Background on GE from the course textbook: Ch. 11 pp. 325-329 (Sections: Centralized Process Innovation at GE & Developing Corporate Infrastructure)
GE in 2015 (original source: http://bit.ly/2LTVVNMLinks to an external site. )
GE in 2018 (original source: http://on.wsj.com/2Cb7nAdLinks to an external site. )
Be sure to support your arguments with evidence from the articles and references to the textbook.
Answers to each of the two questions below should be approximately 1-2 pages each, for a total response of approximately 2-4 pages of text (double-spaced, 12-pt font, 1-inch margins). Supporting items such as spreadsheets, figures, and graphs are encouraged, but not mandatory. (Note that answers which are significantly shorter or longer than the page limit are unlikely to receive full credit; supporting items do not count toward the page limit.)
MUST BE PLAGIARISM FREE*****
[60 points] Based on the 2015 article, how would you evaluate GE’s strategy as it seeks to develop a new business in software?
Specifically, using the categories in the textbook (“Motivations for Diversification,” pp. 289-295), identify the top 1-2 most important contribution(s) from the new software unit to the rest of GE, and the top 1-2 most important contribution(s) from GE to the new software unit.
Next, which of the four tasks of new venture governance (pp. 296-297) is GE prioritizing with respect to its new software business, and do you agree with its choices?
Based on your analysis, do you expect that GE’s strategy of new business development in software will succeed?
[60 points] Moving to 2018, diagnose GE’s problems from the perspective of strategy:
Is GE suffering from a poor strategy (textbook Ch. 2), or poor execution (textbook Ch. 5)? Explain.
As part of your analysis, take a close look at the acquisitions and sales listed in the 2018 article, and evaluate GE’s approach to M&A in the context of its broader strategy.
What advice would you give new CEO John Flannery as he considers breaking up the company in order to separate some of GE’s core units?