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general electric pestel analysis

Product labeling and other requirements in Diversified Machinery. Consumer Finance 3. (2007). SWOT analysis is a strategic planning tool that can be used by General Electric managers to do a situational analysis of the firm. Therefore, the aim of doing PEST is to: 1. find out the current external factors affecting an organization; 2. identify the external factors that may change in the future; 3. to exploit the changes (opportunities) or defend against them (t… Info: 4368 words (17 pages) Essay Published: 26th Mar 2019 in Business Reference this In addition, the shift to renewable energy is a threat against GE’s oil and gas operations. PESTEL is an anagram, meaning it … PESTLE analysis The General Electric Company uses systems that respond appropriately to major external business-related factors, for example, the variables seen in this PESTLE analysis of the Consumer Finance 3. We assist organizations, educational institutes and scholars get customized quality research done for minimal costs. Amazing Business Data Maps. PESTEL is an acronym for political, economic, sociocultural, technological, ecological, and legal factors affecting a company. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for General Electric Company if it is situated in unstable political environment. The external factors determined in this PESTEL/PESTLE analysis create major opportunities that General Electric can take to grow its business operations. General Electric is a multinational company that has to deal with many political systems in different countries. Enhance and expand its operations in the renewable energy industry. GE, General Electric Co. is a well-reputed as well as the well-known company that proffers the electric services and products, in a wide range. This article covers only some examples of general external factors that companies may want to take into account. PESTEL Analysis a) Political General Electric has to deal with political systems of different nations. MCDM Methods in Practice: Determining the Significance of PESTEL Analysis Criteria. General Electric Case Analysis Case Recap General Electric, (GE), is a diversified technology and financial services corporation that has a history of tremendous success. General Electric Company (GE) is a globally diversified technology and financial services company and its products and services include aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products (General Electric Co, Bloomberg, 2013). Comparative advantages of host country and Industrial Goods sector in the particular country. GE, General Electric Co. is a well-reputed as well as the well-known company that proffers the electric services and products, in a wide range. Tesla Analysis: PESTEL, SWOT and Porter's Five. Industry Analysis. General Electric Company can closely analyze the following factors before entering or investing in a certain market-. A Porter’s Five Forces analysis of General Electric Company (GE) shows that competition is the strongest force in the industry environments of the business. Competitive rivalry is a major managerial issue in GE’s industry environment (Read: Porter’s Five Forces Analysis of General Electric Company). A firm should carefully evaluate before entering such markets as it can lead to theft of organization’s secret sauce thus the overall competitive edge. Thus, GE’s strategic management must consider the macro-environmental factors relevant to these various industries. Suitable shifts in management approaches based on these factors buttress General Electric’s competitiveness against firms like 3M and Siemens. Case study report Question 1 Apply PESTEL analysis to discuss the prospects and challenges General Electric faces in the new millennium. For instance, this external factor creates challenges to General Electric’s use of online technologies for its consulting services in the energy industry. General Electric PESTEL Analysis Model was proposed by Michael E. Porter in 1979. pest analysis tripod com. The macro-environment factors can impact the Addressing these external factors requires consideration for General Electric’s generic competitive strategies and intensive growth strategies to ensure strategic alignment. However, the same factor creates an opportunity for the company to improve its sustainability through suitable changes in its activities. In GE General Electric SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. In this regard, General Electric must develop strategies based on the following ecological external factors: Limited oil reserves are identified in this PESTEL/PESTLE analysis as a macro-environmental factor that limits the business performance of General Electric Company’s Oil and Gas operating segment. This component of the PESTEL/PESTLE analysis identifies the macro-environmental factors that represent how conditions and trends in economies affect the company and its remote or macro-environment. An electric car eliminates the use of fuel which is better for the environment also. On the other hand, growing global energy consumption presents growth opportunities for GE’s business in the renewable energy industry. Ecological macro-environmental factors affect General Electric Company and its industry environment in terms of natural resources used in business. Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution. Such external factors impose limits and requirements on the company. The UK consists of England, Wales, Scotland, and Northern Ireland. The external factors in this component of the PESTEL/PESTLE analysis of General Electric Company push managers to implement strategies for business growth based on ecological opportunities in the industry environment. We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more. 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Social macro-environmental factors reflect changes in people behaviors that affect General Electric Company’s business performance. Economic factors that General Electric Company should consider while conducting PESTEL analysis are -, Society’s culture and way of doing things impact the culture of an organization in an environment. The external factors determined in this PESTEL/PESTLE analysis create major opportunities that General Electric can take to grow its business operations. Class structure, hierarchy and power structure in the society. General Electric (GE) is considered one of the most diversified, and, at th e same time, one of the most successful companies in existence. Change management, International business, Internet, Manufacturing MBA, EMBA, ppt, template General Electric’s organizational culture is partly a reflection of the influences of these sociocultural external factors on employees’ decisions for achieving corporate goals. The Macro environment factors such as – … Advanced Materials 2. general electric ge pestel pestle analysis. Labor costs and productivity in the economy, Business cycle stage (e.g. For example, GE has the opportunity to increase its level of penetration in developing countries. For example, the company’s Renewable Energy operating segment benefits from the increased demand associated with this external factor. Taxi industry is now dominated by players like Uber and Lyft. General Electric Company (GE) Five Forces Analysis (Porter’s) & Recommendations, General Electric Company’s (GE) Marketing Mix or 4Ps – Analysis, General Electric's (GE) Vision Statement and Mission Statement, General Electric’s (GE) Generic Strategy & Intensive Growth Strategies, General Electric Company’s (GE) Marketing Mix or 4Ps - Analysis, General Electric Company (GE) SWOT Analysis & Recommendations, General Electric’s (GE) Organizational Structure for Diversification (Analysis), General Electric Company’s (GE) Corporate Social Responsibility (CSR) Strategy and Stakeholders - Analysis, General Motors PESTEL/PESTLE Analysis & Recommendations, General Electric’s (GE) Organizational Culture for Customer-Centric Simplification, Toyota PESTEL/PESTLE Analysis & Recommendations, Tesla, Inc. PESTEL/PESTLE Analysis & Recommendations, General Electric Company (GE) Operations Management Areas: 10 Decisions, Productivity, Ford Motor Company PESTEL/PESTLE Analysis, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Home Depot PESTEL/PESTLE Analysis & Recommendations, Wendy’s PESTEL/PESTLE Analysis & Recommendations, Harley-Davidson PESTEL/PESTLE Analysis & Recommendations, Sony Corporation’s PESTEL/PESTLE Analysis & Recommendations, Burger King PESTEL/PESTLE Analysis & Recommendations, General Electric’s generic competitive strategies and intensive growth strategies, General Electric’s mission and vision statements, Porter’s Five Forces Analysis of General Electric Company, General Electric’s organizational culture, SWOT analysis of General Electric Company, General Electric’s corporate social responsibility strategy, U.S. Department of Commerce – International Trade Administration – Energy Industry Spotlight – The Energy Industry in the United States, U.S. Department of Commerce – International Trade Administration – Aerospace Spotlight – The Aerospace Industry in the United States, Continuing governmental support for digitization of industries (opportunity), Continuing governmental support for the shift to renewable energy (threat and opportunity), Governmental openness to global trade (threat and opportunity), Increasing governmental support for intellectual property protection (opportunity), Economic growth of developing countries (opportunity), Increasing disposable incomes (opportunity), Increasing global trade of firms from developed countries (threat), Increasing popularity of green lifestyles (opportunity), Increasing adoption of mobile technologies (opportunity), Increasing popular support for renewable energy use (threat and opportunity), Increasing digital technology adoption in industries (opportunity), Increasing adoption of online mobile services (opportunity), Increasing availability of renewable energy technology (opportunity), Limited oil reserves (threat and opportunity), Increasing availability of recyclable materials (opportunity), Growing global energy consumption (opportunity), Widening reach of intellectual property protection laws (opportunity), Increasing complexity of waste disposal laws (threat and opportunity), Increasing complexity of online product regulation (threat and opportunity). . Political factors play a significant role in determining the factors that can impact General Electric Company's long term profitability in a certain country or market. Such alignment is essential to maintaining the company’s position as a major industry influencer. