...General Electric (GE) was one of the most severely hit companies during the financial crisis of 2008. The conglomerate was broadly expanding into the financial services sector in order to take advantage of the opportunity. However, as the financial meltdown started, the stock started losing value rapidly and the company lost more than half of its value. Over the past two years, GE has made substantial recovery in its business; as a result, the stock price has shown considerable recovery. Going forward, I believe there are a number of positives for the company and the stock price will continue to move higher. My optimism is based on the recent movements made by GE and a change in strategy, which I believe will pay sizeable dividends in the future. 43,682 people received this article by email alert Add your email to get alerts on GE too: Get email alerts on GE » What will Lufkin Acquisition Bring to the Table? On 8th April, GE announced its intention to pursue the acquisition of Lufkin Industries Inc. (LUFK) for $2.98 billion. By doing so, the company will be substantially expanding its oil and gas segment, making it the third largest manufacturing segment after Power & Water and Aviation. The deal values Lufkin Industries at $88.5 per share. Jeffrey Immelt, the CEO of the company, had announced that GE would be looking for such acquisitions to increase the exposure of the company to the sector. Also, as pointed out by a number of analysts, such acquisitions are expected...
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...Introduction Company description General Electric Co. is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control and utilization of electricity. Its products and services include aircraft engines, power generation, water processing, security technology, medical imaging, business and consumer financing, media content and industrial products. The company operates through eight segments: Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting and GE Capital. The Power & Water segment serves power generation, industrial, government and other customers worldwide with products and services related to energy production. The Oil & Gas segment supplies mission critical equipment for the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, liquefied natural gas and pipeline compression, pipeline inspection, and downstream processing in refineries and petrochemical plants. The Energy Management segment designs technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries. The Aviation segment products and services include jet engines, aerospace systems and equipment, replacement parts and repair and maintenance services for all categories of commercial aircraft; for a wide variety...
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...Organization’s value-chain 12 Balanced scorecard 13 Strategic alternatives; 15 Final recommendations 16 Bibliography 19 Executive Summary During February 12 of this year the wholly owned subsidiaries GE, GESC, and GECC will be merged together. Part of it was the manufacturing actual physical business the other was the subsidiaries and the next was the financial services GE Capital. The merger of GE and affiliates is not reflected in his financial analysis as of February 12, 2012. This is a statistical analysis on GE. GE has different parts of the company, which use different terms. Not to be confused GE, GESC, and GECC are different sectors of general electric. Their consolidated financial statements help to better accurately comply with the different financial and accounting methods to give a precise perspective on the entire company. GE is the most common use term and the one that were most familiar with. GESC is the financial services department that looks like a bank; and, GECC is just a term used for subsidiaries across the world. Stakeholder Analysis GE has experienced significant growth in the stock price from the low teens to the upper 20s. However the historic high is 39.50 and is down roughly 54% from five years ago before the 2008 financial crisis. (Morning Star, 26) The dividend yield is currently $.68 worth...
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...proportion of total sales represented by foreign sales is about $80 billion of revenue outside the Unites States. The changes of sale over the past five-years have shown increases 3 out 5 years. The other 2 years were slightly below the company’s goal due to the price of oil dropping and exports issue. c. They signed an agreement to sell their consumer finance business in Hungary (Budapest Bank) to Hungary’s government. On June 2, 2014, we acquired Cameron’s Reciprocating Compression division for $0.6 billion. The division provides reciprocating compression equipment and aftermarket services for oil and gas production, gas processing, gas distribution and independent power industries d. There are three categories GE uses hedging practices. FAIR VALUE HEDGES GE use interest rate and currency exchange derivatives to hedge the fair value effects of interest rate and currency exchange rate changes on local and non-functional currency denominated fixed-rate debt. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in earnings within interest and other financial charges, along with offsetting adjustments to the carrying amount of the hedged debt. CASH FLOW HEDGES GE use interest rate, currency exchange and commodity derivatives to reduce the variability of expected future cash flows associated with variable rate borrowings and commercial purchase and sale transactions, including commodities. For derivatives that are designated...
