Analysis of the Background Information
The main research topic of the research paper is “to analyze, evaluate, access and address the current business issues/challenges/problems faced by GE (General Electronic) and propose or suggests specific ways, in-depth diagnosis, workable plan of action and strategies to overcome such business issues and problems. In addition to this, this research topic indicates and suggests that, in the current time of globalization and globalized economy, a number of serious business issues or challenges are faced by the business firms due to their poor business methods, practices and strategies. Along with this, it is analyzed that, these business challenges or issues have negative impact on the overall growth and success of the business firms. These issues are affecting the future visibility of the business firms and minimizing the competitive scope or advantages of the business firms. But, these business issues or challenges could be manage, control and handle by the business firms by adopting specific measures and strategies.
The main purpose/objective/aim of conducting this research paper is to access a wide range of business challenges encountered by the companies and their impact on the total success of the company. In addition, to identify specific, innovative and dynamic business strategies in order to overcome business challenges is the other purpose of the investigation.
This research paper is structured in different parts. The first part of the study is introduction that provides information about the research topic, aims/objectives and structure of the study. The second part of study is analysis that discusses the background information about the selected company and different business issues faced by the company. The next part is recommendations that provide detailed suggestion or plan in order to overcome the business challenges faced by the company. Finally, the last part of the study is conclusion that summarizes overall findings of the entire research paper. In the same way, this research paper would analyze, address and discuss these issue and objectives. Finally, in can be said that, this paper is structured well and in a more dynamic manner in order to effectively address the research problem and attain research objectives in an effective and proper manner.
Basically, General Electric (GE) is known as one of the leading, biggest, fast growing and more profitable American multinational conglomerate corporation that provides and offers a wide range of products as well as services to their customers. The products/services provided by the company are more cost effective, dynamic and innovative as compare to the other companies and competitors in the market. Along with this, it should also be noted down that, GE is also considered one of the trusted, reliable, and reputed corporations in the business world. In addition to this, it is also important to know that, the company operates its business through the different business sectors such as: Power Generation, Household Appliances, Industrial Products, and Water Processing etc (General Electric. 2017).
Recommendations
It was established in the year 1878 by the Thomas A. Edison. Moreover, the company came into the market through the merger among the Edison General Electric Company of Schenectady and Thomson-Houston Electric Company of Lynn. In the current time, the company is one largest in term of market capitalization and number of employees. The company is also operating its business operations across the national boundaries. For example, the company is also working the global market as an industry leader. At the same time, it is also analyzed that, the main focus on the company is to provide more innovative products at the reasonable cost in order to attract and retain customers. Moreover, the company is also using various global and international strategic business methods or strategies in order to compete and achieve competitive advantages in an effective and proper manner (General Electric. 2017).
Apart from this, it is accessed and analyzed that, in the present time, the company is facing a lot of serious issues/challenges/problems that adversely affecting the growth rate, success, market share, individual and organizational productivity. In addition to this, business issues are also dismissing the business opportunities and advantages to the company directly or indirectly. For example, the profit level, market share, revenue level and total sales of the General electronic are continuously decreasing and company is losing its leading market position in the industry (Brezina, 2011). Moreover, the main cause behind this issue is lack of motivation and encouragement among the different level of employee of the company. For case, due to poor communication and low engagement among workers had played a key role in reducing the profit level of the company. This indicates that, the company had faced issue in the market because its different level of employees has failed to fulfill their functions, roles and responsibilities in an effective and proper manner (General Electric. 2017).
On the other hand, the company had failed to motivate and encourage their employees towards the fulfillment of long term and short term objectives of the company. This issue is reflects the poor communication between the employees and top management and results in loss of market position. In addition to this, it is also important to know that, there are several fundamental responsible factors behind these issues that negatively affected the performance of the company at the global level. For example, introduction of new and innovative technologies, tight competition, globalized economy, competitive business environment etc are the major factors that created problems in the front of GE directly or indirectly (Kuanpoth, 2010). Moreover, due to poor global and international business strategies and methods, a wide range of serious issues are encountered by the company that adversely affected the success and growth of the company. For example, due to poor communication, the GE had failed to develop strong relationships with their business partners. The main cause behind this issue is not appropriate international business strategies such as Joint venture, merger, and acquisition. For example, when the company enters into the joint venture with other company in order to grow and expand the business, the company had failed to make successful joint venture and partnership with others (Hill, 2015).
Conclusion
Along with this, it is identified that, the partnership risks and problems faced by the company is due to different management styles, equity and financial consideration, commitment level and setting boundaries. Hence, it can be said that, issues related to developing partnership is the major problem and issue faced by the company in the current time. In addition to this, it is also accessed that, the company GE is also faced the problems related to the tight regulations, business norms and standards of the Europe (Carbaugh, 2008). For example, the company had failed to cope with the Europe’s tight regulations that created various regulatory and legal issues for the company. This is also influenced the marketability, goodwill and profitability of the company in the Europe market (Cullen, and Parboteeah, 2010).