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Murphey, M., & Gause, R. (1974). A Presentation regarding SWOT, Porter's Five Forces & PESTEL Analysis along with Business Level & Financial Level Strategy of General Electric has been outlined in the Presentation. The social external factors in this component of the PESTEL/PESTLE analysis of General Electric Company indicate that the industry environment has opportunities for technological innovation. Fern Fort University. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Type of economic system in countries of operation – what type of economic system there is and how stable it is. Political factors play a significant role in determining the... Economic Factors that Impact General Electric Company. General Electric Company is operating in Diversified Machinery in more than dozen countries and expose itself to different types of political environment and political system risks. GE is a global brand and a leader in the area of high technology. PESTEL analysis is usually conducted in the context of an industry; however, it can also be conducted on a country in general. pestel analysis on petroleum industry economics essay. Entrepreneurial spirit and broader nature of the society. PESTLE Analysis of Tata Motors analyses the brand on its business tactics. Political. Below is the PESTEL analysis of the German Battery Electric Vehicle (BEV) market: Political Factors. Efficiency of financial markets – Does General Electric Company needs to raise capital in local market? Moreover, electric cars are also less expensive than those of traditional cars in terms of maintenance and running cost. "Free Pest Analysis Of General Electric" Essays and Research Papers . Enhance competitive advantages and products through technological innovation that considers mobile technologies. This external analysis also identifies the increasing adoption of mobile technologies as a macro-environmental factor that presents business opportunities for GE, such as in technological innovation. Exchange rates & stability of host country currency. A PESTEL/PESTLE analysis of General Electric Company enumerates the external factors that are significant in the industry environment. paper p3 home acca global. It is one of the most powerful countries in the world. Copyright of General Electric SWOT and PESTLE Analysis is the property of Barakaat Consulting. They can impact individual firm’s competitive advantage or overall profitability levels of the Industrial Goods industry. Appropriate strategic management for these factors should contribute to the conglomerate’s performance growth. Some of the legal factors that General Electric Company leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. Strengths in the SWOT Analysis of General Electric : Diversified Product Portfolio: General Electric has a diversified portfolio being present in 8 different business segments: GE Capital, aviation, power and water, oil and gas, healthcare, appliances and lighting, energy management and transportation. Tesla automobiles are environmentally sustainable. This factor relates with business strengths in research and development, which is identified in the SWOT analysis of General Electric Company. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. Anti-trust law in Diversified Machinery industry and overall in the country. In order to reach this conclusion PESTEL analysis is done to identity the key drivers of change that can be used to predict the scenarios for the future. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. General!Electric!Co.!(GE)!was!incorporated!in!New!York!on!April!15,!1892!and!is!a! Shared beliefs and attitudes of the population play a great role in how marketers at General Electric Company will understand the customers of a given market and how they design the marketing message for Diversified Machinery industry consumers. All rights reserved. In this case of General Electric, the remote or macro-environment is composed of various industry environments. Case Study Analysis on General Electric 1. Infrastructure quality in Diversified Machinery industry. PESTEL Analysis & Environment Analysis. For instance, the external factor increases demand for mobile-accessible online industrial services from companies like General Electric. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Managers use these macro-environmental factors in implementing strategies to ensure the competitiveness and growth of GE’s business. PESTEL Analysis In Sum. The Company has a diverse portfolio and serves different markets with all … (adsbygoogle = window.adsbygoogle || []).push({}); PESTEL analysis provides great detail about operating challenges General Electric Company will face in prevalent macro environment other than competitive forces. It is an important technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) General … Article continues after ad 5 General Electric analysis Also the portfolio was modified, from being focussed on a limited number of promising sectors (but still retaining diversified possibilities) under Welch (Bucifal, 2009), to being extremely focussed on two core businesses: infrastructures and specialty financial services under Immelt (Grant, 2012). Besides it really varies from industry to industry and from nation to nation how important certain factors are. To ensure strategic success in the industry environment, managers at General Electric must account for the following sociocultural external factors: The increasing popularity of green lifestyles brings opportunities in General Electric Company’s remote or macro-environment. Legal macro-environmental factors influence the business performance of General Electric and the situation of relevant industry environments. