...of a Fortune 500 company facing the recent economic trends and adapting to changing markets. A major part of the United States’ business success is due to an economic and social climate. Global economics and global politics also have a major influence on businesses in the United States (Nickels, McHugh, & McHugh, 2010). The recession of 2008 and the ever changing trends have had a major impact both at home and abroad. The last two weeks I began looking at Honeywell International and will conclude this three part series with looking at how the company is weathering the recession as well as adapting changing markets and the tactics used to do so. Economic Trends In 2006, the mortgage crises gripped the nation as well as the economic downturn around the world (Isidore, 2012). The labor market was drastically reduced in 2008 by cutting 1.2 million jobs in the first 10 months. Honeywell International was affected like most companies and knew that it needed to weather the storm. However, Dave Cote, CEO of Honeywell...
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...future? The firm’s strategy for future is to divest consumer-facing assets because of the volatile and highly competitive nature of the consumer facing business, and acquire and boost commercial- facing assets. 3. How does General Electric intend to grow? Does if grow through acquisitions? Yes, the firm grows through acquisitions. Its much-awaited “Alstom” acquisition is set to close halfway through the campaign. The firm’s strategic growth model focuses on building global relationships with sponsors, vendors, Original Equipment Manufacturers (OEM’s), and global mid-market corps. Expanding product franchising is also another key aspect of their model. The firm expects a growth in its EPS in both 2015 and 2016 even as it repositions GE capital and expects gains to equal restructuring. 4. What is General Electric’s competitive environment? Who are its main competitors? The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important. Product development cycles are long...
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...Assignment 3 HONEYWELL INTERNATIONAL INC. Zuhaib Ahmed Date: July 23, 2011 TABLE OF CONTENS Executive Summary 3 Introduction & Company Overview 4 Mandate 4 Vision Statement 4 Mission Statement 5 Quality Policy 5 Code of conduct 6 Stakeholder analysis Error! Bookmark not defined. External Analysis 11 Internal Analysis 14 Strategic Options 17 Recommendation 20 References 24 Executive Summary The paper focuses on the growth of an age old company namely Honeywell International Inc and explores strategic options for it. Honeywell is a reputed name in the aerospace and engineering industry. It has been constantly involved in providing technologies for the betterment of the customers. It provides products whose customers range from individual users to big corporations to government agencies. The company has been in business since the early 20th Century. Since then it has been engaged in providing innovative solutions in the form of its products and services. The current Honeywell International Inc is the outcome of the merger between AlliedSignal and Honeywell International in 1999. Since Honeywell always had a better brand value than its counterpart, Honeywell International was chosen as the desired brand name of the conglomerate even after the merger. This shows the high popularity of the company, though it was much smaller than AlliedSignal. The rest as is said is history. After that, there has been no looking back for the company and it...
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...The History of Thermostats By Spring Quarter 2014 THE HISTORY OF THERMOSTATS Definition of a thermostat; A thermostat is a component of a control system which senses the temperature of an area so the area's temperature is maintained near a desired setpoint. The name is derived from the Greek words thermos or "hot" and statos or "a standing". Cornelius Drebble (1572-1634), a Dutch engraver and glassworker, invented the first thermostat in the early 1600’s, which was the first the automatic temperature control device. The thermostat was spawned from an elaborate toy he designed which operated on the basis of changes in the atmospheric pressure and temperature. The thermostat was created for a chicken and duck egg incubator and was the first mercury device that would hold the temperature constant. Around the same time frame, Drebble also invented the first self-regulating oven damper that was also mercury controlled. As the temperature went up, the damper would be closed by a primitive mercury switch. When the temperature cooled, the mercury would contract and open the damper adding oxygen to increase the fire. Before thermostats, the only way we could control the temperature of a home was to manually open or close the fireplace damper/ flu or open a window to regulate heat. Albert Butz, (1849-1905) was a Swiss born inventor, businessman and the father of the modern automated control industry, made a resemblance of today’s thermostat in 1885. It had an electric...
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...the General Electric Company INTRODUCTION The General Electric Company (GE) is ranked among Fortune 500 as the 6th largest firm in the U.S. by gross profit as well as the 14th most profitable, #7 for executives, #5 best global brand, #82 green companies, #13 most respected companies and #19 most innovated firms. GE divisions include GE Capital, GE Energy, GE Technology Infrastructure and GE Home and Business Solutions. Through these divisions, GE is able to participate in a wide variety of markets, from industrial to lending and insurance. It sells a variety of products like lighting, industrial automation, medical imaging, motors, railway locomotives, jet engines and transmission/distribution of electricity. The company is headquartered in Fairfield, Connecticut and incorporated in Schenectady, New York. It employed 301,000 (131,000 in the U.S.) people as of December 2011. (http://www.ge.com/ar2011/pdf/GE-20120224-10K-20111231.pdf) The company recorded revenues of $142.24 billion during the financial year ended December 2011 (FY2011) this is a 4.58% decrease from FY2010. The decrease in net sales for FY2011 reflects the impact of the current economy here in the U.S. The operating profit of the company was $14.07 billion in FY2011, an increase of 8.9% over 2010. The net profit was $1.45 billion in FY2011. (http://www.marketwatch.com/investing/stock/ge/financials) HISTORY OF THE COMPANY GE was founded in 1878 by Thomas Edison in Menlo Park, NJ. In 1890 Edison started...
