Strategic Development

Question: Write an essay on Strategic Development. Answer: 1.0 GEs Recent Acquisition Recently, General Electric has made two significant acquisitions. GE has made a deal with Alstom SA. It is the largest acquisition ever that is made with the $ 14 billion acquisition of the power business of the company (GE, 2016). On the other hand, this organization has also done a significant deal with the Chinese Company Haier. General Electric has made a contract to sell its appliance business to the organization for $5.4 billion (GE, 2016). 2.0 Reasons for Acquisition There are several reasons due to which the acquisitions are implemented by the organizations all over the world (Hunter, Martin Nash, 2015). These reasons are as follows, Increasing Capabilities Gaining a competitive advantage or large market share Diversifying services and products Replacement of the leadership cutting or reducing costs Surviving 2.1 Acquisition 1 It is quite obvious that the acquisition of General Electric with Alstom SA has been made due to some specific reason. This particular acquisition of General Electric with the energy business of Alstom is the biggest industrial investment that the General Electric has ever made in previous years (Good, Pandey, Batzloff Tyrrell, 2015). The critical fact of this acquisition is transformation that the people are making in the organization. The acquisition made by this organization has been done due to several pivotal reasons. The major reason of this particular acquisition is the increase in the capabilities of the General Electric. Both of the organizations have a similar as well a rich history constructed on the engineering technology as well as innovation. General Electric has a complete commitment in order to continue their support of the diversity, values as well as innovation that has made the leaders of both of the business in the energy sectors (Zhang, Xin, Harris, Ding, 2014) . Therefore, the capabilities of both of the organizations can be increased from the expanded development and research scopes or more robust manufacturing options. Gaining a significant competitive advantage is another significant reason for this acquisition. On the other hand, General Electric has also made this acquisition with Alstom in order to bring a huge diversification in their services. 2.2 Acquisition 2 The second acquisition that has been identified in this study is that the contract between General Electric and the Chinese company Haier. According to the deal, General Electric has to sell its appliances business to the Chinese Company for $ 5.4 billion. The major reason of this kind of acquisition to be taken place is that the cutting costs. While two organizations have the same services or products combining can make a huge scope for reducing costs. While the organizations merge they frequently have a scope for combining locations or reducing operating costs by streamlining as well as integrating the support functions (Ziagos, Phillips, Boyd, Jelacic, Stillman Hass, 2013). General Electric mainly has tried to utilize this feature while making this particular acquisition. 3.0 Difficulties of Sources of Integration There can be several difficulties face by General Electric while making these acquisitions with Alstom as well as Haier in terms of increasing capabilities of the organization. The major problem can be the strategic planning of the organizations (Zhang, Ding, Barrett Xin, 2014). On the other hand, the gap in the proper communication as well as training can be another important as well as significant cause of facing difficulties by General Electric while making the acquisition. Apart from that, lack in the retention and the attention made by the Human Resource Representatives cal also result in the formation of the difficulties in the integration. 4.0 Important Takeaways There are several significant as well as important takeaways must be considered by General Electric in terms of making an effective acquisition among the organizations. these are as follows, Proper Communication should be there among the employees n the organization. On the other hand, proper training programs should be provided by General Electric to the employees. General Electric should be aware of provide enough motivation to the employees of the organization with which they are making the acquisition. It can be done by providing enough scope of earning money as well as by giving extra incentives, promotion as well as award to the employees of the organization. The implementation as well as the planning for the integration must be very effective for all of the companies who are coming under the acquisition. Through the entire discussion made on the two recent acquisitions of General Electric, it has been clear that the mitigation of the problem formed during the acquisition cannot be resolved without making a proper strategic development as it mainly deals with the awareness, planning, development as well as results. Reference List GE.com | imagination at work. (2016).Ge.com. Retrieved 21 May 2016, from https://www.ge.com/ Good, M. F., Pandey, M., Batzloff, M. R., Tyrrell, G. J. (2015). Strategic development of the conserved region of the M protein and other candidates as vaccines to prevent infection with group A streptococci.Expert review of vaccines,14(11), 1459-1470. Hunter, E., Martin, A., Nash, R. (2015). Scottish cruise tourism, the strategic development of the sector and the factors effecting future growth. Zhang, D., Ding, Y., Barrett, D. E., Xin, Y. P. (2014). A comparison of strategic development for multiplication problem solving in low-, average-, and high-achieving students.European journal of psychology of education,29(2), 195-214. Zhang, D., Xin, Y. P., Harris, K., Ding, Y. (2014). Improving multiplication strategic development in children with math difficulties.Learning Disability Quarterly,37(1), 15-30. Ziagos, J., Phillips, B. R., Boyd, L., Jelacic, A., Stillman, G., Hass, E. (2013, February). A technology roadmap for strategic development of enhanced geothermal systems. InProceedings of the 38th Workshop on Geothermal Reservoir Engineering, Stanford, CA(pp. 11-13).