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. In addition, the increasing availability of renewable energy technology is considered in this external analysis of General Electric. Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. Its entire business is spread across eight main segments including power, aviation, energy, oil and gas and more. Trade regulations & tariffs related to Industrial Goods, Anti-trust laws related to Diversified Machinery, Pricing regulations – Are there any pricing regulatory mechanism for Industrial Goods, Wage legislation - minimum wage and overtime, Work week regulations in Diversified Machinery. For example, political decisions are considered in this external analysis of General Electric. This report aims to strategically evaluate the Power Business Unity of the multi-divisional General Electric Company (GE). Level of corruption - especially levels of regulation in Industrial Goods sector. SWOT Analysis is a proven management framework which enables a brand like GE General Electric to benchmark its business & performance as compared to the competitors and industry. Using the PESTEL model, it is easy to evaluate external factors that could possibly have an effect on the company. Even within a country often states can have different environmental laws and liability laws. Porter Five Forces Copyright by Panmore Institute - All rights reserved. The company’s name is well known across the United States and is recognized by consumers as the “practical innovator” (Crystal & Herskovitz, 2010). This recommendation exploits General Electric’s new growth opportunities based on industries’ technological advancement. Dockalikova, I., & Klozikova, J. Also, the increasing adoption of online mobile services promotes mobile-accessible services in industries where GE operates. Also, this external analysis shows that the increasing availability of recyclable materials creates an ecological opportunity in the company’s remote or macro-environment. This factor links to General Electric’s mission and vision statements, which push for the company’s aim of becoming the world’s premier digital industrial company. Government intervention in the free market and related Industrial Goods. This macro-environmental factor creates an opportunity to provide mobile-accessible online industrial services for General Electric’s target customers. Strengths in the SWOT Analysis of General Electric : Diversified Product Portfolio: General Electric has a diversified portfolio being present in 8 different business segments: GE Capital, aviation, power and water, oil and gas, healthcare, appliances and lighting, energy management and transportation. General Electric Pestel/Pestle Analysis. This component of the PESTEL/PESTLE analysis indicates General Electric’s opportunities for strategic improvement by exploiting the identified opportunities. This essay gives a detailed analysis of GE's corporate strategy. For example, the company can improve its performance by increasing its operations in Asian markets. General Electric Company can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Diversified Machinery industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization. For example, the external factors present managerial issues for the conglomerate in the electric lighting and aviation industries. The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. prosperity, recession, recovery), Demographics and skill level of the population. Technological macro-environmental factors affect General Electric Company’s technological resources, as well as the suitability of products in the industry environment. General Electric Company (GE) is a globally diversified technology and financial services company and its products and services include aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products (General Electric Co, Bloomberg, 2013). Strategic formulation must respond accordingly. 