Ge- Introduction and Corporate Strategies over the Years

In the year 1876 Thomas Alva Edison started laboratory in New Jersey that dealt with electrical devices. By 1890 Edison establish a company called Edison General Electric Company. It was at the same time that a competitor established themselves in the market. Thomason-Houston Company started to dominate the market. Soon both the companies found it difficult to rely solely on their patents and technologies. Hence in 1892 both the companies merged and called the company General Electrics.

Through the years General Electrics has seen 10 leaders and yet managed to grow and make a name for its self in the world. The first GE Appliances electric fans were produced at the Ft. Wayne electric works in 1890s, while a full line of heating and cooking devices were developed in 1907. GE Aircraft Engines began in 1917 when the U. S. government began its search for a company to develop the first airplane engine “booster” for the fledgling U. S. aviation industry. Thomas Edison’s experiments with plastic filaments for light bulbs in 1893 led to the first GE Plastics department, created in 1930.

The journey of General Electrics has had many ups and lows but even till today have managed to maintain their reputation in the market due to the factor such as * Leadership, * Adaptability, * Talent, * Influence and * Networks. These five points have been the key ingredients for the success of General Electrics. One of the earliest projects of the new lab was to defend the company’s primary asset — incandescent lighting — through innovation. In 1908, GE scientist William Coolidge invented the ductile tungsten filament that made the GE incandescent lamp significantly more durable than the original design.

The invention secured GE’s technological leadership in the market and epitomized the role of the GE research lab — bringing innovation to the marketplace. GE’s leaders through the years have built a diverse portfolio of leading businesses; a stream of powerful company-wide initiatives that drives growth and reduces cost; financial strength and Controllership that allow it to capitalize on opportunities through numerous cycles; and a set of common values that allows it to face any environment with confidence.

General ElectrGE was formed by the 1892 merger of Edison General Electric of Schenectady, New York and Thomson-Houston Electric Company of Lynn, In 1896, General Electric was one of the original 12 companies listed on the newly formed Dow Jones Industrial Average and still remains after 115 years, the only one remaining on the Dow (though it has not continuously been in the DOW index). public company:23 Ton diesel electric locomotive made at the General Electric Corp.

plant in Schenectady, New YorkIn 1911 the National Electric Lamp Association (NELA) was absorbed into General Electric’s existing lighting business. GE then established its lighting division headquarters at Nela Park in East Cleveland, Ohio. Nela Park is still the headquarters for GE’s lighting business. In 1935, GE was one of the top 30 companies traded at the London Stock Exchange. [11] computing: GE was one of the eight major computer companies through all of the 1960s GE had an extensive line of general purpose and special purpose computers.

Among them were the GE 200, GE 400, and GE 600 series general purpose computers, the GE 4010 Corporate affairs Classic GE neon signGE is a multinational conglomerate headquartered in Fairfield, Connecticut. Its New York main offices are located at 30 Rockefeller Plaza in Rockefeller Center, known as the GE Building for the prominent GE logo on the roof. NBC’s headquarters and main studios are also located in the building. Through its RCA subsidiary, it has been associated with the Center since its construction in the 1930s.

The company describes itself as composed of a number of primary business units or “businesses. ” Each unit is itself a vast enterprise, many of which would, even as a standalone company, rank in the Fortune 500[citation needed]. The list of GE businesses varies over time as the result of acquisitions, divestitures and reorganizations. GE’s tax return is the largest return filed in the United States; the 2005 return was approximately 24,000 pages when printed out, and 237 megabytes when submitted electronically. [30] The company also “spends more on U.

S. lobbying than any other company. “[31] In 2005 GE launched its “Ecomagination” initiative in an attempt to position itself as a “green” company. GE is currently one of the biggest players in the wind power industry, and it is also developing new environment-friendly products such as hybrid locomotives, desalination and water reuse solutions, and photovoltaic cells. The company “plans to build the largest solar-panel-making factory in the U. S. ,”[31] and has set goals for its subsidiaries to lower their greenhouse gas emissions.

