General Electric

General Electric

Introduction

General Electric was founded by Thomas Edison in 1890. It is currently the largest industrial conglomerate in all of America (www.ge.com). The company is in a number of business starting from power generators, jet engines, medical equipment, and also in to financial services and television broadcasting. The revenues of General Electric are close to $180 Billion. It is one of the best companies of the globe. General Electric is also one of the best global companies. The company had the best people as the CEOs, Jack Welch being one of the most successful. According to Fortune 500, it was the sixth most successful company in terms of the revenue it generates. It is also the fourteenth most profitable company of the world (money.cnn.com).

Discussion

General Electric is one of the most successful companies of the world today. But problems accompany successes. The key issues that are topping the talks about this multi- union coalition company is the wages, health care and pensions (www.peoplesworld.org). People have been talking about these issues for quite some time now and the company needs to look into this to keep the image of the company intact. The biggest problem that GE is facing is the decline I the value of its shares. The share value of GE has gone down by 50% in ten years (www.forbes.com). Another problem identifies by the Forbes is that the company is still run according to the management style of the twentieth century. This is one of the main drawbacks that the company has. This si leading to a constant decline of the company. This is the century where the businesses run on the principle of customer delight (www.forbes.com). General Electric also needs to grasp this transition as other companies have done. The management of the company believes that the company can grow its earnings by 10- 15% in the coming years. This is because of the diversity of the services and products that GE offers. The company also is high on the management of risks (www.usatoday30.usatoday.com). These strengths combined hold a great opportunity for the GE to progress. General Electric needs to keep looking for the right opportunities that can help it in upgrading the value of its stock. It should move towards a 21st century management. This will make the company grow and will also help in bringing the value of its stock at a place where the company expect it to be. The company needs to devise a complete new plan to counter the problems it is facing these days. They also need to look into and grasp all the opportunities that come in their way and that can take the company to a higher position.

General Electric has invested heavily in overseas expansion. This is because of the large number of opportunities it is seeking by going global. The company wanted to exploit the market hat was still not explored by the company. The global market of the company had a lot of gaps that General Electric ...