Final Strategic Plan General Electric (GE)

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Question Description

Create the Final Strategic Plan. The Final Strategic Plan contains the elements of all the previous weeks' components and incorporates instructor feedback. The strategic recommendations will be evaluated and the best options chosen for recommendation. The final strategic plan contains:

  • Table of Contents
  • Executive Summary (350 to 700 words)
  • Company Background
  • Mission Statement
  • Vision Statement
  • Value Statement
  • Environmental Scan
  • Internal and External Environmental Analysis
  • Strategic Recommendation
  • Implementation Plan
  • Organizational Change Management Strategies
  • Risk Management Plan
  • Conclusion
  • References (Use at least four references beyond your course book. Make sure to cite all referenced materials).

Create a 25- to 35-slide Microsoft® PowerPoint® presentation with speaker notes to present the strategic plan, combining all relevant elements from previous weeks. The objective is to sell the strategic plan to investors or company directors.

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Running head: STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC Strategic Plan: Implementation Plan, Strategic Controls, and Contingency Plan Analysis STR/581 February 4, 2019 1 STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 2 Strategic Plan: Implementation Plan, Strategic Controls, and Contingency Plan Analysis General Electric (GE) is a major organization based out of the United States; according to statistics it has been listed as one the best performing organizations. Due to its brand image, it receives vast amounts of revenue from the various sectors in which it operates. The aviation sector in one of the competitive industries in which GE operates. The aviation sector is an industry that requires an organization to have sound policies which attract various stakeholders. GE will implement a few strategies to maintain its position as a dominate organization in the American economy. Some of the strategies include automation of services, adoption of the green energy policy, establishing points whereby talent can be nurtured among other proposals. This paper focus on discussing the implementation plan, the organization change strategies, budgets, contingency plans to deal with the risk identified, among other issues that are essential for the business. Implementation Plan To improve GE’s brand image, the company should implement strategies mentioned above. With the recent growth in technology, many organizations have adopted the use of the latest technological devices. Some of the operations in GE are conducted manually. The management team has noticed the use of manual methods have resulted in a reduction of efficiency within the company. All manual processes will be automated based on their technicality. The management team shall ensure all employees are trained on the use of their new technicality. Communication is one of the basic aspects of every organization (Grant & Meadows, 2016). With the recent development in communication, many individuals have access to internet services. GE will have to install adequate communication infrastructure with the STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 3 premises. The process of automation shall be implemented simultaneously in all the company branches across the globe. It is important to note that there are also other firms in the industry. Many of the firms are still using manual technology in their routine operations. The move adopted by GE will improve the company’s brand image. This will lead to increased profitability which is an attraction to investors. As a result, the company will grow at a steady rate. Another strategy that will be implemented is the adoption of green energy. Consider the recent policies on environmental conservation, most organizations are focusing on the use of material that is environmentally friendly. Organizations from countries all over the world have joined hands to fight environmental pollution. GE will change the use of fuel-based sources of energy to green sources of energy. Before adopting the policy, the management team will first evaluate the implication of changing the policy based on cost and profitability. It is important to note that changing the process of shifting from one technology to another can be quite a big challenge. Before adopting green sources of energy, GE will first use the sources available to ensure that the cost which was used in purchasing them has been recovered. The company will implement the project through the wind driven turbine which is expected to produce a large amount of energy. According to estimates, the turbine mentioned above is expected to produce an average of 500 megawatts in the next 5 years. This is a bold move which will improve the company’s liquidity position. GE will also implement new products that adhere to the green policy. Countries around the world are facing an epidemic which has been triggered by unhealthy products (Gibson et al, 2017). There are many diseases that affect the lifestyle of members of communities that can be controlled through the use of environmentally friendly products. The products which GE will be STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 4 producing will first be tested by the government health institution to determine whether they are fit for public use. Next, they will be distributed to each branch across the globe. Consumers will be expected to provide their feedback after interacting with the new products. This will assist GE to tailor the products based on customer specification, on the other hand, considering their health. In addition, there will also be room for nurturing new talent. The management team will schedule for a program whereby local investors will be allowed to interact with the company. This will lead to a strong bond between the company and other upcoming innovators which is essential for business growth. To ensure the strategic plan is successful, GE should consider short term objectives, function tactics, milestones, and deadlines. In addition, function tactics, scheduling task appropriately and resources are also important aspects of the plan. In terms of short term objectives, the company is planning on ensuring that almost all services are automated within a period of less than one year. All employees will be trained in the first three months after which the necessary devices will be purchased and installed in the organizations premises. Another objective is changing into green sources of energy: the wind turbine will become operational after all the previous sources of energy have been scrapped. Setting short term goals will provide the organizations with an insight on how to achieve the long-term goal. Functional action plans will assist the organization to achieve short-term goals by setting specific tactics that are functional. Functional