Conceptual Framework - Global Electric Company - Case Study Example

Bartlett and Ghoshal offer rebuttals regarding the existence of global managers (1). They argue that multinational companies require business managers, country managers, and functional managers to nurture the global profile that is a primary product for such companies. However, those for the debate argue that global management is a service product that oversees the success of multinational companies.

Global Electric Company (G&E)
Global Electric Company (GEC) is a member company of the OITC Group. The company focuses on establishing its operations towards realizing premium Electrical, Lighting, and Heat Tracing solutions worldwide. The company’s operations are sketched alongside the global market. As a member of the OITC Group, the company aims to establish a brand that will be recognized across the globe.

Establishing a reputable name worldwide requires that the company adopt an efficient information-sharing platform. Consumers need to access all the relevant information regarding the company to establish assurance of the products provided. However, GEC acknowledges that global recognition is almost impossible without an efficient management structure. The company’s organizational structure entails country managers, business managers, and functional managers.

As is evident from the organizational structure, GEC has a comprehensive leadership structure stemming from the board of directors to global business, functional, and country managers. The global business managers are deployed in the business development division. They are responsible for establishing new markets, studying the markets, marketing the products in the new markets, and planning major projects. On the other hand, the global country manager is tasked with product development. The country managers are deployed in the commercial and service division and the property development division. In addition, country managers are tasked with building local resources and capabilities to ensure that the products meet the required international standards. The functional managers within the company are tasked with transforming piecemeal information into strategic intelligence. According to the company’s organizational structure, the business and country managers report to the functional managers. The functional manager division of management entails the finance, legal, human resource and administration, and IT department.

Conceptual Framework
Financial Data
GEC reported revenues of $146, 684m, $146, 045m, and $106, 585m in 2012, 2013, and 2014 respectively. The revenues reported are a clear indication of a gap in achieving global recognition. The Earnings per Share (EPS) provides evidence that may distract potential investors from investing in GEC. For example, the company reported an EPS of 0.99 in 2014, 6% lower than the EPS reported in 2012 (0.7). The company has inherent limitations in realizing global recognition.

Recommendations
General Electric Company ought to strengthen its organizational structure with clear-cut operational innovations and inventions. Global managers need to acknowledge customer service as a primary product. The customers are the reason every organization operates. In terms of customer service, the company should focus on product specialization to encompass all the demands in international markets.

The senior executives should strengthen the organizational structure with effective operational strategies to promote product reliability. The company should enhance product reliability by ensuring that there is equitable distribution of products worldwide.
It is through meeting the diverse needs of all customers that the company will enjoy global recognition. Customer satisfaction will boost the level of investment by foreign investors in the company. Customer loyalty will ensure that inventory turnover is maintained, hence, boosting the company’s revenues and earnings per share in the long term. Read More