General Electric Medical Systems

Résumé du document

General Electric Medical Systems (GEMS), became General Electric Healthcare (GE Healthcare) in 2004. It is the leader in the imaging equipment market. GE Healthcare is a subsidiary of the conglomerate General Electric, the second largest company in terms of market capitalization right behind Exxon Mobil and ahead of China Mobile, Microsoft and Gazprom. GE Healthcare evolves with the changing environment. A lot of external factors have been affecting GE Healthcare's activities in the last few years, and the company has had to meet the new requirements and challenges of the 21st century in the area of diagnostic imaging equipment.

Extraits

[...] General Electrical Medical Systems' organizational structure General Electrical Medical Systems uses a flat organizational structure that minimizes the number of hierarchal levels that is required. This structure comprises of numerous specialized subunits or divisions, such as IT, manufacturing, sales or marketing. Furthermore, because the decisions that are being made rely heavily on the specialization of workers and their functional division, this is a decentralized approach to an organizational structure. One of the main advantages to this design for GE Medical Systems is to create a cluster of specialized workers to better handle decision-making processes. [...]

[...] Hogan would have 4 subordinates instead of 12 and he would be responsible for managing 10 relationships. V. Expansion to China 1. The Chinese environment Years before GEMS' global expansion, the Chinese governments' cuts to health care funding and the high potential for profits (for privately owned medical facilities offering diagnostic services), created an immense demand for low-cost imaging products in China. At this time the used diagnostic equipment market was very lucrative; with brokers purchasing used equipment from Western countries and selling it to Chinese diagnostic operations. [...]

[...] Hiring globally also allowed them to create better products to suite the respective nations and solved the initial problem they had with having primarily American management and engineers Conduct business functions such as marketing and manufacture for customized GEMS for individual nations The rational model was used when making decisions upon sales and manufacturing of customized GEMS for the different nations. After using the Carnegie model to create the ideal organizational structure they were able to gather information and resources to conduct varying key functions related to GEMS. The new organizational structure allowed them to achieve different product mixes for each nation. Specifically products were differentiated based off of cost, quality and product life. [...]

[...] General Electric Medical Systems' changing environment GE Healthcare evolves in a changing environment. A lot of factors affecting GE Healthcare activity have been swift for the last years, and the company has to meet the new requirements and challenges of the 21st century in the area of diagnostic imaging equipment. Its specific environment, which consists of all the forces “from outside stakeholders that directly affect an organization's ability to secure resources”[1], has evolved over half a century of work in this sector. [...]

[...] Concerning unions, GE faced some important strikes in January 2004 about . health coverage![3]. Concerning competitors, the sector has been through a restructuring phase with different acquisitions from the major actors (phenomenon of concentration). For instance, GE Medical Systems became GE Healthcare in 2004 after the billion acquisition of Amersham plc, a British company, and became also the first unit of GE to be based outside the US. This concentration phenomenon led to the fact that four companies sharing 80% the market of diagnostic imaging equipment billon): GE Healthcare being the leading manufacturer with a revenue of $16 billion in 2006 ahead of the German company Siemens Medical Solutions 7.5 billion in 2005), the Dutch company Philips Medical Systems 6.3 billion in 2005), and to a lesser extent the Japanese company Toshiba Medical Systems. [...]