tactics are the various processes and activities that are performed to achieve the short-term goals (Lewis & Largo, 2015). GE will also have to ensure that each employee is assigned their responsibility based on the qualification. This will reduce conflicts amongst them and improve efficiency. Conflict in an organization are a major challenge that effects organizational performance. Another major issue is the resource which are to be used to STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 5 achieve the objectives. The project manager should ensure that available resources are utilized according to the stipulated budget. The chart below shows the action plan for GE: Department Increase Organic Growth Improve and Develop Product Marketing Finance Increase the organizations Acquire more branches and sales by 30% through new merge with smaller products innovators Forecast sales on a quarterly Creation of a yearly budget basis Audit written reports to Ensure there are written determine accuracy reports about business performance annually R&D Perform continuous research Conduct monthly research to to determine customer need determine customer feedback on products Human Resources Conduct seminars to Reward employees after determine employee goals achieved to improve performance morale Organizational Change Management Strategies The process of change requires sound strategies. GE will ensure that supplies and other stakeholders are maintained. The strategies to be used include improving the products without STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 6 changing them completely. This will ensure that brand image is maintained. Employees will also be involved in the change process. Their contribution is essential since they are an important tool in the organization. The company focuses on being the leading organization in the aviation industry. Hence, it should ensure that it maintains low cost on its products. GE will make changes based on customer needs to ensure that are satisfied. Some of the key success factors which the company is expected to achieve include wide market, the leading company, quality product, good reputation among others. To achieve all this a sound budget is essential. GE shall use the budget in the chart below: Category/Expenses Budget Marketing $12,000 Advertising $10,000 R&D $15,000 Raw Material $12,000 Human Resources $4,000 Bonuses $5,000 Training $8,000 Finance Supplies $2,000 Total Budget $60,000 Break-Even Point The break-even point refers to a situation when the total sales is equal to the total cost (Kaplan & Atkinson, 2015). Above this point, profits are made. While determining the break- STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 7 even point, it is important to identify the selling price and the number of units to be sold to meet the total cost incurred. GE will use the formula: selling price = total cost x (1 + 0.25). All the products shall be sold at a markup of 25%. Assuming the fixed cost remains 495 the company will have to sell 669 units to achieve the break-even point. In terms of forecasting financials, GE is expecting a 30% increase in revenue due to the expected sales associated with the new products. Risk Management While implementing new changes or strategies in an organization, some risks may occur which if not addressed may lead to losses. Risk management is a process that involves analysis of the risk that may occur while providing strategies to control or manage them (Wolke, 2017). GE may come across some risk such as employee resistances, fluctuating cost of raw materials, STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 8 and change in customer demand among others. To ensure the new products strive through the market the company should focus on customer demand. Another risk is the high cost of material. The company can control the risk by sourcing material from local suppliers. In addition, it may also consider entering into mergers with them. Employee resistant may also be a threat. The company should ensure they are involved in decision making. Competition is also a threat that may pose a threat to the organization. To strive through it, GE should ensure all products are good quality with additional features compared to those of the competitors. STRATEGIC PLAN: IMPLEMENTATION PLAN, STRATEGIC 9 References Grant, A. E., & Meadows, J. H. (2016). Communication technology update and fundamentals. Routledge. Gibson, L., Wilman, E. N., & Laurance, W. F. (2017). How Green is “Green” Energy? Trends in ecology & evolution, 32(12), 922-935. Wolke, T. (2017). Risk Management. Walter de Gruyter Gmbh & Co KG. Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning. Lewis, G. A., & Largo, P. (2015, May). A catalog of architectural tactics for cyber-foraging. In proceeding of the 11th International ACM SIGSOFT Conference on quality of Software Architectures (pp. 53-62). ACM. Running head: GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: General Electric (GE) Strategic Plan Part 3: Strategic Evaluation STR/581 January 28, 2019 1 GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: 2 General Electric (GE) Strategic Plan Part 3: Strategic Evaluation A strategic plan is an organization of ideas and actions which should be carried out in the future lifetime of any business. A strategic plan is a guiding document that states what should be done to improve business processes, and when it should be done. These plans are mostly for the next five to ten years in a business depending on the internal and external factors that affect the business. General Electric (GE) is an international conglomerate with business in various sectors of the American economy. Given the chance economic, political, and environmental trends, it is therefore necessary for GE to formulate a strategic plan that will guide their actions in the future. Through the analysis of the current internal and external environments, business strategies have been created that can define the actions of GE in the near future. These profits are profit oriented, since this is the aim of any international conglomerate including GE. Also proposed in this document are corporate level strategies that can help boost GE’s standing as a corporate giant in the world. GE is one of the largest companies as listed by Forbes global in 2011. This said, a good strategic plan should overcome all external forces such as competition, in order to maintain or even push GE’s standing further in the market. After assessing the potential business level, corporate level, and global strategies for GE, a recommendation is given on the best way to deploy such strategies for the benefit of GE. Furthermore, the rationale for implementation is also given in order to provide clear implementation guidelines for the strategies mentioned (Hahns & Powers, 2010). Business Level Strategies Business level strategies touch on the immediate internal environment of the business. Business level strategies are meant to improve the environment