Discuss the external sources of recruitment. From political to economic and technological there are several kinds of forces that you know as PESTEL forces and affect businesses and their bottom line growth. Apart from tax regimes and trade policies governments are affecting the fortune of businesses and especially the international businesses in several ways. As the economic recession passed and economic activity returned on track, worldwide international businesses enjoyed faster growth and higher sales. GE competes amidst a highly competitive business landscape. Growth through mergers and acquisitions Mergers and acquisitions will also help GE find faster growth. This is partially due to its advertising efforts over the years, specifically in popular culture. The overall threat from substitute products and brands remain moderate. These factors moderate the bargaining power of the customers to some extent but it still remains considerably high. GE has continued to push the line in all these areas to create strong competitive advantage and to generate higher profits. GEs major strength lies in its strong brand image with customers who trust the company to provide them with the most reliable/highest quality products in the industry. Strong financial position Its advanced technologies and a global footprint have helped it maximise the brands financial performance and productivity. Siemens [FWB: SIE] is a Germany-based multinational conglomerate corporation. Other companies in the healthcare segment include Philips, Honeywell International, and Mitsubishi Electric. The company has its presence in more than 70 countries worldwide, with headquarters in Charlotte, North Carolina. Strong backlog By the end of 2017, GE had a record backlog worth $341.3 billion. GE incorporates a mix of demographic, geographic, and psychographic segmentation in its marketing strategies. However, there are several other areas too where GE is changing the world through its advanced technologies like aviation and transportation. Abhijeet has been blogging on educational topics and business research since 2016. As of year end 2017, GE employed 313,000 people together with its consolidated affiliates, out of which 106,000 are employed in US alone. GE operates and competes in five segments; Power & Water, Renewable energy, Aviation, Healthcare, and venture capital. 3M has been concentrating more on the multi-industrial sector, increasing its presence in the Asia-Pacific region. From product quality to safety and environments well as labor there are several laws in each and every area that are creating immense pressure on the businesses and causing a lot of trouble for businesses trying to find flexibility. Now its focus is to manage supply chain rigorously using best in class technologies and reduce the inventory load. Honeywell International Inc. [NASDAQ: HON] is an American multinational conglomerate company that operates as a diversified technology and manufacturing firm. GEs acquisitions are strategically focused on businesses that strengthen its existing product portfolios and increase market share.
Threat of substitute products and brands: The threat of substitute products and brands for General Electrical is moderate which is because of its large size, brand image and capabilities. Falling revenue across certain business segments Except some major technological segments, the brand has seen its revenue falling in several business segments like lighting, power and transportation. Strong presence outside US The brand has managed a strong performance even in the non US markets. GE is present in more than 180 countries today with a workforce of more than 313000 working for it globally. Any competitor who wants to enter the market easily can do so only by going through GEs subsidiaries first. However, 2017 below lower results than its expectations and the brand would need to focus on a few specific areas to reduce the fluctuations across some of its business segments. Friendly political environment and good trade relationships facilitate business growth and profitability. It is one of the largest companies in the world by market capitalization, at $110.18 billion as of September 15th, 2021. Although GE slowed down its acquisition strategy, it remains a major acquirer of companies. Governments and government agencies have grown increasingly aggressive and are now trying stricter controls against businesses worldwide from EU to Asia. The company aims to expand its presence to emerging markets like Gulf Cooperation Council (GCC) countries, African nations, etc., through focused R & D for these regions. Investment in disruptive innovation Innovation is now the norm of the industry and for any and every brand it is important to invest in this areas so as to remain competitive.
This commitment is embedded in our company at every levelfrom high-visibility initiatives such as Ecomagination and healthymagination to day-to-day safety and compliance management around the world, There is a sustainability steering committee at GE that, The bargaining power of buyers has seen significant rise in the 21st century. Its entire business is divided into several segments that have their own business leaders. Declining oil prices, ISIS, terrorism and several other similar geopolitical challenges are pressurising businesses making them look for new markets. Revenue fell across some of these operational segments in 2017 and rose across a few. The brand has continued to perform well despite a fast changing economic, geopolitical and technological scenario. There are several challenges to the growth of GE including rising protectionism. Other areas where it achieved strong financial results were aviation, renewable energy & healthcare. Resources and capabilities of General Electric: Global presence: GE is operating globally across 130 countries. It is one of the top players in this sector, despite its limited presence outside Europe and North America. GE digitals activities are focused on assisting in the market development of our digital product offerings through software design, fulfilment and product management, while also interfacing with our customers. GE has many divisions integrated across the globe. Friendly political environment and good trade relationships facilitate business growth and profitability. What happens in case of most large and global businesses including GE is that the bargaining power of their suppliers remains low and that is because of their smaller size mainly. This has also helped it grow it business a lot, helping it extend its business into new areas.
