General Electric Company Organization Structure Management Essay

General electric family g all overning Structure Management EssayGeneral Electric gild or GE was incorpo pass judgmentd in 1876, in Schenectady, New York. GE clues its scratch by Thomas Edison, who established Edison Electric Light Comp whatever 1878. In 1892, GE was created by merger of Edison General Electric and Thomas-Houstan Electric Company. GE is a applied science, media and pay operate company. It is a multinational conglomerate headquartered in Fairfield. Nowadays, GE serves customers in to a greater extent than 100 countries and has a good deal than 323000 employees around the knowledge domain. GE participant in a wide variety of markets abide harvestings and aids ranging from generation, transmission and distri barelyion of electricity, aircraft jet automation, medical examination imaging equipment, railway locomotives and aviation. The operational of avocationes of company including NBC widely distributed, Technology al-Qaeda, GE Capital, GE qualifi cation Infrastructure, and consumer industrial.General Electric Company Organization StructureSince Thomas Edison started General Electric Company (GE) in 1876, the company has steadily erectn into a tremendously victor intacty composition and one of extendedst companies in the humanity. chief executive officer Jeff Immelt, at the top, we dont run GE like a uncollectible company. We run it like a big partnership, where every leader arsehole make a donation non just for their job, but to the entire company (GE, 2010). The company learned to comprehend to its leaders on all levels which keep the company connected to the passing(a) needs of the employee and customers.GE is a divisional company. In a divisional structure atomic number 18 more(prenominal) decentralized, to each one division has its birth major(postnominal) way teams. For font, in the organization chart of GE show that each of GEs division has its own president and CEO, who in turn has vice president. found on divisional structure, GE can easily contain a produce or service structure within it.1.0 The macro milieu analysis of the company canker analysis is a useful strategic tool for translateing market growth or decline, vocation position, capability and acquition for operations (Kotler, 1998). In analyzing the macro surround, General Electric Company (GE) has to deal with varied pin down of political, economic, social-cultural and technologies aspects. It is be fuck off GE was perform a PEST Analysis that alleviate to understand the melodic line environment and to allocated facilities planning and resources to notice wareivity and profitability.1.1 PoliticalGE was deal the political system in contrasting countrified. It is because different country has different political issue. Some of the countries depart present beneficial environment for growth up bloodline in the outback(a)(a) market and different country present difficult particularize. For example, in unify States, internal revenue authority requires companies to submit tax returns yearly on April 15 (Dibb Lyndon, 2004). Political system includes legal and regulatory, elections, industry-specific regulations, taxes, governance structures, and etcetera In New York, United states, the political stability that mean business survival is spunkyly prob sufficient. GE may not apply this condition in the country government is full(prenominal) control over business such as china and Singapore.12 EconomicThe fluctuations in interest rates, exchange rates and money value greatly touch activities and operations of GE. The economies effect caused by the global crisis is being felt over the public. GE has recorded decreased sales mostly callable to degrade lending rates by banks. Most be aw atomic number 18 that losings in GEs Capital Finance unit compounded a cyclical downturn in business triggered by the 2007-2009 recession, and GEs stock reflected the chilly days, drop be star t $5. Overall revenue fell 14% in 2009. In fact, one can say that, As GE goes, so goes the United States. The companys operations represent that full-grown a portion of the U.S. economy. There atomic number 18 industry, heavy equipment, technology, energy, home and business, military contracts, commercial aviation, media, green technology, and finance.1.3 Social- market-gardeningGE has ventured into different country susceptibility be showd by different social-cultural challenges. corporate culture is a large extends to influence GE. Norms, culture, religion and social set-ups often go over how a GE should conduct itself in the United States environment. GE has to contend and with issues such as working hours, employment policies, procedure for appointing managers and grapheme to produce goods. What sets GE apart is a culture that uses diversity as an un moderate source of learning opportunities, a storehouse of ideas whose breadth and enormousness is preposterous in worl d business, said by Jack Welch (retired CEO of GE). At the heart of GE corporate culture is an understanding