GeneralElectric Company

Universityof Affiliation

GeneralElectric Company


Ifa person wants to increase their organization’s potential energy,he or she must commence with determining the elements of business asan initial step to improvement through the potential energymethodology. Wasting time on the elements that are less essential isnot good for business. The crucial business element is the one thathas a significant potential energy, and the manager can transform itinto an energy that would propel the organization to the highway ofsuccess. Some of the important General Electric elements (GE) areenvironment, management structure, operational issues, and financialmatters.


Organizationalenvironment is the combination of internal and external factors thatinfluence the operation situation of a given business. GE is one ofthe top business organizations in the world that is impacted by theirenvironments. The essay is going to tackle three principal GEenvironments that include legal, social, and economic environments.The paper will also identify the effects of potential change factorsthat include the role of technology.


TheUS government and some international laws govern the GE’s legalenvironment where such an organization has opened its branches. Thelegal environment includes the rules on consumer protection laws andwhat the organization can produce or sell to employee. In the lawsthat govern the production or sales, some GE products such asexplosives, dangerous electric products, and manufacturing oflow-quality goods are prohibited. In some GE branches, maliciousenvironmental aerosol cans that contain CFCs are banned. In theconsumer protection law, GE Company ensures that its customers aretreated fair regarding the regulation of measurements and weights ofits products.


GECompany, like any other business, does not operate alone in theindustry. As usual, the organization’s actions have theconsequences that echo and seep into the society. GE Inc. has appliedthe Corporate Social Responsibility (CSR) as a form of regulation inits business model. CSR acts as a built-in and regulating mechanismthat enables the business supervise and ascertain its compliance withthe indomitable spirit of law, international norms, and ethicalstandards. The reason for the GE using the CSR policy is due to theshort-term goal of embracing the responsibility for the company’sactivities. CSR also encourages a positive attitude towards itsactions on the environment (Stares,2006).


EconomicEnvironment comprises of all economic factors that have a bearing onthe business operation. GE Inc. leans upon the economic environmentfor the required inputs like plastics and steel to make cables. Italso depends on such environment to sell its final products.Instinctively, the dependence of the company on the economicenvironment is total because business is one of the units of theeconomy. Price and distribution control is one of the factors thatentail the economic environment of the GE Inc. and affect itsactivities.

ManagementStructure of GE

ManagementStructure (MS) is an organization of the pecking order of theauthority that defines the communication channels and accountabilitywithin the company and its environment. GE Company has a peculiar MSdue to its operation that defines the responsibility flow within thecompany. GE’s MS coherently outlines the role of the top managerialteam that consists of Mar Hutchinson (GE’s CEO) whoseresponsibility is to control all the activities taking place in theorganization. Victor Abate is the GE’s Chief Technological Officerwhose role is to supervise more than 50,000 engineers and GE’sGlobal Network Research Center (GEGNC). More than seventy GEdirectors from various branches all over the world take themanagerial roles.

OperationalIssues of GE

Uncertaintyis one of the GE’s operational issues. Such company, especially itsleaders, finds discomfort in uncertainty. Uncertainty in how newrules and regulation affect GE’s business, uncertainty of thecredit market, uncertainty about what its competitors are doing, anduncertainty about how the new technology would impact the business.Uncertainty has made GE focus on its short-term activities. GE shiesaway from the long-term planning and runs to short-term outcomes,with uncertainty being the primary pretext. Globalization is anotherGE’s operational issue. According to its CEO, Mr. Hutchinson, thechallenge of globalization is the top GE concern. He wants tounderstand the foreign cultures to enable the GE Company to penetratethe new markets. Government Policy and Regulations, diversity andcomplexity of the business are also other operational issues facingGE Inc.

FinancialIssues of GE Company

Cashflow is one of the financial issues facing GE Company. Getting thecustomers and clients who pay in such a way that keeps the companyafloat is critical to GE’s financial health. However, its topmanagerial team has tried to develop real collection methods and setunequivocal methods of payment to avoid such challenge. The legalchallenge is another GE’s financial issue. GE was sued over theproduction of low-quality products in 2000, which led to the closureof some of its branches. Other financial issues facing GE Companyinclude growing pains, over-expansion, and the economic cycle.

Impactof Potential Change Factors

Someof the potential change factors in the GE Company includecompetition, technology, desire for growth, government regulation,and the necessity to improve the processes. Such factors have asignificant impact on GE Inc. regarding its production and sellingstrategies. Some of the impacts of potential change factors includeclear knowledge of the competitors’ strategies by the GE’s CEO,understanding of the economy, and comprehension of the technologicaltrajectories.


Stares,R. (2006).&nbspThe Limited: A review of the company`srelationship with South Africa.London: Christian Concern for Southern Africa.