Alignment of Business Strategy with Business Environment - Case Study Example

Table of Contents Introduction 2 Issues & Problems 2 Analysis & Evaluation 3 Recommendations 8 Conclusion 8 References 9 Introduction This report looks at analyzing the different issues which GE is facing and the manner in which Jeff Immelt has looked towards developing strategies so that the different objectives can be achieved. The report focuses on three major aspect which is identification of the issues and problems, analysis and evaluation of the problems and providing recommendations so that the overall performance can be improved. This will help GE to work in the right direction and adopt a proper mechanism which is aimed towards developing the business process towards achieving maximum effectiveness. Issues and Problems GE is facing problems which need to be analyzed and strategies have to be developed so that a process which looks towards finding different alternatives can be ensured. Some of the different issues which have been identified to be associated with GE are as One of the issues surrounding GE is that after Jeff Immelt has taken over as CEO the business has being facing turbulent times which has affected the growth and profitability of the business and is an area which needs to be looked at. Since the business is continuously witnessing a change and is moving downwards so it is imperative that appropriate strategies which will look towards is developed The manner in which environmental pollution is rising has increased concerns in that direction. Organizations are required to undertake strategies which will be aimed towards greener and environmental friendly solutions which needs to be undertaken so that better functioning can be carried out. The other issue surrounding GE is the manner in which the business strategy which needs to undergo change has to be inclined with the business environment and business needs. This will require major ramifications and the long term impact of such a decision is unknown and thereby needs to be properly analyzed so that appropriate strategies can be developed based on it Analysis & Evaluation This section will look to evaluate the problem and provide a comprehensive analysis so that the manner in which the business is being impacted can be understood. This will help to develop appropriate strategies and will act as a framework for future development. The analysis and evaluation of different alternatives are as Manner in which Jeff Immelt redirected the strategy of GE Jeff Immelt since taking the role of the CEO in 2001 has brought about major changes in the manner GE works and has transformed their business into new heights. Immelt has been able to transform the business by entering into emerging markets and becoming a pioneer in technological innovation and environmental solutions. GE under his leadership was able to recognize the manner in which the different scope which is available to green technology, investing in technology and cleaner environment were added to the product portfolio. This has thereby helped to bring the required change and provided new opportunity through which business prospect can be developed. In 2005 Immelt started a project Ecomagination which was aimed towards building cleaner energy technology. Since, the entire world was witnessing increased pressure with regard to rising pollution level and controlling those was imperative. Immelt had adopted steps in the same direction and being able to visualize the changes which was required in the future ensured that the organization was ahead in comparison to others and was able to develop and grow its business. In addition to it Immelt aligned their strategy with their business requirements and fostered towards the development of new technology like energy-efficient engines, appliances, locomotives, and wind turbines, solar power, and water-purification systems, and a range of cleaner coal technologies. The development of new appliances and objects which were aimed towards conserving energy and protecting the environment ensured that the overall long term business prospect multiplied. Immelt was able to align the business strategy with the different developments which the business was undertaking. This helped them to provide an opportunity through which better innovative strategies were developed and provided a framework where innovation and aligning the business strategy with the future developments reduced the risk and ensured that long term objectives could be achieved in the best possible manner.. Alignment of Business Strategy with business environment The strategy which Immelt adopted and aligned with the business strategy shows effectiveness in dealing with the different requirements and dealing with the business environment in a positive manner. Since, the world economies were facing increased pressure due to increase in pollution from different activities it required adoption of strategy which was aimed towards dealing with those. Innovativeness on the part of GE to develop new products which provided greener and environmental friendly helped them to understand the needs and requirements of the 21st century. The alignment of business strategy to develop new products which matched with the needs and requirements of the business environment ensured that they were ahead of competitors. The alignment of strategy to deal with the quickly changing business environment and working in a direction which was new ensured that they were able to deal with the different requirements and were thereby able to bring a complete change in the manner in which business works. GE alignment with its strategy and capabilities The alignment of GE strategy towards the business environment also highlights that the different business strategies and capabilities were properly understood. The fact that GE was innovative and came up with greener and environmental solutions brings forward the fact that the business knew its capabilities and being able to use its capabilities in a positive manner ensured better results. It shows that GE was able to use its capabilities and develop strategies based on it. This shows proper alignment between the different resources and the strategies which were developed as they were pioneer in their field and were able to bring about a complete change in the manner different business activities were taken. This process has helped to improve the overall effectiveness and has ensured that the strategies were properly aligned with the business process. Organizational Change that necessitated new strategy The business required to develop new strategies and differentiate themselves from their competitors so that they could create a niche market for their