Hr Case Study

General Electric (GE) Company is one of the fortune 500 listed companies which are diversified in technology and Financial services. I have chosen GE because I have found and experienced that GE has high ethical standards, leadership in governance, environmental and society commitment. As ever GE continues to earn the respect of the world, GE was named as the World’s Most Respected Company for 2010 consecutively for 6 years for now. VISION “We bring good things to life” MISSION GE mission statement from their core values:” Passionate, Curious, Resourceful, Accountable, Teamwork, Committed, Open, Energizing, Always with Unyielding Integrity”.

ABOUT THE COMPANY: General Electric was a merger of “Edison General Electric Company” and “Thomson-Houston Electric Company” in 1892. Based out of Fairfield, Connecticut, GE now has employee strength of more than 227,000 with annual revenue of $260 billion with a market capital of $390 billion. If GE had been a country, GE GDP would be one among the first 30 in the world. The company operates in 11 segments like Commercial Finance, NBC Universal, Healthcare, Energy, Consumer and Industrial, Consumer finance, Advanced Materials, Transportation, Infrastructure, Equipment and other services and Insurance.

Later in January 2011 the company reorganized the Technology Infrastructure into three different segments as Transportation, Aviation and Healthcare. HISTORY OF GE HISTORY OF GE In 1878 General Electric’s life-changing innovations started with the invention of the first incandescent light bulb which leads to building the America’s first Central Power Station. With the invention of power and light, GE has simplified a common man’s life by inventing first X-ray machine, voice radio broadcast, and electric toaster. Through their innovation they provided a variety of forms in plastics.

Back at home the day to day remedies were made easier as GE introduced refrigerators, washing machines, television, and air-conditioner also dish washer. Also GE improved the shipping times at the Panama Canal by their electrical installation. In the field of aviation GE firsts in the invention of U. S. Jet Engine, turboprop, auto pilot . Expanding their discoveries GE invented Lexan, a transparent plastic, water desalination, LED’s and lasers. The world of medicine saw radical changes after the invention of Sigma Magnetic Resonance Imaging and human body scanning with computer tomography for clearer scanning of human body.

A hundred years after GE was started, GE expanded its horizons into various new markets generating more than $2 billion only through electronic sales. GE IN RECENT YEARS In the year 2000 GE made its entry in Indian market by setting up its technology center at Bangalore. In India GE is mainly into healthcare, aviation, water and energy domains. GE has tie up with WIPRO and BEL (Bharat Electronics) for their manufacturing of healthcare equipments. GE has been launching new kinds of products especially in India as IIFI (In India For India) products.

The innovative minds at GE always continue to make new discoveries , excel with their excellent marketing strategies and sourcing techniques which has made them sustain their position in the “Fortune 500 list”. Under the leadership of former CEO Jack Welch, GE possessed skills like Deal-Making Cost-Cutting and Efficiency GE ASSETS AND LIABILITIES This helped GE with consistent earnings over the growth of several years. His successor and the present CEO Jeff Immelt is currently on a mission to alter the company into a innovative machine which drives growth through innovation from a process-oriented one.

He aims to increase the growth rate on an average from 5% to 8%. GENERAL ELECTRIC ASSETS AND LIABILITIES General Electric is a company which is traded publicly. This trades in NYSE. GE operates in sales financing sector. GE is having a total cash flow of $23. 7 billion. Assets Recently GE has filed its Q4 earnings (03-2013) which had $671 billion total assets. Break up is shown below in tabular column. Different assets Values in billions current assets $433 cash and equivalents $89. 80 total receivables $278 total inventories $16. 30 non-current assets $238 fixed assets $115 intangible assets $11.

80 Liabilities Recently GE has filed its Q4 earnings (03-2013) which had $547 billion total liabilities. Liabilities and debts Values in billions Long term debt. $234 short term debt $114. 00 non-current liabilities $388 accounts payable $16. 10 Stock holders equity Recently GE has filed its Q4 earnings (03-2013) which had $124 billion total liabilities. General electric common stock equity accounts for $124 billion. In addition through retained earnings General electric has $146 billion General Electric Assets, liabilities and equity is mentioned below from Q1-2010 to Q4-2012 is mentioned below.

