ge corporate strategy

7/30/2019 GE CORPORATE STRATEGY

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General Electric CompanyAnd Its Corporate

StrategyPresented by; Avinash Tripathi

4111015015


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About the company

General Electric Company is anAmerican multinational conglomerate corpora-tion incorporated in Schenectady, NewYork and headquartered in Fairfield,

Connecticut, United States The company operates through foursegments: Energy, TechnologyInfrastructure, Finance and Consumer & Industrial


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General Electric was formed by the 1892merger of General Electric of Schenectady,New York and Thomson-Houston ElectricCompany of Lynn, MassachusettsJeffrey Immelt is the current chairman of the board and chief executive officer of GE

over half of GE's revenue is derivedfrom financial services, it is arguably afinancial company with a manufacturingarm


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Time horizon

In the power sector GE introduced the first superchargers during World War I, andcontinued to develop them during the Interwar period

GE founded Radio Corporation of America (RCA) in 1919- as a retail arm i.e. formarketing its product and sold it in 1930

In 1911 General Electric absorbed the National Electric Lamp Association (NELA) into itslighting business

In 1896, General Electric was one of the companies listed on the newly formed DowJones Industrial Average

General Electric was formed by the 1892 merger of General Electric of New York andThomson-Houston Electric Company of Massachusetts


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in 1970, GE sold its computer division to Honeywell,exiting the computer manufacturing industry

In 1962-70 GE entered into developing operatingsystems by teaming with strategic partner like MIT,

bell laboratories

GE was also in the field of computers manufacturingsince 1960 it was one of the major player. Some of

its product where GE 200, GE 400, and GE 600


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One can clearly see the businessdimension of GE spread into various field

namely GE Capital, GE Energy, GETechnology Infrastructure, and GE Home & Business SolutionsThe list of GE businesses varies over timeas the result of acquisitions, divestituresand reorganizations


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which GE undertook fordiversification

In 1986 GE reacquired RCA, primarily forthe NBC television networkIn 1986, Kidder, Peabody & Co., a U.S.-based

securities firm, was sold to GE and followingheavy losses was subsequently sold toPaineWebber in 1994In 2002, Francisco Partners and NorwestVenture Partners acquired a division of GE

called GE Information Systems (GEIS). Thenew company, named GXS

In 2002, GE Wind Energy was formed when

GE bought the wind turbine manufacturingassets of Enron Wind after the Enron


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In 2004, GE bought 80% of UniversalPictures from Vivendi forming thecompany NBC UniversalIn 2004, GE completed the spin-off of most of

its mortgage and life insurance assets into anindependent company, Genworth Financial,based in Richmond, VirginiaGE Plastics was sold in 2007 to SABIC.In May 2007, GE acquired SmithsAerospace for $4.8 billionMarch 2011: GE completed the acquisition of privately held Lineage Power Holdings, Inc.,from The Gores Group, LLCIn October 2012, General Electric Companyacquired $7 billion worth of bank depositsfrom Metlife Inc.


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This shows that since its inception GE hadbeen undergoing for inorganic growth

opportunities it has purchased manycompanies, sold some, partially heldsome, so as to gain the advantage of diversification and optimum development(means acquire to gain advantage and cutit off if it seems to be unprofitable so thatone is not burdened with losses)


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GE business portfolio


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GE in India

GE is aggressively working in India since1997 and is present in various sector likeAviation, Energy Management, PowerGeneration, Capital, Healthcare, Lighting,Oil & Gas Transportation, Water,Intelligent Platforms Renewable Energy WindIt employs 14 K people in India.


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GE growth strategy- a 6 partgrowth process

Executefor

growth

Growth leaders inspireand develop people

who know how to helpcustomers and GE

growthGlobalization create

opportunitieseverywhere and

expand in developingmarkets

Customer value satisfycustomer and make a

strong and loyalcustomer base

Innovation generate newideas and develop

capabilities to makethem a reality

Leadership in technologyhave the best productcontent & services

Commercial excellencegenerate world class

marketing & salescapability to drive one

GE


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How did the diversificationstrategy helped GE?

General Electric buys dozens of firms everyyear. The acquisitions help GE to obtain new

technologies and enter new markets.

The Company acts swiftly in integratingtarget aspects of acquired companies into theGE culture and releases parts it does notneed.GE is a global company with 60% of its

business and 54% of its employees operatingoverseas and uses local markets to fuel bothits employment and capital needs


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Multinationals like GE add divisions oracquire businesses with potential in new

and developing markets where risk maybe higher, but growth potential is greater.

While it began in America, it is essentialfor GE to operate in the global market toremain competitive and achieveproduction efficiency.


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Public relation strategy

In 2005 GE launched its " Ecomagination "initiative in an attempt to position itself as a

"green" company ( developing new environment-friendly products such ashybrid locomotives, desalination and water reuse solutions, and photovoltaic cells)Set goals to lower their greenhouse gasemissionsIt is one of the largest lenders in countries

other than the United States, such as Japan.GEs strategy is consistent. They seem to want togive the impression they theyre doing goodthings, and that the American people are driving

it.( in america)


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Achievments

GE is currently one of the biggest playersin the wind power industryIn 2011, fortune ranked GE the 6th

largest firm in the U.S as well as the 14thmost profitable company


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ge corporate strategy

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