Case StudyGeneral Electric (GE)Executive SummaryIntroduction to the GECGeneral Electric was established by the inventor Thomas Alva Edison. Back in 1878, it began as a company that was in the illumination field, a pioneer. A merger with the Thomson-Houston Electric Company in 1892 gave birth to the General Electric Company. From the single illumination and electricity sector, in the course of centuries, the company has diversified and has a presence in all major industries offering many products and services. Retaining its primary service, it has branched off into diverse industries like Finance, Media, Appliances, Water processing, Power, Aircraft, Industrial product and a host of subsidiary activities.
Headquartered at Easton Turnpike Fairfield, it has offices at one hundred and sixty countries, today General Electric operates in more than a hundred countries with products and services ranging from power generation, security technology, aircraft engines, water processing, medical imaging, industrial products, business and consumer financing, media content with more and more appliances and gadgets being invented and patented in each sector on a regular basis. As of now the company has over 300,000 employees worldwide. GE’s common stock is traded on the New York Stock Exchange under the symbol GE.
All the businesses of General Electric are given below: Aviation, Bio-Sciences, Capital Solutions, Clinical Systems, Commercial Aviation Services, Consumer & Industrial, Corporate Financial Services, Diagnostic Imaging, Energy, Energy Financial Services, Equipment Services, Film, GE Commercial Finance, GE Consumer Finance, GE Fanuc, GE Healthcare, GE Industrial, GE Infrastructure, GE Money, Healthcare Financial Services, Healthcare Information Technologies, Inspection Technologies, Interventional Cardiology and Surgery, NBC Universal, Oil & Gas, Parks & Resorts, Plastics, Production & Distribution, Real Estate, Security, Sensing Services, Television Networks, Transportation and Water & Process Technologies. The revenue growth of the company was about $163 billion turnover and about $20.7 billion as profits in 2006.
The liquid capital of the company has grown to $24.7 billion and has paid over $18 billion as dividend and has managed to have enough capital for further expansion. The future of the company has been insured with a dynamic research facility that operates with over two thousand five hundred employees and investment of over $15 billion in the research section, continuous upgrading and innovation is possible and is being effectively carried out.
The company spends over $15 billion in research with 2,650 patents to its name. It has also evinced social concerns and provides imaginative solutions for global ecosystem concerns through the Ecomagination program. To get quality service from its employees and to promote a new generation of capable personnel, the company has begun the John F. Welch Leadership Center named after the last CEO and investments to the tune of $1 billion is invested in education which imparts training in quality business techniques.
The John F. Welch Leadership Center at Crotonville, is a corporate business school. The company has spent a sum of $200 million in health care and allied charity activities. The current CEO is Jeffrey Immelt and he steps into the shoes of the former CEO John F. Welch whose business acumen is credited with having brought the company to its present position.