vic only

PART I

Question1

GE is seeking to develop a new business in software, and it hired close to a thousand software engineers and data scientists. This group of experts is to ensure that they develop enhanced software. GE believes that the hired workers' analytical skills will be essential in ensuring that the company stays upfront and overcomes competition from information-based companies. This was to be successful through building an international software center that was to be stationed in San Ramon, California. This is because San Ramon was centralized and closer to Silicon Valley, where it was easy for the company to expand, and the culture of the place allowed people to stay closer. The company hired the required software engineering, analytics, and content development skills based on user and scientific data experience.

Question 1 (A)

The latest software unit contribution to the rest of GE is first; to reposition its business. This is an opportunity for the most recent software unit to add more resources and capabilities to improve the performance of critical companies of GE. GE will therefore have a chance to diversify its operations which will lead to sustaining its position in the market. Secondly, the new software unit will contribute to lowering earnings volatility. However, the company will invest more resources which is not suitable for investors since a financial risk will have been created depending on the strength of the new venture.

GE's contribution to the latest software unit: GE will leverage resources towards the new venture. This will ensure that the new software unit operates and competes to provide resources pulled towards it. It will drive GE's market position to overcome the issue of weak buyers and suppliers. Additionally, GE will leverage the entrepreneurial capabilities of the latest software unit. This is made possible through the experience GE has towards marketing in the industry. The most recent software unit's growth relies on GE's capacity to expand its activities to keep up with demand and competition trends.

Question1 (B)

GE is establishing the new software unit to ensure that it has multiple methods for unit valuation. The new software unit will bring its employees together for easier management. This will ensure that procedures and goals set are tailored towards improving the market image of the company. In this task, the new software unit will ensure that negative cash flow is reduced. This is the reason why GE has established the new software unit.

Question 1C

The new software unit is being created to bring the best experts in software development and data analytics together. GE's new software unit will be a successful business venture in the software market. This is because it is not governed through a hierarchy where decision-making is centralized, and resources have been gathered to ensure that success is achieved. For an enterprise to reach global levels, it should execute business decisions effectively and efficiently. Further, the company has hired the best professionals who are equipped with skills to ensure success.

Question 2 A

GE is suffering from poor execution. The company was so confident within its unit management and this negatively affected how the executives ran the company. The units set financial targets that could not be achieved. Again, there were mistimed market bets and poor decisions towards cash deployment. This is because the small teams in the firm were centrally managed. This interferes with the flow of resources and information, which shaped the company so that poor performance was being witnessed. Further, units are likely to conflict, primarily if they operate various ventures within the company's exact name. This shows that there was destructive warfare within the branches instead of competition to improve strategy execution. Diverse experiences do not create opportunities for sharing technologies and practices to develop solutions and development.

Question 2 B

GE was experiencing a fall in its growth, but the economy was growing. The company's executives projected an optimistic figure that projected a successful GE, but the reality was the opposite. The 2018 article projects that GE witnessed a decrease in sales of its products, and it depended on its brand name to make a sale. The company's shares were being traded for $28, and there was a decrease that led to sales of shares being lower than $15. There was share repurchasing done when the fall was discovered, and it was lifted to $30 when Mr. Immelt took over the company within the forts three years. There were some deals like GE Capital which offered loans and brought in revenues. Still, the company acquired gas turbines and entered into agreements for the oil business. All these deals and partnerships led to more profits at their first years of execution. Later, the executives led to their collapse by executing them poorly or not supporting them fully. There was the fight to be at the top in terms of positions but not profits. The company offered discounts to have a higher projection of sales, and this is bad for profits.

Question 2 C

John Flannery is considering breaking the company into separate units to break its current form of management. I encourage him to continue since a multinational company requires that power is capable of decision-making and implementation within its departments. The process of executing the latest business deals and acquisitions should be changed completely. Units that are making profits should be cushioned to further their sales so that revenue continues to flow within the company. There should be careful study of future sales projection that does not depend on discounts but should rely on products' sales at their original price. The company requires new leadership within its smaller units. Flannery should consider changing their style of managing the company to ensure that there is increased cohesiveness within the company.

References

Gordon, W., and Tammy, L.M. (2004). Modern competitive strategy. Fourth edition.

Brad./ P. (2015). Building software start-up inside GE.

Thomas, G., Joan, S.L., and David, B(2018). How Jeffrey Immelt's success theater masked the rot at GE.