Seton Hill University
January 23, 2010
Intro: Why did I select General Electric?
The reason I picked the company General Electric for my research was I knew that the company was well diversified. General Electric makes products that I use everyday and I thought it would be interesting to research and find out how they got where they are in the global market. I will research how much of the sales come from foreign markets and how these markets influence the company. My research will include a basic overview of General Electric as well as more in depth research to help explain where General Electric is today. Thomas Edison had brought together several of his business interests under one corporation to form Edison General Electric. At about the same time, Thomson-Houston Company, under the leadership of Charles A. Coffin, gained access to a number of key patents through the acquisition of a number of competitors. Subsequently, General Electric was formed by the 1892 merger of Edison General Electric and Thomson-Houston Company. Today, General Electric is a multinational conglomerate headquartered out of New Haven, Connecticut. General Electric operates as a technology, media, and financial services company worldwide (yahoofinance.com). Many of General Electric’s subsidiaries would fair well as a standalone company in the Fortune 500. General Electric is constantly changing its business face through acquisitions, divestitures and reorganizations. Also, General Electric has reinvented itself in the global market through research and development.
What has been General Electric’s history in the global market?
General Electric has had a long life in the global market. The earliest foreign business endeavor took place over 100 years ago. Although, it’s unclear when the first sales may have taken place in some foreign lands, research and development has been international for many years. General Electric breaks down their markets into 7 segements. The seven segements are: Northern Asia, Southeast Asia, Australia/NewZealand, Europe, Middle East/Africa, North America, and Latin America. (GE.com). General Electric also has 4 research and development sites located around the world to help the company better understand consumer needs. General Electric prides itself on its ability to meet consumer’s needs around the world. Products must be altered to fit specific rules and regulations and these things have become second nature to General Electric. That is why the company is continually a Fortune 500 company and seems to not be leaving the list anytime soon.
What percentage of their business is now derived from outside the United States and what are the percentage breakdowns of other countries in which they conduct business?
Why did General Electric decide to go global?
General Electric conducts business not only in the United States, but also throughtout the world. General Electric breaks down sales into 7 distinct regions. These areas are crucial to the growth and development of General Electric. The countries that inhabit the Northern Asia section are: China, Japan, Pakistan, India, Korea, and Taiwan (GE.com). The expansion into Northern Asia is relativly new, but the company sees a great potential because of the population. The plan for General Electric is to localize the business to the region, while building on local capabilities and developing local resources. General Electric focuses on enabling the countries in which they operate the tools to advance their lifestyles. General Electric supports the growth of these countries with the products they provide (GE.com). The countries that are part of the Southeast Asia segements are: Cambodia, Philippines, Indonesia, and Thailand. Again, there is a huge potential for sales and revenue. General Electric supplies hostipals with cutting edge...