RESEARCH JOURNAL OF BUSINESS AND ECONOMIC MANAGEMENT
Integrity Research Journals
ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org
Critical strategic analysis forecast of the oil and gas business unit of General Electric Company: A conceptual review
https://doi.org/10.31248/RJBEM2020.053 | Article Number: D35C23081 | Vol.4 (1) - February 2021
Received Date: 16 October 2020 | Accepted Date: 24 December 2020 | Published Date: 28 February 2021
Authors: Adeyemi Z. Oshilalu* and Yolandie C. Baldie
Keywords: diversification, Acquisition, merger, competitive advantage, full-stream, oil and gas, portfolio, strategic business unit.
The General Electric Company (GE) is considerably assessed as one of the world’s most successful corporations in the 20th Century. GE is a huge multinational conglomerate with one of the most highly innovative business units/divisions in the world. Due to the vast majority of GE’s products and services, a critical strategic analysis forecast of one of the conglomerate’s eight business units – Oil and Gas is presented for a conceptual review. The paper details how these Strategic Business Units (SBUs) explored the efficiency and market focus of their business portfolio through diversification, innovation, and acquisition. Resource allocation and value chain analysis of the SBU was conducted to determine the certainty of the company’s competitive edge. The portfolio of the SBU; oilfield services, oilfield equipment, turbomachinery, and process & digital solutions were reviewed using the Boston consulting group (BCG) matrix while the Ansoff matrix was employed to analyze and predict the company for sustainable future growth and divestment. In 2017, the synergy between these SBU and Baker Hughes to deliver a full-stream integrated oilfield portfolio revealed a strong and enhanced competitive advantage of the SBU across the global oil and gas industry, however, the analysis of the company shows that the SBU still experiences underperformance in the stock market.
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