...Study Case from Modern Banking by Shelagh Heffernan - Kidder Peabody Group – ‘‘But Leo’’, said Alan Horrvich, a third-year financial analyst at General Electric Capital Corporation (GECC) in September 1987: ‘‘I don’t know anything about investment banking. If I walk in there with a lot of amateurish ideas for what he ought to do with Kidder, Cathart will rip me apart. OK, you’re the boss, but why me?’’ ‘‘Look Alan’’, replied Mr Leo Halaran, Senior Vice-President, Finance of GECC: ‘‘we’ve got ten thousand things going on here right now and Cathart calls up and says, very politely, that he wants somebody very bright to work with him on a strategic review of Kidder Peabody. You’re bright, you spent a semester in the specialised finance MBA programme at City University Business School in London, you earned that fancy MBA from New York University down there in Wall Street, and you are available right now, so you’re our man. Relax, Si isn’t all that tough. If you make it through the first few weeks without getting sent back, you’ve got a friend for life. . .’’, he ended with a grin. ‘‘Me.’’ Mr Silas S. Cathart, 61, had retired as Chairman and CEO of Illinois Tool Works in 1986. He had been a director of the General Electric Company for many years and was much admired as a first-rate, tough though diplomatic results-oriented man- ager. After the resignation of Mr Ralph DeNunzio as Chairman and CEO of Kidder Peabody following the management shake-up...
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...the General Electric Company INTRODUCTION The General Electric Company (GE) is ranked among Fortune 500 as the 6th largest firm in the U.S. by gross profit as well as the 14th most profitable, #7 for executives, #5 best global brand, #82 green companies, #13 most respected companies and #19 most innovated firms. GE divisions include GE Capital, GE Energy, GE Technology Infrastructure and GE Home and Business Solutions. Through these divisions, GE is able to participate in a wide variety of markets, from industrial to lending and insurance. It sells a variety of products like lighting, industrial automation, medical imaging, motors, railway locomotives, jet engines and transmission/distribution of electricity. The company is headquartered in Fairfield, Connecticut and incorporated in Schenectady, New York. It employed 301,000 (131,000 in the U.S.) people as of December 2011. (http://www.ge.com/ar2011/pdf/GE-20120224-10K-20111231.pdf) The company recorded revenues of $142.24 billion during the financial year ended December 2011 (FY2011) this is a 4.58% decrease from FY2010. The decrease in net sales for FY2011 reflects the impact of the current economy here in the U.S. The operating profit of the company was $14.07 billion in FY2011, an increase of 8.9% over 2010. The net profit was $1.45 billion in FY2011. (http://www.marketwatch.com/investing/stock/ge/financials) HISTORY OF THE COMPANY GE was founded in 1878 by Thomas Edison in Menlo Park, NJ. In 1890 Edison started...
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...Peter Demerjian 02/24/2013 ACT 563 Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations...
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... Indian CA Languages: English, Hindi, Gujarati USA 92301 Date of Birth: September 25th 1983 Mobile: 0413232560 OBJECTIVE: Seeking a mutually rewarding position in accountancy & finance, which will utilise my skills and ability and provide a room for personal growth. SUMMARY: Ability to pay attention to the details. Strong organisational methods. Well developed interpersonal skills. Effective as a team member and comfortable in leading one. Self motivated and determine. EMPLOYMENT AJ GROCERY ( Australia) Working as part time, doing customer service sell of the goods to the customer taking cash. GE CAPITAL (CUSTOMER SERVICE) (CARDS UNDERWRITING) – U.K March 2007 – February 2008 GE capital bank/ GE Money, as card underwriter associate. My main responsibilities are checking customers credit history, taking decision about credit limit. Also I got authority to accept or decline application. My team leader name was Linda Brook My main duty was to handle the call of the high street store and check the credit history of the customer and issue them the store card or the master card if there credit rating are fine. Halifax plc (HBOS)(May 2006 –May 2007) Administrator – U.K I was appointed as administrator where I have to do Scaning and sorting the documents and also working with other departments like data enty, microfilming as a part of the administration work. Orange (September 2004...
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...future? The firm’s strategy for future is to divest consumer-facing assets because of the volatile and highly competitive nature of the consumer facing business, and acquire and boost commercial- facing assets. 3. How does General Electric intend to grow? Does if grow through acquisitions? Yes, the firm grows through acquisitions. Its much-awaited “Alstom” acquisition is set to close halfway through the campaign. The firm’s strategic growth model focuses on building global relationships with sponsors, vendors, Original Equipment Manufacturers (OEM’s), and global mid-market corps. Expanding product franchising is also another key aspect of their model. The firm expects a growth in its EPS in both 2015 and 2016 even as it repositions GE capital and expects gains to equal restructuring. 4. What is General Electric’s competitive environment? Who are its main competitors? The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important. Product development cycles are long...
