GE case study
GE case study
GE Oil & Gas was established in 2012 when GE Energy was divided into three new business units of General Electric. Prompted by poor financial performance, GE Oil & Gas was created in an effort to simplify business and also make General Electric more visible to its shareholders (“Working Environment | GE. com”, n. d. , p. 1). GE Oil & Gas has grown to become one of the key players in the energy sector. Operating in more than 100 countries and employing 43,000 people, GE Oil & Gas delivers equipment and services that enable its customers to access and make more efficient use of the world’s energy resources.
With a variety of extremely complex technologies fueling numerous industry-milestone projects, GE Oil & Gas has helped make it possible to extract reserves in the most remote and extreme locations. One example, the Gorgan Project, is one of the world’s largest natural gas projects and provides energy to most of Western Australia. The Gorgan Project provides insight to some of the staffing challenges facing GE in today’s global and complex energy industry(“Introduction – Workforce planning in the global oil and gas environment – GE Oil & Gas | GE Oil & Gas case studies, videos, social media and information | Business Case Studies”, n.d. , p. 1) .
GE Mission and Values Unlike most Fortune 500 companies, GE does not have an official mission statement, rather they represent their mission with the “GE Works Equation”. As explained by GE, “We have a relentless drive to invent things that matter: innovations that build, power, move and help cure the world. We make things that very few in the world can, but that everyone needs. This is a source of pride. To our employees and customers, it defines GE. ” (“General Electric (GE) mission statement 2013 | SM Insight”, p. 1).
As environmental regulations shift and force the energy sector to evolve, GE is forced to place a large emphasis on environmental standards. The following statement represents GE’s commitment to sound environmental practices. “GE’s unstinted commitment to Environment, Health & Safety is a paramount consideration in all its procedural aspects. For, at GE we realize that when it comes to EHS, a clean bill of health is more than a corporate asset; it is a fundamental responsibility to employees and to the environment that we all share,” (“Environment – Industries | GE Energy”, n.d. , p. 1)
S. W. O. T. Analysis1 With regards to adequately staffing each position within GE’s complex organization, the following strengths are key to maintaining market share and a competitive edge. •Alliances with other strong businesses that are viewed favorably among the masses •As a market leader, GE is capable of obtaining the most experienced employees which continue to help GE be a leader in innovation •Strong organizational structure and culture •Employee base of 323,000 (All of GE) •Strong reputation and popular with consumers.
•Respected Brand Despite having a high market share, GE still faces weaknesses that must be recognized and understood for them to improve their position. They are as follows: •GE is 4th highest producer of air and water pollution. •History of misleading investors for high returns •GE not performing well in Asian Markets •Charged by Department of Defense on corrupt practices for jet engine sales to Israel With the energy sector in full speed and booming in most of the world, GE Oil & Gas has a vast number of opportunities to improve performance.
With an aging workforce, it is critical that GE also capitalize on current opportunities with personnel and training. The following are current opportunities for GE with regards to their workforce. •Pursue governmental support (grants/allowances) for training and hiring new employees •Focus on corporate social responsibility to gain favor with consumers, potential employees •Takeover/Merger opportunities to enter new markets •Further utilize R&D projects •Improve customer service Being such a highly regulated industry, there are a vast number of external threats that face a company such as GE.
These external factors need to be recognized and planned for to avoid a disruption in operations. •Increased Labor Cost, shortage of skilled workers, and aging workforce •Global recession •Currency fluctuations due to the number of counties GE is doing business •Intense competition in the industry •As the 4th largest producer of pollutants, the biggest threat for GE is government regulation on environmental issues Strategy and Organizational Drivers. Workforce planning is becoming more critical for companies such as GE.
Workforce planning is essentially a company planning for future labor needs Because operations span across 100+ companies, GE has developed global training centers offering a broad training curriculum to ensure its workforce is abreast to the latest challenges in the energy industry. Despite the shortage of STEM graduates worldwide, GE offers customized leadership programs to younger generations in hopes of developing the next generation of technical experts and managers. Additionally, leadership teams are implemented on most all big projects and are tasked with making key strategic decisions for the organization.
At all levels of the organization, those who demonstrate passion and commitment to both high performance and the GE brand can expect to be rewarded with higher positions and more responsibility, Whether it is an HR employee, a scientist, or an engineer, GE seems committed to building and empowering employees(“Introduction – Workforce planning in the global oil and gas environment – GE Oil & Gas | GE Oil & Gas case studies, videos, social media and information | Business Case Studies”, n.d. , p. 2). Improving.
The most pressing issues facing GE Oil & Gas are the risks of environmental regulation and employing an adequate labor force to cope with the demands of technology advancements. Because of the shortage of skilled professionals, GE should focus heavily on building relationships with the best universities, worldwide, and establishing a presence in the minds of young people interested in STEM careers.
GE could begin at even the grade school level by sponsoring science fairs, math and engineering competitions, or any other related activity and provide scholarships to winners. Begin a marketing campaign nationwide that focuses on growing the interest of math and science at a young age. With regards to the environmental issues, strict compliance should be a zero tolerance policy. Bad press can destroy years of good work and potentially cost a company everything.
It is vital that companies such as GE are able to adapt to their continually changing landscape, and implement new strategies conducive to growth. In a markets such as oil and gas, it seems like the company that is not growing, is dying. GE has the resources to help ensure they have a future in energy. They must continue to look for initiatives to encourage students to learn about oil and gas. Skilled people are the lifeline of GE.
Subject: General Electric,
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 27 September 2016
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