The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization.
Companies plan their various and multilevel activities. A company's strategic planning is a row of elements that describe how the company uses its resources concerning its inner and outer environments to reach its objectives. Resources contain financial, human, facilities and technology. Resources are limited that is why they are prioritized at GE to support the company's goals. The positioning and usage of resources includes all elements of the company and develops into strategic decisions of the company.
GE strategic planning objective is to increase its economies and at the same time to apply its advantages concerning company’s clients. There are three basic steps of gaining strategic planning within GE:
The formulating of a major business strategy. This is the basis of efforts to build a serious competitive advantage.
The adaptation of the major business strategy to all the markets where the company’s products are presented.
The globalization of the major business strategy. It means the company has to integrate the strategy in all the places of business operation.
In order to implement all these factors of strategic planning into practice one should make the SWOT analysis. SWOT analysis is a set of major factors - Company’s Strengths, Weaknesses, Opportunities and Threats - for formulating strategic alternatives. The GE SWOT analysis shows its...
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