Overview of General Healthcare – GE Healthcare
Present a current critical strategic analysis of ONE Business Unit within General Electric You are required to cover the following topics covered in the module:
Resource Audit
Value Systems
Product/Service portfolio (BCG Matrix)
Potential future strategic growth
Identification of options
Evaluation of options.
You may want to focus the analysis on a specific product. This is fine but you will need to make the focus of the analysis clear to the reader.
Strategic Analysis refers to the strategies that an organization can adopt and then implement the same for the future growth and fulfillment of objectives. It means to create strategies for a business organization by creating a research on the business environment in which its operations take place. There are so many benefits of this strategic analysis as there is a lot of competition in the market and it is essential to compete with them. There are different features of strategic analysis- It is a very cheap method and the same has been known as no cost method. It helps in very complex situations of the organization. Basically it identifies all the strengths, weaknesses, opportunities and threats of the organization. It makes an organization very strong in the work it does. This report is all about strategic analysis that has been done on a unit of ‘General Electronics’. The name of the unit is General Healthcare. A critical analysis has been done over the values and strategies of the unit and the products or services it provides to the customers. GE healthcare is doing very well in the healthcare industry and is providing good services to the customers. It is a very customer focused company that wants to provide the best quality solution to the customers. It has also created a very positive as well as productive environment for the employee’s fir their future growth and welfare. It provides different timely training to the employees to bring out Excellency from their work.
GE Healthcare is a much known company for everyone hat is owned by the GE group. It has more than 46000 staff people that are working to provide healthcare services to the patients of 100 countries. Headquarters of the organization is situated in United Kingdom. It is in a good financial condition with a profit of $ 17 billion. It is providing a large number of services by the name of Technologies in medical imaging, solutions for improving performance, diagnostics in medicine and technologies to manufacture biopharmaceuticals. It also provides services related to X-Ray that consists of fluoroscopy, radiography, vascular, cardiology and Mobile C-Arm machine. General Healthcare has six units that portray the big operations areas of the company (Weiss, 2011).
SWOT Analysis of GE Healthcare
Business environment is changing day by day and as per changing environment business strategies needs to be change accordingly. It is important to keep a trace between the environment and the business strategies. Different opportunities and challenges are there that needs to be accepted by the business organization (Mooradian, Matzler and Ring, 2012). It is helpful in getting remain active in the competition There are different opportunities and challenges that GE Healthcare possess. In FY ending Dec 2015, this company has earned a good profit and recorded revenue of $16, 997 million. It is the increased revenue if compare to 2016. Now it has increased its profits by 15%. A SWOT analysis was done to know the strategic position of the company (Bisht, 2010). GE Healthcare has created a good position in the market by introducing its new innovative technologies that no one is providing in the market. It has expanded its business with a very good pace that has created GE Healthcare a market leader. It is working hard to provide some more technological advancement for X-Rays and different diagnostic tests. It has worked only according to the set goals and strategies. The future is unseen but the strategic planning can make your future outcomes more effective and efficient. An analysis has been done by a team by scanning the whole external as well as internal environment of the organization and afterwards the market competitiveness and opportunities are considered. It is very important to know the market condition because the success of the strategic plan totally depends upon the market conditions. There is a proper marketing and sales team that has analyzed the value proposition of the company and the areas to target (Mazza, 2013).
BCG matrix is a very beneficial method or a planning tool that helps in showing the brands portfolio of a strategic business unit of an organization. It consists of two axes- horizontal and vertical. It has been created by Boston Consulting group to conduct an analysis over the strategic position of the company. It has divided the business unit into four parts depends upon the industry effectiveness and competitive stage. These two things are very helpful to calculate the profitability of the business in terms of cash needed to conduct the operation
The four quadrants refers to-
- Stars- Products of GE Healthcare are making a lot of revenues and they are known for high growth and high market share. It is not able to create a good profit in Asian Markets and it usually requires more and more investment to sustain in the competition and to produce a positive cash flow. After sometime, growth of the same becomes slow.
