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Organization Final

In: Business and Management

Submitted By mmem8094
Words 4011
Pages 17
I choose to do my research paper on General Electric. General Electric is a very successful conglomerate company. I looked at how General Electric manages to be so successful in this area. In this class I have learned that to be a successful company there is another area of concern that is structure of management and how it affects the company. When looking at General Electric Company and why this company is successful conglomerate company. I had to find out what a conglomerate really details. In Order to be a successful conglomerate Company the company must spread resources into this many unrelated businesses gives great stability even in the event of a complete collapse of one of the market, but it also makes many of the decisions the upper management must make incredibly complex. According to The Financial Times, General Electric (GE) is today the “World’s Most Respected Company” (“Facts”). Most of this admiration is due to the variety of operating segments that the company provides. For example, GE businesses are classified into ten categories: Commercial Finance, Consumer Finance, Consumer and Industrial, Energy, Equipment Services, Healthcare, Infrastructure, Insurance, NBC, and Transportation (“Company”). The conglomerate design is put into use when an entity has holdings in many unrelated businesses. This form is also known has the H-form because it is basically a holding company that comes about from unrelated diversification. This holding company form of organization is similar to product departmentalization but requires less cross entity interaction. Since the branches of the entity are non-related each is completely responsible for its own profits and losses and almost never has to answer the other businesses in the entity. Each individual business is usually run by a general manager who oversees all of the actions in his department (Griffin 368)....

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