All value in millions 03-2012 (Q4) 12-2011 (Q3) 09-2011 (Q2) 06-2011 (Q1) 03-2011 (Q4) 12-2010 (Q3) 09-2010 (Q2) 06-2010 (Q1) Total Assets 647,483 626,933 614,857 583,634 727,837 751,216 758,824 749,930 Total Liabilities 568,303 554,452 542,889 517,276 604,302 632,280 643,288 635,996 Total Equity 79,180 72,481 71,968 66,358 123,535 118,936 115,536 113,934 Total Liabilities and Equity 647,483 626,933 614,857 583,634 727,837 751,216 758,824 749,930 ORGANIZATION’S MARKETING MIX THE ORGANISATION’S MARKETING MIX: About 10 years ago General Electrical had no substantial marketing organization.

For a long time the company had been very confident that it seemed to believe that they could market their products by themselves. People who were designated as marketers were not able to exercise their roles properly rather they were assigned to sales support team or other promotional activities. Marketing was a major contributor in former plastic units whereas in other units the brilliant minds were into dead-end jobs. Many of the internal skeptics were not aware how the marketing would help GE grow in terms of business. For example, GE aviation a multibillion dollar division that manufactures jet engines for military and commercial aircrafts.

GE was not aware how the market research would help them grow. But very soon many things were improvising, the businesses were maturing slowly and steadily just like any other company. GE started learning that they could not win just by launching sophisticated technologies or by launching the existing technologies into the market. Some of their new offerings were fast becoming commodities. It was a tough time when even executives were having trouble in understanding the drastically changing industry.

TRANSFORMATION This is when GE decided that what they wanted was to grow in all terms, across all businesses for which they were in need of a marketing engine which would drive more of a direct collaboration with the customers and led to new markets. To implement such a marketing strategy it became mandate that marketing should become a vital operating function across all entities of GE that would spur organic growth. To start acting upon them was a challenging activity. It was the marketing team that took up the challenge in identifying and coding the skills that was necessary.

“We had to define what success would look like and how we would measure results- GE” During that time GE did not have any idea how a marketing strategy would look like, It was a challenge for them to come up with a team who had leadership capabilities. The team then arrived at new ways of thinking about marketing strategies and how to build a first-rate marketing team.

The result was a Marketing framework (3 P’s) with three dimensions Principles People Process The three dimensions are interdependent on each other and all are critical. TRANSFORMATION: The new process introduced by Jeff Immelt has changed the long cherished traditions and beliefs. His main strategy is to install a commensurate and scalable process to come up with new business ideas.

For a Six-Sigma company the needs are for the development of power and strength in areas which are difficult to measure like Creativity, Customer Service and Strategy. Now the goal is not only to meet the company’s bottom-line targets but for the managers to also come up with new ideas to improve the customer service, generate revenue and increase sales, where risking failure is a medal of honor at GE today. SWOT ANALYSIS SWOT ANALYSIS Strengths Excellent managerial skills 1. Proved leadership and business models.

2. Satisfied and confident investors 3. Identified as one of the best company for leaders Diversified products 1. Long term products like aircraft engines 2. Short term products such as lighting and plastics 3. Major player in GE’s revenue is its financial services Strength and Recognition 1. One among the top 10 Fortune 500 listed companies 2. One among the world’s best global brand 3. Listed as the innovative company Weakness There is no transparency and visibility between the management and their investors The company does not possess a clear mission without which it is difficult to take critical decisions.

There are no proper restrictions on the acquisitions. Under performance of the energy segment. GE is the largest corporate producer of air pollution. Its diversified businesses might result in over expanding the company that will become difficult to manage and synchronize. PERFORMANCE OF GE IN VARIOUS SEGMENTS Opportunities GE is having lot of reserves which has enabled them to invest lot in Research and development for new product development (NPI’s) and upgrading the existing models. GE by expanding their horizons they found new opportunities by making an entry into markets like CHINA, INDIA…

etc. They found newer opportunities in media business by merging NBC with Vivendi. GE has a vast history record of being polluters. Finding some Environmental friendly resources by investing in renewal resources and solar plants. Threats GE produces nuclear products that have contributed for disasters. When there is a global economical crisis it will impact GE in a great way as its major revenue is based out of overseas. They have billions as tax rebate. Just to increase the executive pay GE lay off more than 3000 employees. Transparency to a large extent.

