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Executive Summary

General electric has been one of the growing multinational companies, which has been established by the Thomas Edison in the 1892. Company was established with the origin of the business sectors like electrical power and lighting. Company has over the years expanded to the aviation, healthcare, renewable energy, and many more. Company which has expanded to the 200,000 employees globally has faced the several consequences in the global economy and insights. With the recent challenges, financial decline has been important and required in the cultural transformation. Challenges in the company and change management, has been a growing concern with the company revitalization and the continued success.

Introduction

General Electric Company (GE) is one of the American companies which have been growing since its incorporation in the 1892 and it has expanded from the New York to Boston. General Electric has grown over the years with the distinguishing divisions, such as aerospace, power, renewable energy, digital industry, having the additive manufacturing, along with venture capital and finance. In order to support in the last 2 years, due to the deterioting condition of the General Electric, not only the GE has to sell off most of its business, but GE capital has shrined to the lower levels. The areas include the GE Capital Sponsor Finance being sold off to the Canada Pension Plan Investment Board along with the Sumitomo Mitsui Banking Corporation. As GE underwent restructuring into the 3 companies that primarily focused on the aviation, having the health care along with energy. Company has been divided into the separate units focused on the aviation, health care along with energy. Due to the restructuring GE has divided into the two separate units which are the aviation, health care and energy and experienced declining share prices. In 2023, GE has even spinned off health-care unit and by 2024; GE has sold off energy unit.

PART A

The organisation and its current context environments

Recent change that has been implemented

General Electric Company has identified as to bring in the fortunes, as a result of the growing 2008 financial crises, causing downsizing and restructuring of the efforts. Due to the restructuring, most of the company has experienced the split in the business, which has positioned in the long term growth and creating a better future. General Electric Company has been split in the independent long term growth and to create values, when it comes to the customers, investors and employees. General Electric Company has spinned off its GE Healthcare in 2023, causing the company to only avail 19.9 percent stake. Company has combined on the three divisions including GE Renewable Energy, GE Power, and GE Digital – that would be discarded by the 2024 (Williams, 2023). The main reasons for the General Electric recent changes has been the growing disputes, mismanagement and bad handling of the assets. The company core has remained in the General Electric aviation including the aviation groups. In the three industry leading, focusing on the tailored capital allocation, flexibility including the long term growth and values in the customers, investors, and employees. Strength includes the GE’s including transformation and potential reach out business (Otley, 2019).

Multiple restructurings

General Electric oil and appliances including aircraft hiring leasing in the business including AerCap to focus on reducing debts. Consistently in the GE stock jumped has risen by 5.3% of the trades that has consistently been leading to the increase in the credit watch, downgrading plans including the profitable healthcare wings. GE healthcare has separated from the GE experiencing the less diversification, with the healthcare segment being more resilient (Simons, 2019). In the COVID 19 most of the GE sector, has led to the aviation sector feeling disoriented causing the renewable business, including to the aviation, power and resulted in the renewable business benefit. Strong market positions, including the electricity requirement to focus on the finance, media and computers. GE focus on the strong oriented growth, focused on the aviation revenues (Williams, 2023).

Change implementation and their reasoning for the change

General Electric Company decisions of restructuring were taken by the CEO and Chairman Larry Culp on the October 1st, 2018 as a decision to take on the conglomerate with the Danaher Corporation. Company to focus on the GE’s has been the CEO; s manager in the company, which has resulted in the earning to rise by the $23 billion accounting fraud to write down in the goodwill causing the media division (Mariano-Hernández, et al., 2021).

Rising CEO John Flannery has affected by the 14 months—causing the difficulty period, post the CEOs: Jeff Immelt (16 years) along with the Jack Welch (20 years). Flannery’s in the difficulty period, causing the most of the locomotive performance, as a result of the elimination of the 12,000 jobs during the power division. In the 2018, not only the situation has worsened as a result of the GE announcement of paying $15 bn. by including covering liabilities (Dermer, 2019). Growing dubious accounting suspicion has caused most of the organization disruptions and restructuring problems (Cameron, 2019).

