General Electric Company Essay
GE operates worldwide and provides technology, media and financial services. General Electric Company is a multinational American technology and Fortune 500 company. It is incorporated in the State of New York. It is the world’s second largest company with respect to market capitalization and number of businesses. It is one of the biggest players in the wind power industry and developing environment friendly products. The current Chairman and chief executive officer of General Electric is Jeffrey Immelt. The company has authorized shares of 13,200,000,000 of common stock with the par value of $0.
06 per share and 50,000,000 shares of preferred stock with the par value of $1 per share. GE combined with the six businesses like GE Commercial Finance, GE Healthcare, GE Industrial, GE Infrastructure, GE Money and NBC Universal. GE has revenue growth of $163 billion revenues and $20. 7 billion of earnings noticed during 2006. For the past five years GE has the average growth of 10 percent annually. The worldwide employees of GE were 310,000 as on January 2007. GE is traded in New York Stock Exchange with the symbol of GE.
The current traded rate is 32. 02. The tax return filed by the GE becomes largest
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At present GE commercial Finance key role in more than 35 countries in the industries such as Healthcare, manufacturing, fleet management, real estate, communications, construction, energy, aviation, infrastructure and equipment. CORPORATE STRATEGY GE providing solutions to the customers in more than 100 countries and territories. GE considers the culture and GE family contributed over 200 million hours contributed for relief initiatives worldwide in 2006. It has created many big ideas and increases the culture worldwide. Many business units established around the world.
GE provides many products and services ranging from aircraft engines, power generation, water processing to consumer financing. The company was founded by Thomas Alva Edison with the name of Edison General Electric Company. GE has commitments such as more investments in Research and Development, increase of revenues from Ecomagination products, reduction of greenhouse gas emissions and providing more information to the public about goals ecomogination commitments. In order to enhance the value of GE, a new GE brand campaign launched which is “imagination at work”. BUSINESS STRATEGY
The GE continuously concentrating on growth in order to the face business competitors. Since GE addressing factors such as technology, commercial excellence, customer focus, globalization, innovation, developing growth leaders etc, it got excellent results. The company revenue growth is improving year by year. As a part of business strategy, the GE has invested more in brand so that customers around the world may get the GE brands. GE brand has become more valuable than before. After the introduction of “imagination at work” it increases $42 billion to $52 billion. GE also becomes best global brands.
FINANCIAL GE and its consolidated affiliates has worth of total assets $795,337 for 2007 with the retained earnings of $117,362 millions. The cash flows indicate the Net earnings of $22,208 millions. The cash from operating activities were $42,985 million. The Revenues indicates at about $172,738 millions and the major share is from sale of goods with $60,670 and from sale of services it is only $38,856 millions with other income of $3,019. With respect to the expenses the major share expenditure taken for cost of goods sold with the amount of $47,308 and for services is $25,816.
But interest and other financial charges were made with $23,787 millions. The basic earnings per share is 2. 21 and the dividend declared per share is $1. 15 only. Since GE is public company it submits comprehensive financial statement to the U. S. Securities and Exchange Commission. The report includes GE company’s financial position. GE also acquired some other companies during 2007 such as Smiths Aerospace Group Ltd. , Vetco Gray, Oxygen Media Corp, Sondex PLC, Sparrowhawk Holdings Ltd; Phoenix, Dynamic Imaging, LLC; Sanyo Electric Credit Co. Ltd, Disko and ASL, etc. HUMAN RESOURCE
GE recruits many and develops and trains outstanding leaders. The GE has more than 100 years track record and produced many successful leaders. GE recruit hard working and self motivated people. The CEO is responsible and he spent 30% time on developing and providing training to evaluate executives. Since the executives grow and GE also grow successfully. Out of GE staff 189 senior most executives have spent at least 12 months training and professional development programs during first 15 years of the service. However, the human resources are mainly linked with the packages.
The GE is the best in industry to pay the compensation to the staff/human resources. A Bonus or Annual incentive compensation also offered by the GE. GE is committed with long-term benefits but not with short term. Hence GE offers long-term equity awards. In GE, the leaders feel that are not leaders but the will work as partners. So every person in GE is leader and partner and make contribution to the GE. OPERATION STRATEGY AND MARKET STRATEGY GE has the revenue segments such as infrastructure, commercial financial, GE Money, Healthcare, NBC Universal and Industrial. The revenue increased to $167 billion during 2007.
The GE provides the products with high quality though it’s cost is higher with market products. But the GE bring awareness with consumers by giving details of guarantee, product description, enhancement capacity, long duration so that consumers understand the product reliability to come forward to purchase the products/services. GE also concentrates on providing variety of advertisement for its products and services so that should know the facts of products of GE. NBC is media unit of GE. On October 12, 2007, the NBC Universal announced that it was buying cable network Oxygen Media for $925 million.
The Financial Times released the news that GE was putting off any decision on selling NBC Universal until after the 2008 Summer Olympics in Beijing. The broadcasting of network is through NBC only with several cable net works. However, the issue of sale of NBC again comes into force after Olympics i. e. 2008. GE Chairman Jeff Immelt is not thinking about selling NBC Universal. Because the network is currently in fourth place. NBC Universal Chief Executive Jeff Zucker made it clear at a conference that GE had no interest in selling the media business. He repeatedly announced that NBCU is not for sale.
It is also not for sale even after the Olympics. At present the NBC has a $15 billion business with operating income running about $2. 5 billion, which made a modest part of GE’s overall earnings. Still the business is about the size of CBS, which has a market cap of $21 billion and with debt of $7 billion. If the NBC has such value i. e. $28 billion GE would sell NBC. . GE has revenues from NBC, which were noticed during 1996 Summer Olympic Games, and revenues increased at nine of GE’s twelve businesses led by double-digit growth at GE Capital services, NBC and Power Systems.
