General Electric Company Growth Strategy

General Electric Company Growth Strategy

Corporate Overview

The company General Electric has improved its business to very high extend during the last two and half decades. The history of the company is very rich. The person name Thomas A. Edison who invented bulb, established Edison electric company in 1978. The company general electric is the result of the merger of two renowned companies name Edison electric company and Thomson-Houston Electric Company. The merger took place in 1892. The company stood as 6th largest company in United States of America and 3th largest globally. During the years of 1982, the company was facing major challenges and the key person's name Reginald Jones and Welch come to the conclusion that he company needs changes in its operation. However, the market capitalization of general electric was at its peak in 1982. The issues were of operational nature. Mr. Welch took over the company's operations in 1982 and adopted controlled strategy because the company's operations were widely spread. The strategy was very comprehensive and enabled the company to witness growth. During his tenure, the company witnessed major transformation in its process. The macro environment provided impetus to transformation. The policies of the Welch worked very well which even left their footprints in public persona as the corporate people and general public used to call Welch as Neutron Jack or Boundary-less Jack and Values Jack (Wisnudel, 2008).

Another key person of the General Electric Company was Jeff Immelt, he become chairman of General Electric on September 7, 2001. The policies that he employed make the company even better and company was known as “America's most admired company”. The business portfolio of the General Electric is widely spread and the company is known as conglomerate. Majorly, the company is operating in four different segments such as technology infrastructure, energy, consumer and industrial and capital finance. The transformational strategies of GE's are comprised of four perspectives which includes revolutionary thought, rational thought, technological processes and resource allocations. General Electric is present in around more than 150 countries and the number of employees is approximately about 300,000 globally (Ocasio, 2008).

Success Factors

The success factors which assist the general electric in becoming a world recognized company are various. These factor falls under the category of internal transformation, globalization, product mix and adapting change. All these factors are described in details below:



Internal Transformation

The companies of various nature witness change in their external environment and the key to retain the customers is to adopt the change. The general electric company remained successful because it has transformed its internal culture and business process according to the needs and requirements of the external factors. The internal transformation includes quality level of the products, total productivity level, technology used in business operations, costs control and performance of the employees. The most important success factor for the general electric company was the improvement of quality in goods and services. Mr. Welch has worked hard in this ...