[32] On May 21, 2007, GE announced it would sell its GE Plastics division to petrochemicals manufacturer SABIC for net proceeds of $11. 6 billion. The transaction took place on August 31, 2007, and the company name changed to SABIC Innovative Plastics, with Brian Gladden as CEO. [33] BusinessesMain article: List of assets owned by General Electric GE’s divisions include GE Capital, GE Energy, GE Technology Infrastructure, and GE Home & Business Solutions Through these businesses, GE participates in a wide variety of markets including the generation, transmission and distribution of electricity (e.

g. nuclear, gas and solar), lighting, industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, and aviation services. It co-owns NBC Universal with Comcast. Through GE Commercial Finance, GE Consumer Finance, GE Equipment Services, and GE Insurance it offers a range of financial services as well. It has a presence in over 100 countries. GE gauges to control a railway locomotive at a museum near Saskatoon, Canada[35]GE also produces General Imaging digital cameras.

[36] In 2010, General Imaging released the Bridge Camera GE X5 with 14MP and 15x optical zoom. [37] In 2011, it is replaced by 16MP GE X500 with optional red color in Japan besides traditional black or white color in world wide. [38] Since over half of GE’s revenue is derived from financial services, it is arguably a financial company with a manufacturing arm. It is also one of the largest lenders in countries other than the United States, such as Japan. Even though the first wave of conglomerates (such as ITT Corporation, Ling-Temco-Vought, Tenneco, etc.

) fell by the wayside by the mid-1980s, in the late 1990s, another wave (consisting of Westinghouse, Tyco, and others) tried and failed to emulate GE’s success. It was announced on May 4, 2008 that GE would auction off its appliances business for an expected sale of $5–8 billion. [39] However, this plan fell through as a result of the recession. Corporate recognition and rankingsIn 2011, Fortune ranked GE the 6th largest firm in the U. S. ,[7] as well as the 14th most profitable. [8]

Other rankings for 2011 include the following:[9] #7 company for leaders (Fortune) #5 best global brand (Interbrand) #82 green company (Newsweek) #13 most admired company (Fortune) #19 most innovative company (Fast Company). GE Guiding Principles GE challenges its spirit of innovation and dedication to integrity to produce benefits that extend beyond building their own business.

They also aim to address the difficult challenges that affect the lives of the communities and people who are touched by their business. Their goal is to make money (strong, sustained economic performance, make it ethically and make a difference. In most (large) corporations there are several levels of management.

Corporate strategy is the highest of these levels in the sense that it is the broadest – applying to all parts of the firm – while also incorporating the longest time horizon. It gives direction to corporate values, corporate culture, corporate goals, and corporate missions. Under this broad corporate strategy there are typically business-level competitive strategies and functional unit strategies. Corporate strategy refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of “which businesses should we be in?

” and “how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole? ” Business strategy refers to the aggregated strategies of single business firm or a strategic business unit (SBU) in a diversified corporation Functional strategies include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies. The emphasis is on short and medium term plans and is limited to the domain of each department’s functional responsibility.

Each functional department attempts to do its part in meeting overall corporate objectives, and hence to some extent their strategies are derived from broader corporate strategies. CORPORATE STRATEGIES OVER THE YEARS STAGE ONE- LIVING BETTER ELECTRICALLY This period began in the late 1870’s with the original Edison General Electric Company founded and led by thomas alva edison. This led to key investors (Henry villard and J P Morgan) taking leadership and merged the company with Thomas Houston to form the General Electric Company.

Beginning with the leadership of Charles Coffin and later pushed by Swope and Young GE instituted very powerful resource systems and permitted the company to develop a “strong, loyal and trained” bench of professionals and leaders. This was a period where the focus was on building a strong foundation team. STAGE TWO- DIVERSIFICATION AND DECENTRALIZATION Ge moved from being a pure electrical company to a highly comple and diversified company and it instituted unique management systems and human resource programs.

