About GE
GE is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses. GE operates in more than 100 countries and employs 313,000 people worldwide. Jeffrey R. Immelt, who replaced management legend Jack Welch, is Chairman and Chief Executive Officer as of September 7, 2001.
GE’s products include major appliances, lighting products, industrial automation products, medical diagnostic imaging equipment, motors, electrical distribution and control equipment, locomotives; power generation and delivery products, nuclear power support services and fuel assemblies, commercial and military aircraft jet engines and engineered materials such as plastics, silicones and super-abrasive industrial diamonds. Through its affiliate, the National Broadcasting Company, Inc., GE delivers network television services, operates television stations and provides cable, Internet and multimedia programming and distribution services. Through another affiliate, General Electric Capital Services, Inc., GE offers a broad array of financial and other services.
The Company traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896.
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INTRODUCTION The Twentieth Century was profoundly affected by the innovations of Henry Ford. The invention of the automobile gave opportunities to multitudes of people. These opportunities were not just in transportation, but in occupation as well. Today, no matter where a Ford is produced, the consumer knows that they are receiving a high quality product. The reason for this is that the majority ...
GE Mission
GE leaders, always with unyielding integrity:
Are passionately focused on driving customer success
Live Six Sigma Quality … ensure that the customer is always its first beneficiary … and use it to accelerate growth
Insist on excellence and are intolerant of bureaucracy
Act in a boundary-less fashion … always search for and apply the best ideas regardless of their source
Prize global intellectual capital and the people that provide it … build diverse teams to maximize it
See change for the growth opportunities it brings … i.e., “digitization”
Create a clear, simple, customer-centered vision … and continually renew and refresh its execution
Create an environment of “stretch,” excitement, informality and trust … reward improvements … and celebrate results
Demonstrate … always with infectious enthusiasm for the customer … the “4-E’s” of GE leadership: the personal Energy to welcome and deal with the speed of change … the ability to create an atmosphere that Energizes others … the Edge to make difficult decisions … and the ability to consistently Execute
Top Competitors
ALSTOM makes high-speed train cars, track-laying equipment, and signaling devices, as well as luxury passenger ships, naval vessels, and natural gas tankers. Other products include turbines and generators, and electric drives
Siemens has operations worldwide in the automation and control, information and communications, lighting, medical, power, and transportation sectors. It is also active in the semiconductor sector through a majority stake in chip maker Infineon Technologies. Siemens is Europe’s largest electronics and electrical engineering firm and one of the world’s leading mobile phone handset makers. The company is expanding its US operations, which have been reorganized under Siemens Corporation.
Financial Highlights
2000 revenues of $129.9 billion
2000 net earnings of $12.7 billion
Quarterly dividends of $0.16 per share.
Quarterly dividends, paid every quarter since 1899, have increased every year since 1975.
Stock Price:52 week high of 56.1875, 52 week low of 28.6900
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Enclosed you will find some analysis about a company that I recommend investing in. Citigroup is a very profitable company that has displayed steady financial growth since 1998 to become the largest bank in the world. Economic Analysis: I think the economy is growing and a definite indicator of this emerging condition is the Federal Reserves actions of increasing the prime rate one hundred basis ...
Shares outstanding of 9.933 billion
P/E Ratio of 28.36
EPS of 1.37
Market capitalization of 385.10 billion (11/5/2001)
Number of share owners is 2.1 million
2000 international revenues of $53 billion (41% of total revenues)
2000 R&D expenditures of $2.2 billion
2000 total assets of $437 billion
About Jack Welch
Jack Welch joined GE Plastics in 1960 after earning his Ph.D. in chemical engineering from the University of Illinois. In 1968, at only 33 years of age, Jack Welch became the company’s youngest general manager ever. Earnings increased at a compound rate of 31 percent under Welch, and at 37 he was asked to head up the components and materials group.
Welch was viewed by many as a maverick and a renegade. In contrast, Jones had developed GE’s reputation for stability, sound management, and predictable earnings increases. Welch became a serious contender for the position in 1977, when Jones reorganized the company into six sectors and appointed one of six potential CEOs to each sector. Welch eventually took office in April 1981, shortly after his 45th birthday.
Case Overview
The corporation Welch was asked to head was very complex. In 1951, there were nine organizational layers between the CEO and the shop floor. The numerous layers of middle management gave employees comfort.
The company was divided into 150 business units, each dedicated to a single product or product line. These units were equipped with support staff from all functional areas and grouped into businesses, which were in turn grouped into sectors. GE’s extremely diverse business portfolio encompassed everything from appliances to aerospace to information services. GE was a financially strong company; however, its growth rate was approximately equal to that of the gross national product.
