Global Organization Environment - Essay Example

? Global Organization Environment-Task3 Introduction Due to the increased and inevitable influences led by globalisation in the world economy, the conception of global marketing has emerged as an utmost concern for the endurance of every organisation in today’s fiercely competitive world (Brady, 2010). Moreover, apart from enlarged globalisation, the varying demographic features of the world population as well as environmental issues also tend to increase the importance of focussing on global marketing by a considerable extent (Oxford University Press, n.d.). In the current day phenomenon, business organisations tend to render increased values towards developing their worldwide organisational environment for the purpose of attaining a substantial market share, increasing productivity, enhancing its business reputation and accomplishing an apparent as well as sustainable competitive position (Harris, 2012). Correspondingly, the organisations initially would have to identify any sort of prevailing environmental issues and then responding them by implementing effectual strategies in order to achieve the expected business objectives (Guardian News and Media Limited, 2012). This particular context can be well identified with reference to the operations of a particular business organization which acquires a significant competitive position in the global scenario. Therefore, in this discussion, the business type of General Electric Company (GE), its scope, purpose and detailed analysis of its key stakeholders will be taken into concern. Moreover, the key external environmental issues, which impose both general and competitive impacts on the organisation, will also be discussed. Various aspects which include the market position as well as segmentation, extent of internationalisation, key opportunities along with challenges or threats faced by the organisation in its recent operations will also be portrayed in the discussion. Type of Organisation and Its Scope General Electric Company (GE) is a US based multinational organisation that performs its operational functions through different business segments which embrace technology infrastructure, worldwide energy and capital finance (General Electric Company, 2012). It is in this context that the organisation tends to introduce and implement its power generation instruments accompanied with various innovative technologies for the purpose of generating electricity for its worldwide customers. The business infrastructure of the organisation can also be identified as assisting it to build as well as to offer the excessive demand of energy, transportation and health to the worldwide business economy. Moreover, apart from the business infrastructures, the financial businesses support the organisation to deliver broad assortment of remarkable products as well as services which ultimately facilitates the commercial business markets and the consumers to construct a better along with a sustainable future (General Electric Company, 2012). The various major products of the organisation include consumer electronics, appliances, electric motors, energy products, wind turbines and electrical distribution. In addition, the other significant products of GE are also used in different business sectors which include aviation, healthcare, locomotives, lighting, and software industries among others (General Electric Company, 2012). It is worth mentioning in this regard that GE electrifies the entire globe by delivering considerable energy related products as well as services in excess of 120 nations. In this similar context, the organisation can attain huge environmental benefits along with solid profitability returns by a greater extent from its own natural gas, coal, nuclear energy and wind technologies (General Electric Company, 2012). The organisation possesses huge scope while performing its different operational functions. This can be witnessed with reference to the piece of information which deliberates that the organisation is currently working in excess of 100 nations throughout the globe where a significant percentage of its revenue is usually derived from outside the US. To be precise, GE obtains a substantial sum of earnings from different regions apart from the US which comprise Northern as well as Southeast Asian, European, Australian, New Zealand, African and Middle Eastern regions. One of the major reasons for accomplishing huge sum of revenues from the aforementioned regions apart from the US are that the organisation supplies innovative as well as cutting-edge technologies to these regions. Moreover, the organisation also provides clean energy along with water solutions for supporting the business organisations of these regions which also contributes in generating an extensive portion of revenues outside the US (General Electric Company, 2012). Purpose of the Organisation and Analysis of its Key Stakeholders The major purposes of the organisation are to improve as well as to raise its growth prospects in the worldwide business market by continuously enhancing the quality of its products from a long run perspective. Furthermore, the other foremost intentions of the organisation have been to control its varied product-lines and thereby accomplish an apparent as well as a sustainable competitive position over its chief business market competitors (General Electric Company, 2012). In order to satisfy the aforementioned vital purposes, the organisation has been constantly introducing as well as developing different GE-wide projects throughout the globe. In this context, it has been viewed that currently