Question

General Electric (GE) sells over $5 billion worth of goods and services to Chinese customers in the business market. Go to http://www.ge.com and complete the following

For each business division identify one to three products/businesses that likely address important needs or priorities in China? explain how their contributions may be beneficial to the country?

Answer 1

Solution:

The GE company corporate strategic focus and identify the various GE business divisions and their related strategy as well as sales and volume contribution to the total company

It follows the tradition of the pure global form but it offers a much important responsibility to the nation subsidiaries hence the middle authority is accountable for attaining high global integration Through offering the following:

• brand name
• efficient factor costs
• global corporate strategy
• global scale
• global technology sharing and Information Technology
• low cost sourcing platforms
• product equality
• quality assurance

In contradiction to the pure global mode the modern global makes much efficient application of the subsidiaries for the purpose of becoming much native responsive thus like traditional global firms develop into modern global enterprises they appear to put much of their focus on strategic harmonization and incorporation of heart competencies globally and protecting home country control becomes less important and it ensures flexibility in the face of changing factor costs for labour, raw materials, exchange rates and hiring talent globally.

Vertical Integration

This stands for marketing and communications goals which should hold up the higher level corporate goals and corporate missions thus the Internal Integration needs internal marketing through keeping workers aware and motivated on every new changes from new advertisements to new corporate identities, new service standards and new strategic partners

Strategic Alliances

This refers to an agreement between two or more organizations to practice a set of agreed upon goals required when remaining independent organizations and for this firm it will include:

Core business goal supported by critical alliance

Core competency develops or maintains with alliance

Competitive threat becomes blocked

Strategic choices expand

Time to market

For each business division identify one to three products/businesses that likely address important needs or priorities in China and explain how their contributions may be beneficial to the country

GE emphasized the brand and used homogeneous illustration elements and a single brand message i.e. Apple’s branding on innovation and minimalist design in a way that every product a company produces lies in a single the umbrella brand irrespective of its connection to other products. It formed commodities in a precise group thus umbrella positioning provided a means of brand building and a line of related commodities reinforced the design of the organization in the absence of sacrificing the capability to stay focused in its marketing efforts.

Another view is as follows:

The corporate strategic focus of GE Company is on innovation through aggressive investment in research and development programs. The innovation focus is critical in providing progressive expansions in the company. GE Company is able to build new concepts and innovation aspects to expand its production capabilities.

GE business divisions includes capital, power & water, energy infrastructure, health care, corporate item eliminations, appliances & lighting, transportation, aviation, energy, and oil & gas. Energy infrastructure contributed to highest revenues proportion at 38.2% of the overall revenues. The second revenue contribution was from power $ water at 20.39%. Capital, aviation, and health care business divisions contributed to 19.92%, 18.94%, and 13.43% respectively. Oil & gas, appliances & lighting, energy, transportation, and corporate items eliminations contributes to around 12.21%, 7.24%, 5.6%, 5.03%, and -2.06% respectively.

Each of the business divisions of GE offers products critical in meeting the needs of people in China and thus contributing to the growth of the economy.

For power & water business division, it offers gas turbines and quality generators to the customers in china for use in the power plants. It contributes to the economy by promoting the generation of electricity.

For Oil & Gas business division, in the Chinese market, they offer critical equipment for the oil and gas sector. The equipment helps in promoting the value chain of oil production through drilling, production to processing of the oil in the plants.

In terms of the energy division, it offers integrated electrical products and systems. The products are critical in promoting the distribution and control of energy and equipment. The division helps the Chinese economy to modern their power grids and maximizes energy production.

In aviation business division, GE company product offerings include jet engines, turbo shaft engines and replacement parts for military and commercial aircraft. The company is able to promote aviation services offerings significantly in the Chinese economy.

In health care business division, GE Company offers wide range of medical equipment including imaging systems such nuclear imaging and magnetic resonance. The health care technological products are useful in promoting innovation in the health care sector in the Chinese economy and improving the health of the Chinese people as well.

Transportation business division offerings include high powered diesel electric locomotives and railroad among others. The products are critical in providing technology solutions into the transit and drilling sectors in the Chinese economy.

Appliances and Lighting Solutions division offers home appliances such freezers, electric and gas ranges, and clothes washers among others. Such product offerings are critical in access to quality consumer products for the Chinese consumers.

GE Capital business division offers financial services and products to the business in China including commercial loans, home loans, personal loans and other useful financial offerings. The business division has helped to promote strategic partnership growth and business expansion in China through these services.

Corporate Items and Eliminations includes tax operations and unallocated treasury service offerings. The division seeks to improve the performance of the company in the economy from its other segments. It promotes continuity of its business services to the economy.