From its 2021 financial reports, GE achieved a revenue of $78.721 billion, a net income of $-2.809 billion, and total assets valued at $237.559 billion. It has a major presence in energy, transportation, healthcare, and media. Honeywells product portfolio comprises turbochargers and aviation products for transport and general aviation; controls and system solutions for industrial applications; home comfort solutions like thermostats, air purifiers, dehumidifiers, etc.
General Electric (GE) [NYSE: GE] is a multinational conglomerate in everything from oil and gas to aviation and medical equipment. 2016 revenues included gains of $3.1 billion from the sale of GE Appliances business and $0.4 billion from the sale of GE Asset Management. Founded in 1847, Siemens is considered the pioneer of electrical engineering and was largely involved in laying out the nations electrical grid. Environmental awareness has increased rapidly throughout the globe during the recent years leading to framing of laws in this area. Now, more than 60% of the orders at GE are from non US markets. Environmental factors are also a central concern in the context of business. Its segmentation strategy is tailored to focus on specific market segments. Apart from that political stability is also important for business growth and areas where the political situation is unstable, business growth is difficult. Technology: Technology is at the core of GEs business system. However, the overall financial performance has remained consistent for the past several years.
However, GEs competitive advantage lies in its strong and established a foothold in the US market; however, Hitachis digital technologies and smart city solutions will majorly bring it to the top.In the diagnostic and imaging segment, Hitachi controls about 3 percent of the global market share as of 2017. Apart from the effects of acquisitions, dispositions and translational currency exchange, industrial segment organic revenues rose $0.1 billion. Political chaos can result in disruption of business supply lines and distribution network and can in turn affect sales and profits. The companys business strategy has evolved to incorporate a broad range of products and services to fit different market niches. The dollar sums are in millions. While the overall revenue and profits saw a slight decline in 2017 compared to the previous year, the brand has still sustained its financial performance quite well over the last five years. The same strategy does not fit each market/region. Strong differentiation, strong customer relationships, and superior quality products are other advantages over its competitors. More than 60% of its revenue comes from outside US. Apart from production and supply chain, there is a very large investment in acquiring skilled human resources. With its experience in multiple fields, GE can easily get into new segments powered by AI and robotics. Inbound logistics: General Electric has a large supply chain that consists of suppliers from various countries. The company is known for its competitive pricing strategy and provides superior quality products across all segments. It is not just because of the multiplicity of brands selling similar products and services but also for several other factors. Political forces have kept growing in relevance in the business world. However, its presence in the Medical Segment is limited to Thermostats and Air-purifiers. The company has a strong focus on increasing its renewables and green technologies business, likely to accelerate soon. Its total orders for the same period were 20.5 billion Euros with an all-in free cash flow of 2.3 billion euros. It notes on its website, , At GE, sustainability means aligning our business strategy to meet societal needs while minimizing environmental impact and advancing social development. While hes got a strong background in finances, hes prepared to share his experience with money intercept and technology with the world. GE is a strong competitor in its own right; however, it cannot ignore other strong competitors in the current dynamic business landscape. Technological changes are happening at a very fast rate and affecting businesses like never before. Digital Industrial service is an important domain where GE has a leadership status and where it has accumulated a strong backlog of $256.7 billion dollars. GE has continued to grow by investing in new businesses and technologies. Despite being so extensive and successful, GE should not let its size and success undermine its image of a company eager to learn and improve. 9 Billion dollars for 2016 and 2017. Brand image & Equity: Brand image and brand equity that the brand has built are also important capabilities. It has to deal with major competitors in almost every sector. The company trades in the NYSE as Koninklijke Philips N.V. [PHG] and has a market cap of $42.622 billion as of September 16th, 2021. In 2021 alone, GE healthcare made a record 21 acquisitions, including Zionexa, a molecular imaging company based in Paris, France. Its has also got special and advanced capabilities in the area of IT where it is reinventing things and designing new methods of technology implementation inside GE for higher productivity. Otherwise, the overall intensity of competitive rivalry in the industry is very high. the brand is equipped with advanced technological power in many areas including power, transportation, healthcare, oil and gas and renewable energy.