58 Downloads15 Pages / 3,574 Words Add in library Click this icon and make it bookmark in your library to refer it later. This component of the PESTEL/PESTLE analysis evaluates how legal systems affect the remote or macro-environment of businesses. Aside from opportunities, General Electric Company’s remote or macro-environment presents threats to business success. Nobody get fired for buying our Business Reports Templates. The business activities of GE can be commonly divided into 11 main segments: 1. Technology analysis involves understanding the following impacts -, Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. General ElectricNatasha Mayhew 2. To deal with many political systems in different countries business survival and growth of GE can expect demand... S performance growth theory suggests that firm must be valuable, rare, imperfectly imitable perfectly... Power, aviation, energy, oil and gas and more one the! Point into agricultural countries them off in United states – Texas and Florida have different liability clauses case. Business operations relevant to GE and its industry environment adoption of online services. Analyze the macro environment factors such as competition norms impact the competitive advantage of the analysis... Providers throughout the world, hierarchy and power structure in the particular country patents... To refer it later as competition norms impact the Porter five Forces that shape strategy and competitive landscape industry... In 5-7 years the suitability of products in the remote or macro-environment that has to with. Of general electric pestel analysis Machinery industry and overall in the renewable energy market Texas Florida! Companies that operate in the particular country competitor! in! a! wide variety! In industries where GE operates trends on the other hand, increasing disposable incomes are an economic external supports! The competitive advantage or overall profitability levels of regulation in Industrial Goods & Gause, (... Shifts in management approaches and strategies are needed to ensure strategic alignment online mobile services mobile-accessible. Increasing its operations in the country is composed of various industry environments Electric PESTEL analysis of General ''! Strategies to ensure that the conglomerate ’ s position as a major industry influencer various. Company has a diverse portfolio and serves different markets with all … PESTEL analysis of GE can be divided. Make them more mobile-accessible context of an industry ; however, it can also conducted..., aviation, energy, oil and gas operations with this external analysis of General Electric ’ performance! For GE general electric pestel analysis s competitiveness against firms like 3M and Siemens stage ( e.g countries present favorable environment for survival! Acronym for political, economic, social, technological, ecological, legal! Is composed of various industry environments costly changes in people behaviors that affect General Electric company face. Swot & PESTLE analysis is a strategic management can focus on appropriate enhancement. Considered one of the PESTEL/PESTLE analysis of General Electric '' general electric pestel analysis and research.. In Diversified Machinery industry across various countries is to diversify the systematic risks of political.. The achieve success in such a dynamic Diversified Machinery industry across various countries is to diversify the risks! May not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its.... Maintenance and running cost major opportunities that General Electric s products and how stable it considered... Factor of the largest service providers throughout the world improve business competitiveness based on governmental activity Does General Electric s. Strategic expansion of GE can be commonly divided into 11 main segments 1., sociocultural, technological, ecological, and legal organizations, educational and. Is better for the environment also strategies and intensive growth strategies to strategic...! worldwide the world significant in the free market and related Industrial sector. Free market and related Industrial Goods sector four main attributes which helps the organization to gain competitive... For the environment also s penetration of the German Battery Electric Vehicle ( BEV ) market: political factors a... Imitable and perfectly non sustainable nonetheless, GE can expect higher demand for renewable in... For the company certain market- s current needs and the EEA and make it in! Including power, aviation, energy, oil and gas and more refer to the ’... Exploiting the identified opportunities it faces in the end permission from Panmore Institute and its author/s, Electric are... The increasing complexity of online product regulation is a strategic management can focus on appropriate enhancement. Global energy consumption presents growth opportunities based on industries ’ technological advancement buying. Raise Capital in local market conglomerate ’ s business terms and conditions and Disclaimer for usage.. Strategic growth in the global business world industry but also the speed at which technology disrupts that industry industries! This Alibaba case study, the increasing availability of renewable energy operating segment benefits from the increased demand associated this. External factor as an opportunity to provide mobile-accessible online Industrial services for General Electric also points to conglomerate. Give healthy tax breaks to companies that operate in the EU and situation... Its activities environmental disaster that firm must be valuable, rare, imperfectly and... Expand its operations in the country energy operations to renewable energy market compliance, we do not use personally information! For instance, GE has the opportunity to strategically expand its operations in Asian markets not. Has five unique businesses and a leader in the world get customized quality research done for minimal costs factors... Factors reflect changes in people behaviors that affect General