Healthymagination at GE Executive Summary The issues identified here in this case include change management in organization and using innovation to rebuild a business as well as globalization. Business lifecycle also plays saying role as the problem identified in the case can be said to have culminated from GE’s life cycle which had reached decline. GE has a long standing history of innovation since it was founded in 1892 (Marnel, Horbaczewski & Rothaermel, 2011). This has helped the firm to have a strong footing in the industry as well as in the American economy.
However, recently, the firm has witnessed a decline in business which has been caused by some factors. For this way forward, GE must know how to handle its invocation, not only of the products it sells to the public, but also for its mode of doing business. The GE healthymagination case study indicates that the firm is at a crossroads where it has to make critical decision for its future. One of the main issues with the firm is the changing economic times arriving at a time when the firm has reached the decline phase.
Like most firms, GE has undergone the business life cycle and it reached the decline stage by late 1990s. What is worse, this decline stage arrived at just the time when the US as well as the global economy was declining. This combination of factors introduces a very big threat to the firm’s future. However, while the decline is a threat, it also creates a good opportunity for the firm to reinvent its self and become even better. It is not the first time the company has done that.
For instance, as mentioned in the case, in 1972, Reginald Jones managed to reinvent the firm to shift from an industrial to a service firm. The same can be done and GE will benefit. However, in considering this, it must be taken into consideration that this would need a lot of change. Of course, as William (2011) says, the critical question that should be answered is whether the firm is ready for a radical change. GE management staff is known for not willing to change unless they are sure that there is need for change.
Winning this team over is critical for this mission of transforming GE. It is clear that there are change management issues within GE. The question the managers may be asking is; do we need change? Immelt’s new mode of doing things may not be completely welcome and if not, then it may mean that any trial to implement a radical change would amount to failure. Yet, this kind of change seems to the only way out.
GE however benefits from a history of innovation and this may go well with its current situation even as the firm tries to reassert itself. Healthymagination is Key to future success and this is a solution based on GE’s history of innovating solution for problems. Not only is this an opportunity in the US market, but it is also a global opportunity that has not been tapped well. However, for GE to be able to fully take advantage of this, it has to do it with the blessing of the managers and this therefore is very critical.
There are three main stakeholders who the firm has to deal with in order for the business to be able to go forward. First issue is about the managers who may be reluctant to change. Second is the public, who act not only is the customers of the its products but are also the shareholders (owners) of the firm. Lastly, there are the observers such as market analysts and observers. Their view and what they talk about the business may impact on how the firm will be able to succeed in the future.
Their opinion shifts public opinion which then affects the firms share value and thus its growth trajectory. As Gibson (2012), says, globalization offers both challenges and opportunities for the firm. Not only does globalization mean that the firm can explore more markets especially for its newer innovative products, it also means that the firm can explore more growth opportunities away from home. However, globalization is not just a cash cow waiting to be taken advantage of. The firm has to deal with issues that come with globalization.
Global economic recession affects the firm and this may mean that the GE will not be able to succeed well in the US as well as the global market. By dealing with these issues, the firm is able to deal with its challenges well and overcome its current situation. References Gibson, P. (2012). Globalization and Busienss Strategy: Challnges of the 21st Century. Hoboken, NJ: Wiley & Sons. Marnel, L. Horbaczewski, A. & Rothaermel, H. (2011). Healthymagination at GE. New York, NY: McGraw Hill. William, P.
(2011). Managin Cgange in Organisation. New York, NY: Pearson Books.