that an organization ability to learn, and translate that learning into action rapidly. In United States, GE w bes culture to be among innovation. That culture is a unifying force for GE business unit around the world (GE, 2010).1.4 TechnologyTechnology in the modern world is advancing at high pace globally thus influencing activities of many companies. Innovative products are al ways being introduced with more advanced technology day by day of the GE. GE fair game is making and changing the life be sound hold well with impertinently ideas and technologies. Among the countries with the highest rate of technology advancement are United States and Japan which GE has ventured into (GE, 2009). GE must ensure their technology is up-to-date when new forms are introduced in the market. GE sees technologies such as energy storage, utility security, energy management software and electric vehicle charging services as the way to a smarter creator grid (Andrew, 2010).2.0 The foreign considerationIn determine to keep back sex a prospect generatement, it was believed that company should upraise itself by involving in any internationalistist businesses as been suggested by Behrman (2008 cited in Boddewyn, 2008, p. 206). Within international business, businesses are able to seek for more opportunities in order to earn a rapid growth. For example, there would be many liberalized market exist which on global scale that the ability to offer varieties of goods for consumption. Moreover, Iyengar and Agrawal (2010) in their previous look had shown that variety of goods last gives consumers a wide range of options which expect to mend their quality of life while helps to improve country growth. There besides an opportunity for company to enjoy greater economies of scale when the business involving international business which the capabilities to produce i n large scale with minimum equal (Czinkota, Ronkainen, and Hoffett, 2008). According to Ghosh (2010), the major aspect of the Great Recession typically reflected high rate of employment as well the length of job slightness. Practically, when more international business came in, the employment rate in that country might be reduce as international businesses create more jobs (Jarvis, 2003).Getting into international business in other countries will lead to many ways to entry. As been done by previous researchers, Wu and Zhao (2007) had mentioned there are some(prenominal) modes to entry such as export based, equity based and non-equity based. Mostly, those are categorized into two main modes which are the trading and foreign direct postment (Lymbersky, 2008). Moreover, it varies for each companies to entry as in different businesses would have their own entry modes which more appropriate to get hire to international market (Zhao and Decker, n.d.). For example, giant company like GE usually exercise different modes of entry depend on the country that desire to invest on. GE felt that doing business in China or other Asias countries would be rigid for them to invest in whereby precisely to adopt the multicultural and complexity legal system (Neelankavil and Rai, 2009). Hence, let take Malaysia as example, the country full with varieties of cultures as in it have many different gathering ethnics such as Malays, Chinese, Indian and other indigenous people or known as Bumiputra as been proven by Levinson (1998). Moreover, different cultures would cause cultural problem as in vary in perception of consumers in that country, Malaysia, for example. It positively could be problem for GE to encounter this problem. Therefore, GE had made its rightful choices in selecting mergers as the entry modes to enter in those countries. The purpose of merger with domestic strategically company is to enhance stronger birth in order to overcome cultural problems whereby those domestic companies would practically understand their market effectively (Mordecai, n.d.). For example, in Malaysia, GE commonly worked with local anaesthetic pedestal providers such as TNB, KTM, Petronas as well to local authorities by providing quality equipment and services (Bernama, 2010).2.1 CultureHowever, before spend in Malaysia, there are several things that need to be considering by GE. In fact, if GE does not bother those and only focusing on the profit, the company shall face major problem which the results will causes disadvantages to them. Basically, the first thing that needs to consider is regarding towards the cultures of the country. Based on that, different countries have different in cultures where it hardly to adapt as been viewed by Walter and Murray (1988). This is a moment of truth cultures could determine to business in a sustainable growth or in all drag a business down (Oak, n.d.). It was thought that Malaysias culture is such(prenominal) complexity compared to other countries due to a lot of ethnic groups which rest of Malays, Chinese, Indian, Punjabi and so on. Moreover, those ethnic groups practiced different cultures which ultimately lead to different perception towards products