Strategic and Operational Plans Based on the SWOT Analysis
General Electric (GE), is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States.
The company operates through five segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial. In 2011, GE ranked among the Fortune 500 as the 26th-largest firm in the U.S. by gross revenue as well as the 14th most profitable.
However, the company is currently listed the 3rd-largest in the world among the Forbes Global 2000, further metrics being taken into account. Other rankings for 2011/2012 include No. 7 company for leaders (Fortune), No. 5 best global brand (Interbrand), No. 63 green company (Newsweek), No. 15 most admired company (Fortune), and No. 19 most innovative company (Fast Company).( http://en.wikipedia.org/wiki/General_Electric)
Based on the GE SWOT analysis will create and Strategic and Operational goals. Strengths Weaknesses Diversified product portfolio and revenue stream provides cross selling opportunities High indebtedness exposes to credit risk Successful inorganic growth strategy Dependence on third parties for raw materials
Robust research and development capabilities
Opportunities Threats Increased focus on energy sector http://www.ge.com/globalimpact/ecomagination.html?utm_source=gecom&utm_medium=hp_see&utm_campaign=gecom_hp#!report=alternative fuelvehicles
Challenging macroeconomic and political environment in the US and Europe New contracts to enhance top line growth Environmental and other government regulations Expansion of mining business Aggressive competition
Strategic goals: Increased focus on energy sector
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 and “plans to build the largest solar-panel-making factory in the U.S., and has set goals for its subsidiaries to lower their greenhouse gas emissions. (General Electric, May 9, 2005)
Recently, GE Capital’s Transportation Finance business and Clean Energy Fuels Corp., the largest provider of natural gas fuel for transportation in North America, have entered into a strategic alliance to accelerate the conversion of heavy-duty trucking fleets from diesel to cleaner-burning, less-expensive natural gas.
To take advantage of this opportunity, truck fleet operators will first work with Clean Energy to develop natural gas fueling contracts, and will then apply for loans and leases, including fair market value leases, from GE Capital to acquire trucks from manufacturers that produce commercial natural gas vehicles (NGVs). Clean Energy will then help offset the monthly cost of newly-acquired NGVs to make it consistent with the cost of a diesel truck, if the customer makes a fuel commitment. (http://finance.yahoo.com/news/ge-capital-clean-energy-form-140100121.html)
External and internal stakeholders will be influencing our strategic goal in difference way. Customers will appreciate lowing cost of fueling and the competition will be affecting as well. Increase Shareholders profit, which at the end is the primary goal of a corporate enterprise from the viewpoint of its shareholders is to maximize profits and enhance shareholder value.
Operational plan: Reduces dependence on third parties for raw materials
The company is reliant on third-party suppliers, contract manufacturers and service providers and commodity markets to secure its raw materials, parts, components and sub-systems used in its products. This reliance exposes GE to volatility in the prices and availability of these materials, parts, components, systems and services.
A disruption in deliveries from the company’s third-party suppliers, contract manufacturers or service providers, capacity constraints, production disruptions, price increases, or decreased availability of raw materials or commodities, could have an adverse impact on GE’s ability to meet its commitments to customers or increase its operating costs. http://www.wikinvest.com/stock/General_Motors_(GM)/Raw_Materials_Services_Supplies
Due to the extent of external factors and stakeholders, GE best way to confront this challenge is utilizing their own experience and for the most part predicts the exchange of suppliers. This could be achieving by the acquisition and trade of raw materials, suppliers and commodities.
An example of this, GE Supply and Advanced trade of Materials was sold to SABIC, a Saudi government owned company, to offset the losses resulting from the price inflation of raw materials, natural gas, and benzene. (http://www.wikinvest.com/stock/General_Electric_Company_(GE))
References http://en.wikipedia.org/wiki/General_Electric General Electric, May 9, 2005. http://finance.yahoo.com/news/ge-capital-clean-energy-form-140100121.html