GE Analysis
a) Political
As a multinational company, General Electric has to deal with political systems of different nations. In spite of some of the countries presenting favorable environment for business survival and growth, others present difficult conditions. Tax systems and regulations also differ across countries and so does the level of government intervention in business activity. For example, in United States, the Internal Revenue Authority requires companies to submit tax returns annually on April 15 (Dibb & Lyndon, 2004). Government intervention is minimal and the business environment is much favorable. Political stability can also be said to be reasonable so that business survival is highly probable. These conditions may
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Innovative products are always being introduced using more advanced technology each day. Older technology is therefore getting outdated at a very high rate across all sectors in the economy. Aimed at outdoing competitors, many companies have turned to innovation, research and development which have brought about improved levels of technology. The rate of technology advancement globally varies with each country that General Electric has invested in as they vary in terms of resources available. Among the countries with the highest rate of technology advancement are United States and Japan which General Electric has ventured into (General Electric, 2009).
e) Environmental-???????
f) Legal-??????
Conclusion
As a result of multinational companies having to deal with different sets of political, economic, social-cultural and technological aspects, designing a PEST analysis exclusive to General Electric was almost impractical. It is however notable that there are some factors that are universal among countries. Technology constitutes one of these factors and a closer look at the PEST analysis reveals that technology is advancing at a very high pace globally. Multinational companies like General Electric must therefore be on the lookout to ensure that their technology is up-to-date when new forms are introduced in the market. Some economic factors such as global crises which lead to increase in interest rates and decrease
PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are
The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.
PEST analysis will be able to be utilized to help detect trends in the external environment that will eventually discover their method into the competitive environment. It gives a relation between the general and competitive environments in that weak signals in the general
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
firms It has been suggested that the disappointing performance of U.S. firms during the 1980s in technology-intensive, global markets was from failure to improve upon products and processes. It has been cited that "the U.S. makes the breakthroughs, while other countries, especially Japan, provide the follow-through." Revolutionary innovation has been contrasted with less dramatic advancements. Incremental improvement can turn products over and get more, newer models out. This may all sound dull, but the achievements can be exhilarating. American firms may have failed to follow up on their breakthroughs with such continuous improvements. Where there were successes, they were built upon a combination of breakthroughs and incremental improvements. It is the subject of yet another discourse as to what constitutes an innovation: a breakthrough or an incremental improvement, or both, and/or everything in between. 4. To take advantage of opportunity It is no surprise that surprises, often disappointing surprises, are the seeds of innovation. Take the oil companies. It is no surprise that some oil companies are becoming oil-andgas companies. Why? Because gas is found more often and in greater abundance than oil
PEST is an acronym used for companies with in the political, economic, social and technological views. PEST allows companies to view and observe certain areas that might have been overlooked. The company I will be discussing the PEST analysis is Target. Target is a large scale company and is constantly changing in the industry. The political views of Target is that they must have an unbreakable bond with China due to majority of its products coming from that country. They must be aware and stray away from any conflicts because it can create a negative affect in the operation of Target. Also the company is altered by taxation, tariffs, cost, and trade restrictions especially when they're trying to broden outside the United States. The economic
Economies of scale and scope help producers lower their cost by producing the next unit of output at lower costs this trend continues until production reaches a level of diseconomies of scale where production is no longer running as efficient as it should. This tends to increase the barriers to entry for new competitors as when they enter the market they will experience a higher cost of production. Why? Solely because they have smaller economies of scale and cannot afford to sell the product at the same price as other much larger firms. Generally, economies of scale and scope positively affect General Electric. Since General Electric is one of the biggest conglomerates in the world it has the opportunity to offer products and services through the same organization. These products might be highly unalike but due to the wide range of businesses covered by GE the prospect is there. For example, GE, in order to continue a healthy relationship with valued customers, has allowed the multimillion dollar purchase of its jet engines to be financed over long periods of time. The catch is that these finance opportunities are usually done via a leasing arrangement from GE Finance. In recent year GE has pursued a service strategy when it comes to selling aircraft engines. They sell what they call “power by the hour” this enables the private firm to indirectly rent the engine turbines, in return the firm would award GE with maintenance contracts on the engines. This
The final environmental factor in the PEST analysis is technological environment. Being in the TV service providers industry, it is essential that the companies within the industry are constantly coming up with new innovative ideas. Customers are expecting new and exciting ways to watch television. Some of the new technologies that the industry is facing are providing HD channels, DVR, 3D televisions, watching shows on the internet and mobile device, and On Demand features. These technologies will help the growth of the industry if they can keep up with the demand.
With the brightest minds in technology, GE has been able to tap into the best and most efficient pieces of technological innovations. By investing in the development of its employees and tapping in to the fresh
The aim of this report is to analyse Picard´s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter´s five forces model.
The PEST analysis is more of long-term analysis that can help determine how Political, Economical, Social, and Technological change will affect the performance and activities of a business.
In order to better understand the industry it is important to look at the environment that surrounds it, which will influence how companies operate and perform. I will use the pest analysis in order to analyze the external environment of the industry, and further understand the implications of these trends,
This paper will provide the advantages and disadvantages of different facets that fall within the PEST analysis: political, economical, social, and technological aspects of India.
Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's