or services that been offered in the market (Marten, 2001). For example, current drive in peoples are more conservative in better musical accompaniment with health products especially those aging people (BBC News, 2009). Regarding to that, health care equipments must be in good quality as well to the services provided as in what consumers perceived. Hence, this could be an opportunity to GE health care in Malaysia whereby able to supply quality equipments and services such as Computed Tomography, diagnostic ultrasound, lunar densitometry and others (GE health care, 2010).2.2 Politic-legalBeside than culture aspect, the countrys politic and legal systems need to be considering before investing in that country. In this case, Malaysia would take in for the further analysis. It was believed that Malaysias politic is considered relatively stable without any political risks. Malaysias government always emphasized on the good side of having international business while at the very(prenominal) time encouraging foreign investors to come to Malaysia and invest in it (Trade Chakra, 2008). Regarding on the exchange rate in Malaysia, it was thought that Malaysias exchange rate is more appropriate whereby 1 MYR = 0.3177 or 1 US$= 3.148 MYR as been viewed by TheStar Online (2010). On the other hand, Malaysia provided tax incentives to direct or indirect either in Income Tax Act, Free Zones Act, and Promotion of Investments Act which covered investments in many fields such as manufacturing, tourism, agricultures and other service-oriented companies (K-Konsult Group, 2010). Those tax incentives could eventually lure plenty of investors to carry out activities in Malaysia whereby they only have to payment partially or fully from the incom e tax in a certain of times which stated in the previous research by Rajenthran (2002).2.3 Problem and SolutionGenerally, when a company started to doing its typical business in other country, problem could occurred if did not handle immediately, results will propel business. A possible problem facing by GE when doing international business in Malaysia is difficulty on adaptation to the culture. Due to that, it was believed managers from GE are difficult to communicate to the target audiences about their products and services (Heitzman, n.d.). This could be due to their marketing strategy that they practiced as in message delivered was not clear enough and possible could lead to confusion among consumers. For example, those illiterate peoples might not understand what the message tried to express in advertising as in the shown languages are in English (Williams, 2001). In order to solve this problem, the best method to practice is to collaboration with domestic strategically compa nies by coming out strategies that suit the cultures whether on management, marketing, finance, etc. For example purpose, GE Healthcare partner with InterComponentWare, which one of the local company in Malaysia by sharing technology in order to provide solutions which moderate several crucial initiatives done eHealth (GE Malaysia, 2009).3.0 The growth of businessIn the world of business, all the owners of business have to figure out more and more special or unique way to raise their profit. There are several ways to growth of business, such as merger and learnedness with other corporate, retain and recruit professional employees, shift the current cerebrate market and so on. There are a lot of strategies to deliver the goods the marketing target of business, one of the famous and common marketing tools can be use to grow up the business Ansoffs Product-Market hyaloplasm. In Ansoffs Product-Market matrix created by Igor Ansoff, the market tools allow the business to grow up through by the way or new product in lively or new market.The Market Penetration is the strategy that penetrates our current product as known as existing product to the existing market. For an example, our transit corporate can have a discount for those customers using our service or have a hotel big bucks for those customers purchasing our flight slating in aviation corporate. The main point to grow up business by this strategy is gaining the competitors customer. Other than that, we able to attract non-our customer or persuade current client to take our product or package in this strategy.Businesses have their targeted market for their particular product, such as hornswoggle product targeted on child market, makeup product targeted on cleaning woman market and so on. In order to grow up their business, they have to figure a way to lose ones temper the market, which perplex a new market with an existing product. For our business, finance corporate is applying the said(pren ominal)(p) strategy to enlarge the finance market. Our corporate not only provided vehicle loan for customer, but also business loan, housing loan and various type of finance solution.The strategy containing in Ansoffs Product-Market Matrix is Diversification, a technique that grow up the business through new product gain advantage in new market. In 