Welch took on the task of “taking GE to the next level” by articulating a new vision, focusing the organization on specific values, and developing new management processes. Welch believed the GE ‘s goal was to be number one or two in every business the company was in.
In 1983, Welch made a sketch for a putting company’s portfolio of businesses into three circles: core, high technology, and service. Each of the units in the circles was made up of many previously stand-alone operations. Only businesses that were number one or two in their respective markets were allowed in the circles, and every business outside the circles would be fixed, sold, or closed.
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Ethical Issues The purpose of this paper is to discuss the ethics statement of the business for which I work, and includes examples of ethical behavior. The paper will cover the success and / or failures of the ethical statement purpose, how the statement contributes to the work environment, and the consequences of the failure to observe the ethical guidelines. The company I work for provides a ...
His first years were marked by “destaffing”, or reduction of the workforce, and divesture of business units that did not make the grade. By 1984 he had reduced the workforce by almost 100,000. The cuts earned Welch the nickname “Neutron Jack” because where he hit, the workers were gone while the buildings were left standing.
He argued these cuts were necessary to ensure the health of the company as a whole, he pointed out that overstaffing and incompetence are not only bad for a company but for each employee. He believed good leaders create vision and act on that vision, he was changing GE’s culture. This vision included becoming an organization that could go from CEO to businesses, meaning that GE could be a flexible organization that is poised for growth. He empowered employees and rewarded those that performed best, in the process, creating a new and improved GE corporate culture.
Another dramatic step in bringing about cultural change at GE was Work-Out. This was an approach to discussing and solving problems that Welch thought he experienced when he worked with groups of GE managers attending the general management course at Crotonville.
Some of the main functions of Work-Out were to:
1. Build trust
2. Empower employees
3. Eliminate unnecessary work
4. Create a new paradigm
Work-Out was designed to totally redefine the relationship between boss and subordinate. The main objective of Work-Out was to instill GE’s values of speed, simplicity and self-confidence in every single employee regardless of rank or function
Best Practices, was based on the idea that while GE employees generally looked for innovation internally, Welch realized that they were missing the opportunity to learn from other companies’ breakthroughs. Lessons learned from other companies could serve to spark new ideas.
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"Marketing ideas have made singularly little penetration into the centres of influence of the construction industry. To some extent this follows from the character of the industry as an agglomeration of service organisations, not without structural relationship to one another, but serving a clientele from which individuals seek service very infrequently." (Jepson & Nicholson, 1972: p. 1) ...
Welch put GE’s Business Development Staff in charge of compiling a list of companies with higher productivity than GE. The team developed an initial list of candidates, numbering 200. After a preliminary screening, the list was narrowed to twenty-four companies, about half of which agreed to participate.
Several things were evident in these companies, including:
Instead of managing people, they managed processes.
They relied on practices such as benchmarking to improve their operations.
They emphasized continuous improvement.
These companies were all customer focused.
Their products were designed with attention to manufacturing constraints.
They approached their relationship with suppliers as partners.
Best Practices was an awakening for GE. Continuing in the direction Welch desired would require a shift in focus. To facilitate the dissemination of Best Practices, Crotonville developed courses. The first course was given to employees of GE’s ten manufacturing businesses. The second course targeted the service businesses based on research at companies such as American Express.
For the Future
While there remain doubters, most observers concur that Work-Out and Best Practices have largely changed the culture at GE. These programs have been invaluable tools for improved process and total company performance. Most people also agreed that the elimination of layers within the organization facilitated the pace of change by allowing for “boundary-less” behavior. Becoming this boundary-less company is what Jack Welch and GE see as the up-coming challenge for GE.
An additional challenge is to link GE’s 14 businesses through what Welch termed as ‘integrated diversity’. This was the ability to transfer the best ideas, most developed knowledge and most valuable people freely and easily across businesses in a boundary-less company.
Welch sees the future of GE as:
“Ten years from now, we want magazines to write about GE as a place where people have the freedom to be creative, a place that brings out the best in everybody. An open, fair place where people have a sense that what they do matters and where that sense of accomplishment is rewarded in both the pocketbook and the soul. That will be out report card.”
The Business plan on Starting A Business People Plan Money
Introduction More and more people are beginning to open their minds to new business ventures. It seems like it is becoming the popular move. By opening a business there could be huge profit to be made, depending on the market. On the other hand, there are risks and losses that may occur as well. It is said that there are two reasons why people start a business. The first reason is because they ...