At average it has grown globally at 5% or 10% since 2000. Marketing and sales: GE has also retained heavy focus on marketing and sales and is well known for spending heavily on advertising in past. Answer: GEs main competitive advantage is its diversified product portfolio and strong brand appeal. GEs business model intends to create value by streamlining processes and optimizing value chains to lower costs. Apart from that political stability is also important for business growth and areas where the political situation is unstable, business growth is difficult. It had played a major role in restoring electricity to Iraq. Siemens competes with General electrics in almost every sector. The industrial revenues of GE have remained flat at 114. Based on its capabilities, the brand has built very high level of trust and that facilitates business success. Smart business structure for better management In terms of management and business structure to GE has continued to do very well. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. The company must remain innovative and continue to develop new products and services for the market and ensure quality and reliability. The company employs a massive number of employees, about 174,000 all over the world. The effect of growing net of laws on businesses has grown multiple times. The importance of economic factors can be realised from the fact that economic factors affect the purchasing power of customers directly. During the Trump regime, these relationships might have grown even worse. Like Africa, the brand can increase its presence in Asian countries too to grow its business. Digitalization has led to an increase in the number of consumers. Apart from increased competition, higher awareness and increased concern for quality are also creating pressures in businesses and led to significant growth in the bargaining power of customers. This deep understanding of all aspects of business allows GE to become more effective in its processes, resulting in better products. Corporate revenues and Industrial eliminations declined $3.3 billion mainly driven by lower gains on disposed businesses and higher non-cash held for sale charges. Asian countries including India and China introduced new tax liabilities that have hit both small and big business hard. However, it also competes with many smaller companies in the oil and gas, aviation, infrastructure, power sector. Apart from some of the suppliers that are considerably large and are themselves big brands, most do not exercise any significant cost or are not indispensable for GEs supply chain. Across several business areas, it has continued to invest in building better technological capabilities and based upon its innovative capabilities has brought several game changing products to the market. Moreover, it has a healthy bottom line and it might be worth entering new business segments. The companys key competitor is GE, as it operates across a broad range of industries, including healthcare, aviation, power management, etc. The best thing about it is its strong backlog in services. Apart from that rise of disruptive innovation has also challenged the position of existing big brands. In many other areas too legal pressures are higher including product quality and labor related laws. Philips Electronics [NYSE: PHG] is a Dutch multinational company specializing in healthcare and consumer lifestyle products, with its headquarters in Amsterdam. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. While the situation has constantly remained quite challenging in most of these areas, the brand has continued to perform despite these hurdles and challenges. The business environment all over the world has been challenging due to growing net of legal and regulatory controls. The business is also investing in disruptive innovation for growth. While there are was a decline in performance across some of the business segments the overall scenario looked good. Technology: Technology is at the core of GEs business system. There is a very wide net of laws that does not just raise the compliance related concerns but also cerated other kind of pressures raising operational costs as well as affecting rate of business growth. PESTEL is an acronym for Political, economic, social, technological, environmental and legal. 2017 income included a gain of $1.9 billion from the sale of GEs Water business as well as charges associated with businesses classified as held for sale including the substantial majority of GEs Lighting segment for $0.8 billion and two nonstrategic Aviation businesses for $0.6 billion. From water preservation to low energy consumption and waste minimisation, GE is investing in all these ares to keep its impact on environment minimised. It has not invested much into information technology (IT) or digital technologies so far. From EU to Asia the form of legal framework has changed a lot and unless businesses comply to laws in each and every region, they can face a lot of flak over noncompliance including large fines. Entering new business segments GE has entered some new businesses which have started creating value for its shareholders and investors. Higher pension related liabilities The GE Pension Plan deficit decreased in 2017 primarily due to investment performance, employer contributions and changes in mortality and salary assumptions, partially offset by lower discount rates and the growth in pension liabilities. This also left more space for innovation. This section analyzes GEs competitors by looking at their strategies, core competencies, market presence, financials, and strengths & weaknesses. https://en.wikipedia.org/wiki/Baker_Hughes, https://www.ge.com/investor-relations/sites/default/files/GE_10-K_2017.pdf, https://www.gesustainability.com/how-ge-works/sustainability-at-ge/, https://www.supplychaindive.com/news/ge-reduce-inventory-manage-supply-chain-rigorously/510927/, https://www.hoovers.com/company-information/cs/company-profile.general_electric_company.8e594783fd3e6c6e.html. Overall, the threat from new players remains negligibly low. In 2021, GE ranked 38th on the fortune 500 lists. Apart from investing aggressively in innovative technologies and building technological capabilities, the brands are also aggressively pushing in terms of marketing and customer acquisition as well as customer service. Despite the tough financial year, its debt to equity ratio was 1.69, which shows a strong financial position. Geopolitical changes Geopolitical changes are constantly happening across the globe that are also affecting businesses in various ways. The company has a diversified product portfolio, including lighting products like lamps and lighting solutions for homes and offices, medical scanners such as Magnetic Resonance Imaging (MRI) machines, consumer electronics like headphones/earphones & microphones. Large business portfolio Another major strength of GE is its broad business portfolio. Hitachi has a strong presence in the medical sector as well. GE also invests heavily in R&D which is crucial for any business if a brand wants fast expansion. He graduated with a Hons. Its penetration into digital media and consumer products is also growing at a fast pace. Its presence outside the US has grown. Legal pressures have resulted in higher pressure and less space for innovation. Economic factors too bear a direct relationship with business growth and profitability. All these factors have turned businesses highly aggressive in terms of competition. Its major strength lies in its brand appeal and image with customers, evident from revenues coming through despite the global economy taking a hit. While the situation has been quite challenging industrywide over the past few years, and the brand has kept performing well across many segments. The global businesses had especially felt the pinch very hard.