21st era, we can say that culture technology was penetrated in the entire career, such as finance, engineering, design, education and so on. So, nearly everything also can be a new market for training technology. Our software and services corporate was aimed it as a technique to grow up the business. In software and services corporate, we provide a unique system solution for healthcare, energy and other field which needed information system as a solution.GE business has to come up new product frequently in order to keep trace the latest customer needed. This strategy also included in Ansoffs Product-Maket Matrix with telephoned as P roduct Development. The strategy allow the business grow up through develop a new product and target the same or existing market. For our GE consumer field, appliance company often make out their new develop product to the same market, an example or product like television, develop to plasma screen, or CD player develop to MP3 player. Corporate able to gaining new customer when the launch their new product. So, product development lead the business stays competitive in the market. For example, GE fire will preview dominance organic light-emitting diode (OLED) lighting application ideas during two industry trade, Light plus Building 2010 in Frankfurt, Germany and Light Fair 2010 in Las Ve bumble, Nevada, USA. The company will show OLEDs in a number of configurations at both shows, including fixture prototypes that help to establish the expected competitive advantages of GEs approach to OLEDs (GE, 2010).4.0 New ventureYemen, official name Republic of Yemen, is a country located on the Arabic Peninsula in Southwest Asia. The major city of Yemen is Sanaa. Yemen is one of the worlds oldest civilizations. It is the poorest country in the Arab world as well as a haven for Islamic jihadists (Central discussion theatrical 2009). The population in Yemen has more than 23 million people.GE was interested in the new venture with Yemen healthcare. The healthcare system in Yemen remains severely underdeveloped. Yemen faces a major challenge in astir(p) the health status of its population. Access to healthcare services is limited which is less than half of the population has been overture to basic health services in Yemen. GE use joint venture entry mode in the healthcare in Yemen. Through joint venture, GE willing to provide the knowledge, skills, technology to improve the healthcare in the rural communities in Yemen. GE will provide tacked of water, power and communication systems and work closely with local government healthcare teams to streng thus their sense o f ownership. GE wanted to develop health globally. If Yemen joint venture with GE, they can externalized transfer of people, expertise and technology together to help improve in healthcare system.4.1 nemesis of potential entrantsFirst key element is GE needs to be give out whereby it more reflecting on the barrier to entry in Yemen. In Yemen, amongst the poorest in Per-Capita GDP terms countries (on a Per-Capita GDP basis) in the Arab world, reports average yearbook growth in the range of 3-4% from 2002-2007. In 2008, the growth declined slightly, this is related to the declining of crude oil and gas resources, providing around 90% of the country export (Central Intelligence Agency 2009). Yemen economic scale fortunes depend mostly on declining oil and gas resources, but this country trying to diversify its revenues. GE can product healthcare in Yemen. The government is currently working with the private heavens to develop a strategic plan to enhance the business environment in Yemen. Poverty, low participation in education, high illiteracy rates, and limited access to drink water and proper sanitation all contribution to the poor health status. These are the terms need to settle in order to going develop the healthcare system in Yemen. At the same time, Yemen joined World Bank in the year 1969. Since then the bank has stepped forward for fostering economic growth and reducing penury in the country. The World Bank also started its Country Assistance scheme for Yemen in 2002 (Economy Watch, 2010). Regarding on the capital requirement to entry, it would not be a problem for GE to joint ventures in Yemen. This is due to GE Healthcare has experience to bringing solution to more than 100 countries and territories. GE was success help improving the healthcare system in Africa. Africa has a same situation with Yemen, both also are poor country and underdeveloped in the healthcare sector. However, producing standardization products throughout globally had made GE developed its own strong global distribution network with its own suppliers which typically came from low-cost nations. In Yemen, major political issues will affect the business climate. GE going cooperate with Yemen government may involve bureaucratic corruption. This will increase the cost of investment and risks in the Yemen healthcare.4.2 Threat of substitute productsThreat of substitute products mean that goods or services outside of given industry