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...required. When a contingent liability is remote (such as a nuisance suit), neither a journal nor a disclosure is required. b. A warranty is a contract between a company and its customers. From BP stand point, the warranty gives BP an additional protection from buying the telescopic joint. From GE oi & Gas, the warranty gives GE the responsibility to repair or replace the product if it is damaged or faulty. c. G Firms must make several judgments to account for contingencies. For example, with respect to the warranty on the telescopic joint, GE Oil and Gas must estimate how many joints will require servicing (failure rate), of those, how many will actually be serviced (i.e., how many customers will remember that the product is under warranty and make a claim to GE Oil and Gas to get it fixed), and the projected cost per repair. For GE Oil and Gas, this may not be too difficult because the company has considerable prior experience with the design and repair of the drilling equipment that they sell. However, if a particular product is significantly different than other products the company sells, past experience may not be a good guide. In that case, GE Oil and Gas could not simply ignore the warranty accrual (their auditors...
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...General Electric Company (GE) Company Overview Describe the company in general and how it operates, and the market. General Electric is a well-diversified infrastructure, media and finance company taking on the world’s roughest challenges and obstacles. General Electric is currently comprised of six distinct divisions. GE Technology Infrastructure develops technologies for transportation infrastructures. This segment includes GE Aviation, which produces and sells jet engines and other parts for military and commercial aircraft. GE Transportation provides technological parts, such as locomotives and engines, to the railroad, marine, and transit industries. GE Water manufactures pumps, filters, and other equipment needed in water treatment and desalination systems. GE Healthcare is a subunit of GE Technology Infrastructure that offers healthcare and medical-related services and goods. The division manufactures and services a range of medical equipment including CT, PET, MRI, nuclear, and X-ray imaging. GE Energy Infrastructure segment manufactures equipment for energy companies. GE Energy sells energy technologies such as gas turbines, generators, and steam turbines to power companies and industrial plants. GE Oil and Gas supplies equipment such as drilling systems, floating production platforms, compressors, and turbines for the oil and natural gas industry. Oil and Gas is one segment the company would like to expand, aiming to double its revenue to $15 billion by 2014...
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...General Electric (GE) competes in many different industries ranging from appliances, aviation, and consumer electronics, to energy, financial services, health care, oil, and wind turbines. These industries are quite diverse, but there are similarities among several of them. In fact, GE’s businesses are grouped in four divisions: GE Capital, GE Energy, GE Technology Infrastructure, and GE Home & Business Solutions. In recent years, more than 50 percent of GE’s annual revenue has come from its financial services businesses. However, GE has reduced its assets in financial services—GE Capital provides approximately one-third of its total earnings. In 2012, much of GE’s growth in revenues came from the manufacture and sale of jet engines for major airliners and from its increasing business in the oil and gas industry. In 2013 (based on 2012 data), GE was ranked the eighth largest corporation in the Fortune 500. Additionally, in 2013 it was ranked eleventh in Fortune magazine’s list of the 50 most admired companies. Thus, GE has been a highly successful company. GE has an impressive history and is one of the few widely diversified firms to achieve such success. GE is a highly influential global corporation. Its CEO, Jeffrey Immelt, was selected by President Obama to chair an advisory group on economic and job creation concerns. However, GE has experienced some “bumps in the road” along the way. This is to be expected because it is difficult to manage a large, widely diversified...
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...world. With products ranging from aircraft engines (accounting for 15% of the total revenue), power generation (accounting for 17% of the total revenue), oil and gas production equipment’s (accounting for 11% of the total revenue), and household appliances (accounting for 6% of the total revenue) to medical imaging (accounting for 12% of the total revenue), business and consumer financing (accounting for 29% of the total revenue), and industrial products (accounting for 10% of the total revenue), it serves customers in more than 100 countries. 2. What is General Electric’s strategy for 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...
