FALCON GROUP Globalization at General Electric

Presentation By:

Ali Raza Sahni

GENERAL ELECTRIC

General Electric Company (GE) is an American Multinational Conglomerate Corporation

Conglomerate Corporation: A Combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure

Operates in Four Segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial

Public Limited Typed Corporation

Traded As: NYSE: GE, NASDAQ: GE, Dow Jones Component, S & P 500 Component, Dow Jones Composite Component, and The Global Dow Component

Founded In Schenectady, New York, U.S. (1892)

Founder(s) are Charles Coffin, Edwin Houston, Elihu Thomson, and Thomas Edison

Area Served at Worldwide

Key People are Jeffrey Immelt (Chairman & CEO)

Products are Electric Appliances, Aviation, Consumer Electronics, Electrical Distribution, Electric Motors, Energy, Entertainment, Finance, Gas, Healthcare, Lighting, Locomotives, Oil, Software, Water, Weapons, and Wind Turbines

GLOBALIZATION IN GE

GE Operating Overseas for Decades

CEO Jack Welch (1981 – 2001), the goal was to be number one or

two globally in every business in which they are participated

Jack Welch sanctioned Foreign Direct Investment Strategy

GE takes advantage of Economic Weakness in Europe from 1989 to

1995 to Invest $ 17.5 Billion and Acquire 50 Companies

Then Purchased Various Companies of Latin America

Also takes Economic Crisis Advantage in Asian Countries (1997 –

1998)

In 1999, GE spend $ 15 Billion in just 6 months

At End of Welch’s tenure (2001), GE have:

Revenues of 40% plus AS compared to 20% in 1985

Operating Incomes were 16.7% High AS compared to 1985

EPS was 14% High AS compared to 1985

Financial Times Magazine Called “Most Respected Company in the World”

GE – THE TRUE GLOBAL COMPANY

GE became “True Global Company” - Jeffery Immelt

Jeff Immelt selected by GE's Board of Directors in 2000 to replace

Jack Welch following his retirement

Still Working under the Leadership Strategies of Jack Welch

International Revenues Grows at 50% of the Totals (2007)

Expansion by Dynamic Economies of Asia (India & China)

Sells More Jet Engine to India v/z US

GE have Huge Infrastructure in China

In China, GE Invests in Airports, Railways, and Power Stations

In 2012 Analysis, GE will Earns 55% to 60% from International

Business

GE DECENTRALIZED APPROACH

Jeff Immelt – shifts the Centre of Gravity

The Head Office (Fairfield Country, US) Decentralized their controls

of all Activities to other Countries Head Offices

In 2004, GE HealthCare H/O moved to London

In 2006, GE Oil & Gas H/O moved to Italy

In 2008, GE Money H/O moved to London

Moreover, Give more Powers to Country Head Offices

Just, to remains More Closer with Customers

GE R&D Offices – Since 2004, Munich, Germany, Shanghai, China,

Bangalore.

To Design Better Equipments According to Local Needs

MRI Scanner Cost was $ 1.5 Million in US

Now its Costs is $ 500,000 (Chinese Research Center)

GE INTERNATIONALIZED APPROACH

Internationalization of GE Senior Management

Choose Managers from Midwest Areas

All of the Country Managers were Americans

Expertise of their Works and Got Millions Dollars as

Salary

Now, GE wants to Hire Local Nationalists

And Train them in Various Countries

And, Internationalized their Management Ranks

GLOBALIZATION @ GE

Q/A