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General Electric: Analysis Of Strategy Implementations And Essay

General Electric: Analysis of Strategy Implementations and Potential Issues There are many parts of GE's strategic plan that are interlocked, and thus face some of the same implementation issues. For example, GE's strategy of diversification is essentially interlocked with its objectives of expansion. Through diversification, GE can continue a growth strategy that includes both operational and geographic expansion. As such, the strategic plan to diversify and expand is interlocking dependencies. However, there are a number of implementation issues which could prove a problem for the company in the future in terms of its objectives to diversify and expand. The company is what is known as an "unrelated diversified company" (Allen & Gorgeon, 2007, p 7). GE has been successful in diversifying its operations into new markets; yet, this can be seen as almost being too successful. According to the research, "looking at GE we see a massive, diversified, and profitable conglomerate with a lot of very good but very unrelated businesses," (Barron, 2011). Essentially, GE's strategic plan has moved into too many fields without having some sort of streamlined foundation holding them all in place. Thus, future diversification and expansion will ultimately fall into the same trap. The company will simply spread itself too thin, costing unnecessary costs in operations and resources needed to succeed in so many different and unique markets.

To address these interlocking implementation issues, GE needs to streamline its operations in order to better handle its...

It is essential that GE seek "to find a coherent path of profitable growth as it takes on new challenges" (Allen & Gorgeon, 2007, p 1). GE must reorganize part of its strategy in order to show a sense of related diversification that promotes greater synergy within the company. Part of reaching this related diversification is exercising the company's strategic relationships within the supply chain, value chain, and internal organization. It is these relationships that will help reorganize the company's unrelated structure to a more streamlined notion. As such, "the goal of the related diversification is to exploit competitive advantages arising from the relationships between its different business activities -- these are known as synergies. Synergies emerge when the joint effect of merged activities is greater than the sum of the separate events," (Allen & Gorgeon, 2007, p 8).
In order to address the implementation issues, there is another interlocking factor within the strategic plan of GE. Stronger financial governance and power within its many marketplaces is an additional strategy, especially after the company was hit hard by the financial recession of 2008. Since its revenue and stock numbers plummeted in 2008, the company has been striving to regain some of its financial power. With a stronger financial stance, it would then be able to address any implementation issues in diversifying and expanding, two other interlocking elements of the company's underlying corporate strategic plan. Still, this has been…

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References

Allen, David & Gorgeon, Amuad. (2007). Diversification strategy. IE Business School. Retrieved September 1, 2012 from http://openmultimedia.ie.edu/OpenProducts/diversificacion_i/diversificacion_i/Curso.pdf

Baron, Zackary D. (2011). General Electric: A deep analysis of company strategy. Wall St. Cheat Sheet. Retrieved August 31, 2012 from http://wallstcheatsheet.com/stocks/general-electric-a-deep-analysis-of-company-strategy.html/

Robbins, Kym. (2012). GE extends strategic relationship with Australian-based Nanosonics to expand healthcare innovation globally. Business Wire. Retrieved September 1, 2012.
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