General Electric Medical Systems (Case Summary Response) GEMS, the world’s leading manufacturer of diagnostic imaging equipment, was facing a number of challenges early in 2002. The technological landscape was changing. Due genetic advances, medicine and diagnostics could now be personalized. This would cause GEMS to move its focus from engineering to one predominantly aimed at biochemistry. Moreover, GE demanded 20% annual growth and ROC to increase by 35%. On top of everything else, GEMS’ China based business was advocating an “In China for China” policy that would go against a policy that brought GEMS to where it is today. The latter of the three appears to be their most pressing problem and must immediately be addressed. There appear to be a few pros and cons for advocating an “In China for China” policy. China is currently third worldwide only to the US and Japan in terms of medical diagnostics and is growing as a faster rate than both of them. After 1995 they also became the “Center for
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