General Electric Strategic Position - 1981

1536 Words Feb 18th, 2011 7 Pages
General Electric (“GE”), similar to many major corporations in the 1980s and 1990s, underwent a restructuring phase in line with the McKinsey Restructuring Pentagon. Through this restructuring, General Electric implemented a portfolio-planning model to manage the ever-increasing demands of a company involved in over 190 businesses. Ultimately, this model allowed GE to formally???
GE set lofty goals of increasing earnings per share 25% faster than the growth of GNP. In order to achieve this the company needed to address productivity and possible realms of expansion, but the systems in place often led to a lack of focus. Reginald Jones attempted to create value and compete in the market by implementing strategic planning and then
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As a result, GE decided to focus on the following arenas – Energy, Communications, Energy Applications-productivity, Materials and Resources, Transportation & Propulsion, and Pervasive Services. These arenas drew direct linkages between organizations within GE, further leveraging the company’s resources to compete more efficiently while creating shareholder value.
Additionally, GE said that planning helps a company focus, but implementation and execution is the key to success. To this end, they developed their people internally at a faster rate then competitors, often shifting managers to completely new organizations in order to provide a fresh perspective on innovation and market potential. Planning became a way of life, but implementation and execution were the breath of the company, even as they faced a dynamic and continually changing organizational structure.
General Electric in 1981 created value and became more competitive due to their focus. GE executives realized the shifting dynamics within a diversified company and provided a formal framework to identify opportunities and to put money to work in

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