Strategy at General Electric CompanyIntroductionThomas Alva Edison is accredited for his brilliance as an inventor. Often people are unaware about his business acumen and entrepreneurial drive. The General Electric Company traces its beginnings to the Edison Electric Light Company which was founded in 1878. The Edison Electric Light Company was facing intense competition from the Thompson-Houston Electric Company, run by Charles Coffin. It was increasingly difficult for both companies to co-exist and hence the two merged in 1892, to form the General Electric Company. Over the past 129 years, some of the world’s most effective business people have served at the helm of GE, including their current chief executive Jeffrey (Jeff) Robert Immelt.
Our project paper will analyze General Electric in terms of their Destiny, Strategy, Culture and Experiences, and how these components have impacted their success. We will then conduct a brand valuation of GE and analyze their financial performances over the last few years. GE’s destiny is not explicitly stated anywhere. Moreover the size of the company and the fact that it has been conducting its business activities for well over a century has made the task of determining GE’s destiny a difficult one for our team.
Thomas Alva Edison’s motive for starting the General Electric Company in 1878 was to present his product offerings to the mass market at a financial gain. Jack Welch, the chief executive between 1981 and 2001 was famous for his competitive drive. To maintain a competitive advantage, all of GE’s businesses had to either be number one or two in their field of business. There was no room for failure. Both Edison and Welch were driven primarily by the company’s financial performance.
Although profits are important, our project team would like to point out that these do not portray GE’s present destiny accurately. Moreover no company would last long, let alone 129 years if it solely focused on making profits. GE’s destiny has been evolving over the years. However we can see one thing that has been consistent at GE, their constant innovations. This is evident in their “Innovation Timeline”, which shows the various innovative products of GE since 1878. Furthermore, several quotes from GE’s website have helped point us towards what we feel aptly summarizes GE’s destiny.
Risks UncertaintyThe Assets module is the functional heart of GE's Infrastructure. The implementation of this technology helps Management at all levels, making it simple by removing the uncertainty from other complex systems. The Asset Module Program provides overall project leadership and a single point of contact that works closely with the user and the customer from start to finish. The evolving nature of the workforce today creates a tremendous obstacle for management in assessing and recognizing future challenges in leading their organizations.
Identifying future leadership challenges is complicated due to this uncertainty. One of the greatest challenges leaders will face in the coming years is to inspire and motivate their peers and subordinates. Even before Jack Welch became CEO of General Electric in 1981, GE was considered to be one of America’s best run companies. After becoming CEO, Mr. Welch embarked on a three-pronged performance initiative to revolutionize the way things were done at GE: increase competitiveness, emphasize people, and raise the company’s quality. In the first initiative, Mr.
Welch sold off unprofitable lines of business and began a “top-down” initiative to make GE a “leaner, rougher, and more competitive organization” (Beam, 1999, 83).