Variation in the technology leads to competition and it is also difficult to retain its position in the industry due to fluctuations in their technology. PERFORMANCE OF GE IN VARIOUS SEGMENTS GE Healthcare GE Healthcare segment is into manufacturing medical equipment which enables the doctors to see internal damages caused to human body and detect the function of organs so that threats can be detected in its initial stages. GE Healthcare contributes total 17% of whole GE’s Stock. GE healthcare market share increased from 7. 1% in 2009 to 7. 3% in 2011. later it has declined to 6. 7% slightly in 2012.

GE healthcare is expected to grow in 2013 due to large spending from emerging countries like Asia and Latin America. Where construction of new hospitals, clinic and nursing homes has enabled the demand for medical equipment’s in those emerging countries. GE healthcare is continuously investing in R&D which is specialized in many segments. Such as Computed tomography, molecular imaging, and healthcare equipment’s. GE Healthcare domain’s best competitors include companies such as Siemens Healthcare, Philips, Hitachi, Toshiba, and Johnson & Johnson. Their consumers include hospitals and medical institutes.

GE Oil and Gas Oil & Gas segment manufactures equipment that is used in oil and gas industry which are into value chain applications. General Electric Oil and Gas contributes total 10. 9% of whole GE’s stock. GE oil and gas market share declined from 3. 7% in 2009 to 3. 2% in 2010. later it has increased to 4. 4% in 2011 and 4. 7% in 2012. GE oil and gas is expected to grow by 5% this year the main inhibitors for growing due to huge demand for oil and gas in emerging markets. Acquisition has boosted company’s portfolio in technology. GE is planning to expand its market by acquisition.

The latest of which is ongoing acquisition of Lufkin industries. In past GE oil and Gas has invested more than 5 percent of its revenue for developing excellent performance products. GE is a world’s leading player in this oil and gas segment which includes gas compressors, and gas turbines (turbo compression trains) covering all major Liquefied nitrogen process (LNG process), It is having modern equipment for subsea, deep water drilling, Horizontal drilling and 3D seismic technology. GE Oil and Gas domain’s best competitors include companies such as Baker Hughes Inc, Schlumberger and National Oil well.

Their consumers include individual and private oil and gas industries. GE Aviation The Aviation segments are into producing jet engines parts which are in use in military and commercial aircraft, power & mechanical actuation products and landing gear for aircrafts. GE Aviation contributes total 18% of whole GE’s Stock. GE aviation in the field of manufacturing and marketing of Aviation engines (jet engines), equipment’s and services market Is having a market share of about 26. 8%. Market share will cross more than 27% by the end of this forecast period.

The main inhibitors for increasing the market share is huge demand from World’s biggest aircraft manufacturers like Boeing and Airbus have increased their production no’s in order meet their deliveries on time against the growing demand from developed and developing countries. Which in turn increasing growth and profit of GE aviation for the Jet engines which is assembled in commercial aircrafts (aircraft models Boeing 737 and airbus A320). Global MRO(maintenance repair and overhaul, aviation engine industries are growing at approximately 4% and 6% respectively.

If they grow at 6% and 8% respectively a gradual upside of 3% to 4% to our price estimate GE Aviation domain’s best competitors include companies such as Pratt & Whitney, Honeywell, Rolls – Royce Their consumers include BAE Technologies, Airbus, Boeing and Lockheed Martin. GE Energy GE Energy contributes total 21% of whole GE’s Stock. GE Energy in the field of Manufacturing and marketing of wind turbine, solar energy, gas turbine, industrial water treatment, and energy related services. GE market share declined from 13% in 2009 to11. 4% in 2010. later it has increased to 11.

