The paper "Strategic Analysis of GE Healthcare India" is a perfect example of a marketing case study. GE Healthcare is an American multinational that huge investments around the world. The company has over 30 years of intense presence in India which has a huge population of more than 1.2 billion people. The market for Ultrasound equipment is great in India owing to large birth rate numbers (Cole 2003:125). GE Healthcare being a manufacturer and distributor of Ultrasound equipment has an advantage over Philips, Toshiba and Siemens due to lower operational costs. It has penetrated to the interior parts of India which are a winning strategy.
The success and continued existence of GE Healthcare in India depend on compliance with social and legal laws of the country. Due to increased cases of abortion after the determination of the sex of the child, the Indian government has moved to regulate the Ultrasound market (Anurag 2006:77). The analysis looks into the company position in the emerging market and ethical issues that may limit GE Healthcare operations in India and provide recommendations on the way forward for GE Healthcare. Corporate Ethics and GE Healthcare Corporate Ethics Business ethics are the decisions and actions of a business and its personnel influenced by standards and ethical principles.
The ethics practised by business in the emerging markets are not different from the ethics applied by all markets in the general concept of ethical principles (Nash 1999, 289). The business actions of emerging markets are not subjective to permissive standards but judged from the perspective of societal ethical standards. GE Healthcare can be seen to help the emerging market in need of Ultrasound tests which has a competitive advantage given great engineering skills exhibited by its workforce and lower costs of producing the equipment.
The domestic demand is also on the increase in driving growth in the country. The government is not able to cater to the healthcare of half of its population hence the opportunity for private players. Ethics demand that the company build trust with people and their institutions. The laws of India respects the rights of the unborn child, dignity to gender and respects the wishes to pregnant mothers to carry their unborn until their time of delivery is ripe (Duin 2007:41). According to Nash (1999:297), an ethical theory that should apply is the norm rather than utilitarianism.
However, many businesses are thriving on the unethical platform. GE Healthcare is pursuing wealth and other trappings that can be termed as ‘ corporate greed’ . Just like many other businesses, the company is in business and not to practice ethics. Its culture may not encourage unethical and illegal conduct to the Indian pregnant mothers but the huge pressures from the GE Group put a lot of pressure on Raja, the CEO of GE Healthcare India to meet the required performance targets. Shareholder and Stakeholder Theories According to stockholder theory, the stockholders advance capital for managers to maximize the return on investments.
Managers have legal obligations to their stockholders not to divert resources of shareholders to any other social beneficial or charitable project but can use their personal funds instead. Friedman (1970:45) argues that as long as businesses are engaging in open and free competition without fraud or deception can engage in activities or use its resources purposely to increase profits.
The success of any venture is based on effective management and balanced consideration and attention to all stakeholders’ legitimate interests. The stakeholder theory maintains that the financial success of a business is attained through policy adoption and balanced consideration to all the stakeholders (Freeman & Evan 2003: 66). In this case, the stakeholders are Indian pregnant mothers, clinics, doctors, the government of India, employees, management of GE Healthcare and its suppliers. The requirements for businesses especially in the health sector is to practice noble values like respecting the will of their patients, confidentiality, honesty, modesty and fair treatment.