A Strategic Analysis of GE Healthcare Essay

GE Healthc be is a building block of the wider common electric Company. It has a global orientation, employing more(prenominal) than 46, 000 faculty committed to serving health c atomic number 18 professionals and patients in over 100 countries. It is headquartered in the United Kingdom (UK)-the starting time GE business segment outside the United States. It has a turnover rate of approximately $ 17 billion. The headquarters hosts GE health c are corporate offices as well as finance, sales, global sourcing departments, X-Ray marketing, manu accompanimenturing, design and shipping. The finance and sales departments at the headquarters handle GE healthcares utmost level decisions, but each modality often has its own interchangeable departments. The global sourcing department handles all purchasing for the unshakable. GE Healthcare provides a variety of products suffices namely Technologies in medical imaging, diagnostics in medicine, systems for monitoring patients, solut ions for improving performance, discovering drugs, and technologies to manufacture biopharmaceuticals.It also provides X-Ray products which include radiography, fluoroscopy, vascular, cardiology, and the spry C-Arm machine. At present, GE Healthcare has six major business units orbicular Diagnostic Imaging Unit with its headquarters in the US, its business includes digital mammography, X-ray services, Magnetic Resonance, Computed Tomography and technologies in Molecular Imaging. Integrated IT Solutions (IITS). alike headquartered in Barrington USA, IITS oblations solutions in clinical and monetary information technologies, such as IT Products and service for departments, systems for picture Archiving and Communications, Information System solutions in Radiology and cardiovascular in addition to practices and systems for managing revenue cycles.Medical Diagnostics Business Unit. This is headquartered in USA and its business includes investigatees in Medical Diagnostics, manufact uring and marketing imaging agents utilise in medical s croupning techniques to view charitable body variety meat and tissues. Clinical Systems Unit. Also Headquartered in the US, this business offers a variety of healthcare services and technological solutions for medical officers and managers of healthcare systems. These include Ultrasound, technologies for monitoring patients, dress up densitometry, incubators, respiratory care and centering of anesthesia. GE Healthcare Life Sciences Unit. This is headquartered in Sweden. It produces technologies for discovering drugs, biopharmaceutical manufacturing and cellular technologies.This division also manufactures equipment for the purifying biopharmaceuticals. GE Healthcare mathematical process Business Unit. This division offers equipment and technologies for surgical care interventions, cardiac, systems and technologies for diagnostic monitoring, systems and data counselling technologies, to systems for mobile fluoroscopic ima ging, instrumentations on 3D visual systems and navigation. Its headquarters are in Utah, USA, GE Healthcare has offices in different parts of the world. It also has autochthonic regional operation centers in Paris, Japan, and India. (GE Healthcare Website Retrieved December 2010)Business outline and Organizational Structure AnalysisThe world business environment is everlastingly changing, presenting new(a) opportunities and challenges. This calls for competitive strategies in order to remain competitive. This section evaluates the opportunities and challenges presented by GE Healthcare organizational structure. In the Financial Year (FY) closure December 2007, the company recorded revenues of $16, 997 million an increase of 2.7% over 2006. The in operation(p) profit was $3,056 million in 2007 drop of 2.7% from 2006. This GE business unit recorded revenues of $16,015 million, during the Financial Year (FY) ended December 2009. This reflected a step-down of 7.9% over FY 2008. The operating profit for the FY ended December 2009 was $2,240 million a decrease of 15.1% over FY 2008. Analysts attribute to both the complex internal and out-of-door environments of the company. I evaluate this argument by undertaking a grind (Strengths, Weaknesses, Opportunities, and Threats) analysis of the company and integrating it to the Porters Five Forces Model.Internal AnalysisGE healthcare is one of the best immobiles in leadership development. The firms Human Resources Department is keen in developing a industrial-strength workforce that opposes to changing global needs. It employs strategically employs and motivates the best qualified talents globally. It invests more than $100 million annually on educational training and staff development. The GE Healthcare Institute provides advanced training for GEHC employees and guests. It combines Technical training, Applications and leadership trainings. More than 70 laboratories with the latest equipment provide GE and customers world break up instruction in all areas of equipment maintenance and operation. The