Unit 7 Case Study General Electric

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Nakisha Owens Park University MBA 522: Organizational Behavior and Leadership Unit 7 - Case Study 15.1: General Electric (GE) Dr. Greg Moore

General Electric (GE) is a prominent global corporation with an extensive and distinguished past spanning more than a century. Founded by Thomas Edison, GE has transformed from its initial focus on electricity to become a worldwide leader in various industries like aviation, healthcare, renewable energy, and digital technologies. GE's legacy is defined by pioneering technologies and significant contributions to various industries and society. The company continues to influence innovation by striving for quality and promoting advancement on a global scale. Transformations General Electric (GE) has experienced substantial changes over the last twenty years leading up to 2019 to adjust to shifting market conditions. One notable transformation was its shift from being primarily an industrial conglomerate to focusing more on its core businesses: industrial businesses and technology (Neck et al., 2019, pg. 460). This entailed selling off certain non-essential businesses, including its media and financial services branches, in order to simplify operations and improve its competitive position. The corporation has increased its expenditure in research and development twofold to keep up with the pace with the rapid advancement of technology. Being an older established corporation, GE might easily become entrenched in its traditional practices and fail to keep up with the evolving trends. In the end, this may lead to GE being overtaken and replaced by new companies that are eager to invest in the future. Another transformation at GE is the aim to become a worldwide corporation. GE has always been open to exploring opportunities in any industry or with any company. GE's portfolio extends across several industries and more than 170 nations, starting from the invention of the light bulb by Thomas Edison. Since the early 2000s, GE has bolstered its financial services

division by acquiring Transamerica Finance Corporation's commercial lending business and expanding into the healthcare sector through the acquisitions of Instrumentarium Corp and Amersham plc. GE acquired Vivendi Universal Entertainment (VUE), the U.S. unit of the French conglomerate Vivendi Universal SA, in its biggest acquisition to date (Strategy, 2022). External Forces An external force is a factor beyond a company's control that affects its operations, strategy, or performance. These forces encompass economic conditions, technology improvements, regulatory changes, competitive challenges, and sociological tendencies (Neck et al., 2019). GE has encountered substantial obstacles in the past several years, including financial troubles and the requirement for strategic reorganization. GE faced a threat from the 2008 recession in the U.S. The corporation's financial division was close to failing, posing a threat to the entire company (Montevirgen, 2024). Warren Buffet invested $3 billion in the company to ensure its financial stability. After a near-collapse, GE restructured GE Capital and refocused on its industrial origins. In the subsequent years, the corporation underwent reorganization and acquisitions across many areas such as healthcare, energy, aviation, and finance to streamline its operations (Strategy, 2022). The business's decision to sell off certain companies and concentrate on its key strengths demonstrates a strategy change aimed at improving its long-term profitability. Successfully implementing these strategic efforts, along with continuous innovation and adjustment to industry trends, will be crucial in shaping GE's future profitability (Hivelr, 2023). General Electric - an open case

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General Electric is still considered to be an open case as the company is still going through some difficult times. The Dow, founded by Charles Dow in 1896, comprised of thirty organizations that are intended to reflect the overall performance of major U.S. companies. Due to several poor decisions made over the past few decades, GE no longer serves as a good benchmark for companies of similar size or in its sector, so they were removed (Today, 2018). From surviving the 2008 financial crisis, in 2020, GE, like all other companies worldwide, was struck by the Covid-19 pandemic, and its different business units, aviation, witnessed a huge setback (Egan, 2020). Also, they are ranked on the Standard & Poor's 500 indices, and has the highest pension deficit among all companies, amounting to billions of dollars owed to their employees ( Neck et al., 2019, pg. 460). GE's open case status reflects wider issues in the corporate world, demonstrating the risks of large conglomerates and the difficulties of adjusting to fast-changing industries. GE is facing challenges in restructuring and divesting to maximize its operations, leading to uncertainty about the outcome of its efforts and creating buzz around the corporation. GE's open case resolution depends on its capacity to implement successful initiatives, restore investor trust, and resolve remaining issues from its troubled history, highlighting the importance of this corporate drama in the business and financial sector. In conclusion, General Electric (GE) has undoubtedly navigated a challenging path characterized by significant changes and flexible reactions to external influences. GE has consistently changed itself from being an electrical powerhouse to becoming a diverse corporation. Amid economic challenges, technological changes, and adjustments in consumer preferences, the corporation has shown resilience by making strategic divestments, reforming its organization, and investing in growing industries like renewable energy and digitalization. GE's

progress is still uncertain as it faces obstacles such as global economic instability, regulatory demands, and the necessity to improve operational effectiveness. The company's future path will be shaped by its capacity to innovate, adapt, and take advantage of emerging opportunities in a constantly changing business environment.

References Egan, M. (2020, April 29). Nearly $1 billion of GE earnings was wiped out by coronavirus. CNN Business. Retrieved February 24, 2024, from https://www.cnn.com/2020/04/29/business/ge-earnings-coronavirus/index.html Hivelr. (2023, December 16). General Electric (GE): Porter’s Five Forces industry and Competition analysis. https://www.hivelr.com/2023/12/general-electric-ge-porters-five- forces-industry-and-competition-analysis/ Montevirgen, K. (2024, February 20). General Electric (GE) | History, acquisitions, products, & facts. Encyclopedia Britannica. https://www.britannica.com/topic/General-Electric Neck, C. P., Houghton, J. D., & Murray, E. L. (2019). Organizational behavior: A Skill-Building Approach . SAGE Publications, Incorporated. Today, M. F. U. (2018, June 27). Why was General Electric removed from Dow Jones industrial average? Ask a Fool. The Motley Fool . https://www.usatoday.com/story/money/markets/2018/06/27/why-was-general-electric- removed-from-dow/36278135/ Strategy, C. (n.d.). How General Electric went from lightbulb to multinational conglomerate. Strategy Study. Retrieved February 23, 2024, from https://www.cascade.app/strategy- factory/studies/general-electric-strategy-study

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Unit 7 Case Study General Electric

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