|Type of paper:||Essay|
|Categories:||Company Strategic management|
Identify 3 Trends Facing Your Company (10 points)
First, The Corporate strategic objectives are increasingly putting more focus on the Sustainable profitability of the oil and gas. The recent and also the extended downturn in the pricing of oil has highlighted the need for the companies to put in place different plans for sustainable profitability. The profitability of the company is vital in the gas and oil industry, growth in reserves and the production has also been more crucial. The companies in this case GE Company has to formulate objectives that are easy to achieve and also that are meant to make sustainable profitability. The sustainability implies that the costs of production are minimal and less costly and this also applies to other factors of production.
Second, differentiated capabilities of companies will form a critical factor in the future success. In the recent years, the gas and oil sector gets characterized by the diversified and the changing environments, for instance, the production of the unconventional onshore reservoir and frontier exploration in the remote and challenging conditions (Grant 2016). Also, in the recent years, the smaller production and exploration companies with a specific set of capabilities with a focus on efficiency on the costs have managed to outperform and acquire mature assets than the superior companies in the particular areas and segments. The companies should concentrate on their strong areas to be able to maintain their effectiveness in the achievement of their objectives.
Third, increase in the merging of partnerships and new business models. Alliances and the ownership changes are designed to facilitate the company to be able to extract value in the relevant stages of the company life. The evolution of gas and oil changes from one dominated by a specific large company to partnerships and mergers with one particular business model involved in narrower aspects of the operating environment. The connections serve to the capability of a company in the gas and oil sector, for instance, a company will be able to operate a gas and oil field without it getting depleted through the engagement in alliances.
Rate the trends on Urgency and Magnitude (10 points)
The corporate strategic objective is a significant trend, and the magnitude involved in putting the pattern into action is high. The setting of goals strategically serves to ensure that the company on the onset will be able to be profitable and that the profit they make will be sustainable and also long-term. The extent to which this is required is tremendous, and this is to ensure that the company remains afloat and can continue on its competitive trajectory. The objective of every company is to provide growth, and this is made possible by the profit-making of the company that allows it to expand its operations.
The differentiated capability levels of companies' urgency and magnitude are high. The necessity is high, and this is as a result of the stiff competition between companies. Companies that have identified their strong areas efficiently have been able to raise their weak points to be able to compete. The magnitude is high because the failure to differentiate a company means that it does not diversify its operations. Diversification in services implies that the company will improve its different segments to be equally competitive.
Increase in partnerships and the business models is a reasonably substantial endeavor, and the magnitude is also high. The connections are crucial especially in the gas and oil business, for instance, to be able to increase the bargaining power, and this is made possible through pooling together of resources. The urgency for the new models is vital to improving the services, and this will inevitably increase the customer base. The extent to which this is required will be most likely dependent on the market forces about the capabilities of the company for instance for GE company it may not be urgent but for smaller companies may be compelling.
What external threats and opportunities should your company consider? (10 points)
The opportunities are the external strategic factors with the potential and ability to improve the General Electric's company. The chances and initiatives are crucial to ensure sustainability in the GE Company's growth. The opportunities available include; First, Digital technology adoption-based growth. The use of digital technology presents the opportunity to grow the company further (Hill, Jones & Schilling 2014). The external factor presents GE Company with the opportunity to also expand and diversify its business to other fronts where industrial technology use is increasingly required. Second, Renewable energy market growth. It presents the company with the opportunity to grow through the expansion of its renewable energy segment of operation. Third, Growth in the developing markets. New markets correspond with a potential increase in the revenues for the company.
Threats are factors that impose limits or challenges on the GE Company. The SWOT analysis establishes the risks that affect and derail the company's capacity. The risks include; First, Stiff competition. The company faces competition from multinational corporations and large companies considering its diverse operations for instance competition from 3M highly innovative and accessible. Second, Disruption as a result of digital technologies. The threat is as a result of new tools that are more efficient than work to alter the dynamics of the market. Third, Variability in the gas and oil segment. The instability in the sector threatens the revenues for the company.
Section II, Internal Analysis
a. Do an internal scan of strengths and weaknesses.