Post World war 2 GE transformed into a massive successful and diversified company focusing on interna development and organic growth. Ralph Cordiner in early 1950’s focused on training managers who could manage any business regardless of the industry or size. He frmulated a professional management training program. He believed that both organised labor and Big government were major threats to the companys success so he instituted an aggressive and adversial anti labor and anti big government program.

He hired Ronald Regan an acto rto serve as the corporatae spokesman when exposed it adversely affected the credibility of GE leading to a big scandal including a price fiing scandal leading to GE aiming all its processes at fixing what had been undone. Fred Borch took over and initiated what was called a “groth council” to identify growth opportunities and hence pursue nine major new growth areas. These growth areas included four product oriented ventures and five service opportunities further leading to diversification and decentralization.

STAGE 3 JACK WELCH Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through their simple and highly functional designs. * Sustained attack on bureaucracy. * sought to instil a culture of openness, confidence, leadership and creative thinking at every level of the organisation.

* Nuetron jack was his nickname for ruthlessly eliminated several layers of management and shed a large number of jobs Welch declared that the organisation’s true core competency rests in the ‘global recruiting and nurturing of the world’s best people and the cultivation in them of an insatiable desire to learn, to stretch, and to do things better’ (GE 2000). GE’s performance evaluation system was famous for * its ‘rigour and ruthlessness’ (Grant 2008, p. 308) * Welch clearly recognised that GE’s best asset was its human capital.

WHAT IS WORK OUT? * A quick, simple concept aimed at getting unproductive work out of the process of decision making and decision implementation by harnessing the intellegence of the workers closest to the problem.

In the middle of 1988 Jack Welch and Jim Baughman, head of the management-development center at Crotonville, New York, visited the various GE plants concerned about poor quality and low productivity in the major appliancs business. They met groups of frontline workers, usually without their managers and vice versa. Everwhere he heard the same thing which was workers had ideas but no authority to act on it and managers had the authority but no time to evaluate or approve the ideas of workers.

GE’s clogged organizational arteries posed a threat and hence Welch decided to remake one of the most successful companies in the world by demanding that each business unit has to either first or second in the world. If not the manager had to fix, sell or close the unit. To get rid of bureaurcracy he removed organizationall layers including the corporate strategy planning staff and decisions were made by the people themselves an by Welch himself. The feedback from the drastic downsizing and absence of bureaucracy initially led to constant

pressure as there was now “too much work and too few people” as the strategy, structure and cost base of GE had changed but not the way day to day work gets done. Besides that mrale was low too. Tired of the complaining Jim Baughman and Welch decided to convert an idea called work out into action with 30 management thinkers. The behavior of 13 business leaders and heads of the corporate staff groups had to be changed to change the underlying management culture of GE and hence Work Out was not only about reducing work but also changing the management culture simultaneously.

The management team recruited leadership development and change management experts to help out who weere handpicked in a way that the senior business leaders of GE would consider them credible enough to work productively with them. The management teams goal was to appoint one lead consultant for each GE business as well as one for major corporate staff units. The idea converted to action and management leaders were roped in to sprea the virus to 13 business units at the time and by 1989 “speed, simplicity and self confidence” was the product of Work Out.

BOUNDARYLESS ORGANISATION Information from multiple parts of the enterprise at our fingertips, all integrated to suit our specific needs, instantly available, across geographies, time zones and organizational structures. In order to achieve that and to enable the information age to realize its full potential, we need to allow for what The Open Group calls “Boundaryless Information Flow”- a continuous securestream of information seamlessly flowing within and among enterprises, across permeable boundaries.

Welch believed that the key to translating diversity into a competitive advantage was the ‘frictionless transfer of best practices and learning within the organisation, and the close partnership relations with its suppliers’ (Grant 2008, p. 310). The Boundaryless Organisation initiative aimed to blur GE’s internal and external boundaries through information sharing, crossbusiness learning and the integration of key suppliers into GE’s end-to-end processes.

