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General Electric Company

GeneralElectric Company

GeneralElectric Company

GeneralElectric (GE) company is based in the United States. The company wasincorporated in New York with its headquarters in Boston. The companyoperates through several segments including power and water, oil andgas, aviation, healthcare, transportation, and capital. The companyfeatures among the best companies in the US.

Resistanceto Change

JeffImmelt is currently the board chairperson and C.E.O of the company.Change involves moving from the known to the unknown. Most businessesargue that change happens because the future is uncertain. JeffImmelt upon becoming the CEO of GE was inspired to create change thatwould diversify the company’s businesses(Bhatt, 2010).Nonetheless, these changes did not come without resistance. As a newleader, Jeff had new strategies to improve the business models forthe company. One resistance he faced is from the managers. Themanagers were reluctant in implementing his strategy into workingprogress. Most managers genuinely tried to alter their roles andbehavior without care of fostering growth(Bhatt, 2010).

Teamtraining was also a factor that affected change. Instead, managersreluctantly grasped the opportunity to reach consensus on thebarriers to change and how best to counter them. Employees were soused to the old models of leadership such that they also resistedchange. All efforts to make them consider hard and soft barriers tochange were futile. The organizational structure, capabilities, andresources became immobile(Bhatt, 2010).It was difficult to streamline how the members of the leadership teamindividually and collectively behaved. Due to resistance in themanagement and employees platforms, Jeff was faced with externalmanagement challenges. External management challenges includedchallenges of balancing the short and the long-term businessideologies.

JeffImmelt a Change Agent

Trueto say, Jeff is the man who drove change in the heart of GEbusinesses. He endured many struggles in creating the change heperceived for the company. The previous management preferred internalgrowth. It maintained its benefits from long-term US economic trends.Since Jeff took the position, the company has faced numerouschallenges such as the terror attack of 9/11, the financial crisis ofthe US, and the recessionary quarters under the Obama administration.Nonetheless, Jeff tried hard to ensure that he differentiated hismanagement on the grounds of style and substance. He cut down severalbusinesses involvement from the previous leadership. Simultaneously,he seized the international growth of commerce in a bid to expandGE’s operations overseas(Bhatt, 2010).

Thechange was initiated by his strategy on all-out efforts to make thecompany renowned for innovation and organic growth. He launchedinitiatives such as ‘ecomagination.` This was the development ofsolutions to clean water and energy issues. Another initiative wasimagination breakthroughs, which meant to stretch ideas with the aimof becoming a $1 billion business. Jeff was able to master theexternal events surrounding the company. Consequently, he initializedstrategic shifts. He knew too well that strategic shift wouldinstigate a culture shift. GE has undergone several culture shiftsbecause of Jeff’s innovative strategies. In China and India, Jeffstrategically spent $3 billion to create health facilities(Bhatt, 2010).These facilities are developed in the best innovative skills andmachines aimed at improving the technologies of the health sectors.Jeff used the global reverse strategies to enter Indian and Chinamarkets. The company opened a multimodal factory in India. Whenthe CEO launched Eco migration, it seemed a challenge to achieve itsobjectives. Nonetheless, the management invested $10 billion and theplan started from 2010 to 2015. As a result, the company called for achallenge where people were to put their minds and come up with thebest power technologies. This was great change initiated by JeffImment (Bhatt,2010).

HowJeff Changed the Business Portfolio of GE

GeneralElectric’s portfolio has changed immensely after Jeff Imment tookover the management. His first step was to instigate change in themanagement of the company. In 2001, he launched an all-out effort ina bid to make GE renowned for innovations and organic growth. Hecreated initiatives such as “Ecomagination” where solutions weredeveloped to clean water and energy issues. Another initiative was“imagination breakthrough” where ideas are stretched with thepotential of becoming $1 billion businesses(Bhatt, 2010).

Heexpanded activities into emerging markets to help create salesoutside the United States ton more than half of GE`s totals for thefirst time. He engaged in the cutting of some business ventures thathi predecessors maintained. The cutting was done with an aim toassist the company venture in more successful products outside theUS. A fundamental change was witnessed in the changes of GE internalmachinery. Jeff ensured that greater emphasis was placed in R&ampDand in return, it increased the flow of technology from the company’slaboratories. He hired many marketers who were to ensure thatexternal focus on business was restored(Bhatt, 2010).

Thecompany needs to invest in innovations that circles low-cost ECG andultrasound machines as the global trends are offering wider markets.The company should consider expanding these products from high-endsegments such as China and India to other parts of the world. Thecompany should also enhance production of premium computed tomographymagnetic resonance imaging machines(Bhatt, 2010).

ReverseInnovation Technology

Reverseinnovation technology is a strategy used in the developing worldbefore being used in the developed world. Reverse innovation is theprocess where goods are developed as inexpensive models. The mainpurpose of the inexpensive development is to meet the needs ofdeveloping nations. For instance, Jeff facilitated the development ofbattery-operated medical instruments in countries where theinfrastructure is poor(Bhatt, 2010).These goods are packaged as low-cost innovations. The products aresold to the western markets as well as the developing markets.

Localgrowth teams are characterized by growth initiatives. Their workersoperate and report to functional heads. Functional heads assist theoverall management in deciding the growth initiatives to undertake.Functional heads are responsible for balancing growth initiativeagainst non-growth initiatives(Bhatt, 2010).

Advantagesand Conclusion

Froma strategic management perspective, GE’s greatest advantage ismanifested in its products, culture, and series of strong chiefexecutives. The company is advantaged by the fact that it iscommitted to innovation. The company has substantially developed astrategy for product differentiation. It has leveraged its coretechnologies in creating new businesses. It has also focused itsinnovation to research and technology(Bhatt, 2010).


Bhatt,P. (2010). General Electric: Lessons in Strategic Management. Vision:The Journal Of

BusinessPerspective,4(2),50-57. http://dx.doi.org/10.1177/097226290000400207