Strategic Issues
General Electric (Jess Willson)
“A host of external factors influence a firm 's choice of direction and action and, ultimately, its organizational structure and internal processes” (Pearce and Robinson, 2004). These factors are the foundation for the forces and trends research. General Electric is a leader in the technological industry providing new innovation in lighting, medical equipment, power transmissions and industrial products. Their vision statement “imagination at work” tells of how GE is constantly striving to create new and innovative products for their company. There are three outside factors that have an impact on GE which are social, economic and technical.
Social There are more and more utility companies that are providing both electricity and electric related services to try and help their customers decrease their electric bills. These services that are being provided are a benefit to society and include controlling the demand for energy, reducing the emissions of carbon dioxide and trying to slow global warming. The social factors that affect a company “involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethic conditioning”(Pearce and Robinson, 2004). The services that the utility companies are providing are called demand-side management programs or DSM. By using DSM programs, it will reduce the amount of electricity being used by improving the operational and technical efficiency for the consumers. There is a direct load control program that handles the timing of electricity by using control equipment at the consumer’s site or by having pricing options for the electricity that can fluctuate depending on time of use. One way that GE helps their customers is by offering a rebate or a low interest loan to pay for the extra cost of energy efficient actions. GE has also been involved with the market
“A host of external factors influence a firm 's choice of direction and action and, ultimately, its organizational structure and internal processes” (Pearce and Robinson, 2004). These factors are the foundation for the forces and trends research. General Electric is a leader in the technological industry providing new innovation in lighting, medical equipment, power transmissions and industrial products. Their vision statement “imagination at work” tells of how GE is constantly striving to create new and innovative products for their company. There are three outside factors that have an impact on GE which are social, economic and technical.
Social There are more and more utility companies that are providing both electricity and electric related services to try and help their customers decrease their electric bills. These services that are being provided are a benefit to society and include controlling the demand for energy, reducing the emissions of carbon dioxide and trying to slow global warming. The social factors that affect a company “involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment, as developed from cultural, ecological, demographic, religious, educational, and ethic conditioning”(Pearce and Robinson, 2004). The services that the utility companies are providing are called demand-side management programs or DSM. By using DSM programs, it will reduce the amount of electricity being used by improving the operational and technical efficiency for the consumers. There is a direct load control program that handles the timing of electricity by using control equipment at the consumer’s site or by having pricing options for the electricity that can fluctuate depending on time of use. One way that GE helps their customers is by offering a rebate or a low interest loan to pay for the extra cost of energy efficient actions. GE has also been involved with the market
References: Pearce, J. & Robinson, R. (2005). Strategic Management (9th ed.) New York, The McGraw-Hill Companies. Retrieved March 30th from, http://www.ge.com/company/history/research.html