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...Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2)...
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...rightfully forced some changes in the deal structure. To win the approval from the French government, GE’s newest proposition involved setting up joint ventures in renewable energy, electricity grid equipment and nuclear power. In fact, the value of the stakes Alstom will own in the three joint ventures is estimated to be about €2.6bn which means that the net cash cost of the deal for GE is about €9.7bn. Moreover, the US and European regulators required the sell-off of part of the GE’s turbine business to the Italian Ansaldo Energia in order to keep the market competitive. Before GE got the “green light” from Paris, there was lot of competition between GE and the joint offer of Siemens and Mitsubishi Heavy Industries for the acquisition of Alstom, even though the board of Alstom favoured GE’s clear and simple offer. Moreover, GE promised to add about 1000 new jobs in France, where it has had large existing operations for decades. On the other hand, the government liked the fact that Mitsubishi-Siemens offer was based on forming a partnership and was not going to be a takeover. Finally, when GE modified its proposal, it won the war. About General Electric General Electric, headquartered in Fairfield, Connecticut (US), is a multinational leading corporation with a highly diversified business. General Electric is a key player in the...
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...STRENGTHS Global recognition: General Electric has ventured into the world market thus gaining global recognition for its unique goods and services. In the year 2009, Forbes magazine ranked GE as the world's largest company. Hurbert (2007) notes that General Electric's brand is the world's most recognized brand. This kind of recognition has given it a competitive edge over other companies due to its ability to attract more customers. Global strength and competitiveness:The Company’s products have been recognized for their quality and the company is known for meeting customer-specific needs (General Electric, 2009). As a result, it has attracted numerous clients including corporations and government agencies and its competitive position is quite favorable. GE is the biggest lender in many of the countries where it invests with exception of the United States (Hurbert, 2007). Its power generation equipment generates a quarter of the world's electricity everyday. Excellent Management: GE utilizes a unique management style, whereby business operations are divided into business units. Each business unit plays a distinct role within the company and has its own independent management. Examples include GE Commercial Finance, GE Equipment Services, GE Energy, GE Insurance, and GE Consumer Finance among others. This kind of management style increases productivity due to the high level of accountability and efficiency that business unit managers are expected to maintain. Diversified...
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...LaShara Jones Business Management 3600 01/28/2015 CASE STUDY: Management at work * Does the pattern of management developments at GE over the last century seem to reflect the pattern suggested by management theory? Explain your answer * Yes, GE development seem to reflect the pattern of management theory. In example, their blue book theory was in place to help manage the management every move. This prime example was one that was led by founders in the history of business. The company also focused on offering their employees pensions and profit sharing which went hand in hand with the basis of HR functions which is one of the basics of the administrate side of the classical management perspective. With Ge being a leader in profit and products for the everyday use of consumers. GE develop the strategic management approach within their company which helped with business opportunities and challenges. Adding in mathematical modeling to be able to make their manager make better managerial decisions. Adopting these early ideas only allowed the company to advance in reaching success over time. * Which GE’s management innovation seem to draw on a classical management perspective? Which seem to draw on behavioral management perspective? How does the contingency perspective explain management changes the GE has made over the years? Explain each of your responses * Classical management ‘blue book” .The blue book theory focus on management every move but it also...
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...thats happened is making it even more challenging. GE uses management science theory to manage and organize its company. The company uses the classical perspective to train its employees into becoming leaders, its uses behavioral management perspective by providing its employees a place where they can go and develop their skills. It has kept up with the contingency perspective by creating new leaders, that are able to advance as globalization changes. GE has used management science theory more than quantitative approaches to provide their customers the products and satisfaction they want. The company choices its employees based on how passionate and innovative the person can be, and it also helps its employees gain more knowledge and skills. GE has developed the Crotonville campus in New York, to help its employees and anyone willing to learn, bring out the best potential in their work, GE spends millions of dollars to provide that to people from all around the globe, which shows how much they care about what kind of people should be leading. GE has some of the most passionate and innovative people in this world, that is why GE has managed to stay as one of the top company's in the United States. The pattern of management developments at GE over the last century does reflect the pattern suggested by management theory. Management theory is a group of ideas which set general rules in how to organize and manage a business. GE supported the management theory because it uses the...
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...GE Citizenship: Training and Development Shannon Johnson/ G00075246 Training and Development Bob Anastasov 3 January 2013 Abstract GE is innovative company that builds appliances, lighting, power system, and other products that help millions of homes, offices, factories, and retail facilities around the world work better. Their training and development programs have enabled then to remain successful since the company’s founding in 1892. Founded by J. P. Morgan and Charles Coffin, G. E. has developed a management strategy that has infiltrated the complicated boundaries between management levels. Not only does GE have training programs available for its managers and employees, but for their customers as well. Both G.E’s entry-level leadership and experienced leadership programs have allowed this company to excel. G.E. also believes in having a learning culture. Learning is accomplished at G.E.’s John F. Welch Leadership Development Center. These programs and center have greatly contributed to the success and longevity of G.E. GE Citizenship: Training and Development G.E., also known as General Electric, is an innovative company that specializes in building appliances, lighting, power systems, and other products, designed to assist in the operations of homes, offices, factories, and retail facilities. The company operates through four segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial. With power and light, GE provided the basis...
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...Resource Management in Global Environments General Electric, or GE, is one of the most innovative companies in the world and leading U.S. manufacturing company that primarily specializes in the Engineering Industry. GE can trace their lineage back to when they were founded in 1892 with Thomas Edison as one of their four founders. In 1896, General Electric was one of the original 12 companies listed on the then newly formed Dow Jones Industrial Average and is the only company out of the 12 to still be listed on the Dow index. GE serves the entire world with operations in more than 140 countries across the globe with over 305,000 employees globally. With products from appliances to oil, GE remains one of the top engineering manufacturing companies in the world. In fact, when looking at the manufacturing industry as a whole, GE operates in three out of five categories as shown in the illustration. This can be contributing directly to their strategic resource management and strength in their intangible assets of their organization. This paper will address GE’s intangible assets and their impacts to their alignment in strategy in four countries of operation to include the U.S., Mexico, France, and Turkey (Fact, 2013; McKinsey, 2012). Human Capital Many organizations are now reliant on human capital to ensure their continued success and commitment to achieving the organization’s missions and objectives. For GE, the diversity is what helps drive innovation and success. With...
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...1. Why is GE one a very few diversified companies that is revered among peers? What are the historical reasons underlying its long-term success despite short-term challenges? GE is a diversified company that has managed to be a leader in world business even while being engaged in very different areas of business. I believe an important part of their long-term success has been their HR practices throughout the years. The establishment of Crotonville, their in-house corporate university, helped by providing the executives needed for the long run. 2. How does GE show its parenting advantage in focusing on the people development element of its business? What are the specific ways in which it adds value to its business in this regard? GE shows its parenting advantage by developing their managers better than the competition would. Not only that but they recruit people not necessarily from the top schools in the country, but people who are the correct fit for the company. The fact of growing in-house talent leads to a lower turnover than usual, so employees tend to stay with the company a longer time and decreases the costs of training a new person for and officer job or trying to lure away a highly qualified executive from another company to try to work at GE. 3. What elements of the GE people development model would you recommend be changed? What is your rationale? I think Cordiner’s 29 PLs are a better idea for companies abroad than Welch’s 7 broad bands. Many developing...
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...Project JACK WELCH By Chad Wilson Lucy Ebanja Renee Wingfield Sheng Wang Ying Zhang Instructor: Dr. Constant Beugre Content Jack Welch’s accomplishments Jack Welch joined General Electric (GE) in 1960 and became vice president (1972) and then vice chairman (1979). In 1981 he became chairman and CEO of GE; at 45, he was the youngest person ever to have held that position. Having taken GE with a market capitalization of about $12 billion, Jack Welch turned it into one of the largest and most admired companies in the world, with a market value of about $500 billion, when he stepped down as its CEO 20 years later, in 2000. (Reference for Columbia Encyclopedia) Welch took bold actions to improve GE's ability to compete globally before it ran into serious difficulty. Welch leads two different "revolutions" in his tenure as CEO. The first revolution had to do with hardware: what businesses GE should be in and what businesses it should divest. Welch quickly changed GE's approach to strategic planning. The matrix approach developed under Reginald Jones was replaced with Welch's Number One Number Two strategy. If a GE business wasn't first or second in its markets worldwide, or couldn't be made' so, it would be sold. At the start of Welch's tenure GE administration was built around three hundred separate businesses, a recipe for inefficiency. Welch tore into the ossified corporate structure with a vengeance and by the mid-1980s had overseen nearly 120,000 layoffs...
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...............................
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