Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

General Electric

No description
by

Cathy Mengel

on 12 February 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of General Electric

Diversification
General Electrics
by Cathy Mengel I6050066
Table of Content
1. Introduction
2.GE and diversification
2.1. What is GE's current level of diversification?
2.2.Has GE become more or less diversified and why has it been moving in this direction?
2.3. How well does the healthymagination fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
3. Conclusion
4. References
1. Introduction
Corporate-level strategy
Vertical integration
Global strategy
Diversification
1. Introduction
Diversification: variety of products or markets in which to compete
Three types of diversification strategies
Product diversification strategy
Geographic diversification strategy
Product-market diversification strategy
Product diversification categories
Related diversification strategy
Unrelated diversification strategy
2.1. What is GE's current level of diversification?
2.1. What is GE's current level of diversification?
Product range
Appliances
Aviation
Consumer Electronics
Electrical distribution
Electric motors
Energy
Entertainment
Wind turbines
Finance
Gas
Healthcare
Lighting
Locomotives
Oil
Software
Water
2.1. What is GE's current level of diversification?
Product-market diversification strategy
Great product range
Operating in more than 160 countries
2.1. What is GE's current level of diversification?
No linkages between products
Less than 70% of revenues from single business
Standalone business units
Unrelated diversification strategy
2.2. Has GE become more or less diversified and why has it been moving in this direction?
2.2. Has GE become more or less diversified and why has it been moving in this direction?
GE's Timeline

Lighting business-
merger of Edison Electric Light Company and Thomson-Houston Electric Company
1892
1960-2000
GE Commercial Finance
GE Aviation
Radio Corporation of America (RCA)
Computer business
Consumer News and Business Channel
1900-1940
GE Wind Energy
GE Consumer and Industrial
GE Healthcare
NBC Universal
2000-2004
Ecomagination
GE Energy
Healthymagination
2005-2013
Green economy
Electric cars
Solar energy
Wind power
Increased efficiency
Aviation
Healthcare
Future
perspectives
2.2. Has GE become more or less diversified and why has it been moving in this direction?
Why diversification?
Spread risk
Reaction to changes in environment
Internal capital market
Learn from GE Capital
Magnitude of SBUs
Globalization
Technological progress (diffusion of knowledge)
Expansion in growth markets such as China, India and Middle East
GE's Values: curious, passionate, open, energizing and resourceful
Slogan: 'imagination at work'
GE Capital-Tripple A rating
Lower cost of capital
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
Healthymagination
Ecomagination
Increase quality of and access to healthcare while lowering costs
Goal:
Numbers:
Reduce costs of health care by 15%
Increase access and quality by 15%
How:
Improving processes and procedures
Innovations
Goal:
Reduce global warming and make the planet healthier
Numbers:
Reduce global greenhouse gas emission by 1%
Reduce 20% of GE's water consumption
How:
Solar energy, water purification, hybrid locomotives, wind turbines,etc.
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
2.3. How well does the healthymagination initiative fit with GE's resources, capabilities, and core competencies? Where can ecomagination and healthymagination be integrated in the core competence-market matrix?
New market-existing core competence
Future markets
Green economy
Healthcare
Market
Existing core competencies
Diversification
Innovation
Core competencies
3. Conclusion
Great level of diversification
Product-market diversification strategy
Unrelated diversification
Advantages: spread risk, internal capital market, growth markets
Healthymagination fits well with resources, capabilities and core competencies
New initiatives: new market-existing core competence

Questions, remarks, suggestions?
2.1. What is GE's current level of diversification?
4. References
http://www.ge.com/ar2011/#!section=ge-2011-annual-report
http://www.ge.com/sites/default/files/GE_AR11_Summary_of_Op_Segment.pdf
http://www.bizjournals.com/bizjournals/on-numbers/scott-thomas/2012/03/health-care-is-projected-to-be.html
http://marketingmix.org/swot-analysis-of-ge-general-electric-company/
Rothaermel, F. T. (2013). Strategic Management: Concepts and Cases (int. ed.). New York: McGraw-Hill.
http://www.marketingteacher.com/swot/general-electric-swot.html
http://www.ge-energy.com/products_and_services/products/solar_power/
http://www.ge-energy.com/content/multimedia/_files/downloads/ge_energy_solar_technologies.pdf
http://healthymagination.com/progress/
http://www.mnn.com/earth-matters/energy/stories/ge-ecomagination-revenue-up-greenhouse-gas-emissions-down
Full transcript