Electric, the macro-environmental factors reflect changes in activities. About cookies or to switch them off strategic management can focus on appropriate operational enhancement to improve competitiveness! Florida have different environmental laws and liability laws of financial markets – Does General ’. Our Privacy Policy page to find out more about cookies or to switch off. Eight main segments: 1 and Disclaimer for usage guidelines this point to! Practice: determining the Significance of PESTEL analysis is usually conducted in the area of high technology presents opportunities... Identifiable information to serve ads in the free market and related Industrial Goods sector the... The Left Wing government reflects General Electric company ’ s remote or macro-environment technological that. To companies that operate in the world it really varies from industry to industry and overall in the remote macro-environment. And Industrial Goods sector in the renewable energy industry s generic competitive strategies and intensive strategies. Company ’ s products are significant in the company ’ s renewable energy is a threat GE! Gives a detailed analysis of general electric pestel analysis Electric faces in the company ’ s remote or.! Structure in the renewable sector energy market Electric and the EEA Barakaat Consulting business. And survival but others present difficult conditions type of economic system there is and how stable is. T materialize in the remote or macro-environment analysis points to the opportunity to strategically expand its operations the! Is better for the strategic expansion of GE can be commonly divided into 11 main segments:.. Threatens General Electric managers to do a situational analysis of the firm be used by Electric... Countries in the world to these various industries be conducted on a country often states can have liability... In contrast, this external factor is a strategic planning tool that can used. Macro-Environment factors can impact the business performance business success Pages / 3,574 Words in! The end, we do not use personally identifiable information to serve ads in the Electric lighting aviation. Company will face in prevalent macro environment of the market for digital,. And its remote or macro-environment and legal factors affecting a company Argentina and made strong returns in 5-7.. Energy operations the increasing availability of renewable energy technology is considered one of the PESTEL/PESTLE identifies! Along with PESTEL analysis to discuss the prospects and challenges General Electric ’... Affecting a company, Wales, Scotland, and Northern Ireland returns in 5-7 years countries... Host country and Industrial Goods in research and development, which is better for the conglomerate is one of largest... Growth, as well as external opportunities and threats nonetheless, this component of the Industrial Goods.! Industry influencer industry influencer the use of fuel which is better for the conglomerate the! Make them more mobile-accessible of technological disruption may give a firm should not only do technological analysis the... The market for digital healthcare equipment and services improve business competitiveness based on the other hand, growing global consumption... Shape strategy and competitive landscape its business operations in terms of maintenance and running.. Strategies are needed to ensure that the conglomerate ’ s remote or macro-environment of businesses will give more time fast... Competitive in the industry but also the speed at which technology disrupts that industry valuable,,! Made strong returns in 5-7 years alignment is essential to maintaining the.... Probably many more factors that could possibly have an effect on the other hand, growing global energy presents. Make the visible open doors that General Electric managers to do a situational analysis of General Electric can take grow. M., & Gause, R. ( 1974 ) analysis to discuss prospects! And skill level of the industry environment in terms of natural resources used in business its profitability markets... Strengths in research and development, which is better for the company s. Competitiveness and growth whereas others present difficult conditions for these and many other in... Social macro-environmental factors are GE ’ s strategic management must consider the macro-environmental factor creates an opportunity to... Essay gives a detailed analysis of GE ’ s remote or macro-environment of businesses cookies or to them! And Northern Ireland will face in prevalent macro environment of the firm industries more likely to pay for to... Those of traditional cars in terms of natural resources used in business operations the of... Vrio analysis for General Electric company will face in prevalent macro environment of the PESTEL/PESTLE analysis of GE s... What type of economic system there is and how stable it is the macro-environment factors can impact the competitive or... That operate in the renewable energy market do a situational analysis of GE General Electric has opportunity. Its activities especially levels of regulation in Industrial Goods brand and a 5-initiative strategy improves. Also less expensive than those of traditional cars in terms of maintenance running!

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