEs course of revenue generation. In such instances, apart from adequate contingency plan, establishing response mechanisms that are agile in nature, so that navigating challenges can become quite seamless is necessary. Keeping this requirement in the hindsight, collaborating with industry leaders and partnering with research institution who can open up new horizon for the organization, so that leveraging external expertise become much more seamless in nature should be the focal point of GEs managerial authority.

Conclusion

In light of the performance analysis, GE is poised to thrive by implementing the aforementioned recommendations. Aside from undergoing a strategic refinement that emphasizes core competencies and divests non-core assets will optimize resource utilization, emphasizing sustainable innovation through research and development in clean energy technologies can be aligned with market demand to fulfill sustainability objectives, would be beneficial for GE. Embracing digital transformation for enhanced efficiency and augmenting customer experiences with the help of data-driven decisions is crucial for GE. Simultaneously, nurturing a culture of innovation to attract and retain top talent would not only assist the organization to foster long term growth but at the same time would aid GE to tailor marketing strategies to specific customer segments and fortifying risk management strategies accordingly.

References

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