It facilitated the flow of information and assisted learning across the organisation by providing a safe forum for the open expression of opinion. This would have helped staff overcome their competitive motives and assisted knowledge transfer. The blurring of boundaries had another important strategic purpose, namely, the unlocking of synergies from GE’s diversified portfolio of businesses and achieving substantial economies of scope by sharing knowledge, resources and capabilities common to different businesses. The organisation captured some of the benefits of its diverse knowledge base.

GLOBALISATION Globalisation was aimed at exploiting international economies of scale across GE’s business portfolio and taking advantage of global opportunities as they arose. During the 1997 Asian financial crisis GE invested acquired distressed assets in the region in order to leverage off an eventual upturn. This approach had paid off for GE in the past during the US and European recessions in the 1980’s and the Mexican crisis in the mid 1990’s, allowing the company to accumulate quality assets at discount prices.

The Globalisation initiative allowed the organisation to exploit global economies of scale and helped GE capitalise on learning opportunities across geographical locations. To the extent that knowledge from one GE business or location could be readily applied to another there was always a potential for synergy gains from the organisation’s global diversification. DIGITISATION This initiative was introduced in 1999 with the launch of Welch’s destroy-your-business. com program where line managers were encouraged to visualise how their business might be ‘crushed by the dotcom juggernaut’.

Digitisation allowed further improvements in internal process and the discovery of profitable new market opportunities. The Digitisation initiative led to the widespread discovery of new opportunities not only in the improvement of internal knowledge management but also in customer service. Further, in combination with the breaking down of GE’s hierarchy, SIG SIGMA Six Sigma. The methodology, developed by Motorola, was implemented by GE on an unprecedented scale throughout the whole organisation.

It is a comprehensive quantitative system for defining, measuring, analysing, improving and controlling every aspect of corporate processes. Among the claimed benefits of the system is its focus on achieving measurable financial results from any project to which it is applied. GE’s target was reducing defects to 3. 4 per million therefore aiming at flawless products and no room for mistakes. With the deployment of Six Sigma Welch clearly demonstrated his awareness of the importance of creating value for customers and its strategic role for GE.

He was quoted as saying, ‘We want to make our quality so special, so valuable to our customers, so important to their success, that our products become their only real value choice’ (Bock, W. 2001). This reflects Welch’s desire to lock in GE’s customers into perpetual dependence, making it more difficult for them to switch. Key Concepts of Six Sigma * Critical to Quality:Attributes most important to the customer * Defect: Failing to deliver what the customer wants * Process Capability:What your process can deliver * Variation: What the customer sees and feels * Stable Operations:Ensuring consistent, predictable processes to improve what the customer sees and feels * Design for Six Sigma:Designing to meet customer needs and process capability STAGE 4 Jeff Immelt 1.

Focus on consumers and the need to use the process to satisfy customers and drive the growth of the company and diverge in to going big for GE i. e Diversification 2. Generating new idea and developing the capabilities to make them a reality-Innovation 3. Great technology. The main aim being the need to have best products, conten,t and services 4.

Commercial excellence for developing world class sales and marketing talent 5. Globalization aims at creating opportunities everywhere and expanding in developing global markets 6. Growth leaders who can inspire and develop people who know how to help customers grow and help GE grow GE Production Strategies 1. Big moats Strategy When it comes to castles, “big moats” are tougher and more costly to build — but they’re also much better at keeping people out. With manufacturing, big investments that bring to market advanced technologies can have the same effect — keeping the competition from ever getting close.

As The New York Times underscores in its in-depth story, ‘G. E. Goes With What It Knows: Making Stuff,’ a “big moat” manufacturing strategy is precisely what GE is successfully pursuing right now. It centers on “heavyweight products that take patience and piles of cash to develop, weigh tons and last for years — next-generation jet engines, power turbines, locomotives, nuclear plants, water-treatment systems, medical-imaging equipment, solar panels and windmills. The costs and complexities of such businesses… make it hard for just any company to compete.

” Essentially, these are markets, that have “big moats,’” GE Chairman and CEO Jeff Immelt told the paper. “They’re tough to get in. ” But the pay-off is that big-moat businesses can also be quite lucrative. “Mr. Immelt points to G. E. ’s jet-engine business as an example, saying that it has higher profit margins and returns on capital than the leading banks. ‘It doesn’t happen every quarter or every year,’ he says. ‘But over a 10- or 20-year time period, the businesses that are hard to do had the best returns. So the arithmetic works over time.

’” 2. High – end technology based manufacturing. That focus on “technology-based manufacturing” is also turning into jobs, with the Times noting that more than 4,000 have been created by GE over the last 18 months, including “new factory jobs in Kentucky, Ohio, New York, Alabama and Mississippi, for making products including energy-thrifty washers and dryers, fluorescent light bulbs, sodium batteries, environmental coatings and jet engines. And the company is opening a research center in Michigan for advanced manufacturing technologies.

” As Immelt explained, the key is focusing on what he calls “large-scale entrepreneurship” by “identifying long-term market shifts — ‘what’s next,’ he says — and then marshaling the company’s research, manufacturing and marketing resources to capitalize on the opportunity. “It’s about using the scale of G. E. , the majesty of the company, to drive growth and change,” he says. 3. Innovation When work first began on the LEAP (Leading Edge Aviation Propulsion) engine in 2005, the objective was clear: to create a high-bypass turbofan jet engine that dramatically increases the fuel efficiency of the narrow-body planes we fly.

The year was 2005. Today, the news is official: Just ahead of next week’s 49th International Paris Air Show, Carrier Virgin America has officially launched the LEAP engine by ordering it for 30 of its new Airbus A320neo planes. Virgin also announced that the existing CFM56-5B engine will power the 30 currently-flying A320s in its fleet. The combined order totals $1. 4 billion. By achieving 15 percent more fuel efficiency gains over existing tech, the A320neo and LEAP engine will save Virgin America $1. 9 million in annual fuel costs per plane while also offering double digit reductions in greenhouse gas NOx emissions.

Both the LEAP and the CFM56 are made by CFM International, a joint venture between GE Aviation and French engine manufacturer Snecma. The new airplanes will begin delivery in 2016. Henson said GE has a three step process to help the company reach the 8% annual growth targets set by CEO Jeffrey Immelt. The three steps are: 1. Identify the trends shaping the business landscape. Every year the company surveys what’s happening in the world around it. This information then shapes how it will proceed with its growth and innovation efforts.

This year, the company identified the rise of emerging markets, infrastructure growth (in large part enabled by the emerging markets), large demographic shifts, and environmental awareness in consumers. 2. Apply business goals that are unachievable if the units stay focused on the current business environment. This step related to a point Govindarajan made earlier–that business focus can be drawn into three segments: 1) managing the core business 2) moving into adjacent markets and 3) creating entirely new businesses.

3. Lay out the challenges, the trends, the targets, and have a discussion with key team members. The company convenes leaders from each of its units and surveys the above information and crafts the plans it will need to meet the goals. These innovation projects are then reviewed by the chairman once a month, which raises the profile of these efforts throughout the company and reinforces the importance of innovation. Asked by an audience member where the innovation process “gets messy,” Govindarajan said “It gets messy when you go to execute on breakthrough ideas. That’s where the challenges lie.

” To meet the challenges of executing on innovative ideas, Govindarajan suggests companies employ three key tenets: 1. Forget the rules that govern the core business. 2. Borrow the key components of the core business that will give the new business competitive advantage. 3. Learn how the breakthrough business should run- spend a little, learn a lot through testing your assumptions. “Ultimately,” said Govindarajan, “building a breakthrough business is less a technology challenge than it is an organizational challenge. ” ————————————————-

Empowering Your CPG Business Strategies How Do You Accelerate Operating Strategies? Through our long history we’ve continually enhanced our solutions to deliver value where you need it. Whether you’re engineering more flexible assets to keep pace with product innovation, or driving structured continuous improvement programs to drive down inventories and manage costs, our solutions fit with your goals. Operational ExcellenceTo achieve both plant and supply-chain level efficiencies, a solid foundation of reliability and predictability is needed.

Tap into our experience and see how our solutions have helped our customers secure and build on their progress along a consistent set of improvement milestones: * Process/Production Visibility – Using HMI and control systems to empower operators and maintenance with line-side metrics and machine data * Overall Equipment Effectiveness (OEE) – Using the Proficy suite to integrate data assets along production routes, and adding dimensions of analysis for a more complete understanding of factors affecting throughput.

* Process Reliability – Incorporating rich quality information to extend loss analysis and prevention, and to maximize material usage * Standardized Work Processes – Ensuring consistent work processes with structured task execution, event management and line-side supporting information * Enterprise Operational Excellence – Extending analytics across the production network; integrating performance and event data to enterprise systems for improved planning and execution| | | com/industries/consumer-packaged-goods/cpg_customer_strategies Profitable and Product-Safe Supply Chain As Consumer Packaged Goods companies increasingly face the need to manage multiple new SKUs while ensuring high product quality, our Proficy software suite delivers maximum flexibility and operational reliability—critical to addressing changing consumer demands in today’s competitive marketplace.

Providing the right IT architecture and helping you leverage valuable, hidden manufacturing data, Proficy seamlessly integrates key production information within your existing infrastructure, from the plant floor and across your enterprise. It enables increased manufacturing visibility to help you make better decisions that drive results: * Increased productivity and efficiency * Reduced costs * Improved quality and safety * Better regulatory compliance Manufacturing Sustainability.

With increasing costs for utilities and permits, resource conservation is as much about the bottom line as it is about stewardship. Yet in the pursuit of a lower impact business, the quality of your product cannot be compromised. Our portfolio of solutions delivers the information needed to understand how to manage these competing needs – enabling you to mix continuous improvement strategies with capital expenditures for a balanced outcome.

* Advanced Automation – Ensuring precise control of delicate processes, so energy, water and other key inputs are consumed appropriately * Open & Layered – Visualization, data collection and reporting/analytical tools designed to integrate with diverse assets and other systems – unlocking the information in your processes * Comprehensive Analysis – Manage utility or chemical inputs in the same framework as standard materials – correlating all machine, ingredient and process information against consumption for deep insight into improvement opportunities HR STRATEGIES GENERAL ELECTRIC HR STRATEGYGE employs over 13,000 people in India.

•Rewards and BenefitsGE strives to provide competitive employee benefits packages in the various regions and industries.

Their wide range of employee services, retirement, health and other benefit plans are designed to help eligible employees make the best decisions for themselves. Through HEALTHAHEAD, GE has further committed to improve the health of their employees and their families by creating a culture of health which will deliver on-site and on-line programs, education, tools and services. •Leadership and LearningGE believes in developing the talent of new employees with programs designed to give in-depth experience and build skills that are crucial to their long-term success.

They invest more than $1 billion annually in training and education offerings. •The GE Women’s Network is a voluntary organization to support the professional development of women at GE. Development is focused on leadership, advancement and career-broadening opportunities through a variety of tools, including information, education, leadership interaction and networking with other women to share and learn best practices •The “SPIRIT & THE LETTER”are two of the ways that GE keeps open channels of communication and makes clear their policies and expectations of employees.

•GE policies and initiatives also include day care centers, mother’s resting rooms in offices, safer transportation and son. •RESTARTis a program that focuses on hiring women scientists and engineers who have taken a career break and wish to get back to work. •Recently, in 2011, GE introduced “GE India Innovation Award” to honour those employees who exemplify the concept of ‘imagination at work’. Dipak Bharali who invented an accessory in conjunction with the Jacquard hand loom became the first winner of this award. Marketing strategies 1.

Investing and tapping the internal market within the reach of the company. To promote this strategy, GE invests in their employees by providing good working environment and providing necessary tools required to perform various tasks in the organization. By being highly valued and appropriately compensated, the employees at GE are usu