case analysis

Case analysis

Table of Contents

Case analysis4

Analysis and interpretation7

Assessment 29

The Space option grid for GE11

Analysis and interpretation13

The real option valuation13

Analysis and Interpretation15

Complexity theory and organization16

Analysis and interpretation17

Assessment 318

The balanced business scorecard18

Strategic analysis and recommendations19

Rumelt criteria for business evaluation20

Conclusion and recommendations21

References23

Case analysis

Case introduction

The case pertains to analysis of strategic management and organizational strategy execution for General Electric, the American corporate giant with huge global presence in all continents across the globe. The paper discusses management and leadership strategies, as well as, corporate and business strategy for the company under two different corporate leaders, that is, Jack Welsh and Jeff Immelt. The case describes scenarios of organizational management, as well as, strategic planning and execution. These problems are highlighted as under;

Financial disruption and decline in profits, leading to lowering share prices and debt

Unrealistic targets, and changing of culture led to unidentified loopholes

Diversified portfolio went too big to be managed

Not performing up to targets in global regions (Abraham, 2012, pp. 85-185).

Immelt approached strategic management for GE encompassing of three key purposes. Due to external crisis, as well as, environmental obstructions that hindered business growth, and pulled huge corporate giants into bankruptcy, organization needed a strategic change. Immelt looked forward for a change that brings;

Global presence

Growth in profits

Technological development (Abraham, 2012, pp. 85-185).



Case analysis

The concept of core competency

The concept of core competency has to be thoroughly understood for the analysis. According to Hamal and Prahalad a core competency comprises of three things, they are

It gives access to far and wide markets.

It contributes to the fulfilment of perceived customer benefit

It is difficult to emulate since it encompasses of production skills, as well as, individual technologies in a complex and well-planned manner (Hindle, 2008, pp.1).

Core Competencies of GE, with their effectiveness;

As per the criteria of Haman and Parhalad, Core Competencies of GE are discussed as under;

Core competency

Far and wide access

Fulfillment of consumer benefit

Complex and difficult to emulate

Technological infrastructure

Aids the global access

Adds to operational efficiency

An entire enterprise planning and execution system monitoring business functions

Costumer oriented production

Growth in global markets

Product meets customer expectation

Based on market studies and unique product proposition

Differentiated products

Creating customer base

Delivers beyond customer expectations

Unique product features

Diversified portfolio

Able to serve different markets

Product compliance with customer demands

Variety of products serving each market

Global Presence

Present in 100 countries

Serves each market with specific product demands

Huge revenue and resources required to emulate (Hindle, 2008, pp.1)

Value chain analysis for GE

Value chain analysis encompasses of looking at strategic planning and execution of company policies. The value chain for General electric with its analysis and interpretation is discussed as under;

Support activities

These are activities that add to organizational efficiency and effectiveness; they are discussed as under;

Procurement and Sourcing: The procurement function for GE encompasses of buying goods with long term supplier relationship. For GE procurement and sourcing process is given as under;

Make versus buy working

Engagement strategy for supply

Pre-supply contract terms

Supply and assessment for quality, compliance and customer benefit

Post-delivery contractual assessment and amendments.

Usually raw material is outsourced at quality and cost ...