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General Electric Organization’s vision and mission statement are tailored in a way that can propel the business to industrial development. The vision of the company is to be the world’s leading digital company in the competitive industry. Achieving this requires the company to transform the industry with a software-defined solution which is responsive, connected, and predictive. Subsequently, the customer benefit from the company can execute critical outcomes for them. The mission statement furthers echoes the aspiration of the company to be the major influencer in the industry. It is quite evident from the mission statement that the company aims at inventing and introducing new technologies that can significantly contribute to industrial progress. The main purpose of General Electric Organization is to be the leader in their line of business by doing what has not yet be done. They act as the pacesetter in their industry as they are ready to take risks of moving forward. The company has dedicated its resources to research and development because it is the only that they can stay ahead of their com The General Electric organization structure can be described as the multidivisional organizational structure. In this arrangement, the organization’s management focus is on supporting separate but interconnected departments and operation in different industries. For instance, each of the company’s divisions has a group of officers to execute policies that suit corresponding industries and markets that include the aerospace market and electric lighting market. Doing this enables effective optimization of General Electric diversification and solving specific challenges that emerge in the industry.

Heinz Corporation and Beech-Nut entered into a merger agreement where Heinz was to acquire Beech-Nut’s voting securities at $185 million. Both companies are in the food industry and have their markets shares. Heinz Corporation and Beech-Nut have market shares of 17.4% and 15.1% respectively. The merger was expected to boost their market share and make one company that can become a giant player in the food industry thus competing favorably with Gerber Product Company. However, merging the two companies do not automatically leads to efficiency. If there are no barriers to entry or exit, then other players will interfere with the market (Stiglitz & Rosengard, 2015).

Mergers and acquisition have become common in the business world just like the Heinz’s case. However, these new trends in business do not always undergo a smooth transition due to new emerging challenges. Primarily, most businesses engage in joint venture or acquisition to create value by acquiring new markets, products, or technology. More importantly, creating economies of scale is the core reason for these new practices and establishing the global presence. On the other hand, cultural differences usually make things hard when it comes to management of such entities. This problem has led to the collapse of some global mergers that have taken place as it becomes extremely difficult to incorporate the different culture of the companies (Stiglitz & Rosengard, 2015).

The profit margin for Heinz companies is dropping because of the increased spending on salaries and operating costs. The revenue has remained the same whereas the operating cost has risen due to the incentives that the corporation has to offer to the retailers and customers for them to compete favorably with Gerber. In some cases, the company has to offer a discount to match with their main competitor. As the two corporations increase their market share, the operating cost also increases as the retailers distributing the products must be paid first. The company has failed to control costs because it has no brand loyalty like Gerber which is a giant player. The fixed cost by Heinz and Beech-Nut to promote their products as a way of enticing the customers has made it difficult for the company to control cost. Additionally, the company must pay the retailers for their product to be properly displayed on the shelves and also get a display. Consequently, this increases the operating cost of the two companies which are about to merge. Unfortunately, they must incur this cost for them to survive in the market. The high cost operating is one of the major threats to this new venture (Stiglitz & Rosengard, 2015).

The prices are not properly determined because Heinz does not price against each other. Both companies do not engage in the price competition something that is important in any market. More so, fixed trade spending which comprises pay to stay and slotting fees and other payments to the retailer meant to ensure that the product gets desired display and shelf space does not affect the prices. This is clear indication that prices are not determined in the market. Competition is inevitable in today’s business world. It is important for a business organization to come up with ways to which it can have the competitive advantage for to have an edge. Information about the trends and preferences of consumers is the most important data that can be used by the business

The three main characters of the General Electric corporate structure are business-type division, geographical division, and organizational-wide corporate teams. In the business type division, each subsidiary of the company is considered as operating segment which is a representation of the businesses that the company engages. This primary characteristic helps in prioritizing the needs of the business depending on the market condition. There is also the wide corporate team which is charged with the mandate of implementing the strategies of the whole organization. This helps in making every department or division to be tied to one goal. It is essential to note that corporate teams are a secondary feature in the structure since business-type division is the one that plays a leading role in implementing strategies of the company. Lastly, the geographic division as part of the company’s structure is used in reporting and analyzing business data. In this context, the geographical differences in various markets are put into consideration. For instance, all the General electric’s segments such as the Renewable Energy Segment and Power Segment normally use the same geographic division in organizing business data. However, the geographical division influences minor managerial decision-making in the organization. It is useful in inventory management and location strategy.

