The paper “ General Electric - Corporation’ s Operation Environment and Source of Sustainable Competitive Advantage” is a worthy example of a case study on the management. GE is an international organization with product and service portfolios that span multiple business units. As such operations in varying industries deal with business encounters since the units within the enterprise vary. The company’ s headquarters are in Boston. The company operates various business units in different segments and they include oil and gas, water and power, healthcare, transportation, aviation, and capital. It is ranked among the top five largest corporations in the world (Ge. com.
2016). A corporation can be defined as an entity that meets particular legal requirements, which make it identifiable as having legal existence and as an entity that is independent of its owners (Goffee and Jones, 2001). In this respect, a corporation has the right to enter into contracts bound by law, it can lend or borrow money, it can be sued or it can sue, hire and fire, liable to pay taxes and own property among other rights. A product portfolio can be defined as the collection or assortment of all the products that are offered by a business entity.
Wheelen and Hunger (2011) note product portfolio may comprise of different classes of products and lines of products and such, management is required for all the categories of products in a product portfolio. On the other hand, a service portfolio is comprised of the entire set of services that are managed by a corporation (Barney, 2006). The purpose of management of service portfolio is to determine reasons for consumer interest in buying the corporation’ s services, why the corporation is the best choice for the consumer, pricing structures and management of risks and priorities among other factors in the service sector. Corporate ResearchAccording to Prahalad and Hamel (2006), a business unit is a distinct and functional entity of a business that features its own business components.
In large corporations such as GE, there are various specialized units that work towards specific objectives and projects. In the case of GE, the corporation has various business units, which include Oil & Gas, Healthcare, Power, Aviation, Transportation, Renewable Energy, Capital, Appliances & Lighting and Energy Management. According to Kachru (2009), a product line refers to a collection of relate products that exist under one brand and are sold by the same corporation.
Comparatively, a service line is a group of all the services that are related to a specific division of a company (Carroll and Hannan, 2004). GE’ s product line includes turbines, generators, refrigerators, water heaters, and locomotives among others. The service line includes real estate, financial services, surgical and molecular imaging, and electrical distribution among others. Corporation Revenue CentersRevenue for a company refers to the total amount of money that the business received for services they provided or for goods that have been sold in a given time period.
The total amount that makes up the revenue of a company includes the entire net sales, interest and asset exchange. This amount is calculated before the subtractions of any expenses are done (Hitt et al. , 2012). A revenue center, according to Reading (2002), is a distinctly recognizable unit of a corporation that produces and generates revenue for the entity through the services provided or goods sold.
Notably, GE has several revenue centers in relation to the various business units. The various product and service lines of the company generate revenue for the company in varying degrees. However, the greatest revenue for GE comes from the Capital unit whose product and service lines include commercial lending and leasing, real estate, consumer, capital aviation services, energy financial services, and corporate items and eliminations. This product and service line accounts for an estimated third of the corporations amalgamated revenues.