- Cash Cows- It includes the products that contain low growth and a high market share. In the case of GE healthcare, its technological advancement related to health equipment’s is remarkable. It does not need more investment to make it better. They produce a high amount of cash that help in other business units also.
- Question Marks- These are the products that includes low market share and high market growth. They need so many financial resources to increase share as they are not capable of generate sufficient cash for themselves. It is important to find out the question marks that needs to phase out and the ones that concert into stars. There are some services like X-Ray and common test that are also provided by the other competitors. So, it is difficult to make a good profit from it.
- Dogs- It includes the products that provide low growth and low market share. It does not create any profits. The strategies related to Dogs are mostly to divest the same. Sometimes, management takes decision to hold the Dog for some repositioning of the strategies as a Cash cow or question mark.
GE healthcare has created its brand value in a very effective way. It has created a good working set up for the company and the well-being of the employees. This company is providing the best services to the patient in order to help them in curing the diseases. It is one of the best organizations that involved in leadership development. The human resource department of the organization is known for the Excellency of services they provide to the human resources of the organization. They believe in hiring a very strong and knowledgeable workforce that can help them effectively in the achievement of the goals of the organization. They prepare their employees to compete the global needs. It hires employees that possess perfection in the work for which they are hired and best qualified people around the globe. It spends around $100 million on the education and training of their staff members. They believe in providing the best development methods to the employees so that they can complete in the cut throat competition. There are different kinds of trainings that enhance the skills of the employees. The GE healthcare institute also provides some advanced trainings that are beneficial for GHEC employees as well as the customers. They also conduct timely leadership and applications training for the future growth of the employees. There are more than 70 laboratories that consist of the latest equipment. It helps in maintaining the operations on a world class level. They provide instructions to their employees for all the areas of operations and maintenance. There is different training that is included in the curriculum of partnership that basically provides a full range of training programmers. It is known that GE managers are excellent in intelligence and have a lot of strength. There is a challenge for all the organization in reducing the employee turnover as it creates a lot of hassle in providing training related to the organization and the work they do. They maintain a good level of motivation for the employees by providing a very good remuneration and timely benefits that ultimately results in the declining of the profits of the firm (Hellriegel, Slocum and Woodman, 2011).
Market Competition
It is working upon the changing business needs and tries to create different new innovation to sustain in the market competition. This organization knows how to deal with the needs of the business. It continuously focus on setting new standards for the organizational design, management and the research and development areas of the organization as they are the major and important pillars of the organizational growth. It is proved by the organization as it j=has created six different units for the healthcare system to isolate them from each other and concentrate on each of them in an effective way (Ba?c? and Karata?, 2017. This organization is trying to innovate and develop new better solutions for the customers so satisfy their needs (Kreitner and Kinicki, 2013). The culture of this organization also creates a difference in the organization as it ensures the employees to continue innovation and development of new ideas. It basically creates a sense of ownership between the employees and brings new ideas by doing brainstorming. This organization has a global orientation with the different production facilities outside the two countries- UK and US. They have a very big customer base, sales, marketing, IT department, production and a superior brand (DO?AN and ERSOY, 2017). It shows the efficiency of the organization in all of its operations. To create a good standard for financial accountability in the areas of outsourcing and procurements, the decisions are taken by the offices situated at the headquarters (Roosa, 2016). This organization is known to operate within the control of the General Electronics. This brand is famous for its global touch as it has expanded its business in so many countries. This is the main reason for the success of all the strategic planning of the organization. It is doing well in all the areas that are required to get the success (Kim, 2014). GE Healthcare believes in community engagement. It has a culture that defines the high performance related environment. They want to achieve the goals only by respecting the human rights and by doing nothing wrong to the society. They also provide different rewards and recognition to the employees for working hard. They use to give appreciation to employees in order to motivate those (Assen et al., 2009). They also provide extra compensation sometimes for the hard work (Altman, 2013)
An analysis has been done to find out the evaluation of the product/ portfolio mix of GE Healthcare. The competitors of GE healthcare are very strong and according to them they all the same firms can be productive at the same time (Williams, 2013). This situation can be beneficial for the consumers, small competitors and a good substitute product can be launched in the market. Siemens AG Company is giving a very strong competition to GE in all the areas like transportation, medical, lighting and power. There ae two very strong competitors for the company – Siemens and HE healthcare. They are also providing innovative services to the customers (Seth, 2015). Siemens medical solutions are considers as a largest supplier of the equipment related to healthcare (Twyford, 2012). This organization is famous for the innovations and the target of providing full solution to the customers. It never disappoints the customers (Deniz and At??man, 2017). Siemens is a very big organization consists of 440,000 employees working for the customer satisfaction and creating a very strong customer base. &0,000 employees of this organization are located in US despite of the fact that GE healthcare has outdoes the Siemens in healthcare as well as in energy. The competition of Siemens is really very tough and can’t be ignored. Both of the big giant work on a global level. There are some other competitors too but they are not that much harmful. These competitors are Inc. Hitachi Medical Corporation, Nihon Kohden Corporation and FUJIFILM Medical Systems USA.
