Ge Healthcare Essay

398 Words2 Pages
1. Was buying Amersham a good idea? Why or why not? a. Overall, a good idea. i. The two company’s product lines were cohesive allowing GE’s doctors access to the superior equipment to better treat diseases. ii. Revenue will grow and costs will decline as a result of more efficient processes. iii. The relationship would allow GE healthcare ready access to vital pharmaceutical firms. These resulting relationships are important because GE sought to develop new drugs to treat diseases using more personalized medicine. iv. Amersham has potential to help GE find a more strategic direction. v. Could help develop better equipment increasing company innovativeness. vi. On the contrary, a merger increases administration difficulties and the possibility of inefficiencies resulting from being too large. The company could potentially have problems following its core strategies that have made it successful in the past. If the companies can jointly solve these potential problems then they could possibly create a competitive advantage, however. 2. How does Amersham relate to the core idea behind the global product company that was the essence of GE medical systems (the predecessor company to GE healthcare)? a. Relates based on core motives to increase global presence and decreasing costs. b. GPC would improve competitivness by moving from high cost to low cost countries… saving approximately 30% in the first year alone. c. GPC would also help GE expand to new areas and recruit better talent to improve R&D d. In order to apply “in country for country princeiple” GEM would optimize processes tailored to specific companies. These individual units would then share engineering expertise with each other in order to further optimize the global entity as a

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