Hafiz Huzaifa Anwar (61723)

Strategic Management
Assignment#03
1) Where did the original impetus for GE’s ecomagination strategy come from? What
does this tell you about strategy making?

The Eco-magination initiative originated from their annual strategic plan review process when
they realized that six of their core businesses were involved with energy and environmental
related project. Such revelation demonstrates the importance of a strategy to any company. 

2) To what extent did GE follow a classic SWOT model when formulating its
ecomagination strategy?

Strengths are internal strategic factors that represent General Electric’s business
capabilities. This component of the SWOT analysis assesses the company’s organizational
abilities and potential. For example, GE’s research and development processes support its rapid
development of products for the aviation market. General Electric’s managers use business
strengths as basis for matching the organization’s capabilities with the requirements of strategies
and tactics applied in various areas of operations. The aims are to have an accurate knowledge of
what the firm can do, and to plan correspondingly. General Electric Company has the following
strengths:

1. Strong research and development processes

2. Strong brand
3. Diverse product portfolio

Strong research and development (R&D) processes are one of General Electric’s main
competitive advantages. This strength enables the company to rapidly innovate and develop
products that suit market demand. For example, GE’s Healthcare segment uses the company’s
research and development processes to introduce technologically advanced equipment for
healthcare professionals and organizations.
 3) GE’s CEO Jeff Immelt often states that “green is green.” What does he mean by
this? Is the ecomagination strategy in the best interests of GE’s stockholders?

The internal strategic factors identified in this SWOT analysis of General Electric reflect
business capabilities that support long-term growth, given current industry conditions. For
example, the company’s strong research and development processes are a time-tested strength
that supports competitive advantage and leadership in various markets. However, GE’s
weaknesses present barriers to achieving long-term dominance in the company’s industries of
operations. For instance, the weak performance of the GE Oil and Gas segment is a barrier for
which solutions are difficult to develop. Nonetheless, the company can address its weak
performance in Asian markets. On the other hand, the external strategic factors identified in this
SWOT analysis create conditions wherein General Electric can grow. For example, the company
can grow through expanded operations in the renewable energy market, despite the instability of
the oil and gas industry. Managers at General Electric must strategically take such opportunities
in the external business environment to counteract the consequences of threats facing the
conglomerate.

4) By most reports, GE’s ecomagination strategy has been successfully implemented.

Why do you think this is the case? What did GE do correctly? What are the key
lessons here?

The internal strategic factors identified in this SWOT analysis of General Electric reflect
business capabilities that support long-term growth, given current industry conditions. For
example, the company’s strong research and development processes are a time-tested strength
that supports competitive advantage and leadership in various markets. However, GE’s
weaknesses present barriers to achieving long-term dominance in the company’s industries of
operations. For instance, the weak performance of the GE Oil and Gas segment is a barrier for
which solutions are difficult to develop. Nonetheless, the company can address its weak
performance in Asian markets. On the other hand, the external strategic factors identified in this
SWOT analysis create conditions wherein General Electric can grow. For example, the company
can grow through expanded operations in the renewable energy market, despite the instability of
the oil and gas industry

5) If GE had not pursued an ecomagination strategy, where do you think it would be

today? Where might it be 10 years from now?

The strengths, weaknesses, opportunities, and threats (SWOT) in this case of General Electric
emphasize the necessity of a strategic approach to grow and expand the business in the face of
rapidly changing industry environments. Managers need to focus on growth and stability that
capitalize on business strengths and opportunities, and develop solutions to protect GE from the
effects of weaknesses and threats. Based on the internal and external strategic factors determined
in this SWOT analysis, it is recommended that General Electric Company:

1. Increase its degree of penetration in developing markets, especially Asian markets.

2. Expand the operations of the GE Renewable Energy segment to take advantage of the growth the
renewable energy market.
3. Gradually diversify to include industries where digitization is significant.

Submitted to:

Dr. Masood Hassan