Evaluation of Portfolio Mix
For doing the analysis on the industry level, Porter five forces model has been used and it has described the effectiveness of the healthcare industry. This industry has been proved as very beneficial from the organization’s point of view. There are many competitors and new entrants that are considered as competitors for GE healthcare. The bargaining power of consumers is also high in this case as they want the best quality product in the lowest prices and it results in a very high bargaining. There is also a threat of substitute product because all the organization is focusing on creating a new product with new technological advancement. GE Healthcare is famous for providing the latest technology solution and also focused on the employee training to make them capable of searching and bringing new innovations. But still, if any other organization can find a better and latest solution then it can be a big threat to the company (Atwood, Merritt and Kalloz, 2016
A critical analysis has been done by assessing the strengths, threats, opportunities and weaknesses of the GE Healthcare that helps n finding out the key future directions for strategic growth. It is important to conduct a proper strategic planning that helps an organization to create a future road map and work according to that (Warner, 2010).
Strengths
- It has a very innovative Research and Development section that helps in producing innovative solutions.
- It is a very broad product portfolio that helps customers for having flexibilities and gets each type of solution at one place.
- It operates in more than one country and has a global customer base too
- It has a very good brand image in the market that creates brand loyalty
- It operates in superior technology (Baaki and Moseley, 2011).
Weaknesses
- It does not have fixed revenues as the revenues for the company keeps on fluctuating due to high competition in the market.
- It has a voluntary product recalls (Organizational Behavior, 2015).
- There are some environmental legal constraints that creates some barriers in operate flexibly.
- There are some FIDA warning letters that has been received by the organization (Editorial Board, 2016).
Opportunities
- There is a growing aged population that automatically helps in increasing the revenues of the organization
- There is a lot of market potential (Shirk, 2011).
- There are some more emerging markets in which the company can operate easily.
- They can launch some new products that can increase the visibility of the organization.
Threats
- There are competitors who are working on the innovation on new technologies
- There is a very strong competitive environment in the industry
- There are some FIDA regulations that needs to be followed
- There is an increase in regulation.
This analysis helped in creating an identification of different factors that shows the business capabilities of GE Healthcare (Steiner, 2014). There are business capabilities that can provide a support for the long term goals of the organization. The company has a very strong research and development department that can support the competitive advantages and can create a leadership position in the market. There is some weakness that creates restriction for GE Healthcare to operate things in its own way. Company has shown a weak performance in the Asian market. It can work upon the sustainability in Asian countries
GE Healthcare is a known organization that is creating good revenues and has a very strong customer base. It needs to focus on the business to achieve the success. It needs to focus on a niche market segment. There is a lot of diversification and a solution of providing high variety of products that can be a good step but it can create a negative impact too. So much of diversification can create a distraction on the focus of the business. It has been analyzed that adoption of new technology can be very helpful to grow the business. There is an importance to focus on the Asian markets. Advertisement options and marketing can help the organization to promote the products and making some announcement. There is an increase in the human right concerns and people also demand for high accountability so it is necessary to get education about human rights and corporate social responsibilit
Employee Development and Positive Working Environment
References
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