The paper "Business Policy and Strategic Management" is a perfect example of a Management Case Study. Strategic management is a broader term that involves the formulation and implementations of organizations’ prioritized goals and objectives often carried out by the top management, considering the organization's resources, internal environment, and external environment in its industry usually on behalf of its owners. To a larger extent, it constitutes the specifications of organizations' objectives, development of policies and plans on how to achieve them, and then the allocation of the required resources to help in their implementation (HILL & JONES, 2012, pg 9).
In essence, it helps in the provision of the ultimate direction of an organization. In the case presented by the General Electric Company, Strategic management as a discipline is one of the core areas that have made the business successful and sustainable over the decades with the different leadership approaches it has undergone. With different approaches in strategic management, revolutionized over the decades, GE has managed to weather the financial turmoil and difficulties to become one of the few successful businesses in the United States and over the world.
It has been recognized as a conglomerate multinational company that prides itself in the ownership of many business units that operate internationally in different countries over the world with divisions including GE Capital, GE Oil and Gas, GE Power and Water, GE Aviation, GE Transportation, GE Healthcare and GE Home and Business Solutions. Through the divisions, it has operated in the market majorly by generating, transmitting, and distribution of electricity, (both nuclear, solar, and gas), provision of lighting, medical imaging equipment, industrial automation, aircraft jet engines, motors, railways locomotives, and aviation products.
It has also provided financial services through GE insurance, GE Commercial Finance, GE Equipment Services, and GE consumer finance over the decades. These businesses of the GE Company have varied over time and this has been a result of acquisitions, reorganizations, and divestitures. Regarding the change in command at the helm of its operations, from Jack Welch to Jeff Immelt, there were involved numerous changes, especially in its strategic market strategy. Apart from inheriting a rich and successful business of which Immelt had to live up to, in his tenure he experienced a lot of upheavals that seriously impacted the GE business of which sound strategic decisions were required for prosperity.
Most of these decisions, as considered, have been partly divergent and more different from his predecessors. Faced with these challenges, the terrorist attack at the moment he took over, and the financial crisis that hit the world, with his different kind of leadership style, there have been a different approach given to most of the strategic and corporate strategies, difference to most of the organizational structures and the systems of management. Identification of Strategic issues and problems In recognition of the history of GE as the most valuable company and to its successful operations and its massive size, it would be a daunting task for any CEO who would have been given the task to take over its management.
The company had adapted over the decades, both its business portfolio and its management style to the recurrent demands and opportunities it was faced with. With this in mind and the changing business environments world over, both economically and politically, a lot had to be taken into considerations before any strategic management policy was formulated and implemented.
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