What are the company's core competencies and key resources and capabilities? (10 points)
The core competencies of the company are the capabilities and resources that serve as a competitive advantage source over the other rivals in the industry. The core competencies make a company distinct and distinguish it competitively. They emerge over time, and this is done through an organized process of learning and accumulating different capabilities and resources (Grant 2016). The criteria to be used to achieve sustainable advantages include Valuable, rare, no substitutable and costly to imitate.
The capabilities of the company. First, brilliant managerial leadership. The core competencies present the company with new markets. The democratic and motivational leadership in GE Company reshaped the company's leadership culture to achieve an innovative culture which differentiates it from other companies. The administration has put more priority on third parties and investors in building their relationships with the customers and loyalty that is a valuable capacity. It is essential for an environment opportunity that meets the sustainability of stakeholders.
Second, human capital. The GE Company, talent management structure, enables change in the infrastructure that disperses the training programs, for instance, GE Branded in the various centers. The employee appraisal and training within the company gets done through the right structure of the organization, proper channel of communication and the system of information technology.
Third, collectiveness of knowledge. The company puts together its human resources in a collective manner in what stays termed collegiality. The ability to put together the different expertise and competencies are crucial to create effective teamwork.
The resources include; First, substantial resources. They are the things that on the hands of a company for instance plant, property, and equipment. They include the essential equipment that the company uses to accomplish its operations and work needs, for instance, financial, physical and technological resources. Second, the intangible resources are the resources that are not touchable for example with the GE Company there is reputation, goodwill, and brand value. The intangible resources can get put into groups for instance innovation resources, human resources, and reputational resources.
How does the company use efficiency, quality, customer responsiveness, and innovation to compete? (10 points)
General electric company boasts a vast success significantly drawn from its efficiency, quality, innovation and customer responsiveness in the delivery of its services. Efficiency gets achieved at general electric with the upheld adoption of advanced energy solutions and technologies. General electric also incorporates solutions such as combined cycle powers and smart grids that help utilities maintain the quality of services besides managing the enormous electricity demand. By embracing technology and its advancements General electric appropriately sustains a quarter of the world's electricity.
Innovation is an essential need that has significantly contributed to the enormous success attained by General electric. It engages the brilliant global minds through open innovation tools that bring forth a massive network of experts and creators with outstanding innovations that eventually enhance the effectiveness and success of the company. When it comes to customer responsiveness, General electric goes beyond just delivering the right products at the right time and to the right customers.
General electric also ensures to provide top customer service to its customers by recognizing and responding to the changing customer needs an aspect that significantly strengthens the customer relations as well as assuring customers of reliability in their services. General electric therefore remains competitive over its competitors over time with its delivery of quality, embracing innovations as well as customer responsiveness that keeps General electric at the top of their competitors.
b. What internal strengths and weaknesses does your company possess? (10 points)
General Electric's management makes use of the advantages of business as a basis to match the capabilities of an organization with strategies and tactics requirements applied in different sections in running of its operations. General Electric has the succeeding strengths; First, Robust research and growth procedures are one of the core competitive rewards of the company. It is crucial because it enables the company to rapidly develop and innovate products that are market driven and also suit the market requirements. Second, Strong brand. The General Electric Company's brand plays an essential role in the company's capabilities to attract and also to retain clients. The brand is a success in the execution of their generic differentiation competitive strategy. The brand remains improved through the processes of research and development that also binds the distinction through integration. Third, Diverse product portfolio. The diversification of the products they offer is an added advantage because it spreads the risks and on the other hand minimize the vulnerability of the business.
The weaknesses are the internal strategic aspects that impose limits and difficulties on the General Electric Company based upon its organization's characteristics. The following are the weaknesses; First, Dependence on raw materials suppliers. It is a significant weakness that affects the company's operations about the business vulnerability to the reduction in the raw materials supply and the vulnerability due to the price of the raw materials for instance transportation, and energy connections are exposed such to market undercurrents. Second, Weak performance in the Asian markets. The weak performance influences its performance globally. It is as a result of the General electric approach to focus on the traditional most significant markets, for ins...
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