Strategic Business Unit

Introduction1

Discussion1

Business Model1

Competitive Trends Affecting Strategic Business Units2

Radical Shifts3

Success of the Business Model4

Key Resources5

Alignment between the Corporate Strategy and SBU's Strategy6

Conclusion8

References9

Introduction

This study is based on the analysis of a company with multiple business units. The company which has been chosen for this study is General Electric. This study will focus on the Aviation unit of General Electric.

General Electric is a renowned company that has been operating since many years. The company is committed to the vision of the development of its employees as well as the organization. The company is involved in a broad range of operations.

Discussion

Business Model

The business model of General Electric has allowed the company to offer products and services that are used in order to support the infrastructure base. General Electric started as a small company. In the beginning, the company focused on a limited number of products. The initial products of the company were offered mainly in the areas of electrical appliances. Today, General Electric has expanded its product base (Berzon, 2008).

The basic business model of General Electric is based on the multifactor portfolio approach. The business model of the company is based on a diversified approach. The product range offered by a company includes jet engines, financial services, plastics, power generation equipment, and others. The diversified approach of General Electric has allowed the company to minimize the business risk. The diversified business model of General Electronics has clearly demonstrated its benefits. The model has allowed the company to achieve economies of scale. The company has also been successful in sharing knowledge, resources, and capabilities.

The human resource of General Electric Aviation plays a key role in enhancing its operational efficiency. The Aviation unit aligns its strategies with the overall values of the organization. The human resource of General Electric has played a key role in the success of different business units. The management and HR teams set major goals and objectives which provide direction to the company.

General Electric does not focus on the manufacturing of one product or a product line. However, the company is involved in the management of different business operations at the same time. Therefore, the business model of General Electric is a blend of different strategies. This paper has focused on the Aviation unit of General Electric. The adoption of different strategies by the business unit has allowed it to manage its resources in an effective manner.

The General Electric Aviation represents the starting point of the supply chain. The business unit provides manufacturers with jet engines. The customers of General Electric Aviation are commercial airline companies who buy aero planes from manufacturers.

The strategy of the business unit focuses on redefining customers units for point to point direct flights. The business model of General Electric is very successful. The model has allowed the company to synthesize various businesses of the organization. The success of General Electric can be attributed with three strategic imperatives taken by the company. Those strategic imperatives include a strong business model, strengthening of the business portfolio, and ...