products. Since, GE had undergone turbulent times like the financial crisis of 2008 and even terrorist attack in 2001 it was imperative that to sustain their business and identify the new areas of improvement better measures had to be adopted. This was possible only if GE looked towards being innovative and moving away from the conventional strategy to one where business was able to work according to the changing business environment. The process thereby required that GE makes the changes as the business could have otherwise suffered and to ensure profitability and growth it was important that new strategies were adopted. While adopting new strategies the business also had to look at ensuring that the new strategy which was adopted matched with their business core competencies and aligning those ensured that GE was able to continue on the path of growth and profitability. Will GE be successful in implementing the strategy The changes of GE being successful in implementing the new strategy are high as the business environment and needs are such that it requires business to look towards green and environmental friendly solutions. Since, GE has looked towards adopting the same strategy and aims towards developing its business on the same fundamentals it has thereby ensured and provided the opportunity through which better results will be achieved. The new strategy will also help to pioneer new field of development which will be aimed towards greener and environmental friendly solution thereby helping to protect the environment (Cateora, Mary & Graham, 2009). This will thereby have a long term perspective and will increase the chances of being successful as the results which will be achieved based on it will ensure that GE will be ahead of competition and will be able to bring about a change in the manner different activities and developments are undertaken. Immelt chances of the strategy being successful It is very likely that the strategy which has been adopted by Immelt will be successful as the strategy has been developed keeping in mind the future needs and requirements of the business. This will entail into a situation where GE will be able to transform the different resources and capabilities in a manner through which maximum beneficial results can be obtained. The process will lead towards ensuring that the process will look at dealing with the required and proposed changes. This will help to create a culture where the future needs are properly identified and working on the mechanism through which business potential multiplies will ensure better effectiveness. Further, the development of strategy by Immelt has been based on different dimensions and changes which the business actually requires. This will thereby help to garner a process through which better use of resources would become possible and will ensure that the changes improves the manner in which different activities are carried out thereby ensuring positive signs for the future. Other Alternatives GE to deal with the pressure and constantly declining growth and profit level can also look at cutting down expenses and looking at developing a process which aims towards best use of the resources. The process will require working on different areas and looking towards bringing a complete change so that business prospects can be improved (Brassingto and Pettitt, 2006). It is highly unlikely that such an approach would be taken because it could also result in impacting the manner in which different activities are carried out and would thereby further impact the overall growth and potential for the business. GE can also look towards entering into other markets or marketing aggressively where GE has little presence. This strategy will help them to create a new market and will help to distribute the risk. The process would require looking to develop strategies which will be aimed at maximizing the gains from the use of resources and identifying the different process which will lead towards improved efficiency. This is an opportunity which can be sued but since the world economy has just risen from an economic crisis so implementing such a strategy might not provide the same expected rewards and would lead towards using more resources for the same purposes. GE further can look at downsizing the manpower and looking at alternatives through which they are able to control their business in the present phase. This will help to reduce the cost but would lead towards a negative impact on the society and would thereby have an impact on the overall performance (Czinkota & Ronkainen, 2004). This is an aspect which needs to be considered and looked at so that the dimensions which will help to strengthen the business is looked at. This thereby looks like a highly unlikely situation which GE will undertake and present strategy which has been adopted in one of the best alternatives as it helps to undertake business into different areas by extending the product line and working on dimensions which is required in the changing business environment. Recommendations GE needs to ensure that they change their present business strategy and look at aligning the business strategies which the changing business environment and business goals. This will require properly understanding the business environment and looking at developing different greener and environmental friendly solution so that the level of acceptance increases. This will help to bring about a complete change and will help to identify the different dimensions and areas through which better operational efficiency can be achieved and the business will be carried out in the best way. GE has to look at making major ramifications and developing their business so that they stay ahead of competition and are able to foster an environment where better results can be achieved in the future. Conclusion The report thereby presents the different issues which GE is facing and looks towards providing solutions based on it. It is identified that GE needs to bring about a change in strategy and has to look at greener and environmental solutions which will help them to align the business with the changing environment. This has to be matched by developing business on different lines and looking towards bringing a complete change in the manner different activities are carried out so that future of the business becomes bright and the business is able to work with the same efficiency. References Brassingto, F. and Pettitt, S. 2006. Principles Of Marketing, Fourth Edition. Essex: Pearson Education Limited Czinkota, M.R. & Ronkainen, I. A. 2004. International Marketing, 7th edn. South-WesternPublishing:Australia. Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin: McGraw-Hill. Read More