At the same time, it is also found that, the company and its top management is not effectively and properly communicating and interacting with the business partners in order to make joint venture project more successful. Simply, it can be said that, poor communication with the partner is a major problem encountered by the company that affected individual and organizational productivity not only in the national market but also in the global market. In the current time of globalization, each and every business firms wants to expand and grow their business operations through merger, joint venture and acquisition (Baumol, and Blinder, 2010). But, several types of issues are encountered by them when they develop joint venture with the others. In the same way, the GE is also facing the issues related to sharing cost & risks in the joint venture with the business partners (Moses, Moore, Pleasant and Vest, 2011)..
The high cost and potential future risk is affecting the decision of the company and its management. For example, the high cost and risk of the joint venture is creating a lot of business challenges for the company directly. It indicates that the high cost is affecting the profitability of the company and risk is influencing the future visibility of the company. This issue had increased additional and overhead cost for the company and reduces the level of profit, revenue and market share directly. So, it can be said that, the company is encountering the issues with regards to joint venture cost and risks (Mowery, and Macher, 2008). On the other hand, it is also important to know that, GE had also to manage and control their business partners due to imbalance level of different partners. It indicates that, GE is adopting specific methods or strategies or ways to balance the level of business partners in an effective and proper manner. Overall, it can be said that, the company GE is facing several serious issues related to employee motivation, poor communication, poor employee engagement, lack of strategic strategies and business practices (Hill, 2015).
Based on the analysis of issues/problems/challenges faced by GE, it is suggested and recommended that, the company and its management should focus on adopting and executing innovative, specific and dynamic business strategies at the workplace in order to improve its market position. Moreover, they must also focus on enhancing the organizational as well as individual performance through the use of strategic business methods (Cherunilam, 2008). On the other hand, the company should explore innovative methods in order to generate future business opportunities and reduce costs. For example, the management of the company must focus on reducing the overhead costs of the company through the cost effective business strategies. It would also be more valuable for the company to bring innovative method, technology, and strategies within the company to improve its current market passion (Mitrev, and Culpepper, 2012). The top management of the company should motivate and encourage their employee towards the strategic vision and mission of the company. According to this strategy, the company should introduce new and innovative training and development methods that could improve the skills, and knowledge of the employees. In addition to this, the employees of the different level should be involved in the organizational decision making process. This would motivate and encourage the people of the company for the achievements of long and short term goals of the company. Moreover, innovative workplace opportunities should also be provided by the company to their employees so that they can understand their own value in the organization. This will help the company in attaining its long term objectives (Nanda and Kumar, 2012).
Along with this, the management of the company should improve organizational communication process and bring open communication at the workplace. This would assist the company in overcoming the business issues and developing an open and friendly workplace environment. In the same way, they should introduce effective and open communication method or strategies to communicative with their employees effectively. For example, this method would allow the management to effectively communicate and interact with their different level of employee and share common issues (Salvatore, 2011). Moreover, the company could also adopt most innovative and dynamic business strategies in order to deal with the competition, globalization and competitive business economy in an effective and proper manner. Additionally, the company should also improve their focus on using international business strategies and method to deal with the partnership issues effectively. In addition to this, the management of the company should also adopt effective and innovative communication methods to develop strong relation within their business partner. This strategy would help in overcoming the communication gaps and improve the organizational profitability (Thoo, 2013). In addition to this, the company must also focus on using innovative technologies and information systems in order to overcome several commutations related issues in an effective and proper manner.
The top management of GE should understand the management styles of their business partners or other business firms by adopting different leadership and management style. Moreover, they should also understand the financial as well as equity consideration of their business partners in order to create strong relation (Free, 2010). On the other hand, international and global business standards, norms and policies must be adopted in order to perform global business functions in an effective and proper manner. The senior management of the company should also focus on international business strategies such as joint venture, merger and acquisition in order to grow and expand the business (Arnold, 2008). This would help the company in maintaining their leading position in the global market. At the same time, costs and risks should be shared effectively and properly among the partners and company. In the same way, the company should also develop risk management plans to avoid future risks effectively. Overall, it can be said that, the company must adopt and execute best business methods, strategies and ways in order to properly and effectively deal with several serious business issues or problems (Balassa, and Noland, 1989).
Conclusion
On the basis of above discussion, it can be concluded that, GE (General Electronic) is one of the leading and global company that is facing a lot of serious business issues in the market. These issues are not only affecting the business operations of the company but also influencing the market share, profit, revenue and sales level negatively. On the other hand, it can also be summarized that, there are several factors behind these business issues. For case, globalization, tight competition, globalized economy and complicated business environment etc are the major forces that created serious issues and problems in the front of GE. In addition to this, it can be said that, the company must focus on encouraging and motivating their employees or workers in order to improve organizational performance. Along with this, the company and its top management should also use various innovative and dynamic business strategies and method in order to develop strong relation with the business partners. Finally, it can be concluded that, in the current time, it is essential and valuable for the business firms to follow specific methods in order to deal with various types of business challenges.
References
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