General Electric's change in strategy. For years, General Electric entered new markets using wholly owned operations that it built from the ground up. Today however, the company has moved to a joint venture approach. The following questions can be helpful in directing the discussion.
1. GE used to have a preference for acquisitions or greenfield ventures as an entry mode, rather than joint ventures. Why do you think this was the case?
2. Why do you think that GE has come to prefer joint ventures in recent years? Do you think that the global economic crisis of 2008-2009 might have impacted upon this preference in any way? If so, how?
3. What are the risks that GE must assume when it enters into a joint venture? Is there any way for GE to reduce these risks?
4. The case mentions that GE has a well-earned reputation for being a good partner. What are the likely benefits of this reputation to GE? If GE were to tarnish its reputation by, for example, opportunistically taking advantage of a partner, how might this impact the company going forward?
5. In addition to its reputation for being a good partner, what other assets do you think GE brings to the table that make it an attractive joint venture partner?© BrainMass Inc. brainmass.com October 17, 2018, 11:22 am ad1c9bdddf
1. I believe that GE utilizes acquisitions or greenfield entry ventures as an entry mode instead of joint ventures, due to the fact that these methods would provide GE with a means by which to gain a tremendous amount of control of the market within this industry, and or within a given area without having to share the profits with other companies, as it would in a joint venture. In addition, these methods would allow GE almost total decision-making power within the marketing area in which the acquisitions or Greenfield entry occurred, without having to share this decision-making power with a joint venture organization etc.
2. I think that GE has come to prefer joint ventures in recent years, due to the fact that it has found that the company assumes ...
General Electric 4-5 double spaced
page 1 Level of diversification: What are GE's areas of diversification? Evaluate the potential strengths, weaknesses, opportunities, and threats of the diversification approach.
page 2 help International operations: Look at GE's operations in many countries. Who are their competitors? Evaluate the similarities and differences of GE's strategy compared to their competitors.
page 3 help Recent events: Look for GE's engagement in two or more acquisitions or mergers, about which you can collect information. Discuss the corporate strategy and evaluate how it has benefited GE's acquisition growth and product line.
page 4 help Alliance or joint venture: Select two or more alliances or joint ventures as a meaningful part of one or more of its business strategy. Evaluate the strategy and how well it has worked. Analyze some of the issues encountered. Assess whether the business-level strategy fits their diversification core. List references separatelyView Full Posting Details