Company Analysis of General Electric Essay

Running a come with often centers on the opinion of determineing both positive and negative factors in raise to accordingly manus d sustain executive decisions accordingly. To best understand the strengths and weakness of any granted family, bingle must understand its base trading operations and the scope of intentness in which the firm exists. In doing so, one would have a large picture of how the confederation operates and how success has been fostered in, as well as sidle up in beas in which the organic law could stand to see improvement. In this vein, a full analysis of ecumenic Electric was conducted, which includes an overview of the company including approveground and status in the manufacturing industry, as well as insight into the companys prudence structure. Additionally, the companys financials go forth be examined so that a recomm shoemakers lastation can be made. Overview of CompanyAccording to the company website (2014) common Electrics slogan i s Imagination at Work and to this extent, the presidency has been fostering in imagination for quite virtually time. According to the look into, the company was founded in 1878 by Thomas Edison in Menlo Park. Edison is most notable for inventing the slack bulb, and as such, this corporation is one of the largest companies on Earth more than a hundred years later ( command Electric, 2014). After getting its start in the 1800s the company, being a leader in the industry of manufacturing and resting solely on the idea of innovation and inventions, began to manufacture assorted items across a astray variety of industries.According to the GE company website (2014) these inventions were primarily Edisons suffer, and by the early 1900s the company, even against the Great Depression, the organization stopd to make appliances for the home, delved into tune technology, and began to further expand into cutting markets. As the interrogation notes, because of this the company began t o snap off up into several subdivisions such as GE Consumer Finance or GE aught in order to fully control its dewy-eyed scope of offerings (General Electric, 2014). By the 2000s, the corporate website notes that the company further spread out into new markets, both online and for various infrastructures and industries around the ball. Today, the company hasalso delved into clean energy technology and pulls in an estimated $2 billion for electronics and home appliance gross sales alone (General Electric, 2014). Management StructureLooking to research conducted by Abetti (2011) one can see that the organization has one of the most complex management structures of all major conglomerates. In addition, as the company website (2014) points out, this structure has been in effect since the 1920s and instead of reevaluating this system the company has only expanded upon it. According to Abetti (2011) at the top of the management structure, governing all areas is the lead and CEO, as well as the board of directors. Next, according to the research are two specific divisions external and internal company functions. Internally, the company has world(a) research, human resources, and its finance department, while externally the company has commercial and cosmos relations, business development, and its legal department.As storied by the company website (2014) succeeding(a) the company has its specific divisions or sectors, which this breakup is most notable for. These are as followed Global Growth and Operations, Energy, Capital, home and course Solutions, Healthcare, Aviation, and Transportation. It should be noted that apiece of these organizations exist as their own subdivision and entity, following the GE name. For instance, there is GE Energy, GE Home & Business Solutions, and so forth. This charitable of management structure is beneficial to the company in two different ways. To start, it part withs the organization to have each subdivision hand down its own division and be more or less contained within its own scope of industry, however, it also ensures that a high level of guidance depart still ensure that upper-management is still well aware of what kind of decisions and operations these subdivisions depart invest into.In this vein, according to research that has been conducted by Souraj (2010) each of these divisions utilize a lean manufacturing type of approach in order to ensure that all waste is eliminated and the sectors are utilizing the resources to the fullest. This ensures that the company is being appeal effective in its approach and it allows the company to be innovative, without creating the potential job of being extremely wasteful, which would then cut back on the organizations profitability (Souraj, 2010).Moreover, each division also utilizes a 6 sigma approach in order to achieve near perfection. Essentially, this process rests on considering how each sector is doing in its own industry. For instance, despit e the fact that GE Energy has seen slowed economic growth, this does not mean that GE Home & Business Solutions has as well. As such, utilizing a six sigma approach entrust allow the organization to consider the needs and goals of GE Energy before be after for solutions accordingly. Financial OverviewAccording to research that has been drafted by Abetti (2011) by the year 2000 General Electric was the worlds most valuable company with a market capitalization of $520 billion. However, as the research points out, by 2008, after the U.S. ecological niche led to a national economic downtown this figure had fall 69% percent to $163 billion (Abetti, 2011). In addition, the global financial system has been equally a cause of concern and if one can consider the U.S. economic down disco biscuit the cause of the decrease in market capitalization, the worlds economy is the factor that has kept the companys boilersuit financial state lower than usual (Abetti, 2011). Although, the research po ints out that the organization has began to see a small increase, and thus, the company has hopes that these numbers will turn around, growth and refinement has not been seen as it had prior to 2008 (Abetti, 2011).This is largely attributed to the impression that the worlds financial system will see an upward swing as a natural flow and with the idea that expansion can be considered a way for the company to cut back losses in some areas, while gaining them in others. According to research conducted by Abetti (2011) this line of thinking will not lead to the company to success and instead the company should go back to GEs traditional core competencies and divest non-core businesses. Moreover, the company should also expand its globalisation efforts, rebuild trust between employees and the company, strengthen financial and auditing function authority, and continue to invest in R & D. Although, many of these considerations are subjective, they bear a great deal of consideration when examining the companys financials going forward. cultureGeneral Electric remains one of the largest companies in the world, despite some of the misgivings mentioned previously. The company has a number ofstrengths including a diverse portfolio, existing in a wide range of industries, and its ability to be industry-leaders when it comes to innovation and gauging what products will be a success in the future. With this in mind, however, one recommendation that can be made to the company, based on the available research is for the organization to focus on current offerings, rather than continue to try on after non-traditional competencies. Moreover, the company must consider R & D efforts in order to continue to be the forbearers in innovation and creativity. Doing so will open the company to new markets, rather than the company attempting to slip into them and then compete with others in the market as a smaller entrant. If the company commits to these factors than there remains lit tle doubt that General Electric will go back to being one of the worlds most valuable and innovative companies.ReferencesAbetti, P.A. (2011). General Electric at the crossroads the end of the last US conglomerate? International journal of Technology Management, 54(4), 345-368. General Electric. (2014). From Inspiration to Industry. Retrieved from http//www.ge.com/about-us/history/1878-1904. Souraj, S. (2010). The integration of Six Sigma and Lean Management. International Journal of Lean Six Sigma, 2040-4166.