within the organization to enable better management of personnel, resources, and business processes. Business level strategies GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: 3 also touch on day to day operations of GE, looking at sales, advertisement, production, and finance activities that take place within GE. It should be noted that these strategies can be applied to the various sectors of GE at once, or to each sector at a time. The following is a list of proposed business level strategies for GE: • With the rising standards in technology being employed in the aviation industry by the government, GE aims to counter this competition in the next five years by automating all services in the aviation sector. By embracing the newest technologies, GE will be able to establish a strong standing in the aviation market. The long-term goal is a full popularity status in the aviation sector. • Green energy is slowly taking over fuel-based sources of energy. This presents a threat to GE’s oil and gas industry. GE aims to expand its wind driven turbine project to produce at 500 Megawatts of energy in the next five years. This will add to the electrical grid of the country and improve the energy sales of GE. • In the healthcare sector, GE aims to create a line of green lifestyle products that will be tested and approved for the healthcare market. This goes along with the need to counter lifestyle diseases which have proven to be a burden to the nation. • GE will look for local innovators and nurture their technologies to the advantage of GE. This will improve both the digital industry and the venture capital industry. By setting up an incubator of upcoming developers, GE will nurture talent and invest in their ideas. Corporate Level Strategies While analyzing the environmental factors for GE one realizes that competition cannot go unnoticed. Corporate level strategies are aimed at impacting business level GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: 4 strategies in a wider scope. At this level, strategies are mainly centered in the vision and mission of the company. Corporate issues to be incorporated at this level touch on the financial and customer growth goals. Additionally, you could look at the potential of increasing the work force alongside proposed timely earnings that should be achieved for the period for which strategic plan is valid. The following is list of corporate level strategies for GE that are contained within the GE strategic plan: • In the corporate scene, GE aims to introduce mobile driven applications to provide services in the healthcare, transportation, and digital industry. This will be enabled by building some applications from scratch and contracting already existing mobile application service providers. • GE aims to build a market around digital healthcare products like diagnostic devices, mobile based diagnostic applications, digitized treatment, and prescription programs for people living with disabilities. • In terms of corporate social responsibility, GE aims to contribute to the society in the following ways: I. Promote environmental conversations through automation of process doing away with paper-based systems. II. Improve waste management practices in the oil and gas industry in order to contribute to the greater goal of saving the earth. This will be done through embracing waste management technologies. III. Adhere to legal issues centered on environment as a means of compliance which is also a requirement of ISO standards. GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: • 5 Creating a competitive edge by building GE’s brand name through promotion activities. This will be done though rebranding and establishing intense campaigns to promote the name GE. Global Level Strategies These strategies cover a wider scope than the business and corporate level strategies. GE’s global strategies should touch on the global expansibility of GE operations alongside improving corporate level ties with other global conglomerates. This expansion can be achieved in terms of resources, abilities, and international rankings. This will mean that GE will have to go out of the American market in order to build other markets in other countries. Global strategies always run throughout the lifetime of the strategic plain in contrast with strategic and business level strategies that may be achieved long before the strategic plan is made obsolete through time. The following is some global level strategies that can be employed by GE in realizing their long term strategic goal: • GE aims to explore oil and gas opportunities in developing nations especially in Asia and Africa. This will help solve the problem of diminishing oil and gas market in the USA. • GE aims to expand its oil and gas market by partnering with distributors from other countries. This will boost GE’s competitive advantage among its oil and gas competitors. • GE aims to protect its resources by acquiring ore patents on ideas that will be developed by its venture resources. This will contribute toward efficient IPO practices that are spelled by international bodies. GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: • 6 GE aims to improve and upgrade its security systems not only in its headquarters but also in the protection of communication lines, business processes, and transactions. This will help reduce instances of security breach’s trough hacking and related cyber-attacks. Recommendations GE should implement a five-year strategy as a pilot project to determine the feasibility of the above-mentioned objectives. The rationale is that for such a large organization, controlling resources is quite hectic and periodic audits are necessary. Without this rationale, GE’s strategies may go into oblivion with little or no excess. This being a 10-year plan it is recommended that audits be carried out after every two years to measure progress. If the pilot project proves successful, only then can GE proceed to implement a full plan. If it does not, then the strategic plan needs to be redrawn (Mastop & Faludi, 1997). GENERAL ELECTRIC (GE) STRATEGIC PLAN PART 3: 7 References Hahn W., Powers L.T. (2010). Strategic plan quality, implementation and firm performance. Alabama. Jordan Whitney Enterprises. Academy of Strategic Management Journal 9(1), 63. Mastop H., Fauludi. A. (1997). Evaluation of strategic plans: the performance principle. SAGE Publications. Environment and Planning B: Planning and Design. Volume 24(6). 815-832. Running head: GENERAL ELECTRIC (GE) STRATEGIC PLAN, INTERNAL General Electric (GE) Strategic Plan, Internal Environmental Analysis STR/581 January 21, 2019 1 GENERAL ELECTRIC (GE) STRATEGIC PLAN, INTERNAL 2 General Electric (GE) Strategic Plan, Internal Environmental Analysis General Electric (GE) is an international American organization that is based in New York City and has its headquarters in Boston. The company deals with a diverse ...
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Robyn1994
School: UCLA

