Project Report

1. Introduction General Electric Company or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States. The history of General Electric Company is a significant part of the history of technology in the United States. General Electric (GE) has evolved from Thomas Edison home laboratory into one of the largest companies in the world, following the evolution of electrical technology from the simplest early applications into the high-tech wizardry of the early 21st century. We will analyze how this company is performing its management related activities, what is the nature of demand and supply and along with nature of competition they are in.

1.1 What is General Electric? “General Electric Co. is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control and utilization of electricity. Its products and services include aircraft engines, power generation, water processing, security technology and different others.”[1].

1.2 Mission Statement General Electric Company’s corporate mission is “to invent the next industrial era, to build, move, power and cure the world”. [2].

1.3 General Electric Beliefs GE beliefs most in the satisfaction of its customers and it can be withstand by viewing following pictorial diagram:

Fig. 1.1[3]

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2.GE in today’s World 2.1 Stock price GE's stock is solidly above its current 52-week low of $12.73, which was hit on March 26. The past five years market condition of GE to May, 2018 can be visualized from the below diagram.

Fig. 2.1[4]

2.2 Corporate affairs GE's tax return is the largest return filed in the United States. In 2005, GE launched its "Ecomagination" initiative in an attempt to position itself as a "green" company. GE is one of the biggest players in the wind power industry. On May 21, 2007, GE announced it would sell its GE Plastics division to petrochemicals manufacturer SABIC for net proceeds of $11.6 billion.

2.3 Ranking In 2017, Fortune ranked GE the sixth-largest firm in the U.S. Other rankings for 2011/2012 include the following: [2.1]     

#18 company for leaders (Fortune) #6 best global brand (Interbrand) #82 green company (Newsweek) #91 most admired company (Fortune) #19 most innovative company (Fast Company).

2.4 Other traits:     

Operates in 112 countries. 447 factories in 39 countries. 2000+ brands worldwide. Employs almost 292,000 people. Sales in 2017 worth 83 Billion USD or 9.7 Trillion PKR. 2

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Largest R&D network of any electric company, with 34 R&D facilities and over 5,000 people involved in R&D.

3. Management Function General Electric Company (GE) maximizes productivity in the 8 decision areas of operations management through strategic technological integration. 3.1 Design of Goods and Services. The objective in this decision area of operations management is consistency in costs and quality in producing goods and services. General Electric Company’s approach gives top priority for high quality standards, while cost considerations come second. GE also uses advanced digital technologies to facilitate consistency in operations and productivity in this strategic decision area of operations management.

3.2 Quality Management. In this strategic decision area of operations management, the objective is to ensure that product quality satisfies customers’ expectations. General Electric implements market research to determine such expectations. Multiple research campaigns cover the diverse market environments of GE.

3.3 Process and Capacity Design. The objective in this decision area is to strategically align operations management with production goals, with consideration for resources. In General Electric’s case, these resources highlight technological resources and human resources, among other resources. Technologies define much of GE’s processes and production capacities.

3.4 Location Strategy. This strategic decision area of operations management deals with the physical location of facilities. In this case, the objective is to reach General Electric Company’s operational targets through optimal strategies for supply chains and target markets.

3.5 Layout Design and Strategy. The strategic objective in this decision area is to apply operations management principles to optimize workflows and material flows.

3.6 Job Design and Human Resources. In this decision area of operations management, the objective is to maintain an adequate and effective workforce through suitable human resource management strategies.

3.7 Inventory Management 3

The objective is to maintain adequate inventory for the business. General Electric Company’s operations managers use online digital tools in managing inventory.

3.8 Maintenance. In this strategic decision area, the objective is to maintain production quality and resource reliability. For example, operations managers are tasked with maintaining reliable technological resources that support General Electric’s multinational business.

4. Sustainability At GE, sustainability means aligning the business strategy to meet societal needs while minimizing environmental impact and advancing social development. This commitment is embedded in the company at every level—from high-visibility initiatives such as Ecomagination and healthy imagination to day-to-day safety and compliance management around the world.

Fig.4.1[5]

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5. Marketing Mix The marketing mix is often associated with the four P's. They include: 1) 2) 3) 4)

Product Price Place Promotion

Broadly products have been classified into 4 major types 1:-Power 2:- Digital 3:- Transportation 4:-Aircraft Engines

5.1 Product: GE is producing best products all the time. It had innovated many products such as first electric generator and many others.

5.2 Price The sum of all the values consumers give up in order to gain the benefits of having or using a product or service is called price. Total operating income for GE is 8.7 billion dollars.

5.3 Place GE has excellent means to distribute products within US, distribute its global products to Pakistan and across the globe. 5

5.4 Promotion The brand and sales promotion teams of the North Zone had put together an effective outdoor campaign. Promotion of GE through Advertisement     

Billboards Brand umbrellas Cross road signs Product sampling Sticker sampling

6.Nature of demand and supply and along with comparison 6.1 Demand along comparison( GE)    

Consumers were demanding GE products as being multi-national company brand. People preferred its products in this way demand of GE increased. They made changes in technology and introduced new designs and price increased. GE increased its reputation through proper advertisement and quality through product among the people so GE demand automatically jumped up.  Analysts expect GE to grow earnings at a 11.00% annual rate over the next 5 years.

Siemens:  Siemens operates in 4 major segments - Energy, Healthcare, Infrastructure and Industry.  Siemens uses a low financial leverage and generates plenty of free-cash flow.  It generated total revenue of euro 76 billion in 2013 with euro 5.2 billion in free cash flow.  Europe (including Germany) accounts for about 50% of its revenue, with the U.S. accounting for another 19%.

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Conclusion In case study on organizational Innovation and change. Different characteristics of innovation and change have been discussed within GE Company. The competition on the actual marketplace in the world has challenged GE Company to come up with new ideas and innovative ways of developing and producing its products and services. Different marketing functions of GE are also analyzed and the reasons for decreasing the price of its shares. We analyzed the marketing conditions of GE by comparing it with other companies.

References 1. 2. 3. 4. 5. 6. 7.

Ekpe, E. O., Eneh, S. I., & Inyang, B. J. (2015). Leveraging Organizational Performance through Effective Mission Statement. International Business Research, 8(9), 135. General Electric Company – Annual Report. General Electric Company – Form 10-K. General Electric Company – Our Strategy. King, D. L., Case, C. J., & Premo, K. M. (2014). Does Company Size Affect Mission Statement Content? Academy of Strategic Management Journal, 13(1), 21. Kirkpatrick, S. (2016). Build a Better Vision Statement: Extending Research with Practical Advice. Rowman & Littlefield. Pace, S. (2017). Shaping Corporate Brands: From Product Features to Corporate Mission. International Studies of Management & Organization, 47(2), 197-205.

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