the organisation is employing approximately 40 GE-wide assignments which would yield maximum revenues for the company in the upcoming years. Apart from introducing and incessantly developing the GE-wide projects, the organisation also focuses upon the projects which are lined with the development of the new products. These projects are expected to support the company in introducing its different products into the business market rapidly, thereby increasing its growth rate at a rapid rate in the global financial market on the whole. Additionally, the organisation emphasises upon regularly enhancing its various products based on the priorities of its valuable customers which would ultimately support GE to drive competitive position over its chief business market contenders by a considerable extent (General Electric Company, 2012). With regard to the analysis of the key stakeholders of GE can be identified as its working personnel, customers, shareholders and the general public who are identified to be either directly or indirectly affected by the organizational operations. The organisation strongly realises that if the expectations as well as the requirements of the customers, general public and the employees can be satisfied grouping them as primary stakeholders, it is the shareholders who would reap the benefits at large (General Electric Company, 2012). The underpinning rationale for the power or interest of each stakeholder group considered by GE reflects its organizational value that the interests of the individuals, i.e. the employees, general public and customers require, is quite vital to yield long terms sustainability. This is because the individuals would support the organisation to attain its expected business objectives selecting various strategic options which would maintain a balance between organisational development and the interests of the stakeholders at large. It is worth mentioning in this context that due regard to the interests of its primary stakeholders shall enable the organisation to enhance its flexibility towards developing and implementing different strategic plans which would prove to be much beneficial to gain long term productivity and competitive advantages (Brugha & Varvasovszky, 2000). Key External Environmental Issues Impacting the Organisation One of the key external environmental issues impacting the global operations of GE can be considered as its supply chain arrangement networked throughout its international locations, particularly in China. The supplier base of GE in China is considered to be one of its biggest as well as most intensive supply chain networks in terms of recognising various problems or issues. It has been apparently observed that the issue relating to labour standard, particularly in relation to the supply chain system of GE practiced in China, has been impacting its profitability by a considerable extent. With this concern, the organisation, in its Chinese plant, made significant attempts towards conducting periodic audits exactly where issues related to labour management was being observed. The key areas of the issue are mainly focused on the concerns which include environmental permits, occupational health and overtime performed beyond the national permissible limit in China. Assessment of the external environmental scenario further reveals that the labour management issues faced by GE in China were majorly due to the lack of adequate collaboration with its suppliers. However, in order to deal with this crucial issue, GE emphasised upon working more intimately with the suppliers in China and also made periodic audits in the concerned areas relating to the issue (General Electric Company, n.d.). Another important external environmental issue which can be regarded, as both general and competitive, imposing significant impacts upon the competitive presence of the organisation indicates towards its capital allocation and business development strategies by a large extent. In order to mitigate with this major issue, the organisation began investing more particularly in the field of technology as well as research and development. Moreover, the organisation also emphasises upon applying advanced manufacturing skills along with effectively partnering with the different stakeholders with the intention to enhance its community presence along with facilitating its competitive stance in the international context (General Electric Company, 2011). Organisation’s Market Position and Segmentation in 2012 With regard to business market position, it has been viewed that GE started with a record backlog of US$200 billion in the year 2011 which was further anticipated to increase its growth trend in terms of profit as well as earnings in the following fiscal year. The organisation also announced its targeted 2012 first-quarter operating profits as US$3.6 billion which shall be comparatively higher from the first-quarter of the fiscal year 2011 (General Electric Company, 2011). In the similar context, the organisation declared 2012 second-quarter operating profits to be aimed at US$4.0 billion increasing substantially as compared to the second-quarter of the year 2011 which certainly depicts a gradual increase in the performance efficiency of the company (General Electric Company, 2011). However, from a critical perspective, it can be identified that the estimated total revenue of GE amounted to US$11,458 million till the month end of June 2012 which was apparently lower as compared to the month end of June 2011 that amounted to US$12,440 million. Conversely, the total costs and expenditures were also anticipated as US$9,220 million till the month