Read article from The New York Times using the following link: http://www.nytime

Question

Read article from The New York Times using the following link: http://www.nytimes.com/2013/09/27/business/as-some-companies-turn-to-health-exchanges-ge-goes-another-direction.html?ref=business&_r=0.

Using the terms/language of the course (for example: strategic thinking, competitive intensity, resources, competencies, capabilities, being different, operational effectiveness, etc - make sure you explain some of these terms in the context of the article), submit a one page document that summarizes the strategic implication that are presented in this article. How do the actions of these organizations (i.e.: GE) help said organizations recruit and retain customers? You are required to use 1.5 spacing, one inch margins.

You should make sure that you explain how the termsyou use apply to this situation/article. This requires some critical thinking on your part. Remember, I want paragraphs with at least four (4) sentences. The Topic Sentences should make it clear to me what the paragraph is about - the following sentence should explain it. Since you only have one page, think about how many terms you can explain appropriately given the assignment and the page limit.

Explanation / Answer

With rising health care costs and inflations, many companies are looking to reduce their health care costs. Most of the companies are giving those who qualify money to buy insurance on a private health exchange.

However, GE is taking a different approach. GE is working directly with hospitals and doctors to not only reduce costs but also improve health care. GE is creating medical homes in which an individual medical practice closely coordinates a patient’s care by having access to all of the patient’s medical records.

GE is creating operational effectiveness by focusing directly on hospitals and doctors instead of private health exchanges. This is core to GE's strategic thinking as formulated by its former CEO Jack Welch. Mr. Welch had always laid stress on the importance of out of the box thinking and boundryless organizations so as to achieve higher operational efficiencies. Here also, GE is thinking out of the box. It is thinking differently. While most of the companies are giving those who qualify money to buy insurance on a private health exchange, GE is working directly with doctors and hospitals.

The actions by companies like GE affects the morale of employees in a positive way. Their medical cases are treated not as an isolated incident. The complete medical history is previewed. This makes it easier for the company to retain current employees and recruit new ones. It will also be easier to recruit new customers and retain existing customers as they will identify with GE's (or any other comapny for that matter) strategic initiative and capabilities.

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