Company Analysis of General Electric Essay

Running a comp some(prenominal) often centers on the composition of renting both positive and detrimental factors in order to then hand down exe put offive decisions accordingly. To best understand the strengths and weakness of any given keep social club, one must understand its base operations and the scope of industry in which the warm exists. In doing so, one would have a bigger picture of how the guild operates and how success has been fostered in, as healthy as highlight in areas in which the organization could stand to see improvement. In this vein, a copious analysis of command electric car was conducted, which includes an overview of the fellowship including background and position in the manufacturing industry, as well as insight into the smart sets management structure. Additionally, the companys financials will be examined so that a testimony potbelly be made. Overview of Company concord to the company website (2014) General Electrics slogan is Imagination at Work and to this extent, the organization has been fostering in imagination for quite some time. According to the seek, the company was founded in 1878 by Thomas Edison in Menlo Park. Edison is virtually notable for inventing the light bulb, and as much(prenominal), this sess is one of the largest companies on Earth more than than a hundred years later (General Electric, 2014). After acquire 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 several(predicate) items across a wide variety of industries.According to the GE company website (2014) these inventions were primarily Edisons own, and by the early 1900s the company, even against the Great Depression, the organization continued to make appliances for the star sign, delved into air travel technology, and began to further inflate into new trades. As the research notes, be attempt of this the company be gan to break up into several subdivisions such as GE Consumer Finance or GE energy in order to fully arrest its wide scope of offerings (General Electric, 2014). By the 2000s, the corporate website notes that the company further grow into new markets, both online and for assorted infrastructures and industries around the world. Today, the company hasalso delved into clean energy technology and pulls in an estimated $2 billion for electronics and home appliance 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 frame the company has only expanded upon it. According to Abetti (2011) at the top of the management structure, governing all areas is the Chairman and CEO, as well as the b oard of directors. Next, according to the research are two specific divisions external and internal company functions. Internally, the company has global research, human resources, and its finance department, while externally the company has commercial and public relations, business development, and its wakeless department.As noted by the company website (2014) next 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 Business Solutions, Healthcare, Aviation, and Transportation. It should be noted that to each one of these organizations exist as their own subdivision and entity, following the GE name. For instance, there is GE Energy, GE crustal plate & Business Solutions, and so forth. This kind of management structure is beneficial to the company in two different styluss. To start, it allows 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 way will still ensure that upper-management is still well aware of what kind of decisions and operations these subdivisions will drop into.In this vein, according to research that has been conducted by Souraj (2010) each of these divisions utilize a lean manufacturing type of progression 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 cost stiff in its approach and it allows the company to be innovative, without creating the potential problem of being extremely wasteful, which would then cut back on the organizations profit faculty (Souraj, 2010).Moreover, each division also utilizes a sise 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, despite the fact that GE Ener gy has seen slowed frugal growth, this does not mean that GE sign & Business Solutions has as well. As such, utilizing a six sigma approach will allow the organization to consider the needs and goals of GE Energy before planning 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. recession led to a national economic downtown this figure had fallen 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 downturn the cause of the decrease in market capitalization, the worlds economy is the factor that has kept the companys overall financial state lower than usual (Abetti, 2011). Although, the research points 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 expansion has not been seen as it had former to 2008 (Abetti, 2011).This is largely attributed to the belief that the worlds financial system will see an upwards quaver 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 globalization 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. ConclusionGeneral 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 seek 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 little doubt that General Electric will go back to bei ng 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.