Innovation Management UniKL MIMET v1.

Project 2: idea pilot & market generation

Name : Muhammad Ikhwan Afif b Ahmad Nazer

Id : 56266113552
Name : Mohd Amirul Taufik b Aidie
Id : 56211114027

Class : L01-T01 Innovation Management

Lecturers : MUHAMMAD AZRIE HUSAINY MOHD JASRI
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Question 1
7ps “GENERAL ELECTRIC MALAYSIA”

INTRODUCTION OF COMPANY

General Electric Malaysia focusing on products such as toasters, motors and light bulbs, it
is now a diversified company composed of media, financial services and technology
divisions. These divisions provide business and consumer financing services, media
content, as well as products such as aircraft engines, power generation, water processing,
and security technology.

Product
 GEM’s technology division produces Intrusion and fire detection products, card access
systems, aircraft replacement parts, jet engines, medical diagnostics, medical imaging as
well as patient monitoring equipment.
 The company also provides products related to energy infrastructure such as wind turbines,
gas turbines, water purification systems, and aircraft engine derivatives.

Price
 General Electric Malaysia introduced a “Power by the Hour” program for its aircraft
engines, in recognition that its customers were not merely purchasing its airplane engines,
but also the ability to minimize downtime through its maintenance and service initiatives.
 GEM raised prices in for its Infrastructure Water and Process technology customers as a
result of increasing cost pressures in a global economy, citing marketplace conditions for
water treatment solutions which made it more expensive to do business.
 General Electric Malaysia “healthtmagination” initiative involves the reduction of prices
in its medical imaging and diagnostics business as a result of reduced customer spending
in these areas.
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Place

 General Electric Malaysia is headquartered in Alor Setar Kedah, at 2315 Wisma

DarulAman.
 GEM has subsidiaries located in Singapore, Mexico, Munich, China and Ontario Canada
 General Electric Malaysia has global business projects including Southeast Asia, Northern
Asia, Austrialia/New Zealand, Africa, Latin America and Europe.

Promotion

 In 2017, General Electric selected EasyFind, Inc., as the preferred vendor to implement
GEM Services Network’s email marketing programs.

 GEM’s slogan “we bring good things to life’ is among the most recognizable in the world.

 General Electric has used co-branding to market its products.

Process

 The General Electric Malaysia Company, pioneered the nine cell strategic business screen
used to identify the most favorable position with attractive growth opportunities as well as
competitor strength.

 GEM management has utilized techniques such as leadership development, Work Out, and
Six Sigma.

 Current GEM leadership is reemphasizing its scientific research labs and marketing
function.

 General Electric Malaysia undertakes a constant appraisal process that involves firing its
bottom 10% employees each year.
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 GEM strives to accomplish its goals with four core values in mind: imagine, solve, build,
and lead.

 General Electric Malaysia (GEM) had used the “Lateral Diversification Strategy” as its
growth strategy – marketing new products or services that have no technological or
commercial synergies with current products, but which may appeal to new groups of
customers.

Physical Evidence

 Russia has been one European country in which GEM has made significant investments
including an equipment fleet with more than 1,500 large units.

 The Middle East is diversifying beyond its oil-based economy with explosive development.
GEM is enabling growth with crucial investments of infrastructure resources such as oil
and gas as well as aviation.

 GEM is helping to build the infrastructure of Indonesia.

 GEM has subsidiaries located in Singapore, Mexico, Munich, China and Ontario Canada

People

 Muhammad Ikhwan Afif b. Ahmad Nazer is the current chairman of the board and chief
executive officer of GEM.

 General Electric employs an integrity policy called “The Spirit & The Letter” which every
employee supports with a signed pledge.

 GEM employs an ombudsmen process which encourages employees to report unethical

activities without fear of reprisal. General Electric Malaysia implements flexible work
arrangements in order that employees may achieve a work and life balance.
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 General Electric Malaysia provides an employee and retired employee outlet store with
discount products.

 GEM utilizes skills-based customer service routing technology, GEM directs your call to
the service or support rep most qualified to answer your question.

Question 2

SWOT ANALYSIS

Strength

1. Aviation, consumer electronics, motors, energy, finance, gas, healthcare, lighting, oil,
software etc form a part of its diversified product portfolio

2. Extensive R&D capabilities with a strong workforce of over 300,000 people worldwide

3. Well balanced revenue stream among different sectors and hence reduced business risk

4. Operates in more than 160 companies

5. It is hailed as one of the most innovative, green and best places to work

6. More than 50% of its business is outside Malaysia. Hence a great balanced business revenue
model

Weakness

1. Dependence on third parties for raw materials can be a concern

2. Being a strong brand, easily targeted for litigation for even minor issues which otherwise
can be easily resolved

Opportunities

1. Global acquisitions and buyouts to strengthen existing businesses

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2. Growing demand for commercial airplanes

3. New pipeline of contracts to boost top line growth

4. Emerging economies give a huge scope provided the infrastructure required to build
complete cities

Threat

1. Strict government policies and environmental regulatory norms can affect operations

2. Since it is a powerful global brand, economic and political risks

3. Increased IT security threats can cause issues

4. Fluctuating currencies and economic recessions can affect global businesses severely

Question 3

Six Sigma

Six Sigma in four key ways that ultimately translated to a formula for success:
Innovation Management UniKL MIMET v1.0

1. Training: GEM required almost all employees to take a two week, 100-hour Six Sigma Training
Program. Afterward, employees were asked to complete a project implementing those
methodologies.

2. Mentoring: Mentoring was key to GEM’s success. Full-time, Master Black Belt Six Sigma
professionals were required to train and mentor employees whose jobs were integral to key
processes. After those employees were trained and mentored to become Black Belts as well, GEM
Black Belt teams carried out different Six Sigma projects within the company. Green Belts were
also able to join projects teams to a certain capacity.

3. Leadership: Ikhwan also asked for commitment to their Six Sigma goals from both executives
and the GEM workforce, linking promotions and bonuses to improvement in quality. A Green Belt
certification became a minimum requirement for promotion at GEM and almost half of each area
of bonuses depended on the successful implementation of a Six Sigma project.

4. Focused Implementation: GE used three key implementation approaches.

“Show Me the Money” meant GEM focused on the bottom line, cutting costs to compete in price-
sensitive markets. “Everybody Plays” meant that even outsourced suppliers were expected to
participate in the Six Sigma initiative to make sure that the quality was assured from start to finish
for each product.“Specific Techniques” meant GEM used process maps and other Six Sigma tools
to rank and associate projects to overarching business goals.

Question 4
Financial Statement for General Electric Malaysia 2011-2015
Innovation Management UniKL MIMET v1.0