Pestle Analysis And Pestel Analysis Of General Electric

Nature of organizations environment and does it fit with the structure

Business organizations can react to the change in the external environement by changing their internal environment. This is done by grasping the external opportunities and facing external environmental threats. It’s very important for the manager to analyze the business environment so that an effective business strategy can be pursued. This can be done by SWOT and PESTEL analysis.

PESTEL Analysis a) Political

General Electric has to deal with political systems of different nations. Some of the countries present favorable environment for business survival and growth whereas others present difficult conditions. In countries like the US, Government intervention is minimal

In countries which General Electric has ventured into, the company is faced by different social-cultural challenges which influence its corporate culture to a very large extent. The culture in a particular country determines the working hours, employment policies, procedures for appointing managers and the type of goods to be produced.

d) Technology

Technology in the modern world is advancing at an enormous pace. Innovative products are always being introduced using more advanced technology each day. Older technology is therefore getting outdated at a very high rate across all sectors in the economy. Aimed at outdoing competitors, many companies have turned to innovation, research and development which have brought about improved levels of technology. The rate of technology advancement globally varies with each country that General Electric has invested in as they vary in terms of resources available. Among the countries with the highest rate of technology advancement are United States and Japan which General Electric has ventured into.

SWOT Analysis of General Electric

The documentary named 'deadly deception' aired in 1991 displayed GE as a threat to human life for participating in testing and building of nuclear weapons

GE has a number of strengths that work to its advantage by enhancing profitability. Its global recognition, strengths and competitiveness put GE at a favorable position as compared to other companies in the same sector. The use of business units for management presents an effective way to manage the company which promoted accountability and decision making among business unit managers. The profitability is enhanced by the mergers and acquisitions that have diversified the company's product range and in turn leading to improvement on profits incurred. Various threats and weaknesses threaten the performance of the company by presenting constraints on the company's management. High levels of competition, financial crises and threat of information loss are a threat to the company’s survival. Weaknesses within the company including the poor productivity of the energy sector and flexibility threat could impact negatively on the company. To reduce the impact of threats and weaknesses, the company could use the strengths and opportunities to mitigate them. The efficient management can also be used to prevent loss of data through implementing proper control measures