8% in 2011 and 13. 3% in 2012. In the coming days GE Energy’s market shares are expected to decline due to the reducing demands of wind turbines. GE Energy’s best competitors include companies such as Siemens, ALSTOM, and ABB. GE Energy’s major customers are from domains such as power plant operators, electrical utilities, industrial companies and government. GE Transportation GE Transportation contributes total 4% of whole GE’s Stock. GE Transportation in the field of Manufacturing and marketing of urban rail, bus ridership and diesel locomotives.

GE transportation for starting High speed rail corridors. GE Transportation market share declined from 2. 1% in 2009 to 1. 8% in 2010. later it has increased to 2. 9% in 2012 In the coming days GE Transportation s market shares are expected to Increase due to the Huge demand for Diesel locomotives. GE Transportation domain’s best competitors include companies such as Siemens, Kawasaki, Alstom, Caterpillar, and bombardier Their consumers include railway operators mining contractors and governments.

GE Home and business solution GE Home and Business Solutions Market Share declined from 3. 7% in 2009 to 3. 4% in 2011. It declined to 3. 1% in 2012, due to internal reorganization within GE under which Intelligent Platforms business was transferred to the Energy division in 2012. GE Home and business solution contributes total 1% of whole GE’s Stock. GE Home and business solution is leader in smart grid technology demand is increasing in developed countries to optimize and save cost. Expecting to grow its business in home appliances in emerging markets.

GE Home and business solution market share declined from 3. 7% in 2009 to 3. 4% in 2011. later it has declined to 3. 1% in 2012 In the coming days GE Home and business solutions market shares are expected to remain in the same level. GE Home and business solution domain’s best competitors include companies such as Siemens, Philips, LG, IFB, Whirlpool, and Samsung. Their consumers include retail outlets, and residential building contractors. GE Capital GE’s Capital is divided into 5 segments: Commercial Lending & Leasing-

Commercial Lending and Leasing offers collateral loans, leases and various financial services to their customers, manufacturers and their distributers for a variety of assets like Industrial facilities, equipments in aircraft, construction, manufacturing, media, entertainment and healthcare industries. GE Commercial Lending and Leasing‘s Market Share declined from 9. 9% in 2009 to 9. 0% in 2010. It recovered to 9. 4% in 2011 and 9. 7% in 2012. Commercial Lending and Leasing’s consumers include companies like airlines, construction, mining industries, and telecom and media operators.

CLL division’s competitors are commercial and investment banks, independent financing companies and those which are associated with its manufacturers. Real Estate & Insurance The real estate division of GE offers capital, rotating and fixed mortgages for new acquisitions. This division various activities like real estate, infrastructure, apartments, hotels etc.. , the loans they offer are fixed or floating rate and they are secured by the properties which produce income. The incomes from this division are invested in bonds and commercial mortgage loans.

GE Real Estate Market Share Increased from 9. 1% in 2009 to 10% in 2010. It increased to 11. 7% in 2011 and declined to 8. 3% in 2012. GE Real estate consumers include Hotel owners, Industrial companies, and Real estate developers. GE Real estate competitors are financial institutions and real estate companies, real estate developers, industrial companies, hotel owners. Energy Financial Services Energy Financial Services provides debt, finance as in partnership and commercial finance to industries like water companies and their operating assets.

Energy Financial Service’s market share declined from 9. 4% in 2009 and 9. 9% in 2010 and later to 6. 7% by 2011 which then recovered to 8. 3% by 2012. It is expected to increase in the coming years. The Energy Financial Services consumers include governments, water and power companies Its competitors are water, power and infrastructure companies along with banks & financial institutions. Consumer banking GE’s Consumer division finances to retailers who deal with financial sectors like credit-cards, personal and home loans, leases and other lending activities. The market shares increased from 10.

5% to 11. 6% in 2011 and later to 12. 1% at the end of 2011 which later went down to 11. 8% the next year. The main consumers for the financing sector are small scale companies who are into retail. Their competitors include various banks, insurance company, loan and leasing enterprises. GE Capital Aviation Services (GECAS) GE Capital Aviation Services (GECAS) provides aircraft leasing, delivers financing solutions to aviation industries. They also offer loans for commercial passenger aircraft, jets, freighters aircraft parts and airport equity and debt financing.

