Company Analysis of General Electric
Running a company often centers on the idea of considering both positive and negative factors in order to then hand down executive decisions accordingly. To best understand the strengths and weakness of any given company, one must understand its base operations and the scope of industry in which the firm exists. In doing so, one would have a bigger picture of how the company operates and how success has been fostered in, as well as highlight in areas in which the organization could stand to see improvement. In this vein, a full analysis of General Electric was conducted, which includes an overview of the company including background and position in the manufacturing industry, as well as insight into the company’s management structure. Additionally, the company’s financials will be examined so that a recommendation can be made. Overview of Company
According to the company website (2014) General Electric’s slogan is “Imagination at Work” and to this extent, the organization has been fostering in imagination for quite some time. According to the research, the company was founded in 1878 by Thomas Edison in Menlo Park. Edison is most notable for inventing the light bulb, and as such, this corporation is one of the largest companies on Earth more than a hundred years later (General 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 different items across a wide variety of industries. According to the GE company website (2014) these inventions were primarily Edison’s own, and by the early 1900s the company, even against the Great Depression, the organization continued to make appliances for the home, delved into aviation technology, and began to further expand into new markets. As the research notes, because of this the company began to break up into several subdivisions such as GE Consumer Finance or GE energy in order to fully control its wide scope of offerings (General Electric, 2014). By the 2000s, the corporate website notes that the company further expanded into new markets, both online and for various infrastructures and industries around the world. Today, the company has also delved into clean energy technology and pulls in an estimated $2 billion for electronics and home appliance sales alone (General Electric, 2014). Management Structure
Looking 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 Chairman 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 global research, human resources, and its finance department, while externally; the company has commercial and public relations, business development, and its legal 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 each 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 kind of management structure is beneficial to the company in two different ways. To start, it allows the organization to have each subdivision hand down its own division and be more or less...
References: Abetti, 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.
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