General Electric SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Growth opportunities in emerging economies: General Electric has good potential to expand in economies whose economies are growing faster than the world’s GDP growth rate. It includes China which is the second largest economy, Australia, Asia; Canada; Latin America; Middle East, North Africa and Turkey; Russia and CIS; Sub-Saharan Africa; Greater China; South Asia; South East Asia (ASEAN). There are potential gains of expanding especially in power and renewable energy segment as global energy needs and demand is growing. They can also become industry leader in power segment in these economies by increasing market penetration with new technology. 2. Formation of 3 companies focusing on 3 segments: In November 2021, GE revealed a strategic plan to combine its (i) Aviation business, (ii) Healthcare business, and (iii) Renewable Energy, Power and Digital businesses to create three market-leading, international, investment-grade public companies. In order to create a pure play company at the epicentre of precision health, GE plans to pursue a tax-free spin-off of healthcare in early 2023. They anticipate keeping a 19.9% stake in the new company. Early in 2024, they plan to pursue a tax-free spin-off of the combined Renewable Energy, Power, and Digital businesses; that new business will be in a good position to steer the energy transition. After these transactions, GE will be an aviation-focused company, influencing the direction of aviation. As independently operated businesses, each can profit from increased focus, specialised capital allocation, and strategic flexibility to bring about long-term growth and add value for clients, shareholders, and staff. The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Organization wide sustainable practices: General Electric has formed a Sustainability Steering Committee to evaluate its sustainability performance. It has undertaken a project “Ecomagination” to reduce the impact of its activities on environment. It has also made $10 billion investment in it for R&D. They do this by using alternate energy sources in its operations. Greenhouse Gas Emissions decreased by 21% and freshwater use decreased by 20% as compared to the 2011 baseline. Carbon emission has fallen to 46,000 tons per year in Rutland site which saved $5.2 million. In Canada’s Petersburg site VOC plummeted 60%. A Memorandum of Understanding (MOU) had been signed by GE Digital, Microsoft, and Teradata to work together to create a carbon emission reduction solution. The three businesses anticipate starting to collaborate to create a product that will give aircraft operators the resources they need to track, report, and reduce emissions. In order to tackle the problem of cutting aviation emissions, the collaboration combines the software solutions of three top companies. High fidelity flight data and fuel efficiency analytics are provided by GE Digital to pinpoint specific areas for fuel and emission reduction.