Strategic Planning Within General Electric

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The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization. Companies plan their various and multilevel activities. A company's strategic planning is a row of elements that describe how the company uses its resources concerning its inner and outer environments to reach its objectives. Resources contain financial, human, facilities and technology. Resources are limited that is why they are prioritized at GE to support the company's goals. The positioning and usage of resources includes all elements of the company and develops into strategic decisions of the company. GE strategic planning objective is to increase its economies and at the same time to apply its advantages concerning company’s clients. There are three basic steps of gaining strategic planning within GE: The formulating of a major business strategy. This is the basis of efforts to build a serious competitive advantage. The adaptation of the major business strategy to all the markets where the company’s products are presented. The globalization of the major business strategy. It means the company has to integrate the strategy in all the places of business operation. In order to implement all these factors of strategic... ... middle of paper ... ...vital changes. Two, three, or five years passes till the strategy is achieved. In general, GE has long-term goals for such factors as return on investment, earnings per share, or size. Purposes elaborate on the mission statement and constitute a specific set of policy, programmatic, or management objectives for the programs and operations covered in the strategic plan. Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. Operational plans support tactical plans and are the tools for executing daily, weekly, and monthly activities. They include policies, procedures, methods, and rules. GE has essentially grown in size and benefits since 1980’s. GE centralized financial management and strategic planning control, and practiced strategic planning management.
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