The General Electric Company is an American multination corporation. Headquarter of General Electric Company is based in Fairfield, Connecticut. General Electric focuses on four industries; energy, technology infrastructure, capital finance, and consumer & industrial. According to Forbes global, General Electric is the third largest company in the world. Getting to know the company’s past can be a little difficult with many mergers, acquisitions, and divestitures. The company can be traced back to as early as 1876, involving the famous inventor Thomas Edison. Thomas Edison formed the company Edison General Electric.
General Electric has a historic past and a challenging future. While general electric is considered the top third company in the world, the company still has many internal and external factors for the day-to-day business. The factors that will be discussed are Globalization, Technology, Innovation, Diversity, Ethics, and Completion. Identifying the four functions of management is important for every business. A company like General Electrics has many managers in the structure of the company. For this company the managers are very diverse. The main reason for the diversity in this company is because of the globalization.
With the globalization there are many factors to consider when managing others. When a company is located in different countries a manager may be required to assist an employee who is totally different than he or she. Huge barriers like languages and religion will make managing more difficult. If there is no way to communicate with an employee, there is no way to manage that employee. Religion is different in other countries. Awareness of the employees’ religion will help the management process achieve the mission of the company. The four Functions of management are Planning, Organizing, Leading, and Controlling.
The goal in managing is to complete the company’s mission. Using the four functions of management will make it easier to accomplish the mission. Planning is important to the management process. Acquiring the right plan will give a timeline for the mission. Organizing is the next step. The more organized a manager is, the more professional the manager looks. Leading is key for every manager. A manager must take the lead in every situation but also be open to suggestion from employees. An open minded leader is preferred. Being open to others can make the completing the mission less difficult.
Controlling is the last step, a manager must control the environment of his or hers employees. Employees are more productive under a structured environment. Knowing the four functions of management is important for every company. As the functions of management are navigated, it is also important to understand that these functions are not always used in the order previously discussed. Each function is refined on a continual basis to produce the best results possible. Internal and external factors contribute to this continual process of changes. One example of how General Electric was forced to change was in the global appliance market.
In the 1980s many businesses began to outsource their manufacturing to low-cost countries like Korea and General Electric was no different. According to Jeffrey R. Immelt (current General Electric Chief Executive Officer), during that time the company had become less profitable (Harvard Business Review, 2012). The result of the decision to outsource opened the door to competitors in Asia. “As these competitors improved their lines lowered their prices, even customers who had grew up and knew only GE refrigerators and dryers began to explore alternatives” (Immelt, 2012, p.
44). Additionally, other external factors such as manufacturing and distribution cost, rising wages around the world, and emerging economies began to add strain. The combination of all these factors made manufacturing more expensive and less effective. Again external factors forced General Electric to rethink how they could remain competitive in the market. In 2008 they decided that outsourcing was outdate which, resulted in General Electric relocating manufacturing operations back to the United States.
General Electric had to quickly and consider on where to and how to make a change on how to invest. One of the things General Electric had to consider is new products needed to compete and win. A deciding factor on superior customer value proposition was viewed. Regaining the competitiveness, delivering value to the customer, and generating shareholder return would require not just investment but an entirely new approach one centered on ensuring not only that the best people but also that the employees literal hand off what they were best at doing.
The people at General Electric could change the environment in which they worked, engaging the entire workforce from design to development to assembly. This is human innovation. According to General Electric Chairman and Chief Executive Office Jeff Immelt addressed more than two hundred business and political leaders, journalists, and other visitors, and focused on ideas that help American businesses boost their competitive edge. Immelt hit a confident note (2012). Immelt had expressed the importance between suppliers, manufactures, and customers, and the role big date will play in making companies more competitive.
As Chairman and Chief Executive Officer Jeff Immelt on General Electric this will provide job creation and the Economy (2011). General Electric’s capital offers a range of flexible financial products/services to dealers and consumers worldwide. With inventory financing and asset-based lending, General Electric’s capital funds the flow of goods from manufacturer to dealer. On the consumer front, General Electric capital offers credit cards and installment loans through dealers, organizations, and retailers of all sizes.
Dealer financing offers flexible solutions and online tools for manufactures, and distributors, suppliers, and dealers of all sizes and their customers. Inventory financing funds the flow of inventory with a proven and measured approach to lending. Consumer financing credit cards and installment leading solutions for consumers through dealers, retailers, associations, contractors, manufactures, health care practice and service providers. Private label credit cards that are retailer branded credit cards and private label cards can offer the customers promotional financing, fixed payment, and reward options.
Co-brand credit cards provides customized general purpose credit cards with worldwide acceptance can be tailored to include a value proposition that rewards customers for their everyday spending. Installment loans offer installment loans to consumers with attractive terms and predictable monthly payments for big-ticket purchases. A complementary alternative for consumers who do not want a credit card product. References Immelt, J. R. (2012). The CEO of General Electric on Sparking an American Manufacturing Renewal. Harvard Business Review, 90 (3). Retrieved from http://apollolibrary. com