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Final Strategic Plan
Name

Executive Summary










General Electric (GE) is an international American organization and among the world’s largest companies as
listed by Forbes Global 2000 in 2011.
GE has growth in terms of revenue which has been contributed by the diverse products which they
distribute internationally with the help of more than 100 branches globally.
GE is known due to their innovation, thus making the company gain a competitive edge in the international
market.
The company is recognized because of the continuous research and development programs developed to
make sure that customers are satisfied as well as keeping up with the dynamic world.
The aviation segment is the most competitive in General Electric and it is continually developed for instance
through technology to keep it continuously competitive.
General Electrics is faced with certain issues such as scarcity of raw materials thus calling for others ways
such as adoption of green technology and renewable energy sources so that they can continue to
manufacture.
To ensure success, General Electric conducts a continuous analysis of the internal and the external
environment to determine strategies that need to be changed.

Company Background
 General Electric is an American global business with its headquarters
at Boston.
 The company has several segments namely healthcare, oil and gas,
aviation, transportation, power, lighting, renewable energy, venture
capital and finance, digital industry and additive production.
 General Electrics started its operations as early as 1889 with Thomas
Edison’s interest in various companies which were related to
electricity.
 Edison received financing on research in 1889 and led to foundation
of GE in 1982 and started with two plants.
 GE has grown since to then to operate in more than 100 nations and
being ranked 18th largest company in America depending on its
gross revenue in 2018.

Vision and Mission Statement

Mission Statement:
 Ushering in the next industrials era and building,
moving, powering and curing the world
Vision statement:
 Bringing good things to life

Value Statement







Integrity
Commitment to performance
Thirst for change
Passion to the customers
Growth driven
Meritocracy

General Electric (GE) Environmental Scan

 Analyzing the internal environments helps
understand the competitors of General Electric and
the other factors they company has to deal with.
 Evaluation of the operating environment of the
company
 It helps establish how to create and evaluate the
competitive advantage of the company
 The general environment is also evaluated on any
factors affecting the company.

Political Factors

 Variation in political trends affects the operation of
the business
 In GE, the aviation and lighting industries are most
affected by the variation in political trends
 The first political trends is support from the
government to ensure digitalization of the industries
 The second trend is shift to the renewable energy
which is considered as both ...

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Anonymous
Good stuff. Would use again.

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