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...Study Case from Modern Banking by Shelagh Heffernan - Kidder Peabody Group – ‘‘But Leo’’, said Alan Horrvich, a third-year financial analyst at General Electric Capital Corporation (GECC) in September 1987: ‘‘I don’t know anything about investment banking. If I walk in there with a lot of amateurish ideas for what he ought to do with Kidder, Cathart will rip me apart. OK, you’re the boss, but why me?’’ ‘‘Look Alan’’, replied Mr Leo Halaran, Senior Vice-President, Finance of GECC: ‘‘we’ve got ten thousand things going on here right now and Cathart calls up and says, very politely, that he wants somebody very bright to work with him on a strategic review of Kidder Peabody. You’re bright, you spent a semester in the specialised finance MBA programme at City University Business School in London, you earned that fancy MBA from New York University down there in Wall Street, and you are available right now, so you’re our man. Relax, Si isn’t all that tough. If you make it through the first few weeks without getting sent back, you’ve got a friend for life. . .’’, he ended with a grin. ‘‘Me.’’ Mr Silas S. Cathart, 61, had retired as Chairman and CEO of Illinois Tool Works in 1986. He had been a director of the General Electric Company for many years and was much admired as a first-rate, tough though diplomatic results-oriented man- ager. After the resignation of Mr Ralph DeNunzio as Chairman and CEO of Kidder Peabody following the management shake-up...
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...Peter Demerjian 02/24/2013 ACT 563 Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations...
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... Indian CA Languages: English, Hindi, Gujarati USA 92301 Date of Birth: September 25th 1983 Mobile: 0413232560 OBJECTIVE: Seeking a mutually rewarding position in accountancy & finance, which will utilise my skills and ability and provide a room for personal growth. SUMMARY: Ability to pay attention to the details. Strong organisational methods. Well developed interpersonal skills. Effective as a team member and comfortable in leading one. Self motivated and determine. EMPLOYMENT AJ GROCERY ( Australia) Working as part time, doing customer service sell of the goods to the customer taking cash. GE CAPITAL (CUSTOMER SERVICE) (CARDS UNDERWRITING) – U.K March 2007 – February 2008 GE capital bank/ GE Money, as card underwriter associate. My main responsibilities are checking customers credit history, taking decision about credit limit. Also I got authority to accept or decline application. My team leader name was Linda Brook My main duty was to handle the call of the high street store and check the credit history of the customer and issue them the store card or the master card if there credit rating are fine. Halifax plc (HBOS)(May 2006 –May 2007) Administrator – U.K I was appointed as administrator where I have to do Scaning and sorting the documents and also working with other departments like data enty, microfilming as a part of the administration work. Orange (September 2004...
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...Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2)...
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...rightfully forced some changes in the deal structure. To win the approval from the French government, GE’s newest proposition involved setting up joint ventures in renewable energy, electricity grid equipment and nuclear power. In fact, the value of the stakes Alstom will own in the three joint ventures is estimated to be about €2.6bn which means that the net cash cost of the deal for GE is about €9.7bn. Moreover, the US and European regulators required the sell-off of part of the GE’s turbine business to the Italian Ansaldo Energia in order to keep the market competitive. Before GE got the “green light” from Paris, there was lot of competition between GE and the joint offer of Siemens and Mitsubishi Heavy Industries for the acquisition of Alstom, even though the board of Alstom favoured GE’s clear and simple offer. Moreover, GE promised to add about 1000 new jobs in France, where it has had large existing operations for decades. On the other hand, the government liked the fact that Mitsubishi-Siemens offer was based on forming a partnership and was not going to be a takeover. Finally, when GE modified its proposal, it won the war. About General Electric General Electric, headquartered in Fairfield, Connecticut (US), is a multinational leading corporation with a highly diversified business. General Electric is a key player in the...
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...STRENGTHS Global recognition: General Electric has ventured into the world market thus gaining global recognition for its unique goods and services. In the year 2009, Forbes magazine ranked GE as the world's largest company. Hurbert (2007) notes that General Electric's brand is the world's most recognized brand. This kind of recognition has given it a competitive edge over other companies due to its ability to attract more customers. Global strength and competitiveness:The Company’s products have been recognized for their quality and the company is known for meeting customer-specific needs (General Electric, 2009). As a result, it has attracted numerous clients including corporations and government agencies and its competitive position is quite favorable. GE is the biggest lender in many of the countries where it invests with exception of the United States (Hurbert, 2007). Its power generation equipment generates a quarter of the world's electricity everyday. Excellent Management: GE utilizes a unique management style, whereby business operations are divided into business units. Each business unit plays a distinct role within the company and has its own independent management. Examples include GE Commercial Finance, GE Equipment Services, GE Energy, GE Insurance, and GE Consumer Finance among others. This kind of management style increases productivity due to the high level of accountability and efficiency that business unit managers are expected to maintain. Diversified...