PART B

1. Change warranted and reason for change have merit

The changes warranted in the General Electric, has caused the industrial giants to face the fortunes. Most of the changes in the General Electric have notably seen in the changes orientation when it comes to the core healthcare and energy business (Cameron, 2019). Due to the hard hit 2008 company crises and experiencing the financial problems, most of the downsizing and restructuring the efforts has caused the CEO’s to face the massive debts. In the company the changes are required, in order to independent run business better, position in the long term growth, having the right values and the customers, investors and employees. Company has been affected by the 2023 causing the GE healthcare detainment, with the ideal of the 19.9% stake in the overall system (Williams, 2023). The change required the single business to be divided into the GE Renewable Energy, GE Power and GE Digital. The change required the General Electric management to be focused on the aviation, having the future source in the Boeing and investing in the function. The responsibility was more on the restructuring the finance, management and building on the leadership aviation industries. Growing management, having the new entities, can tailor capital allocation and build on the long term flexibility in the growth and values (Otley, 2019).

2. What were the drivers for change and external and internal environmental conditions

Growing drivers for change has been the changing internal and external factors that have led to the organization getting impacted.

Internal conditions

Company was going through the internal changes that caused several restructuring. First it was the oil and appliance units.

Debt reduction

Recent merger for the aircraft causing the AerCap, in the consistent reducing the debt. In the 2018, it is the attempt to the alleviate in the company’s debt, causing reduction in the debt load of the $75 billion in the end of 2018 and to the 2021 end (Fuertes, et al., 2020). Debt reduction, in restructuring along with the implementation including decentralized in the business model consistent expectations. Through the possible healthcare arm, leads to the segments in the resilient aviation, having the growing the power, along with the renewable businesses benefit large scale operations. In the restructuring the transmission, finance, media and having the computers, including the missteps, failure to the mortgage division and including the WMC in 2004, including the French multinational Alstom in 2015.

Financial crises

Financial overgrown in the 2008 crises has resulted in the subprime mortgage crisis, and has resulted in the risky causes in the commercial real estate. Company experienced financial problems in the 2018, in the 111 years, leading to the growing stock market crashes and leading to the overall impacts. Growing problems in the strong growth in the aviation revenues has led to the growing financial problems, like the lack of restructuring and facing financial probes in the aviation revenues.

Mismanagement

The growing mismanagement has caused the problems of the application in the structured process and it has led to the people feeling the changes to achieve the desired outcomes. The change management as observed in the company for leading the people side of change to achieve a desired outcome. Changing the management, would help to ensure and engage people to change in the day to day work and changing management would lead to the confusions, growing disorientation in the tasks, problems and the mismanagement in the tasks. Growing challenges in the mismanagement problems such as the company four management functions has not caused the company to accomplish mission. Planning in the management process has been complex, but organizing has been the more about the manager who focus on the growing professional insight. Leading and having the controlling can make the General Electric management face the growing structured problems and environment. Functions of the management have led to the growing functions, indicating the continual changes progress. Growing adaptability to the environmental changes has led to the growing repercussion effects leading to the instability and problematic challenges.

External factors

Growing external factors, like the changing manufacturing and distribution costs, rising wages can cause the disruptions globally. Emerging economies can be an added burden and it is important to combine factors, to manufacture expensive and make it less effective. External factors like the competitive edge, having the outsourcing problems, relocation and manufacturing operations, have led to the costing issues (Otley, 2019). The General Electric, has changed the ways to invest in the other parts globally, competed with their new products to compete and win, but has faced the growing customer value propositions (Williams, 2023). In order to regain competitive, delivering customer values, not only the shareholders have faced the growing employee’s literal hand, but also the environment has changed in the entire workforce, that has led to the multiple innovations. Growing competitive edge, having the importance to explore the suppliers, manufacturers, customers can make the General Electric company experience more competitor General Electric can include the flexible financial products. Services to fix the customers globally, having the inventory financing and рrоduсts/sеrvісеs negotiation with the suppliers and investors needs to be fixed (Dermer, 2019). The problems in the dealer’s problems, causing the General electric causing the credit cards, installment loans, facing the dealers and the retailers to face the all sizes. General Electric has the dealer financing, facing the online tools which becomes difficult to coordinate with distributors, suppliers, dealers and handling with the customers with the different financial funds, having the measured proven in the lending approaches. Customer financing has the credit cards, leading solutions that has external stakeholders like the rеtаіlеrs, аssосіаtіоns, balancing with the contractors, manufactures, health care practice to experience a tough time. In the long term credit cards, faced the value propositions, installment loans to the consumers to face the challenges (Pasmore et al., 2019).

