Business analysis of General Electric

Business analysis of General Electric In the history of technology in the united scales, the history of General Electric company constitutes a significant part. The growth of General Electronics (GE) from a mere home laboratory of Thomas Edison to one of the largest companies from simple early applications to complex 21st century high tech wizardry, has been quite outstanding. the company has also merged with other companies, broading its scope , moving from technology to services, consisting of total 11 main operating gates : GE Advanced with high-performance, fused quartz and ceramics which are used by a good number of industries, silicon-based products. One of world’s leading appliance manufacturers, GE Consumer and Industrial is a preeminent global maker of lighting products for consumer, commercial, and industrial customers. Besides, these functions, GE Commercial and Industrial also supplies systems, services and integrated industrial equipment. The energy industry is served by GE Energy, a prominent suppli er among its field. P1. Background to Change Major changes in General Electric: The economic problems of GE can be deciphered through its managerial reshuffling. General Electronic experienced a far reaching change when John F. (Jacx) Welch Jr. became the chairman and CEO in 1981. Welch intended to give power to the subordinates i.e. the periphery of the company by invalidating the hierarchy of the management, assigning divisions according to the per formative skills, which he followed from predecessor Reginald Jone’s time. GE bought 338 business and product lines for $11.1 billion and sold 252 for $5.9 billion over the next few years. Jones wanted GE to be top ranked in all the fields of operation. During this period, in 1943, General Electric Credit Corporation, another of GE’s operations was formed. And as it expanded into other markets like real estate, leasing and selling of heavy industrial goods, insurance and inventories its assets doubled to $16 billion betwee n 1979 and 1984. Also, the leasing operations protected the parent company from heavy taxes. It was done by leasing of the credit corporation on the equipments developed by GE which suffered accelerated depreciation. Forces for change: Controlling bureaucracy: Welch’s signature concept was to spark productivity and save the company from eminent threats. Wales took care of both internal and external problems. He sorted out internal problems such as between functions eg-that between sales and manufacturing and external problems like GE and its suppliers and customers. Welch incited any kind of barrier was bad for the company. Information travels easily in an open, boundary less organization. There is a nothing to hinder the continuous flow of decisions, people, ideas etc. the century-old systems of resided hierarchy and bloated bureaucracy in Ge near got rid of because this Boundary less behavior. Welsh spent two decades reforming the bureaucratic procedures of GE, because he t hought anything that hindered the free flow of ideas and learning was destructive. Lack of sharing information: Because there was a communication gap between the lower and top management, the goals were not clear to them. So they needed to change and adapt so that everyone could be aware of the goals and objectives of the company.