Growth Strategies Case Study

GE Manufacturing: Forging Ahead in Asia’s Globalizing Markets

OR

Abstract:

General Electric (GE) is a 125 year old multi-business company and a global player in plastics, insurance, finance, healthcare, infrastructure and heavy engineering. It has been making significant progress in all its divisions. However, its financial performance declined in the plastics and insurance business. The insurance business has been making losses for the past five years. The performance of GE plastics was fluctuating since 2003 and there was a decline in the year 2006. It was then decided to sell the insurance division to Swiss-Reinsurance and also sell the plastics division. The company underwent a radical change when Jack Welch became the CEO in the year 1981. His launch of the six sigma growth initiative proved to be successful. The shifting of the GE’s focus from service to manufacturing started then. Jack Welch’s successor Jeffrey R. Immelt introduced a process to generate consistent organic growth called “Growth as a Process”. By 2006, it was reported that GE was concentrating mainly on its infrastructure business. GE has become firmly established as a world leader in the aircraft engine manufacture with higher level of sales and operating profits than its competitors.

GE is targeting the Asian and South East Asian Markets as it finds a lot of scope for growth there. It has been predicted that 60% of its growth over the next decade would be from these developing markets. It finds a bright future in these markets which will help it keep pace with globalisation.

Pedagogical Objectives:

• GE’s Business Divisions
• GE’s changing priorities in globalising
• GE’s dismal performance in the plastics and insurance divisions
• The trends in Asian markets and GE’s reasoning in venturing into these markets
• Various growth strategies of GE.

Keywords : GE; GE Aircraft engines; GE-CFM; Snecma Motoeours; Rolls Royce and Pratt and Whitney; GE Aircraft Engines Turbines; GEnx Engines; Growth Strategies Case Study; GE Health care; GE Ecomagination; GE Academy; GE Advanced Materials; Growth as a process-Jeffrey Immelt; GE Plastics; GE Insurance; Swiss Re-Insurance

Contents : 
GE - Evolution and Globalising over the years
General Electric - A Diversified Global player
GE’s Business Divisions
The Performance of GE Insurance – A Negative side of the coin
GE’s renewed emphasis on manufacturing
GE’s Potential in Asian Markets: Thrust on Restructuring Globally
Financial Performance of Plastics from year 2003 to 2006
Market share of GE and its competitors -Turbines for Aircraft Engines