• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Strategic Management Case study: GENERAL ELECTRIC- ROMANIAN BRANCH

Extracts from this document...

Introduction

Strategic Management Case study: GENERAL ELECTRIC- ROMANIAN BRANCH Contents 1. Introduction a. GE's History b. GE's Nowadays c. Organizational Structure 2. Processes of strategic management a. Analysis i. Organizational Resources ii. Vision, mission iii. SWOT iv. Strategic advantage v. Porter's 5 forces b. Formulation i. Strategic objectives (major goals) c. Implementation i. Strategies ii. Resistances to change 3. Conclusion 4. References 1. Introduction a. GE's History 1876 was the year that Thomas Alva Edison opened a laboratory in Menlo Park, New Jersey, where he could explore the possibilities of the dynamo and other electrical devices that he had seen in the Exposition. Out of that laboratory was to come perhaps the greatest invention of the age - a successful incandescent electric lamp. By 1890, Edison established the Edison General Electric Company by bringing his various businesses together. During that period, a competitor emerged. The Thomson-Houston Company became a dominant electrical innovation company through a series of mergers led by Charles A. Coffin, a former shoe manufacturer from Lynn, Massachusetts. As both businesses expanded, it had become increasingly difficult for either company to produce complete electrical installations relying solely on their own patents and technologies. In 1892, the two companies combined. They called the new organization the General Electric Company. b. GE Nowadays The General Electric Company, or GE (NYSE: GE), is an American multinational conglomerate corporation incorporated in the State of New York. The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, NBC Universal (NBCU), Capital Finance and Consumer & Industrial. In 2010, Forbes ranked GE as the world's second largest company, based on a formula that compared the total sales, profits, assets, and market value of several multinational companies. The company has 304,000 employees around the world. General Electric activates in Romania since 1984. The company has 6 subsidiaries, by which only three are present in Romania: GE Healthcare, GE Money, and GE Energy Services. ...read more.

Middle

Build. Each of these is merely a word without one vital element. Lead. GE is already synonymous with leadership. But with this mantle comes responsibility. And it's not just a responsibility to maintain the status quo or manage what worked yesterday. It's the bigger responsibility to change. Vision Statement - "Where we are going" Inventing new alternatives of fuel by respecting their "ecofriendly policy". This is the vision of the entire General Electric. As for the vision of Romanian branch only, the vision is to build in the next two years an oil-based electric power plant for Petrom. This plant is supposed to cover up at least 10% of the total power energy produced and distributed in Romania. As already 9% of the total of power energy distributed in our country comes from the eolian turbines, General Electric Romania is trying to increase the number up to 20% in the next 5 years. In conclusion, General Electric Energy Services Romania has the vision to monopolize slowly but sure the entire building of electric power infrastructure in Romania. iii. SWOT analysis Strengths * The brand is well-known and it is associated with a good reputation * The financial capabilities are high, as GE Romania has access to GE's international fund * The competition is insignificant in this domain * The quality of the products and of the services is high Weaknesses * The risk that the company assumes when starting a new project is high (For instance, building a generator lasts for 7 years and the costs are estimated at over $7 bill.) Opportunities * Romania has a lot of natural resources, therefore it can be transformed in the biggest wind-driven farm in Europe * The partnership with Petrom for creating a new power plant will increase the revenues Threats * Finding other alternatives beside calling GE for maintenance work by the ones who cannot afford it ( e. ...read more.

Conclusion

i. Resistances to change When implementing a change resistances may occur. The persons who oppose to change are the inhibitors. The possible resistances to change that may be caused by: * Differences between cultures. For the partnership between Metka and GE two different cultures may get along in order to reach common objectives. The differences between Greek culture and Romanian culture can create divergences. Also, there are cultural differences between top management team and the Romanian employees. The Romanian employees have to comply with the decisions from the headquarter, Nevada. Every incremental change has to be approved from the mother company GE USA. So, even though a change agent from GE Romania wants to start the process of implementing a change, the first step is to seek for approval. There are cases when people didn't agree with US managers and they refused to do certain things, this leading to a conflict. * Decision taken by the top management team without consulting the employees. The Romanian employees are often dissatisfied when the top management team from USA takes decision without consulting them. The Romanian team must comply with their decisions even though they not agree with it. These types of unannounced changes create divergences between employees and the management team from USA. 3. Conclusion General Electric Romania has the reputation of a large company that respects its employees. Talent is the lifeblood of this organization, and GE views employees as its highest-priority resources. GE's Romania people number nearly 2,000. Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning), strategy implementation, and evaluation and control. The study of strategic management therefore emphasizes the monitoring and evaluating of external opportunities and threats in lights of a corporation's strengths and weaknesses. General Electric, one of the pioneers of the strategic planning, led the transition from the strategic planning to strategic management during the 1980s. By the 1990s, most corporations around the world had also begun the conversion to strategic management. 4. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Operations management case study - Primark

    Which would then be shifted to the transformations process. 3.2 TRANSFORMATION PROCESS The transformation process is the second stage to the model, as in fig 2. Its concern is to add value to the inputs, it does this in four major ways, as looked at in Jack R, Meredith & Scott M, Shafer (1999).

  2. Strategic Management-Puma Case study

    Puma always tried to build brand image to gain more attention from different markets. Their active collaboration with the Hollywood film productions helped Puma in acquiring record sales in US. Their partnership with outsourcing companies, suppliers and retailers along with their marketing abilities made Puma a successful brand.

  1. Jollibee case study

    This is a strategy that the firm focus more on each specific domestic market, and trying to meet the needs of local customers. It is normally adopted by the companies who are selling brand-name, thereby ensure that local customers are still paying premium price so that to cover the all heavy cost.

  2. Strategic Management - CARREFOUR CASE ANALYSIS

    * SWITCHING COSTS o Carrefour has added new services in developing markets, such as free shuttle services for customers and play areas for children, as well as home delivery. (p. C 76) o Carrefour organized two "free credit" campaigns in 2002, which were a resounding success[.] (p.

  1. Leadership and Management - Donald trump case study.

    All he has to do is listen to the opinions of others, incorporate what he thinks can make the action better and direct the people to what is supposed to be done.

  2. General Electric Strategic Plan

    These are four bold, strong verbs that articulates what it means to be part of the GE culture. The action-oriented nature of these words makes a profound statement about GE who they are. GE believes these values should serve to energize the organization, employees and the teams tasked with driving change and performance.

  1. Total quality management - Federal express case study.

    FedEx introduced Total Quality Management in the late 1980s and in 1990, was awarded the prestigious Malcolm Baldridge National Quality Award. FedEx involves employees at all levels of decision making and also empowers them to find problems and fix them (Stankard, 1991).

  2. CSR case study - Honda Vietnam.

    Building healthy working environment: in local automobile industry, in terms of reducing actual working hours, HVN is always at the top level. Actively, the company decides to ban overtime working on Wednesday and some Fridays and the introduction of a policy encouraging all associates - both labor and management - to use their allotted vacation time in full.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work