Your assignment is to prepare and submit a paper on strategic business. This paper undertakes a strategic analysis of the General Electric Company. This will involve an examination of the external environment, industrial analysis and internal strengths of GE. It will proceed to examine the structures of GE and analyze its problems and make strategic recommendations about how to get around those problems
An external analysis is done through the use of PEST analysis tools (Davidson, 2010). This enables the analysis of various changes that occurred in the external environment and its effects on the strategy of an organization.
Over the past year, the Obama administration has shown that they are willing to increase corporate taxation and collect more money from large corporate bodies like GE (CNN Money, 2012). CNN Money announces that in April 2012, the United States became the highest tax paying nation for corporate entities and the tax rate was increased to 39.8%. This indicates that there has been a significant political paradigm shift which attacks corporate entities with the hope of appeasing the masses like the group of protestors that were involved in the Occupy Wall Street marches.
This poses a major threat to General Electric. This is because most of its profits are going to be taxed. This means that it would end up working for relatively little-retained earnings when the tax is deducted.
The credit crunch that occurred in 2008 affected GE tremendously. This is because it diversified its operations at the beginning of the 21st Century to focus heavily on the financial services. This means that the credit crunch had a major impact on its financial position.
Currently, the Eurozone crises have led to a situation where the US Dollar has become much stronger. This has led to the strengthening of the US Dollar. This shows that the US markets are likely to grow and expand and provide more opportunities for GE to increase their production since there will be a higher demand.
Also, the GDP of the United States increased by 1.9% in the previous quarter. .  .