General electric company has managed to diversify in the market. The product mix provided by the company provided the much-needed high-quality products that deliver a rare experience to the customers in the market. The product mixes for the company are appliances for business, aviation, energy connections, lighting for business, consumer electronics and digital energy modernization. Moreover, the company has also ventured into oil and gas, mining, personal healthcare, and mining. This range of products and services show how the General electric has broadened their horizon in the market. The company target customers in different industries that include oil, gas, and energy, electric aerospace and other industries that have been mentioned. This shows that the company’s market mix must respond to different market conditions. The market changes and trends also play a critical role in the company’s success in the industry.

General Electric has also gone a notch higher to employ direct marketing as the core tactic of promoting the products and services to the targeted market. The direct marketing as exploited by GE is used to promote digital services and products to practitioners in the health industry and other organizations that need the same services. Moreover, the company has also successfully managed to market directly its aviation products to many airline companies across the world. On the other hand, General Electric advertises the consumer appliances products which are under Lighting Operating Segment. Therefore, the company multiple customers who benefit from many products that it offers. They are not limited to one industry like other companies which may either in the food industry or aviation industry (Drucker, 2017).

Competition is inevitable in any business world, and such companies should strive to have some competitive advantages. For General Electric Organization, their competition is much stiffer than anyone would expect because they deal with different industries. Consequently, this makes them face competition from players in different industries. Competitors of the company include investment banks, commercial banks, leasing companies and financial institutions that deal with the manufacturers. Excellence in design, technological competence and innovation, competitive pricing and high product quality and performance are the critical factors that play a leading role in the competitive market. One of the competitors for the competitor for General Electric company is the Siemens which is also a diversified and successful company. Both companies have structural similarities on the way they manage their inventories in the market. However, General electric has tried to differentiate itself and provide a unique experience in the market. The company has managed to stay one step ahead in the market by constantly innovating and bringing new products. This forces Siemens to respond to the innovation. Subsequently, Siemens only counters the General Electric as opposed to playing a leading role in the industry. Considering that both companies deal with technology, innovation is the only way that an organization can have the upper hand in the industry. Hence there are higher chances that in 10 years to come General Electric Company would have outsold Siemens (Drucker, 2017).

General Electric Company strives to be the leading innovator in their industry. The company is dedicated to ensuring that they update the standard of their products and services to their consumers using the latest available technology. This explains why the company invests massive resources inventions and innovation as they are aware that their competitors are also looking for ways to edge them out of the market. For instance, the company sets aside $300 million to support the innovation and invention in the company.

The General Electric Company has put great emphasis in pushing the limits of science and technology. As captured in their mission, being industrial leaders by using the latest technology is one of their major aspirations. The products provided by the company are aimed at solving some of the toughest challenges that exist in today’s world. The drivers behind this mission are the Global Research Centers where teams of well-qualified personnel have been given the necessary resources to achieve the desired. For instance, since the year 2001, the revenue allocated for research and development has doubled to reach approximately $4.9 billion by the year 2017. The researchers in the station engage with the business partners, suppliers, and customers in providing a real-time solution to the existing problem. The R & D development has been effective as the company managed to reduce the cost generator insulation for their clients by 30 percent (Drucker, 2017). The consumers benefitted from the low cost of the products and services.

References

Drucker, P. F. (2017). The Theory of the Business (Harvard Business Review Classics). Harvard Business Press.

Katzenbach, J. R., & Smith, D. K. (2015). The wisdom of teams: Creating the high-performance organization. Harvard Business Review Press.

Stiglitz, J.E., & Rosengard, J.K (2015). Economics of the Public Sector: Fourth International Student Edition, New York W. W, Nortion & Company.