Training in fusion curriculum provides a full range of training programs.GE managers are considered one of the firms classifiable competencies and strengths. The challenge is maintaining employee motivation finished better remuneration in a time of global sparing meltdown and declining profits for the firm. GE Healthcare is capable of changing and eer re-inventing itself to deal with changing business needs. Setting new standards for management, organizational design, Research and Development has been the pillar of the firm. This is evidenced by the primement of the six distinctive business units stated above. Exploiting the resources that the firm has, this competency can be meant un-substitutable. The firm is continually innovating to develop solutions to customer changing needs.As Jeffrey Immelt stated, the firms employees bugger off an faculty to live in the moment. This quality is rare and not s haplessly imitated. This organizational culture ensures that employees continue with innovation and development of new ideas. The firm has a global orientation, with production facilities outside the US and UK, a wider customer base, a crack brand, sales, marketing, IT and Production departments within every modality. This ensures efficiency of service within each business unit.To ensure financial righteousness in outsourcing and procurement, decisions regarding this are handled by offices at the headquarters. GE Healthcare operates within the deed of conveyance of the well known and established General galvanising this promotes sharing of management knowledge and experiences. General Electric is a well known differentiate with a global touch. This strong internal structure has been at the perfume of the firms success. However Organizations function as systems, they interact and respond to the surrounding environment (Barnard 1938). This calls for an extern al analysis of this firm.External Analysis challenger AnalysisAnalysts argue that competitors can ensure that similar firms remain productive. though this can be healthy for consumers, small competitors and substitute product can drive giants out of the market. siemens AG competes against GE group in communications, power, transportation, medical, and lighting industries. Siemens and HE Healthcare are most competitive in the healthcare industry. Siemens Medical Solutions happens to be largest supplier of healthcare equipment globally.Siemens AG is distinctive in its innovativeness and provision of complete solutions to its customers. Siemens is actually larger, with close to 440,000 employees, 70,000 of which are located in the U.S. Despite the fact that GE Healthcare outdoes Siemens AG in healthcare ($9.4 billion) and get-up-and-go ($15.3 billion) it is a competitor that cannot be ignored. Both operate at most global scale. Other competitors include FUJIFILM Medical Systems USA, Inc. Hitachi Medical partnership Nihon Kohden Corporation Schiller AG TOSHIBA Medical Systems Corporation Philips Healthcare Philips Respironics, Inc.Industry AnalysisGeneral Electrics firms including the Healthcare unit have been analyzed victimization porters five forces molding to determine which industry is more attractive. GE Healthcare industry is challenged by competitors and new market entrants. Consumers constantly demand low prices at a high quality leading to intensive bargaining. Retailers have to bargain with suppliers to fix the prices of their products. The GE retail industry also faces the little terror of substitute products. For more on the competency strategy, SWOT analysis an the forces model see Appendix 1 and 2.RecommendationsGE Healthcare already has a global orientation, large customer base. The success of GE Healthcare lies at how best it chooses its business focus. There is need to focus on a specific market niche. Too much diversification and provision of a wide variety of products may be a step ship but it can also become a mechanism for reversal. some(prenominal) diversification can lead to lose of business focus. It is evident that new technology and the creation of a global virtual market offer an opportunity for the firm to grow its business.African and some Asian markets are still virgins to the firm. There is need to identify and exploit this business markets. Where favorable, establish production facilities. Advertising and strategic marketing remains a superior option to strengthen the firms brand identity. With increasing human rights concerns and demands for accountability, there is need for education and corporate social responsibility, as consumers are becoming more sensitive to scientific information. Nevertheless challenges of environmental accountability abound and cannot be ignored.Works CitedBarnard, C.I. The Functions of the Executive, Cambridge, MA Harvard University Press, 1938. Print. Barnard, C.I. Organiz ation and Management Selected Papers, Cambridge, MA Harvard University Press. 1948. Print. Brady, Diane. GE When Execs Outperform the Stock. Business Week 17 Apr. 2006. Goel Sanjay et al .General Electric Strategic Management.