end of June 2012 which was again much lower in comparison with the month end of June 2011 that amounted to US$10.459 million. As can be observed with reference to these figures, it can be stated that the organisation succeeded in minimising its operational expenditures but failed to raise its total revenue over the last two fiscal years (General Electric Company, 2012). The organisation strongly believes that it shall expand its business markets by preserving effective software as well as analytics capability, making significant investments in the worldwide business environment along with building sustainable procedures and performing adequate capital allocation strategies (General Electric Company, 2011). In terms of market segmentation, it has been apparently observed that the business market segments of GE include residential applications, vertical markets, industrial applications and commercial applications as well. From the viewpoint of residential applications, the organisation has been focused on incessantly developing its various products with the motive of complying with the energy requirements of today’s highly demanding housing markets. In relation to industrial applications, the organisation intends to progress its manufacturing procedures in order to deliver effectual product technologies to its valuable customers. With regard to commercial applications, the organisation also intends to introduce different products which comply with the needs of the customers with the motive of expanding its business market in the commercial regions. From the perspective of vertical markets, the organisation provides high quality engineering knowhow as well as standardised products in order to enhance its profitability, reliability, efficiency and most importantly environmental compliance (General Electric Company, 2012). Recently, it has been observed that GE, which possesses broad assortment of quality and valuable products, restructured its various products into four business segments in the year 2012. The business segments fundamentally comprised of GE Technology as well as Energy Infrastructure, GE Capital and GE Healthcare. The business segment of GE Technology Infrastructure comprises of transportation, aviation along with enterprise solutions. Similarly, the business segment of GE Energy Infrastructure encompasses facilities in terms of gas, water, energy and oil supply requirements. Its third segment, i.e. the GE Capital business segment emphasises on regulating its corporate treasury, commercial finance, and industry verticals allocating sufficient resources in the various dimensions of the organizational structure. Finally, the business segment of GE Healthcare tends to offer the services in relation to medical diagnostics and treatments along with systems controlling the functions of patient monitoring and medical imaging (NBC News, 2012). Hence, it can be affirmed that GE acquires a significant competitive position in the international market place owing to the broad network along with its virtues of effective strategic decision making procedures. Extent of the Organization’s Internationalization In relation to the extent of the organisation’s internalisation, it has been observed that GE has been continuously and steadily enlarging its valued presence throughout the globe, especially in its promising business markets. The major reason for GE in order to enlarge or expand its involvement in the international markets fundamentally emphasises towards achieving higher business growth in a sustainable way. It is worth mentioning in this regard that because the international business markets usually bear the potential to offer high growth, GE has been continuously making efforts towards serving its worldwide customers with innovative products and services rendering due consideration towards its stakeholders’ interests to maintain sustainability. For instance, the organisation has been selling its various products as well as working in the emerging markets in excess of 100 nations throughout the globe. Although, its worldwide business expansion emphasising on internationalisation have provided it with the opportunity to achieve high market share as well as revenue, GE also had to face certain inevitable risks when aiming towards a competitive position in the global market. In this similar context, the prevailing rules and guidelines in the international context, which apparently differ from one particular nation to other, can be regarded as a major risk faced by GE. Furthermore, in accordance to the financial statement of the organisation, it can be observed that GE has succeeded to accomplish significant earnings by expanding its presence in the international business markets along with restructuring its most profitable business segments depicting a certain degree of efficiency in terms of global strategic planning (General Electric Company, 2012). Key Opportunities and Threats or Challenges Facing the Organisation The most apparent opportunities prevailing in the current scenario of international business environment of GE can be identified as the comparatively stable growth rate of competition which if accumulated with the strength of the organisation in terms of its market share shall assist in gaining a competitive position. Moreover, it has been viewed that the organisation possesses huge number as well as broad assortment of quality and valuable products and operates in excess of 100 nations throughout the globe which ultimately increases the growth opportunities for the company to satisfy the varying requirements of its wide ranging customer groups. In addition, the excellent management procedure of the organisation has proven effective leadership as well as business model and thus forms the basis of confident investors raising huge capital and thereby, contributing remarkable opportunities for GE. In this similar context, one of the key opportunities that can be obtained by the organisation can be identified as the increased scope for research and development investments. It is in this context that the capital of GE facilitates the organisation to contribute substantial amount in different organizational dimensions, especially in its research and development processes with the intention of enhancing as well as developing its varied product ranges to gain sustainable competencies. The improvement of its assorted product ranges due to the input made in research and development can be further expected to support the organisation in raising new business prospects from a long-run perspective. The business opportunities may include amplified market share, improved profitability as well as business reputation and most importantly gaining an apparent and a sustainable competitive position in this competitive world of the 21st century (General Electric Company, 2012). It is worth mentioning in this context that the aforementioned opportunities can be availed by the organisation with the virtues of its increased geographic growth. In relation to its international operations, the organisation has been taking significant interests to follow the business strategy of internationalisation by expanding its different product ranges worldwide along with performing its various operational functions in the promising markets like China, Japan, India, Malaysia, Indonesia and Thailand among others (Scribd Inc, 2012). Apart from the opportunities, the organisation has also been facing certain crucial threats or challenges which might affect the organisation in terms of its business performance. In this similar context, it has been viewed that the organisation is facing the global challenge or threat of delivering dependable, reasonable, accessible as well as fresh energy products to its valuable customers throughout the world in accumulation with innovative services to preserve its competitive position. Moreover, the organisation is also facing the threat of delivering effective as well as quality healthcare facilities to its valuable customers owing to the rapidly increasing competition and diversification of the segment in the international context (General Electric Company, n.d.). Where on one hand, the rationale for identifying the opportunities can be termed as its attainability or realistic prospects in relation to the organizational strengths; on the other hand, the rationale for recognising the aforementioned threats is owing to the weaknesses of the organisation to deal with the challenges efficiently preserving its competencies and values. Analysis of the Key Challenges facing GE Based on a Scenario In order to cope up with the major challenges of providing reasonable as well as clean energy to its valuable customers as per their demand, the organisation has set certain significant targets. The targets include investing in green research and development in the upcoming years and decreasing emissions generating gases by 25% by the year 2015 which would secure the community interests to a large extent. Moreover, in order to mitigate with the challenge of offering quality healthcare services to its valuable customers, the organisation is incessantly developing different business solutions to manage as well as to organise hospital assets introducing modern and innovative techniques. Besides, the organisation is working with the governmental along with the non-governmental organisations (NGOs) with the purpose of understanding as well as addressing the challenges of treating and managing various diseases (General Electric Company, n.d.). From an overall perspective, in order to mitigate the identified threats and to obtain the opportunities with greater efficiency, the organization has been emphasised on identifying its strengths and weaknesses prior to develop effective strategies which certainly added to its competency and organizational flexibility. Conclusion GE is a kind of organisation which performs its operational functions in several important business segments including the energy sector, financial sector and technology sector among others. It is worth mentioning in this regard that the various strengths of the organisation had ultimately increased its scope to preserve its leading position in this international competitive business market. Correspondingly, its business strategies in relation to internationalisation and restructured business segmentation have supported the organisation to attain its desired business objectives by a considerable extent. Conversely, while performing its business operational functions, the organisation faces certain crucial challenges or threats which might affect its business and operational performances in the long-run. The challenges contain delivering affordable as well as clean energy and also offering effective healthcare to its valuable customers. In order to mitigate or cope up with these major challenges, the organisation has been investing substantially in developing energy as well as healthcare associated projects and most importantly working in alliance with the government of various countries. References Brady, D. L. (2010). Essentials of international marketing. New York: M. E. Sharpe, Inc. Brugha, R., & Varvasovszky, Z. (2000). Stakeholder analysis: a review. 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