3. Change connect to the organization’s expressed vision and mission?

Vision statement -: is Aims to become the transforming and emerging digital industrial company, with machines and solutions, making it responsive and predictive”

Mission “Growing challenges, build globally with the corporate mission and having a business purpose. Experiencing challenges and growing phenomenally with it.

The change in the General Electric has caused the multinational company to experience the growing changes in the management and overall structure. Through adopting the financial decline, having the cultural transformation, growing strategies number has been revitalizing the company efforts.Through adopting the change management systems, which is included the growing implications, strategies implemented and causing the long term result has made the company change its vision and mission (Mariano-Hernández, et al., 2021). Change management has led to the growing complications when it comes to the leadership, cultural aspects, changing managing the on-going relationship. With the recent challenges globally which emerged from the 2018, company started to face the financial decline has been important and required in the cultural transformation. Challenges in the company and change management, has been a growing concern with the company revitalization and the continued success (Pasmore et al., 2019).

4. Key stakeholders of the organization connected to the change

Social Employees, Customers, and Communities. Growing GE problems, holds the stakeholder analysis having the growing impact to the multinational business. Social aspects, impacting stakeholder’s people, has caused the growing human rights, health, and employment. General Electric has been more focused on the employment, health benefits of the customers with the right human interests in the communities. The implications of the GE restructuring have resulted in the stakeholder’s communication which was done through the newsletters, emails and even through the formal media announcements. Though most of the customers, communities and employees have felt disoriented, but GE proper communication channel has helped in the long term orientation (Simons, 2019).

Governance – Investors and Government.

Growing General Electric restructuring problems include the distrust and lack of faith from the investors, which has caused the stocks to crash. Restructuring the business governance, focus on the investors is an important factor when it comes to the management and handling the practices (Fuertes, et al., 2020). When restructuring happens, then most of the investors loses interests, have the lack of the management initiatives and inconsistent to the financial performance (Williams, 2023).

Government and Investors were communicated through the Board of Meetings, publishing annual reports, newsletters, press releases and rising media releases. Restriping has caused the loss of trust from the investors, government and even the communities in which it existed in (Dermer, 2019).

5. Method of change communicated to stakeholders

To the stakeholders the communciaiton happened through the stakeholder analysis are required, in order to independent run business better, position in the long term growth, having the right values and the customers, investors and employees (Pasmore et al., 2019). The change required the single business to be divided into the GE Renewable Energy, GE Power and GE Digital was communicated through the published annual report, media releases, through the company official boart of meeting, investors meetings and communicated through press releases. Most of the employees, custoemrs, vendors, suppleirs, investors and community members were communicated via the emails. The change required the General Electric management to be focused on the aviation, having the future source in the Boeing and investing in the function. The responsibility was more on the restructuring the finance, management and building on the leadership aviation industries. Growing management, having the new entities, can tailor capital allocation and build on the long term flexibility in the growth and values.

6. Proces conceiving, planning and implementing the change

Conceiving

The change in the General Electric has caused the multinational company to experience the growing changes in the management and overall structure. Through adopting the financial decline, having the cultural transformation, growing strategies number has been revitalizing the company efforts.

Planning

Management and important stakeholders have adopted change management systems, which is included the growing implications, strategies implemented and causing the long term result has made the company change its vision and mission (Pasmore et al., 2019). Changing the management, would help to ensure and engage people to change in the day to day work and changing management would lead to the confusions, growing disorientation in the tasks, problems and the mismanagement in the tasks. Growing challenges in the mismanagement problems such as the company four management functions has not caused the company to accomplish mission (Mariano-Hernández, et al., 2021).

 Implementing

Change management has led to the growing complications when it comes to the leadership, cultural aspects, changing managing the on-going relationship. With the recent challenges globally which emerged from the 2018, company started to face the financial decline has been important and required in the cultural transformation. Challenges in the company and change management, has been a growing concern with the company revitalization and the continued success. Planning in the management process has been complex, but organizing has been the more about the manager who focus on the growing professional insight. Leading and having the controlling can make the General Electric management face the growing structured problems and environment. Functions of the management have led to the growing functions, indicating the continual changes progress (Simons, 2019). Growing adaptability to the environmental changes has led to the growing repercussion effects leading to the instability and problematic challenges.

