General Electric - Consumer Electronics Group Case Study

General Electric - Consumer Electronics Group Case Study

Introduction

RCA was forced after World War I when the government needed a manufactured of radios. At that time it was jointly owned by AT&T, Westinghouse, and GE. It led the development of the TV after World War II and is thus has a major role in the development of the TV. General Electric on the other hand, was never a major in this industry and in an attempt to increase its presence; it attempted to form a joint venture with Hitachi. General Electric's only hope lied in Consumer Electronics Group (CEG) which intended on establishing itself as the lowest cost TV manufacturer.

The television industry is currently changing at a rapid pace. Some years ago, black and white televisions were common followed by color televisions. The technology further developed into HDTV, LCD, and Plasma TV. Over the years, General Electric, and RCA spent a lot on research and development. The investments paid off as the technology developed was cheaper to produce since the number of parts was reduced. As technology developed, the designs and quality of the television sets also improved.

In 1985, General Electric decided to merge with RCA. This move would make the merger the largest US manufacturer of television sets. Although a positive move, this could lead to several issues as merging two different manufacturers will bring several difficulties in synchronizing the manufacturing. Apart from this, both companies are running into a loss. This will lead to serious issues as managing two companies that are in a loss is not an easy task.

Decision Makers

The chairman of General Electric Jack Welch is responsible for all the decisions of the company. His experience and skills have been helping him to achieve success in his work. His managers often ...