Organizational design is the method by which a company decides to create, utilize, and combine organizational structure (how a firm assigns its workforce to specific tasks and roles and how it specifies that those tasks/roles are connected to increase efficiency, quality, and customer responsiveness); strategic control systems (provides incentives to motivate the firm’s workforce and feedback on company/employee performance to strengthen the organizations business model); and organizational culture (collection of values, norms, beliefs, and attitudes shared among an organization’s members that control the way they interact with one another as well as other stakeholders outside the company) to pursue a successful business model. GE has had great success with their organizational design both in the past when their emphasis was on increasing shareholder wealth and currently with their shift toward becoming a green company that also increases shareholder wealth. GE’s consistently strong financial results and their over 100 years on the Dow Jones Industrial Average are the proof of the strength of their business model. Ecomagination was a turning point for GE. They had an image problem when it came to the environment. Launched in 2005, the ecomagination initiative has created a sound platform for GE to make investments in new technologies and has given the company “a huge scope for expansion in the future as more green technologies would be able to address new problems, create new markets, and reach underserved customers” (Hill & Jones, 2013, p. C331). Ecomagination has helped GE evolve as a sustainable enterprise, contributed greatly to its brand value, and has shown that GE’s strong reputation for innovation and execution are still part of their core competencies.
Hill, C., & Jones, G. R. (2013). Strategic management: An integrated approach (10th ed.). Independence, KY: Cengage
The ecomagination initiative has turned the perception of GE around and helped to build a stronger overall brand value. Once, the company was only concerned with maximizing their shareholders wealth, and was considered to be thoughtless when it came to its environmental impact. Ecomagination has turned that around in many peoples’ view as the company has begun the shift to an environmental friendly organization that still has the ability to make money for their shareholders. GE’s organizational structure and culture has also been strengthened as it various business segments collaborate o