Why do you think GE has invested so aggressively in foreign expansion?
International Business Assignment nr. 1
K. Toufarova
Globalization at General Electric
1. Why do you think GE invested so aggressively in foreign expansion?
Because GE tries to achieve its main goal: To be number 1 or 2 globally in every business in which it participates. Nowadays GE is not just an American company doing business abroad, but it had become a true global company. The revenues from international sales are growing significantly. This expansion is being powered by growing economies of Asia (particularly China and India).
GE can achieve its goal through:
Increasing its market share and sales volume at its home country and overseas
GE necessarily needs to own more and more local and overseas companies.
Increasing revenue from the international sale
More revenue from international sales will logically generate more funds, which can be used for purchasing and acquiring new companies. It may also increase its market share globally.
What opportunities is it trying to exploit? economic weakness in certain parts of the world with the aim of investing to the region, but in fact to acquiring companies to take advantage of economic uncertainty caused by the currency market collapse for the aim of purchasing or acquiring companies to help in process of development in under develop areas with the aim of profiting from it later
2. What is GE trying to achieve by moving some of the headquarters of its global businesses to foreign locations?
GE strongly believes that to succeed internationally, it must be close to its customers. That’s why it builds or transfers its headquarters abroad.
How might such moves benefit the company?
Basically the company might benefit from more attractive location (in business climate terms) such as:
to be geographically closer to its customers – in the place of its existing activities, agglomeration of headquarters in the same sector of activity, a short
K. Toufarova
Globalization at General Electric
1. Why do you think GE invested so aggressively in foreign expansion?
Because GE tries to achieve its main goal: To be number 1 or 2 globally in every business in which it participates. Nowadays GE is not just an American company doing business abroad, but it had become a true global company. The revenues from international sales are growing significantly. This expansion is being powered by growing economies of Asia (particularly China and India).
GE can achieve its goal through:
Increasing its market share and sales volume at its home country and overseas
GE necessarily needs to own more and more local and overseas companies.
Increasing revenue from the international sale
More revenue from international sales will logically generate more funds, which can be used for purchasing and acquiring new companies. It may also increase its market share globally.
What opportunities is it trying to exploit? economic weakness in certain parts of the world with the aim of investing to the region, but in fact to acquiring companies to take advantage of economic uncertainty caused by the currency market collapse for the aim of purchasing or acquiring companies to help in process of development in under develop areas with the aim of profiting from it later
2. What is GE trying to achieve by moving some of the headquarters of its global businesses to foreign locations?
GE strongly believes that to succeed internationally, it must be close to its customers. That’s why it builds or transfers its headquarters abroad.
How might such moves benefit the company?
Basically the company might benefit from more attractive location (in business climate terms) such as:
to be geographically closer to its customers – in the place of its existing activities, agglomeration of headquarters in the same sector of activity, a short