globalization of general electric (ge)
TRANSCRIPT
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