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...Strategic Management on Sapura Kencana Petroleum Berhad 1.0 INTRODUCTION A core competency by definition is a unique ability that a company acquires from its founders or develops that can make a significant contribution to perceived customer benefits of a product or services and it is difficult for a competitor to imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field (Anonymous). According to Fred (2013), core competencies define as a value chain activity that firm performs especially well. When a core competence evolves into a major competitive advantage, it will turn into distinctive competence. Core competencies may include any combination of skills, technologies, processes, knowledge or expertise and are often achieved as a result of long-term development processes and/or experiences (Mayhew, 2010). Competitive advantage on the other hand is defined as a measure relative to rivals in a given industry. Competitive advantage happen when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company...
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...I selected General Electric (GE), because I work in medical capital equipment field where I compete against GE in their Healthcare sector. GE is consistently ranked as one of the world’s leading corporations. GE provides capital, expertise and infrastructure for a global economy. GE Capital provided billions in financing, so businesses could build and grow their operations and consumers could build their financial futures. GE build appliances, lighting, power systems and other products that help millions of homes, offices, factories and retail facilities around the world work better. GE also helps to deliver a quarter of the world’s electricity. Being one of the largest clean energy companies in the world, they deliver innovation from an integrated wind, solar and natural gas projects, to smart grids that help utilities manage electricity demand, to gas engines that run on organic waste, to more accessible charging stations for electric vehicles. GE makes the world’s largest jet engine—and among the world’s most efficient. They also build locomotives that reduce emissions and provide advanced air traffic and rail freight management systems. GE’s top strategic priority has been to build a strong, competitively advantaged infrastructure business that grows ahead of their peers. For a large global infrastructure company like GE, these are a few major issues they face. Today we are living in a tough era, in which the public dialogue, in general, is negative economic progress...
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...brief SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). C.Discuss the factors it will need to predict, plan for, and adjust to in the future. INTRODUCTION GE is an American Multinational corporation established in 1892 by the amalgamation of Thomas Alva Edison’s Edison General Electric and Thomson-Houston Electric Company .GE at present operates at the same time in five varied business segment namely: Media (as NBC Universal in cable and film), Energy (e.g. oil and gas), Infrastructure (e.g. Aviation and Healthcare), Home and Business Solutions(Appliances platforms) and Finance ( as GE Capital commercial and consumer finance). GE now has businesses in about 160 countries and approx. 300,000 human resources worldwide. The company’s head office is situated at Connecticut, USA. General Electric is one of the world’s leading diversified business firm widely known for its high quality, advance and technical expertise, leadership, and brand name. Under Welch’s (CEO of the company) leadership, it has undergone enormous reorganization efforts (i.e. divestitures, acquisition, influential GE’s culture) – the support for its accomplishment today. As a international corporation GE has had a contentious history with view to air and water pollution late 1940s and had forever been a goal of condemnation from public...
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...over a century and continue to make headway? In this paper I intend to discuss some of the aspects that have enabled GE to have fruitful success for over one hundred-thirty years. I will briefly discuss the overall strategy of the company and the approaches they employed to attain success implementing that strategy. I will examine the corporation’s value proposition and comment on current event(s) that influence the business. I will present a brief SWOT analysis and state my general impression of their management style. Finally, I will express my thoughts on their future, where they can be more effective, and what changes should be put into action. The topics covered depict how General Electric has and will maintain and upper hand in corporate world. | | Michelle Jones | 12/12/2012 | | Table of Contents I. Introduction, Meet GE pg. 2 II. The Company’s Overall Strategy and Their Approaches to Attain Success pg. 2 III. The Company’s Value Proposition pg. 3 IV. Event(s) that are Affecting the Company pg. 3 V. SWOT Analysis pg. 4 VI. Impression of the Management Style pg. 5 VII. The Company’s Future and Opinions on How They Can be More Effective pg. 5 VIII. Changes that Should be Implemented pg. 5 IX. References pg. 6 I. Introduction, Meet GE General Electric or GE is a multifarious technology and financial services company; operating through energy, technology infrastructure,...
