PEST Analysis for General Electric - Case Study Example

• Globalization as a political agreement among different nations has promoted free trade among them. This has positively influenced the global growth of the company.Economy• It is a diversified company offering valuable products to the customers• The company has positively benefited from exploiting global-level economies of scale as a result of favourable conditions that exist in different countries in which the country operates.• On a negative note, it can be seen that the economic problems affecting the countries in which the company operates such as downturns are a cause for concern since they affect its operations.

Countries that are experiencing difficult economic conditions such as high inflation and weak currencies often present a major challenge for the organization.• Notwithstanding the fact that the global market is also characterized by competition, it can be noted that this is another economic factor that also impacts its operations. Social-Culture• Welch created the culture of the company in his own image. His philosophy that good leaders create a vision for the company helped him to motivate the management to put an optimum performance in their operations.

This culture has been made possible by uniting different cultural forces across the globe.• The success of the company can also be attributed to its positive stance towards diversity. Any company that fails to take into account the values and culture of the people in the environment in which it operates is bound to fall. However, GE has managed to take a positive approach towards diversity across the whole globe.Technology• It specialises in technology-based businesses such as semiconductors and radio stations.

These products have high demand across the globe and it can be seen that any company that specialises in technical products is likely to attract many customers • Its digitization process such as the use of the internet has also positively contributed to its success.