Strategic Position



Strategic Position

Introduction

Strategic position refers to as the total intended objectives and initiatives that are needed to take for reaching a specific situation. A well thought strategic position is carefully developed by most of the business managers, and then considerable initiatives are taken by them for communicating it effectively to the employees so that they could also be understood about the stated objectives and goals of the organization. It is highly essential to involve every parts and units in order to operate the business successfully. The strategic position is associated with the effect on strategy of the internal resources, external environment, competencies, and the influence and expectations of stakeholders. Simultaneously, a consideration of the strategic capability, environment, the purposes and the expectations within the political and cultural organizational framework provides a foundation for comprehending the strategic position of a corporation (Johnson & Scholes, 2005).

For this assignment, GE i.e. General Electric Company is chosen as a publicly traded organization which also has multiple business units. GE is originally a multination corporation of America that is established in Schenectady, NY and it has it's headquarter in Fairfield, Connecticut, USA. The corporation is operating through four different segments, such as Energy, Consumer & Industrial, Capital Finance, and Technology Infrastructure.

Corporate Generic/ Base Strategy of General Electric

General Electric has been held up for several years as the exclusion to two argumentative statements: that irrelevant strategies of diversification are outperformed by the relevant strategies of diversification; and in the times of shareholder value maximization, focus, and outsourcing Conglomerates are not regarded as a viable form of organization. Whilst several previously diversified corporations now have become more focused and narrower with their corporate strategies, General Electric still continues with its strategy of buying and selling of various businesses, and carries out highly complicated set of businesses.

Figure 1 - GE's Organizational Structure and Business Portfolio (Grant, 2008)

Looking at GE, it is found that the corporation is involved in massive, profitable, and diversified conglomerate with numerous superior nut irrelevant businesses. Airplane engines, NBC, and commercial financing take multiple opportunities for the corporation by means of economies of scale and cost reduction. The businesses of GE also include household appliances, power generation, and medical devices. Within the business segment of power generation, GE sells generators, gas turbines, steam turbines, nuclear fuel, nuclear reactors, Integrated Gasification Combined Cycle technology (IGCC systems convert coal and other hydrocarbons into synthetic gas), control systems for the mining and extraction of gas and oil, motors, and support services. Only in that business segment, they have a wonderful product range. Any of the products among that range serve as a viable and large business, but General Electric contains that all under its corporate strategy. The one business unit of General Electric that has been chosen for a deep analysis of the corporate strategy is the business unit “GE Aviation”. (Priem & Butler, 2001).

GE Aviation Business Unit

GE Aviation Business Unit is a part of the Technology Infrastructure Segment of the ...