Unit 7 Case Study General Electric

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Apr 3, 2024

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Nakisha Owens Park University MBA 522: Organizational Behavior and Leadership Unit 7 - Case Study 15.1: General Electric (GE) Dr. Greg Moore
General Electric (GE) is a prominent global corporation with an extensive and distinguished past spanning more than a century. Founded by Thomas Edison, GE has transformed from its initial focus on electricity to become a worldwide leader in various industries like aviation, healthcare, renewable energy, and digital technologies. GE's legacy is defined by pioneering technologies and significant contributions to various industries and society. The company continues to influence innovation by striving for quality and promoting advancement on a global scale. Transformations General Electric (GE) has experienced substantial changes over the last twenty years leading up to 2019 to adjust to shifting market conditions. One notable transformation was its shift from being primarily an industrial conglomerate to focusing more on its core businesses: industrial businesses and technology (Neck et al., 2019, pg. 460). This entailed selling off certain non-essential businesses, including its media and financial services branches, in order to simplify operations and improve its competitive position. The corporation has increased its expenditure in research and development twofold to keep up with the pace with the rapid advancement of technology. Being an older established corporation, GE might easily become entrenched in its traditional practices and fail to keep up with the evolving trends. In the end, this may lead to GE being overtaken and replaced by new companies that are eager to invest in the future. Another transformation at GE is the aim to become a worldwide corporation. GE has always been open to exploring opportunities in any industry or with any company. GE's portfolio extends across several industries and more than 170 nations, starting from the invention of the light bulb by Thomas Edison. Since the early 2000s, GE has bolstered its financial services
division by acquiring Transamerica Finance Corporation's commercial lending business and expanding into the healthcare sector through the acquisitions of Instrumentarium Corp and Amersham plc. GE acquired Vivendi Universal Entertainment (VUE), the U.S. unit of the French conglomerate Vivendi Universal SA, in its biggest acquisition to date (Strategy, 2022). External Forces An external force is a factor beyond a company's control that affects its operations, strategy, or performance. These forces encompass economic conditions, technology improvements, regulatory changes, competitive challenges, and sociological tendencies (Neck et al., 2019). GE has encountered substantial obstacles in the past several years, including financial troubles and the requirement for strategic reorganization. GE faced a threat from the 2008 recession in the U.S. The corporation's financial division was close to failing, posing a threat to the entire company (Montevirgen, 2024). Warren Buffet invested $3 billion in the company to ensure its financial stability. After a near-collapse, GE restructured GE Capital and refocused on its industrial origins. In the subsequent years, the corporation underwent reorganization and acquisitions across many areas such as healthcare, energy, aviation, and finance to streamline its operations (Strategy, 2022). The business's decision to sell off certain companies and concentrate on its key strengths demonstrates a strategy change aimed at improving its long-term profitability. Successfully implementing these strategic efforts, along with continuous innovation and adjustment to industry trends, will be crucial in shaping GE's future profitability (Hivelr, 2023). General Electric - an open case
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