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...General Electric Case Study Company Overview Bryan Sitka SUNY Empire General Electric Case Study Company Overview According to their website, General Electric, also known as GE, is a multinational corporation who traces its beginnings to Thomas Edison who in 1878, created Edison Electric Light Company. In 1892, Edison Electric Light and Thomas-Houston Electric Company merged and created General Electric Company. GE is headquartered in Fairfield, Connecticut, but has operations all over the globe in more than 170 countries. As of December 2013, GE employed 307,000 people worldwide. In 1900, General Electric created the first voice radio broadcast, changing the face of the speed of information sharing. Furthermore, the company is also credited with the creation of such things as the first electric toaster, as well as the first electric range oven. Needless to say, General Electric has been a pioneer in technological advancements that have reached nearly every corner of the world. According to the GE website, General Electric has moved into different industries in an attempt to broaden their overall reach and company profile. GE does business not only in the electric and lighting industry but also in aviation, Capital, Energy Management, Healthcare, Oil & Gas, Power & Water, and even transportation (General Electric Corp., 2015). General Electric has been a household name for generations, with light bulbs, electric fans, refrigerators and other appliances...
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...Dissertation REPORT ON IMAGINATION AT WORK For PARTIAL FULFILLMENT FOR THE AWARD OF THE DIPLOMA OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) SUBMITTED TO SUBMITTED BY Prof. (Dr.) Neeran Gautam Director, UIMS Mr. Amit Sinha Enrollment No. UIMS-PGDM-10-005 Batch: 2010-2012 [Type text] [Type text] PREFACE As a part of my syllabus of PGDM programme in Final year, I was assigned some Practical and theoretical project work. Study of management will be immaterial if it is not coupled with study of financial aspect of the business. It gives the student an opportunity to learn the connection between comparison & execution to test & verify application of theories & help in the comparison of management theories and practice. The study gives a chance to know about the profitability and financial position of the firm. I have chosen General Electrics which is a $14.2 Billion Global company in Information Technology Services, R&D Services, and Business Process Outsourcing. This report contains the analysis of the 8 years data of the company. In the Scenario Analysis of the company we have included the company’s industrial GDP, its Market Share, Market Capitalization, Market Growth, HR policy etc. some other reason of choosing this segment are; Highly versatile & innovation oriented sector Large number of employees are working Highly challenging job opportunities High growth opportunities Work on international project Platform to show the difference dimension...
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...businesses like airlines, oil and energy manufacturing companies, governments and the ultimate consumer (B2C). The B2C products like small and large appliances is targeted to all consumer groups regardless of income, age, household size education or ethnic background or psychographic and behavioral background. The B2B products, in demographic terms (customer-based segmentation) are intended to suit specific organizational markets – a broad business segment, governments’ and countries’ infrastructural development projects in over 120 countries. All demographic groups will use our healthcare equipment sold to a hospitals and other institutions. GE is a conglomerate; our size is an asset, our Brand a household name with a competitive advantage that we should use to position ourselves in sub-Saharan Africa. This is an opportunity, since these emerging young -fairly stable- democracies are experiencing an astounding growth. Tanzania, Angola, Nigeria, Mozambique are some of the countries identified, and GE is well positioned to compete for infrastructural projects, manufacturing equipment and financial services. GE is a brand well recognized around the world, and well perceived in all segments of our target markets, unique, with the competitive advantage to compete and attain both our immediate and long-term goals. PRODUCT STRATEGIES Our products, the manufacture and generation, transmission and distribution of electricity (nuclear, thermal, solar, wind and gas), lighting, appliances...
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