perform same or similar functions at a competitive equipment casualty. At present there is not much of native production of healthcare products in Yemen and the Yemen is depending on import of medical products into Yemen (Yemen Medical Supplies, n.d). In addition, the incidence of injuries and chronic diseases such as crabby person and heart diseases is on the rise. These indicators demonstrate an urgent need to improve access basic health services, while preparing for a rising demand for more costly specialized health services . GE able enhances the improvement of the healthcare in Yemen. It is because less substitutes available for healthcare product in Yemen.4.3 negociate power of SupplierThere are powerful when few large companies and more concentrated than the industry to which they sell no substitutes and industry quick not significant customer to suppliers. Yemen is depending on import of medical products into Yemen. major(ip) suppliers of medical products are from India, Egypt, Europe, UAE and Saudi Arabia. There are quite a number of companies from the Indian subcontinent who supplies cost effective products to the Yemen but as farthermost as quality is concerned, private hospitals prefer to buy from western countries. In order to achieve greatly competitive structures, it was believed that GE should strongly enhance their relationship with those supplier before cooperate their company with Yemen.4.4 Bargaining power of buyerIn this key element, they are powerful when purchase large portion of industrys total output, product sales accounts for significant seller annual revenue, low switching cost and industry products are undifferentiated or standardized and threat of backward integration. In fact, GE has greater dicker power if it plan to cooperate in Yemen whereby GE usually come out with standardized products to suit local responsive, culture and the product price are standard. I believe if GE cooperates with Yemen that means consumer will get opportunity of buy high switching cost product in healthcare Yemen.4.5 Rivalry among existing firmIntensity rivalries among existing competitors help GE to understand the strength of Yemen market. There are numerous or equally balanced competitors, slow industry growth, high fixed costs or high storage costs, lack of differentiation or low switching costs, high strategic stakes, strategic interrelationship , emotional barriers, government and social restrictions. Furthermore, if GE helping Yemen population access to basic to the healthcare services is showing a good sign to the company. GE Healthcare has experience to bringing solution to more countries. GE may install of water, power, and communication system by overcome the limited access to potable water in Yemen. Therefore, this is the opportunities to invest into Yemen healthcare.ConclusionGE is renowned for hiring majestic people and giving them unparalleled opportunities to build their careers and capabilities. Besides that, GE builds culture of integrity in today complex business world demands high governance standards in every area of the operation. GE commitment to full compliance is backed by an independent and full informed board, universal processes, policies, communications and extensive training.Despite of the fact that GE did fraud-attempt in the away that may discredit the reputation there is simply no other company in the world with such a diverse set of business in which to work and development-focused culture in which to grow. GE is a global infrastructure, finance and media company taking on the world toughest challenges and continually shaped our world with groundbreaking innovation for over 130 years. With tetrad businesses and operations in over 160 countries, GE employees have a unique foundation on which to build their careers, their abilities and their dreams. There is no primer coat to doubt that GE is imagination at work and create a miracle to life. From jet engines to power generation, financial services to water processing and medical imaging to media content, GE people worldwide are dedicated to go imaginative ideas into leading products and services that help to solve some of the world toughest problems.APPENDIX AORGANIZATION CHARTShareownersCorporate Executive characterBoard of DirectorsJeffrey R. ImmeltChairman CEO, GEMichael A. Neal debility Chairman, GE rump KrenickiVice Chairman, GEJohn G. RiceVice Chairman, GE cleverness InfrastructureJohn KrenickiPresident CEOGE Energy InfrastructureE nergyOil GasWater Process TechnologiesTechnology InfrastructureJohn G. RicePresident CEOGE Technology Infrastructure air powerEnterprise SolutionsHealthcareTransportationKeith S. SherinVice Chairman CFO, GENBC UniversalJeffrey A. ZuckerPresident CEONMC UniversalCableFilmInternational networkSports OlympicsConsumer IndustrialJames P. Campbell President CEO GE Consumer IndustrialAppliances electric Distribution LightingGE CapitalMichael A. NealChairman CEOGE CapitalAmericasAsiaEurope, Middle East AfricaCapital Aviation ServicesEnergy Financial ServicesReal Estate