After much research and thinking, I decided to do my paper on GE, more commonly known as General Electric. I was watching z program on television one night about the men who built our nation and found it interesting that J. P. Morgan built GE. After failing in an attempt to back Thomas Edison’s attempt to get the world, as we know it to embrace DC power. J. P. Morgan backed another inventor, who created AC electricity, the power we now use. That is when J. P. Morgan created GE. This is one of the largest companies in the world and sixth largest in the United States.
After watching this show on television I was not surprised to find out the GE has kept with the ideas of its founder of global domination. GE has reached out to India one of the world’s fastest growing markets to keep growing. It has found that spending money in Research and Development has paid off, especially in these trying times of the US economy. They have also found that a winning team of leadership also helps. GE has also found that placing a very highly regarded and educated people in charge of the India initiative in place. Who themselves are also from India.
This gives a feeling of commitment to the country they are doing business with. GE has spent over 10 Billion dollars in research and development in the last year in India alone. This has attributed to their making 79 Billion dollars in the last year alone. They have also sold off their mortgage investments and have decided to focus on the credit card side of their business in India. Upon further research of GE, I discovered an aggressive diversity program. The former CEO Jack Welch has lead American business into believing in the diversity of its employees.
I would like to try to discover cultural differences that this company may have or have to conquer with its employees, however I cannot. Jack Welch implemented a very aggressive diversity program in 1981 when he took over as CEO. His philosophy was that every employee has a voice and an opinion. He wrote in a letter to stakeholders of the company “If you want to get the benefit of everything employees have, you’ve got to free them and make everybody a participant. Everybody has to know everything, so they can make the right decisions by themselves.
” He created a leadership evaluation survey for employees to complete. He also has management send out surveys to all of their subordinates asking them what they needed to be successful. Although not every suggestion was to be made policy and every change be made, he showed the lower level employees that he was listening and cared about them. GE has carried this same philosophy into their business with India. They have gone as far as making persons from the same cultural make up as the employees in top management positions.
This gives the employees the feeling that their working with each other on the same team, with each other, and not working for some foreign conglomeration that has no idea about their customs and cultural make up. I believe this was a good step towards diversity and cultural awareness being carried forward even after the retirement of Jack Welsh. Upon researching the where and why GE locates its R&D units, I was surprised to discover that they actually have a large interest in R&D located in Bangalore. GE has actually developed and paid for a center for R&D located in Bangalore called the John F.
Welch Technology Center. This is a state of the art center created to assist the next generation of engineers that will work for GE India. By doing, this they have located and shown the local culture that they are here to stay and put money into the infrastructure of their country. The paragraph prior to this on also informs on the way GE practices knowledge management within its company. GE plans to invest approximately $60 million dollars to the R&D of its company in India. The plan on producing 30 new products by the year 2015.
Knowledge management in this country was accomplished by the way they developed their GE India department. GE India employs a workforce made up of citizens from India. In this, they have planned and managed multinational knowledge networks. My personal evaluation of this company’s capacity to plan and manage innovation, I would have to give GE a grade of A+. GE has done their homework by employing a workforce of Indian nationals, and by building a technology center, that trains the next generation of Indian nationals for its workforce.
This shows the country how committed they are to working with India and its citizens. This method has built business relationships that’s will benefit GE in the end. They have also made an investment commitment of $60 million dollars. This shows confidence in their decision to move a department and to do business with India. Having selected one of the largest corporations in the world to do my research on, I was lost at first when thinking about the present supply chain. I was surprised to discover that GE uses a software program Supplier Information Management system for their supply chain.
The system is called Software-as-a-Service this reduces technology costs in their supply chain. GE, the company with probably the most complex supply chain in the world uses over 500,000 vendors in its supply chain. The Software as a Service program is web based and uses a self-service interface program so they can maintain the information that the GE procurement department requires them to provide. The supply chains interface with any business, in any country in the world that conducts business with GE. All the company needs is a computer and all parts ordered are shipped automatically.
The largest question for the companies interface with India, would be can we get the needed supplies to the department in a timely manner. With the globalization of companies like Fed-Ex and UPS, the shipping of products and supplies would be easy. GE’s capacity to plan and manage their multinational supply chains are simplified by using the Software as a Service program. Software as a Service is a web-based solution, built by the software company Aravo. All the software requires, is for suppliers to enter their information, this allows GE to realize considerable savings in resources.
As it uses the Software instead of labor to take the orders. In my evaluation of GE’s capacity to plan and manage its multinational supply, chains would be an A+. GE has been on the forefront of business since its beginnings. They continue to think of ways to keep moving forward in today’s world of business. I do not agree with replacing a labor force with the web-based software, because it puts people out of work. However, using my own business sense I would do the same thing if it lowers my overall DL. When labor costs are lowered companies, P&L grow.
After doing my research on GE, it appears that they did their homework when they decided to move into India. General Electric Company in its quest to tap the international market uses a very organized marketing strategy. General Electric uses a highly diversified method of operations. GE operates 11 major lines of businesses, which include transportation, consumer finance, commercial finance, insurance and energy. It is also involved in healthcare, consumer and industrial products, advanced materials and NBC-Universal. GE employs over 315,000 employees in over 160 countries, with headquarters in Fairfield, Connecticut.
GE promotes both the internal and external marketing environments. Its primary marketing strategy has been a concentration on promoting customer consciousness on all employees in all its branches. Based on the growing awareness in today’s market that a strategy can only be marketed successfully in the market place once it has marketed internally. The four P’s for the company Product they continue to produce and provide top quality product from all of their different companies. Price The prices are kept competitive because of a research and development department that insures they stay competitive.