They also fund for large infrastructure projects which include gateway airports. ORGANIZATIONAL PLATFORM FOR MARKETING The GECAS shares have gone up steadily from 9. 6% in 2009 to 11. 3% in 2012. GECAS’s main consumers are Aircraft manufacturers and MRO operators. Banks and financial sectors of Aircraft companies are the main competitors for GECAS. GE ‘S ORGANIZATIONAL PLATFORM FOR MARKETING: During one of the roundtable discussion with Beth Comstock (The chief marketing officer of General electric) Describes that we teach marketing rather approach marketing as if the companies does not exist.

In GE we are creating a platform which in turns welcomes innovative ideas. Marketing should be in the trenches and leadership should stimulate the culture of innovation which creates new customers, products and services. From Beth Comstock description there are four capabilities which construct company’s marketing platform for innovation. Internally create a market innovation To internally create a innovation in marketing a new program called the Experienced Commercial Leadership Program (ECLP) was introduced by Jeff to improve GE commercially which aims to achieve marketing at golden standard.

As a part of ECLP a MBA program was introduced which taught the employees what marketing is and how to change the usual ways of development. The program was a mutual gain for the participants and the expertise. The message they wanted to convey through this program was that marketing should bring a new way of addressing customers. Collude with Customer As a result of the financial crisis, senior members of the organization identified that the relationships with customers needed to be closer. The idea was to express our value and commitment to the customers so that they will never move to a different company for work.

Access GE, a portal which allows GE customers access GE’s insights, tools and its best practices. Its team composes of expertise that helps customers in solving their major problems. Collude with entrepreneurs GE collaborates with third party entrepreneurs to stay ahead of its competitors. One way that GE interacts with its entrepreneurs is through contests like Ecomagination Challenge. GE casts a search for new ideas by announcing prizes and opportunities for entrepreneurs. GE is open for ideas with its commitment to invest in winning companies and improvise those ideas. Collude internally within GE

There are two main components — The Commercial Council and The Imagination Breakthrough Process. The Commercial Council is made up of leaders from marketing and sales across GE. This council meets on a regular basis to exchange their ideas on marketing. In 2012, “Growth Sprints” a brain child of the Council was initiated brings wide view on the verticals which would give more idea which was a big success. Breaking through the old thought process where marketing was considered to be advertising, the new idea which GE wants to emphasize is that rather than advertising, Marketing means innovation. GE – ADVANTAGES GE – ADVANTAGES.

GE advantage is aiming at running the operation excellence. It consists of a variety of tools. SIX SIGMA Six sigma is one of the most powerful problems solving method which GE adapted to check the defective of parts from suppliers. Six sigma is a process in which 99. 99966% of the parts manufactured should be defect proof expected statistically. Six sigma improves the quality of the process. By removing the causes of defects using six sigma principles. In GE all are employees are enforced to do a project on Six sigma. Lean Lean is followed at General Electric and it is implementing at it supplier place from the prospective of customers.

Lean is set of tools which will assist in the identification of waste and elimination of waste. Work-Out (WO) Work out is a session conducted once in a year. Where the suppliers are invited to suggest new customized design for the existing design to reduce the product cost and enhance the quality. FUTURE OF GE FUTURE OF GE While the competitors are still thinking about their next plans, GE plans for years of explosive growth by spending money on creating the infrastructure for innovation, setting up research centers in NY, India, Shanghai, China, Munich and Germany.

It is a Fact that major part of GE’s income comes from out of the U. S. , and the prediction is that in the next 10 years the upcoming countries will contribute 60% of the company’s growth. At GE the superior managers are considered as great marketers but not just great operators. “Marketing is just not producing fancy commercials or catchy slogans – it means getting to understand the markets needs and their customers” At GE managers are expected to lead rather than just to follow the words from top level, and they should experts in their business.

For Jeff Immelt renovating GE is the only way to make GE lead the century. Down the line GE aims to expand its horizons in Asia. They would like to be user friendly and customer friendly by solving all the critical issues of the customer across the world. They are planning to provide an excellent skill set to its employees so that they can face any problems in the upcoming future. They aim in expanding their healthcare segment drastically.