General Electric

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Download the original attachment Executive Summary General Electric (GE) is a global market leader which is well known for its technological innovation, leadership and world class quality in the conglomerate industry. For the purpose of analysing strategic management in action, this report focuses on its Aircraft Engines (hereinafter referred to as “AE”) and Medical Systems (hereinafter referred to as “MS”) business units – a subset of its ‘Technology’ segment. Its macro-forces (sluggish economy, advent of e-business, ageing demographics) combines with the industry forces (where degree of rivalry is intense and degree of attractiveness to entrants is low-moderate) to identify 3 sets of critical success factors (CSFs) in each…show more content…
Political / Legal Forces Concerned with the arena in which organisations and interest groups compete for attention, resources and a voice in overseeing the body of laws and regulations guiding the interaction among nations. Socio-cultural Forces Concerned with society’s attitudes and cultural values. Technological Forces Comprises of the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes and raw materials. Global Forces Comprises of relevant new global markets, existing ones that are changing, important international political events, and critical cultural and institutional characteristics of global markets. Source: Hanson, Dowling, Hitt, Ireland & Hoskisson (2005, pp. 51 – 59) Because turbulent, complex and global changes in the macro-elements (Ireland & Hitt, 1999; Hitt, Keats & DeMarie, 1998) have major effects on firms (Chattopadhyay, Glick & Huber, 2001), changes and trends in these forces must be tracked as it can present opportunities or pose threats. The discussion below outlines the macro-forces that may affect GE. 2.1.1 Demographic Forces The importance of the demographic environment lies in the fact that demands for a product derives from people (Kotler, 1998). Recent demographic trends in U.S are a

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