Ge Analysis

General Electric was formed in 1892 when the Edison General Electric Company and the Thomas-Houston Company combined forces. Since then, General Electric has been a company that prides itself on innovation and incorporating originality into the real world. GE is a powerhouse that specializes in products and services that include appliances, aviation, consumer products, electrical distribution, energy, business and consumer finance, healthcare, lighting, media and entertainment, oil and gas, rail, software and services, and water (GE.com). GE did not limit itself to being a local domestic company. Instead, it has expanded globally with a goal to unite their expanding technological discoveries with people all around the world.

Although GE prides itself on being a global company, in GE's beginning stages, it almost never considered joint ventures. The company believed that if you did not have full control over the project, then you did not go along with the partnership. GE soon learned from its mistakes, now using joint ventures as its most powerful tool. To give a few examples, GE formed joint ventures with Hyundai to enter the South Korean market, formed joint ventures with banks in Spain, joint ventures with French company Snecma to make engines for commercial jet aircrafts, and many more. The joint venture strategy allows GE to save money while expanding globally. GE can share its knowledge with other companies while learning about other management techniques and local markets to expand its own knowledge and increase productivity. Expanding its international presence has worked greatly in the company's benefit.

One major component to GE's success is healthcare. GE has worked on developing healthcare globally to help improve rural communities. The company does not just focus on profit and improving technology, but helping others in need. GE started developing its Global Healthcare program in 2004 with a twenty million dollar investment in African communities. Growing from its success, it increased this process to a five year thirty million dollar investment. It now works with eleven different countries in Africa and Latin America. For example, the company has helped countries such as Ghana by donating medical equipment and installing water and power. Many projects such as these not only help GE grow as a reputable company, but improve society as a whole.

GE's current CEO Jeffrey R. Immelt is a revolutionary leader determined to drive the company to success. Immelt took over as CEO September 7, 2001. He has designed an innovative growth strategy to strengthen the company by using its size and diversity. Although September 11th created an economic upset, Immelt did not let that distract him from making advances within the company. He decided to focus on technical leadership, services acceleration, commercial excellence, globalization, and growth platforms (GE Case). With this mindset GE has continued to grow and advance into the 21st century.

There are many aspects of GE that lead to the company's great success and growth over the years. One such quality of GE that led to this growth was Immelt's unwavering view of the long term for the company. Against some of the advice of his associates, Immelt kept his sights on his goal for the future and did not focus as much on the present or the short-term. Many people, especially from the view of the stockholders, saw this plan as a weakness of GE due to the fall in value of the company's stocks and no short-term profits being raised. In 2001, GE stock prices dropped 39% due to an increase in spending in research and development to $327 million. On the positive side, Immelt's recommitment to the R&D department and Scott Donnelly, lead researcher of R&D, as well as the increase in spending led to long-term projects that would eventually bring high returns