Now 2008 Olympics are existed. At this juncture, the GE will not sell the NBC Universal, Inc. (a subsidiary of General Electric and Vivendi) The company targeted to achieve the financial goals and top ranking of S&P 500. the revenues are expected to grow at least 10% which may go up $195 billin for 2008. the EPS is increased to be at least 10%. The company also targeted to provide the returns at about $ 8 billion to the investors either in the shape of dividend or in the form of biyback of shares of GE. GE has the concept of investing in the future and delivering today.
In order to achieve the market which is changing day to day, the GE accordingly build leadership qualities among GE personnel to face the challenging markets. GE successfully produced the leaders according to the market needs. To grab the market, and to have increase of sales the GE entered with the company to country relationship with Beijing Olympic games. GE leadership in Olympics will create $2 billion of revenues in 2008 besides the goodwill with China. GE also promoting customer relationships with largest companies and it is also planned to invest $200 billion in capital equipment in the next five years for Mining customers.
It is estimated that $1 billion is expected by 2010 out of mining business. GE identified that China ad India are the biggest emerging markets for GE. Hence the GE concentrating to make plantation to manufacture of healthcare products. Now days one of the main area is health. Though GE made so many products and inventions with respect to the business appliance, yet it noticed the health products main business area throughout the world. Hence the GE also entered in the health products and health services throughout the world. It is one type of diversification of GE and the success of business always depends upon the diversification decisions.
Hence GE entered to health division by providing health care products focusing on early diagnosis, intervention and prevention. Advanced are being promoted by GE such Focused Ultrasound i. e. MRgFUS. GE has clinical specialty services in the areas of Cardiology, Mother & infant care, Orthopedics, Surgery, Vascular, Molecular Imaging, Oncology, Preoperative, Surgery Accessories and Women’s healthcare. GE healthcare also provided patient TV channel installed over 1300 U. S. hospitals with web loop between doctor’s offices, hospital and patient homes and all able to access to health management. CULTURE AND ENVIRONMENT
GE has the culture of providing more innovations since long period, which attracts the people to join with GE either as consumers or as partners of the GE. The employees are highly rewarded and working environment is good with the GE. Hence talented people always with GE. Moreover GE makes contribution to philanthropic efforts towards the community through GE foundation. GE is the fourth largest corporate production of air pollution in the United States and it releases more than 4. 4 million pounds toxic chemicals per year. But it is noticed that GE has record of much better than many of its competitors.
GE builds such culture by introduction various informative aspects to the board and community so that all fully informed about the GE. It is estimated that there will be lack of access to clean water, global energy affected with 5 billion people. In order to address the environmental challenge, the GE started to provide innovative solutions which benefit the GE customers, society and as well as investors. Hence introduced more than 60 products, which are ecomagination environmental impact. RESEARCH AND DEVEOPMENT GE has Global Research and it is one of world’s largest and diversified industrial research organizations.
It provides innovative technology for all GE and its subsidiaries. The Global Research of GE is an important part of GE, which is providing its service to the GE more than 100 years in the areas of diagnostics, energy conversion, nanotechnology, advanced propulsion and security technologies. The GE Global Research is located at Niskayuna, NY with its branches in Bangalore (India), Shanghai (China) and Munich (Germany). RECOMMENDATIONS GE provides high standard with unlimited creativity. It has dedicated workforce for which GE become better company and leaded to the better world with every day.
Everyday GE seeks to improve its services according to the community wishes and needs. The GE changes its attitude according to the culture and necessities of the community. Hence living with GE will be happy to the community. CONCLUSION GE observes the Global Reporting Initiative (GRI) sustainability Reporting Guidelines and it has got the report of GRI application level A. To conform the principles, GE used such principles like Balance, comparability, Timeliness and Accuracy and Reliability. GE control is mainly based on the efficient leadership and learning.
GE invests at about $1 billion for every year on training and education programs for the people of GE so that leadership capabilities can be increased to satisfy the needs of the customers and communities. GE is in receipt various awards such as “sustained excellence” for continuously three years. This award given for environment protection as the GE offered the products environment free products. The Award is called 2008 Energy Star Sustained Excellence award. It shows the commitment of GE towards the community development and encouragement so that people should live with good atmosphere.
Besides, GE and its volunteers providing time and money throughout world to address the social activities. A Disaster Relief Fund established by the GE volunteers and the fund enables GE people to assist their effected colleagues. GE has 5 million shareowners and it is one of the widely held stocks in the world. GE also offered sound investment institutional and individual shareowners. Be GE is constantly paying dividend every year since 1899. GE is such company and it is globally accepted company with high performance company with strong businesses.
GE also implemented Six Sigma, which is for quality improvement. Hence GE stock can be purchased between $31 to $34.
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com, February 8, 2007. 9. Rick Huber, Manager, Customer Learning Technologies, GE Healthcare, http://www. akamai. com/html/customers/case_study_ge. html 10. http://www. infovisiongroup. com/case-studies-gecapital. html 11. Nick Godt, Market watch, 26th April, 2008, www. marketwatch. com 12. Jack Welch, former CEO of GE, www. 1000ventures. com 13. Dave Lindoff, 11-11-2002, http://www. cioinsight. com/c/a/Past-News/Case-Study-General-Electric-and-Real-Time/ 14. Douglas Mcintyre, October 30th 2007 http://ge. bloggingstocks. com/2007/10/30/nbc-is-probably-not-for-sale/