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...landscape and created an opportunity for MNCs to prosper and flourish for improvement of services and products for the consumer and created job security for the worker. The forms of integration relate to the aspect of the driving forces of globalization and the reduction of barriers from investing. Therefore, with improved communication, supply chains, and transportation effectiveness the MNCs can prosper and improve profit margins. Often start-up companies work diligently with their product performance to create an opportunity to be bought out by a larger company, which is all part of the various forms of integration. Nonetheless, there are critics of MNCs as was illustrated by the EU and the GE merger with Honeywell. Though the EU viewed the merger as a complete monopoly it did not stop GE from continuing to expand its market share in other aspects of its organization as the company focused on solar and wind energy (Anwar, 2005). Companies desire to grow and improve efficiencies along the way and understanding the various forms of integration assists in the comprehension of what is the best option for one’s own merger...
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...S R O U N D TA B L E C O M M E N TA R Y Transatlantic Divergence in GE/Honeywell: Causes and Lessons BY DONNA E. PATTERSON AND CARL SHAPIRO welcome, even when they are predicted to cause leading firms to gain market share. Second, the procedures in place in Europe contributed to the ability of the Competition Commissioner to block the proposed merger of GE and Honeywell based on dubious economic grounds and very weak evidence. In particular, the absence of timely and independent judicial review of the Commissioner’s decision that a combination is incompatible with the Common Market gives enormous discretion to the Competition Commissioner and to the Commission’s Merger Task Force. We discuss below how the interplay of these two trans-Atlantic differences led to the divergent results in GE/Honeywell. The EU’s Conglomerate Case A key driver of the proposed merger was the desire of GE and Honeywell to combine their complementary product lines in the civil aerospace industry.2 GE makes, sells, and services large aircraft engines. Honeywell, itself the result of a 1999 merger between Allied Signal and Honeywell, makes small aircraft engines, various avionics components, and other “non-avionics” components, such as environmental control systems, wheels and brakes, and auxiliary power units. At its heart, the merger was neither horizontal nor vertical, but conglomerate. In fact, the GE/Honeywell merger was remarkably “clean” in terms of horizontal overlaps, given the magnitude...
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...Acquisition of Honeywell Ishyta Hick Financial Decisions MGT 769 April 9, 2013 Honeywell Acquisition Jessica Gallinelli, managing director of Bancroft capital management is facing financial decision either to hold or sell her shares in Honeywell before Honeywell merge with GE. Gallinelli own 10 million shares in Honeywell and its short position of 10 million shares in GE. The key factors on Gallinelli either to sell or hold shares were based on the value of shares after the merger, also she wanted to know how the market will respond to Honeywell shares after decisions from both the antitrust regulatory of the European Commission (EC) and The U.S. department of justice. Gallinelli also planned to consider relevant personality and political issues. Both Mario Monti of European Commission and Charles James U.S assistant attorney general, Had personal interests in the outcome of the case. Because their job performances on political career depends on approve from the society how they perceive them as regulators. Allowing the merger will add the value to both Honeywell and GE shares and rejecting the merger will lead to loss for both companies’ shares. Valuation of Honeywell Common shares during merger (Year 2000) 801.4 million Price per share $ 36.72 Honeywell value = 801.4*36.72 = $ 29,427.41 billion Antitrust Concerns The market was careful waiting regulators responses toward the deal. In U.S the regulators consist of department of justice and U.S trade commission...
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...Corporate strategy (for general discussion in class) 1. Is Newell’s corporate strategy successful? Does the company add value to the businesses within its portfolio? 2. What are Newell’s distinctive resources and competencies? 3. What challenges does Newell face in the late 1990s? 4. Given this context, does the Calphalon acquisition make sense? Rubbermaid acquisition? Why (or why not)? Antitrust regulation in a global setting: The EU investigation of GE/Honeywell merger (for general discussion in class) 1. What markets are affected by the proposed GE/Honeywell merger? Who are the main competitors in these markets and how are these markets related to each other? 2. What would the combined market share of GE and Honeywell be in each of the markets you identified in Q1? How would these estimates change depending on how broad or narrowly you define these markets? 3. Which of these markets are likely to raise antitrust concerns for the EU? Why? 4. What possible remedies might Monti require from GE or Honeywell to allay these concerns? Would the merger still make sense after agreeing to these remedies? 5. How should (have) Jack Welch argue(d) / negotiate(d) the case for the merger? GE’s acquisition of Amersham PLC 1. Why and how does Amersham fit in with...
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