Ge Imagination Breakthrough

Weakness: Tesla’s current staff is not experienced to handle large product volume, which leads to Tesla not meeting their proposed deadlines.

Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com

Ultimately, consumers were excited about the EV1 and wanted to see them succeed. In contrast however, there were many consumers who were unaware of the EV1 and/or did not have enough information regarding these new vehicles. This could have made the difference in keeping the electric vehicle alive; if everyone had been made aware of this vehicle, it may have had a larger demand, and may be prominently driven on our roads today.

Q : 1 What is your evaluation of Immelt’s new organic growth strategy? Why change GE’s existing successful strategy? Is it reasonable to expect that a $125 billion global giant can significantly and consistently outperform the underlying economic growth rate?

These weaknesses affect the company tremendously along with the threats of the world economic crisis, political risks, governments’ market regulations, and unstable financial markets. A wide range portfolio, which is strongly vulnerable to world economic crisis, GE is also suffering from a decreasing demand and prices. One of the most positive aspects of investing in GE is that investors can be protected from big decrements. GE is also implementing new technologies and products, which offsets the losses and negative tendencies in some areas of GE (Ozcan, 2013).

About GE transportation‘s example, we can see that the strategy came in a good moment, just after the big failure of AC6000 that happened because they misread the market and developed a product that was not solving any special need of their customer and was not foreseeing the future of the industry, that‘s were EVO project ventures, some say that you can‘t make the same mistake twice and certainly with EVO project GE didn’t made that because now they achieve to understand where the industry was going and how they could be the best ones offering a punctual and accurate solution to the specific needs of the locomotive field. After this, they pretend to go further by working in the hybrid engine, that offered a really complex system of batteries that storage the energy produced on breaking to use it as fuel and save big quantities of money and at the same time reducing considerably the emissions caused by diesel and gas.

Before the EVIP was introduced, the sales of EVs were suffering. Ontario had counted less than 100 EVs on the roads before the incentive was introduced. Consequently, the government had to think of a solution or else dealerships that sell these vehicles would stop as there is little to no demand. Thus, the EVIP was created to create attraction to these vehicles. While this program still had to be improved upon, it did not fail. Sales of EVs went from less than 100 in 2010 to about 750 in 2014. That is about an increase of 750% throughout the span of 4 years. In addition, the sales then went up to about 1300 EVs in 2016.

Also; Citigroup, Inc. another competitor for the GE Company made a total of $64.95 billion in 2011, and when we compare it with GE and SI its earnings where even less in the same year, making General Electric a leader in the industry. With this valuable information GE management can analyze its competitor’s financial statements results and from there they can evaluate their faults and create new ways to increase their annuals earnings and secure their place as one of leading companies in their industry. Another way GE can go forward in the industry is by adapting its services and products to other countries that need them.

In late June when General Electric Company Chairman and CEO Jeff Immelt announced that GE would

“GE’s commitment to implementing innovative, cost-effective technologies that enhance the customers’ environmental and operating performance.”

Analysis - GE has likely been so successful over the years because of its ability to foresee major trends and capitalize upon them. In the 1960s, for instance, GE was one of the eight major computer companies. Even recently, since 1986, GE has continued to acquire several organizations; portions of NBC, wind manufacturing, universe pictures, aerospace industries, international firms, software and hardware manufacturing, even oil companies abroad. The company culture describes itself as not one company, but many each unit a vast and complex enterprise in and of itself, with a corporate

 There is a serious problem facing the world right now.  It is air pollution.  The number one contributor to this epidemic is automobile emissions.  We have all heard of the issues that are involved with air pollution including the depletion of the o-zone layer, the green house effect, and acid rain.  The problem has been scoped from every imaginable angle, and now it is time to solve the problem.  I propose that each of the ‘Big Three’ (Ford, General Motors, and Chrysler) car manufacturers be required to have 10% of their product line as EV’s By the year 2010.  I propose this because it will be the start of cleaner air, EV advancement, and awareness of EV’s and how they work.

     When Jack Welch was named CEO of General Electric, Welch saw a company in trouble even though the business world saw GE as an intrinsically healthy corporation, secure in its position as a world industrial leader. Welch knew that the company was too large to fail yet GE was too unwieldy to adapt for further growth. The changes he instituted restructured and revolutionized GE and made Welch the most respected CEO in business today. After reading the book there were three parts that really stood out for me.

Within this new business environment that GE was facing, customers needs, wants and expectations of what products can offer them is forever changing. Immelt saw and understood this from the amount of time spent with customers, and implemented this idea within GE through the IT

3. What is your evaluation of the growth strategy (a strategy for a giant global conglomerate with a portfolio of mature industrial businesses) Immelt has articulated? Is he betting on the right things to drive growth?