General Electric Company (ge)
Essay Preview: General Electric Company (ge)
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General Electric Company (GE) is one of the largest diversified technology, media and financial services companies in the world. It is located in Schenectady, NY and has executive offices in Fairfield, CT. It operates through five core business units that include energy infrastructure (23.7% of consolidated revenues), technology infrastructure (27.1%), NBC-Universal (9.8%), Capital finance (32.3%), and consumer/industrial (6.2%). Fifty-four percent of revenues are derived outside of the United States. On December 31, 2009, the firm reported total assets of $781,818 billion and consolidated revenues of $156,783 billion. GE employs 134,000 workers in the US and 154,000 internationally. It is well known for concentrating on a six sigma approach to corporate efficiency and manufacturing outcomes.

General Electric has focused its strategy on a well differentiated brand and its diverse business units. In 2010, it reorganized its business segments, concentrating on competitive advantages in the consumer/industrial and energy infrastructure for growth. GE hoped to reduce dependence on earnings from the capital unit that may be associated with volatility and risk. GE has uniquely engaged its workforce with an outcome and performance focus. Diverse business segments within GE share innovative ideas and best practices to develop and distribute advantages in the market place among all areas of the firm. As a large multi-national company, GE projects a value/cost oriented strategy that concentrates on attracting developing countries with large consumer bases to their products and services.

The risk to execution of GEs strategy includes the ongoing severity and duration of recession. Other risks include volatility in interest and currency exchange rates, conditions in the housing and credit markets and plans to reorganize and reduce earnings volatility and risks related to GE capital. As an international firm, global growth is subject to the international political and economic environment. Risk is also incurred by alteration of laws and regulations that effect GEs operating units. GE must achieve strategic acquisitions and dispositions to focus on the industrial/consumer and energy businesses to minimize the volatility related to the capital unit. Additional expenses related to pensions and health care may affect profitability. GEs financial health is dependent on the prosperity of real estate and financial institutions as well as the introduction of new products in the market place.

Performance metrics monitored by GE include consolidated revenues, earnings from continuing operations attributable to GE, cash flow from operating activities and earnings growth rates. Management focuses on global risk, individual business unit operations, geographic operations and environmental matters. Employee performance and productivity is monitored and benchmarked. Total profit and segmenal profit from each

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