Place The place, India, GE has had ties in India since 1903. They saw the need and the opportunity to move into a new market to produce their product at a lower price. This raised their P&L to new heights. Promotion The company has a vigorous promotion culture aimed at maximizing communication to the consumers. The company has a state of the art website that is updated continuously to reflect the products, their benefits and how they can be accessed. Communication is amply up to date with a professional and articulate customer services online.
The company also pays great attention to all its stakeholders including employees and customers who are treated as critical in the company’s internal business environment. To find anything to recommend to a company built by one of the wealthiest men in the United States is the hardest task I have found. GE has been a major part of Indian culture since 1902. The biggest recommendation I would have would be to add a larger amount of women into their workforce in India. At this point, they have started to move in that direction and with the newer products that GE are attempting to market in India.
The products are being marketed towards women. Having a woman in the workforce to give the opinion of the women may assist in moving forward. The strategic alliances that have been formed between GE and India are many. GE has gone as far as to help the people and employ the people and citizens. GE’s Businesses in India include Aviation, Energy Management, Power Generation, Capital, Healthcare, Lighting, Oil & Gas, Transportation, Water, Intelligent Platforms, Renewable Energy – Wind. Therefore, it is clear to see that GE is imbedded in India. It is hard to believe that his is an American company.
By doing business in India this way GE becomes a part of the culture and not just another company doing business in this country. GE has gone as far as to build a school of technology in India. This shows how GE is training the next generation of workforce for the India locations. One of the businesses they operate in India is their intelegence platform. This platform is operated and used by the federal government. By being placed in India, the intelligence networks are in a forward location. This gives another location to be housed. It also allows for quicker insertion of intelligence officers who operate in this area of the world.
This also gives faster and more accurate intelligence information for troops stationed in the Middle East. This is not the only reason this alliance exists, because GE has been doing business in India since the early 1900’s. One of the biggest alliances that GE has created in India, for India is the John F. Welch Technology Center located in Bangalore. This is the first and largest integrated, multidisciplinary Research and Development Center outside the United States. GE employs a team of more than 4000 engineers and scientists working in the center.
This helps the local population and gives them a future. Just like growing up in one of the former economical cities in the US, like Detroit for example. As a young teen growing up in Detroit, the former capital city for auto manufacturing in the US, when I graduated from high school I would not have any worries about finding a job. I can go work at the auto plant my dad and his dad worked at. This technology center goes one-step further by giving a degree to the students. The future of GE in India is growing. GE’s CEO Jeffery Immelt believes that as the US economy slows India’s economy speeds up.
He believes that India is one of the top three economies in the world and one of the top three fastest growing countries in the world. He goes on to state that GE expects to grow a minimum of 30% per year over the next 10 years in India. This is an impressive growth expectation. I could not place an actual estimate of the value of this alliance because it would be an astronomical number. By boasting a number like 30%, growth per year over the next ten years is incredible. Corporate Social Responsibility is the way a business regulates itself and watches the way it complies with ethical and social standards.
This is the way a corporation gives back to the world that it does business with. A corporation makes the public, its employees, and consumers stakeholders in the future of the company. The company takes responsibility for its actions and its products by the way it influences the environment. One of GE’s Biggest CSR program in the United States is through the Red Cross and assisting with disaster relief programs. For example, 2011 Joplin Missouri was hit by a major tornado that leveled the town and killed 116 people. This was the biggest and deadliest tornado seen in the United States in over 60 years.
It was GE and the American Red Crosses quick emergency response that helped the people hit by this disaster. Setting up shelters and supplying food and water along with other essentials, they helped the community of Joplin. They also assisted in restoring power and electricity to the town at an alarmingly fast rate. GE has been embedded in the country of India since the beginning of the century. GE has seen first-hand the need for the company to have CSR programs in this country. They have gone as far as to create a university and technical training academy named the John F. Welch Technology Center.
This center employs a host of professors who are leaders in their field of technology to train and instruct the next generation of Indian employees of the company It is hard to compare the different programs that GE uses in its CSR programs. GE is one of the largest corporations in the world and it has seen from the beginning the importance of having a CSR program. GE operates a different CSR program in each of its different markets ranging from education programs to emergency response throughout the world to recycling programs. GE even has a recycling program for its chemical production market.
From a young age, I have seen first-hand the impact and the need for companies to have an active CSR program. My mother, who retired last year, was the CEO of a company called AAFES, the Army Air Force Exchange Service. AAFES operates all of the services on a military installation throughout the world. I grew up in boardrooms, watching, and helping my mom with her work. One of the many programs AAFES has is their going green initiative, where they use incentives to reduce their global footprint on the environment by recycling. I feel it is important for companies who take from the earth, to return and give back to the earth.
References: (2012). GE Capital and The Toro Company Renew Exclusive Consumer Financing Program. [ONLINE] Available at: http://in. finance. yahoo. com/news/ge-capital-toro-company-renew-204900741. html. Read more: http://www. americanessays. com/tool-box/apa-format-citation-generator/#ixzz2BpkYlxgL (2011). Letter to Shareholders. [ONLINE] Available at: http://www. ge. com/ar2010/letter. html. [Last Accessed Nov 2012]. Read more: http://www. americanessays. com/tool-box/apa-format-citation-generator/#ixzz2BplF5doG (2012). GE Capital India to sell mortgage loan biz to Magma FinCorp. [ONLINE] Available at: