General Electric is a company who strives to put their best foot forward. For more then 120 years, General Electric has been number one in the products they sell. From airplane engines to light bulbs, their attitude has been admired not only in America, but worldwide. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. After all GE has accomplished, including revenues of 152. 4 billion dollars in 2004, the company still maintains a healthy relationships with its customers. In 1876, Thomas Edison opened a laboratory in Menlo Park, New Jersey.
In that lab one of the greatest inventions of all surfaced, the light bulb. That one business however was not enough for Edison. In 1890, Edison organized various businesses into the Edison General Electric Company. In 1879, Elihu Thomson and E. J. Houston formed a competitive company, Thomson-Houston Company. This company also merged with various companies to keep up with Thomas Edison’s company. It was then ran by Charles A. Coffin, a former shoe manufacturer from Massachusetts. When these two companies began to expand, it became increasingly difficult for either to produce complete electrical products.
In 1892, these two companies merged with the help of JP Morgan, a financial company. When these companies merged, it became known as “General Electric Company”. After the merger, the company moved its headquarters to Schenectady, New York. In 1896, GE was one of the original 12 companies to be listed on the newly formed Dow Jones. Today, it is the only original company to be listed. In 1919, GE founded the Radio Corporation of America (RCA), and American Telephone & Telegraph (AT&T). Through the 1960’s, GE was one of the eight major companies (with IBM being the largest and UNIVAC being the smallest).
GE also had an extensive line of computers ranging from general purpose to special purpose computers. It was said GE got into the computer business because in the 1950’s they were the largest users of computers outside the U. S government. In 1970, GE sold its popular computer division to Honeywell. When GE reacquired RCA, it was mainly for the NBC television network. The rest of RCA was sold to various other companies. In more recent years GE has been growing its assets in different industries, including the 2004 buyout of Vivendi Universal. In the same year GE bought out the credit card unit of the department store Dillard’s for 1. 25 billion dollars.
One of the last acquisitions was the financial assets of the Canadian airplane manufacturer Bombardier for 1. 4 billion dollars. General Electric consists of many different types of divisions that have allowed them to become one of the world’s largest corporations in the world today. Many of the products that have been developed have allowed GE to become the potent industry it is today, such things as Light bulbs, home appliances, electronic supply to major corporations, and much more.
General Electric has become known for their superior quality and design of their products. The different types of products GE consist of are, Appliances such as fridge, stoves, microwaves. All these appliances are used in the home and have become a necessity for all people living in a home. Home electronics is another portion that they deal with, which includes phones, clocks, radios, computers, and much more of our growing needs. As far as lighting they are the biggest supplier in the light bulb industry. The company has grossed in more than any of its competitors in the last decade.
Going beyond the home and the business office, GE has manufactured many Aircraft engines, Train engines, Boat engines, and also car engines. Those industries have contributed to the many success of GE’s dynasty. GE is a company that never stops working on new ways to improve their status as a dominant force in the business world; they are involved in many new projects. Water is the first project that they are focused on; their challenge is water scarcity combining state of the art reverse osmosis with energy and financial solutions. Their next project is wind energy.
Their mission is to provide a more advance and efficient source of energy, and this is being done for the services of the energy industry. Another project being worked on is the Gevo 12-cylinder diesel engine products the same 4,400 horsepower as its 16- cylinder competitor. This engine uses less fuel, delivering significant savings over the life of the diesel locomotive. General Electric over the years has expanded their target markets from and older generation, to a new and more youthful generation. Now in our society more and more young women are taking the necessary steps to become more responsible and independent.
In our days marriage occurs in the early 20’s and lower, with that information GE has figured that more of the younger generation would be into such products as their mothers were into. Now more commercials are focused on mainly middle aged women that are in the process of becoming parents are wives. Other target markets include Aircraft industry, rail, automobile, appliance, electronic, consumer direct, and energy industry. As time progresses so will the expansion of GE’s target market, and they will continue to be the dominant power house in the Electrical industry.
General Electric Company (GE) is a diversified industrial corporation engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. The Company operated in 11 segments. On June 23, 2005, GE announced reorganization of its 11 businesses into six industry-focused businesses effective July 5, 2005. The six businesses are GE Infrastructure, GE Industrial, GE Commercial Financial Services, GE NBC Universal, GE Healthcare and GE Consumer Finance.
During the year ended December 31, 2004, GE acquired the commercial lending business of Transamerica Finance Corporation. Also in 2004, GE acquired Australian Financial Investments Group. On May 11, 2004, GE completed the merger of NBC with Vivendi Universal Entertainment LLLP. In December 2004, GE Infrastructure completed the acquisition of InVision Technologies, Inc. Also in December 2004, GE sold a majority interest in Gecis. From jet engines to TV broadcasting, from plastics to power plants, General Electric (GE) is plugged in to most businesses that have shaped the modern world.
The company produces aircraft engines, locomotives and other transportation equipment, appliances (kitchen and laundry equipment), lighting, electric distribution and control equipment, generators and turbines, nuclear reactors, medical imaging equipment, and plastics. Its financial arm, which includes commercial finance, consumer finance, equipment management, and insurance, accounts for nearly half of the company’s sales, making GE one of the largest financial services companies in the US. Other operations include the NBC television network. Financial Highlights 2004 Revenues: 152.
4 billion. 2004 Earnings: $16. 6 billion ($1. 59 per share). 2004 Cash Flow from Operating Activities: $15. 2 billion Dividends: $0. 22 per share quarterly. Dividends, paid every quarter since 1899, have increased every year since 1975. http://www. ge. com/en/company/companyinfo/at_a_glance/factsheet_graph. html 12/31/04 Shares Outstanding: 10. 586 billion Number of Share Owners: approximately 5 million Stock Splits: GE shareowners have approved nine stock splits, most recently a 3-for-1 stock split in April 2000. Shareowners have also approved four 2-for-1 stock splits since 1983.
One GE share purchased before 1926 is now worth 4,608 shares. 2004 International Revenues: $71. 8 billion (47% of total revenues) 2004 R&D Expenditures: $3. 1 billion 2004 Total Assets: $750. 3 billion Highlights ?In Fortune Magazine’s 2005 “Global Most Admired Companies” list, GE ranked first overall. (February 2005) ? In Fortune Magazine’s 2005 “America’s Most Admired Companies” list, GE ranked second overall. (February 2005) ? GE was ranked first in the Financial Times’ 2004 “World’s Most Respected Companies Survey” for the seventh consecutive year since the Survey’s inception in 1998.
?GE was named to the Dow Jones Sustainability World Index as one of the world’s leaders in environmental, social and economic programs. ?In March 2005, GE received the highest corporate governance rating of 10. 0 from Governance Metrics International. ?In 2004, BusinessWeek ranked GE the fourth most valuable brand worldwide, after Coca-Cola, Microsoft and IBM. (August 2004) ? In 2004, GE ranked second on the Forbes 2000 list, a comprehensive ranking of the world’s biggest companies, measured by a composite of sales, profits, assets and market value. (April 2004) ? GE ranked ninth on Fortune Magazine’s “50 Most Desirable MBA Employers” list.
(April 2004) ? The Great Place to Work Institute Europe named two GE business units (Capital Aviation Services, Ireland, and Plastics, Spain) to the 100 Best Workplaces in the EU List. (April 2004) ? GE received the 2004 Catalyst Award for comprehensive initiatives to advance women through their corporate ranks. (March 2004) GE is committed to leadership in the “next generation” of technology. They are well-positioned to drive growth for the future with technical excellence in each business by developing a global technical capability, increasing new product growth, and investing in global research.
Services have grown from the traditional activities of parts replacement, overhauling and reconditioning machines to a larger and broader vision. Our new vision includes investing in our business and technology to improve the performance on our installed base and the way we actually service it. Through higher technology, we have the ability to go beyond servicing to reengineering the installed base. By doing so, we dramatically improve our customers’ competitive positions. GE is in the midst of an incredible transformation brought on by the Internet explosion.
Our pursuit of digitization will rapidly change our dealings with our vendors, partners, and most of all, our customers. Customer Focus is ensuring that everything we do provides value to our customers. It means creating a partnership that – combined with our expertise in financial, service and technology industries – maximizes customer profitability and ensures quality. A key GE strength is our ability to conceptualize the future, identify “unstoppable” trends and develop new ways to grow. Growth is the initiative, the core competency we are building at GE.
Globalization is not only striving to grow revenues by selling goods and services in global markets. It also means globalizing every activity of the company, including the sourcing of raw materials, components, and products. Globalization especially means finding and attracting the unlimited pool of intellectual capital – the very best people – from all around the globe. Sales Analysis General Electric reported sales of $151. 30 billion for the year ending December of 2004. This represents an increase of 13. 3% versus 2003, when the company’s sales were $133. 59 billion.
This was the third consecutive year of growth at General Electric. Sales of Consumer Products saw an increase that was more than double the company’s growth rate: sales were up 66. 2% in 2004, from $8. 28 billion to $13. 77 billion. General Electric also saw significant increases in sales in Commercial Finance (up 24. 5% to $23. 49 billion) and Consumer Finance (up 22. 5% to $15. 73 billion) . Not all segments of General Electric experienced an increase in sales in 2004: sales of Other fell 41. 2% to $7. 50 billion.
General Electric also experienced decreases in sales in Insurance (down 11.9% to $23. 07 billion) . Recent Sales at General Electric 111 129 126 131 134 151 1999 2000 2001 2002 2003 2004 (Figures in Billions of U. S. Dollars) Most of the company’s 2004 sales were in its home market of the United States: in 2004, this region’s sales were $95. 47 billion, which is equivalent to 63. 1% of total sales. In 2004, sales in Europe were up 21. 3% to $37. 00 billion. Although the company’s overall sales increased, sales were not up in all regions of the world: sales in Pacific Basin were down 0. 1% (to $13. 10 billion) .
General Electric currently has 300,000 employees. With sales of $151. 30 billion , this equates to sales of US$504,330 per employee. The sales per employee levels at the three comparable companies vary greatly, from US$211,135 to US$2,081,291, as shown in the following table. Some of the variation may be due to the way each of these companies counts employees (and if they count subcontractors, independent contractors, etc). Profitability Analysis On the $151. 30 billion in sales reported by the company in 2004, the cost of goods sold totaled $53.
37 billion, or 35. 3% of sales (i. e. , the gross profit was 64. 7% of sales). This gross profit margin is lower than the company achieved in 2003, when cost of goods sold totaled 33. 1% of sales. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) were $40. 26 billion, or 26. 6% of sales. This EBITDA to sales ratio is roughly on par with what the company achieved in 2003, when the EBITDA ratio was 27. 7% of sales. In 2004, earnings before extraordinary items at General Electric were $16. 59 billion, or 11.
0% of sales. This profit margin is lower than the level the company achieved in 2003, when the profit margin was 11. 7% of sales. Earnings before extraordinary items have grown for each of the past 5 years (and since 2000, earnings before extraordinary items have grown a total of 30%). The company’s return on equity in 2004 was 21. 0%. This was a decline in performance from the 24. 5% return that the company achieved in 2003. (Extraordinary items have been excluded). ? GE announced reorganization to accelerate growth ? effective July 5, 2005
? 6 market focused businesses ? Leverages key talent ? Prepares for transition of key leaders ? Expands talent pipeline for future ? Drives simplification & lowers cost Priorities Aligned to drive growth: ?? Drive services growth + best practices ?? Lead Infrastructure growth efforts in developing markets ?? Spread technical leadership ? ?? Synergy in supply chain ? lower cost ?? Unify approach to key customers ?? Enhance growth through channel management ?? Drive cost ? simplification ?? Expand margin leverage scale ??