GE’s Imagination Breakthroughs: the EVO Project Case Solution
This case is based on GE’s imagination breakthrough. In 2003 September, Jeff Immelt: the Chief Executive Officer (CEO) of GE challenged the business leaders at the company to work on an Imagination Breakthrough. The CEO wanted to originate new and innovative projects that could be the highlight of the company’s organic growth initiative.GE had to change its consideration from cost cutting to designing and developing new and innovative products, improving its services and opening up new markets.To accomplish this goal;the company was supposed to make a number of changes in some particular areas. Explicitly, in terms of the organic growth; the most prominent action was to work on the imagination breakthrough. This initiative had the capabilities of generating$100 million and the tendency to take GE into a new line of business by helping it in entering the new markets. The company had started to work on the transportation project and the company soon lift-off a series of efficient and ground breaking, green products. These products were ranging from the “Evolution Locomotive” to the “Hybrid Locomotive”. The growth process of the company’s transportation led to the redefining of marketing position, the application of a “growth leader” profile and implemented a new decision-making processes to inspire and encourage the innovation and risk taking.
GE’s Capability for Organic Growth
Chief executive officer (CEO) of GE Mr. Jeff Immelt wanted the company to grow. The company completed the biggest acquisition year in the history of its working in 2003. The CEO suggested an organic growth strategy that contained a number of components and elements to form the new growth strategy for the company. Jeff wanted to adopt new capabilities for organic growth. Adopting new capabilities for growth is the right decision. According to an article, if an organization wants to persist in the face of change then it needs to rediscover or explore into new spaces by re- configuring the current resources and designing and adopting the new capabilities(O’Reilly III & Tush man, 2011).
The first element of the organic-growth strategy Jeff suggested was to involve the technical leadership. Technical leadership is defined as one of the main or key attributes of the growth of any company or any firm. The new CEO believed that technology was a key component towards the growth of GE; therefore, the main-importance should be given towards this element.Jeff Immelt recognized that he needed to make internal investments to guarantee that his plan to take a technology driven approach for GE’s growth was correct. The primary part of Jess’s technology-driven approach was to distribute technologies that were unique and had the potential to provide a competitive advantage or unique selling point to the company. The company must stand out from its competitors. He had planned to introduce new technologies in every unit or section of the company. The main focus or goal was diverted on the creation of an intellectual base. Corporate research and development (R&D) was the primary contributor to this approach, which tended to help in forming an intellectual base within the organization.
The second element of Jeff Immelt’s organic growth strategy was marketing or internationalizing. Since GE aimed to become a global company; this element was vital or the key component. Jeff along with his team,identified the new markets where they could have a better approach. The identified markets included profitable markets of Europe and the new upcoming or emerging economies, such as: China and India. Approaching the overseas market plays a key role in the growth and the development of many companies.
For taking a successful marketing approach; the CEO of GE-Jeff Immelt hired “Beth Comstock” in the position of chief marketing officer (CMO). This position was earlier removed from the company’s hierarchy by the previous CEO of the company. The current acting CEO also re-deployed the business development staff of GE into the marketing roles. He also ordered each of the company’s business to employ a VP level marketing head. Lack of talent was identified as most of the business units were unable to employ any of the existing staff on their marketing heads position, the CEO then took the decision of recruiting a new and experienced staff for this crucial position.
The next component of GE’s organic growth strategy comprised of service acceleration. Service accelerators are the front players of any company and they play a crucial role in the success of any firm. They include the sales team, engineers and product designers. The newly hired CEO decided to hire more people to be a part of these crucial departments and allocate more resources to the staff.
The next component of the CEO’s organic growth strategy was directed to wards reaching the commercial brilliance by putting the customers first. Considering customers as the first priority of a company would mean that every product is designed by keeping the customer’s demands, ease, and liking under consideration. This strategy is customer centric and it focuses on the needs and demands of the consumers. The company needs to give emphasis on specifying the customers’ necessities and should put more effort-into external customer demands instead of concentrating on the internal processes.
Moving forward with the organic growth strategy; the concentration was put on developing and identifying new opportunities for business growth and distinguishing the segments that could create high profit margins and show growth potential for GE. This organic growth strategy was developed by the CEO Jeff Immelt for the long run. This strategy had various features and objectives that were to be attained, but the primary focus was strengthening the overall position of the company and working on continuous future growth.
Chief Executive Officer: Mr. Jeff Immelt put his and his team’s primary focus on expanding the business and expanding the consumer base by building or working on the internal capacities and by bringing key improvements, changes,and innovation. Immelt stressed over the usage of new technologies and that these new technologies would lead to wards the growth of the company. Strongly holding on to these technologies, adapting to change, identifying, and entering those markets that offer less of the competition will be the key to GE’s success. Jeff Immelt’s organic growth strategy was on creating and buildinginternal capabilities that will give the advantage of lesser cost and was favored over the acquisition or compensation of a premium to another third party……………………..
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