7. Challenges in implementing change

Firstly, company has the reorganization in the business units that has led to the core competences and facing the improved financial performance (Fuertes, et al., 2020).. Company’s growing reporting challenges, having the earnings and overcoming the cash flows has been the biggest challenge in the organization implementation.

Secondly, through growing on the operational excellence, it is the GE that has streamlined in the operations, reduced costs, causing the higher employee engagement and cultures, has led to the better framework. Through the growing operational efficiency, has led to the collaborative and better work environment, which has made the employee satisfaction problems and growing engagement concerns.

Finally, by adopting the cultural transformation, having the vast leadership challenges, made the better successful planning. But the GE; s reputation has been on the stake due to the restructuring, facing the stakeholders confidence (Ansari, 2019). Creating the stronger leadership problems, facing innovation and customer outlook, centric culture has been a growing concern. GE has facing the reputations that has caused the industrial company and recreated the stakeholder confidence.

8. Change successfully embedded and sustained

The growing changing management process has significantly impacted the organization. With the growing financial performances, having the employee financial engagement, culture, it is the stakeholder confidence that has created the overall impacts. Through adopting the reorganization business units, not only the company needs to focus on the core competencies, but also improve financial performances (Simons, 2019). Core strategies, facing significant organization challenges, growing financial problems, having the focus on the employee’s engagement, cultures and build reputation and stakeholder confidence has helped to create a better framework.

9. Lessons in managing organizational change and recommendations

General Electric’s company has been facing the change management that has faced the growing similar challenges. Company’s successful orientation to bring in the change initiatives has been attributed to the vision, strategy, building communication and developing a strong leadership (Mariano-Hernández,et al.,2021). Through creating reorganization business units, most of the operational excellence, cultural aspects, and talent management initiatives have been the problematic issues. Through rebuilding the reputation, stakeholder’s confidence can lead to the business units, growing operational excellence. The lesson learned has been to created cultural transformation, better leadership perspectives and to hold talent within the organization. GE has been able to restructure its business, but it has faced the growing stakeholder confidence and the problematic concern (Ansari, 2019). With the growing role in the leadership, not only GE would drive and support in building the change efforts which cannot be over challenged. Leadership team has faced the lack of direction, vision and company has to face the growing communication challenges. Organization has to aim in aligning with changes when it comes to the committed changes to the growing efforts.

References

Ansari, S. L., & Bell, J. (2019). Symbolism, collectivism and rationality in organisational control. In Management Control Theory (pp. 443-466). Routledge.

Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Dermer, J. D., & Lucas, R. G. (2019). The illusion of managerial control. In Management Control Theory (pp. 383-394). Routledge.

Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R., & Sabattin, J. (2020). Conceptual framework for the strategic management: a literature review—descriptive. Journal of Engineering2020, 1-21.

Mariano-Hernández, D., Hernández-Callejo, L., Zorita-Lamadrid, A., Duque-Pérez, O., & García, F. S. (2021). A review of strategies for building energy management system: Model predictive control, demand side management, optimization, and fault detect & diagnosis. Journal of Building Engineering33, 101692.

Otley, D. T., & Berry, A. J. (2019). Control, organisation and accounting. In Management Control Theory (pp. 101-114). Routledge.

Pasmore, W., Winby, S., Mohrman, S. A., & Vanasse, R. (2019). Reflections: sociotechnical systems design and organization change. Journal of Change Management19(2), 67-85.

Simons, R. (2019). The role of management control systems in creating competitive advantage: new perspectives. In Management Control Theory (pp. 173-194). Routledge.

Williams, D. A., & Wade-Golden, K. C. (2023). The chief diversity officer: Strategy structure, and change management. Taylor & Francis.

Wise, G. (2020). Willis R. Whitney, General Electric and the Origins of US Industrial Research. Plunkett Lake Press.

Wong, Q., Lacombe, M., Keller, R., Joyce, T., & O'Malley, K. (2019). Leading change with ADKAR. Nursing management50(4), 28-35.

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