EntrepreneurshipGE Imagination Breakthrough Q : 1 What is your evaluation of Immelt’s new organic growth strategy? Why change GE’s existing successful strategy? Is it reasonable to expect that a $125 billion global giant can significantly and consistently outperform the underlying economic growth rate? What is your evaluation of Immelt’s new organic growth strategy?
Answer: Immet’s new organic growth strategy is made up of following elements: * Technical Leadership – Immelt identified technology as a key driver of GE’s future growth and emphasized the need to speed up the diffusion of new technologies within GE and turn the corporate R&D into an intellectual house. * Internationalization – GE’s major opportunities for organic growth would be in its overseas operations-particularly in China, India and Europe. * Services Acceleration – Take more of the back room resources and put them in the front room-more sales people, more engineers, and more product designers. Commercial Excellence – Shifting focus from GE’s internal processes to external customer requirements. * Growth Strategy – Build new businesses based on high-growth and high-margin areas that will provide “unstoppable” opportunities and expand GE’s base. * It was long term growth strategy of building internal capacities. * Governing new technology and enter into market where is least competition. * Instead of going for acquisition and paying premium, Immet preferred to build the in-house capability which will result in lower cost. Focus attention to marketplace, on customers & to bring in commercially oriented perspective to its decision making approach. * Driving for growth using new platform, new processes * Aligning management by creating new people profile, generating growth leaders. * Imagination Breakthroughs (IBs) were identified as large projects or business opportunities that had the potential to generate at least $100 million in earnings within 3 years. Why change GE’s existing successful strategy? * Rapidly changing environment & shifting priorities was one of he major reason GE changed its existing strategy. * Earlier GE strategy was not customer focused. * Immelt wanted to use GE’s size and diversity as sources of strength and to drive growth by investing in places and in ways that others could not easily follow. * GE wanted to build new businesses platforms based on technological leadership, commercial excellence and global expansion to gain market leadership. Is it reasonable to expect that a $125 billion global giant can significantly and consistently outperform the underlying economic growth rate?
Answer: Yes, company can outperform the underlying economic growth rate by * Geographically diversified business verticals. * Exploring uncontested market area. * New product development * New technological innovations * Gaining early mover advantage based on innovations. * Being focused & realistic * Going ahead only with viable projects which add to bottom line. ————————————————- Q : 2 Is Immelt betting on the right things to drive growth in GE ?
Can he hope to change a company whose growth was driven by acquisitions and productivity improvement into an organic growth company dependent on innovation, entrepreneurship and risk taking particularly in such a large complex performance driven corporation? Answer: 2a: Yes, Immelt is relying on ‘technological leadership, commercial excellence and global expansion’ to provide “unstoppable” opportunities and expand GE’s business base. He wanted to use GE’s size and diversity as sources of strength and to drive growth by investing in places and in ways that others could not easily follow.
This will help him in * Identifying new business opportunities through IB’s * Quickly adopting to the changing environments * Identifying high growth areas and diversifying * Global expansion of business * Organic growth for patent technology * Cost effective organic growth instead of inorganic growth. * Developing customer centric approach * Becoming business growers rather than being business leaders 2b: Yes, he changed company by initiating following steps * Growth leader concept * Increasing human resources * Experience Commercial Leadership Program * Increased the under resourced marketing staff. Building inter-capability. * Restructuring the organization staff for efficiency * Making company focused towards market / customers. * Technological innovations (IBs) Diversifying into new areas such as oil and gas technology, securities and sensors, water technology, Hispanic broadcasting and consumer finance. Q : 3 How have the Locomotive IB’s been able to survive in the wake of the failure of the AC 6000, the initial difficulty in obtaining orders for EVO, the continual redefinition of the global EVO product and the failure to make hybrid commercially viable ? a: Advantages of Locomotive * Building engine as per strict EPA requirements to be in effect from 1st Jan. 2005 * EVO was also successful because of oil market dynamics & continuous increase in oil prices * EVO’s strengths lied in being the revolutionary engine with patented cooling system to achieve 3% to 5% fuel savings while generating 40% less emissions compared to older models. * Leveraging on the transcontinental rail traffic boom after 2004. * Highly motivated & dynamic marketing team which was successful in capturing national as well as international markets. b: Initial difficulty in obtaining orders for EVO * Unexpected failure of AC6000 in the market has raised the concerns for the GE locomotive EVO as well in the market. * It became very difficult for GE to regain the customer confidence in spite of developing good product. * GE played gamble & took the financial risk of leasing 1st fifty EVO units to customers for a nominal fees. The goal was to regain the customers trust by proving the engines reliability & the value of the technological advancements. As a counter effect of 1st Jan 2005 deadline for emission regulations it was predicted that there would be a spike in demand for old products, leaving little market for EVO in 2005. These old models were in ready inventory and with much better discounts. 3c: Continual redefinition of the global EVO product and the failure to make hybrid commercially viable * Initially GE decided to develop EVO country specific during IB meeting but it was not viable because of low requirements. * Recognizing the international constraints the EVO was also developed as a product concept ‘Global Modular Locomotive’.
Design developed around set of standard components that could be building to different requirements. * GML also helped GE in reducing the response time in international tender processing, reducing the amount spent in non recurring engineering, and reducing the time between order & the sale. * GE was also adaptable to specific international requirements such as Kazakhstan’s condition to transfer the assembly operations to their country. This was a part of GE’s international strategy “In country, for country”.
Doing report sheet1,2 and post lab questions and pre lab questions
Read this carefull,
First doing the report sheet one and two for experimental 8 and use the calculations instructions that will provide in same file
Second doing the post lab questions for experimental 8 depending on the report sheets Last thing doing the pre lab questions for experimental 9
Show steps calculations in each answers for report sheets and post lab questions and pre lab
Show steps calculations for report sheets in each line
Doing the work by typing not hand written Write observation for experimental 8 at the end