Globalization at General Electric

Globalization at General Electric

Introduction

General Electric is a technology, media and financial services company. It has a portfolio of diversified range of products under company's umbrella. These products include aircraft engines, power generation, and water processing and security technology. The General Electric does not only produce products related to technology but the business is also engaged in producing media imaging business and consumer financing media content and advance materials. The company has expanded its operations worldwide, and has approximately 300,000 employees, who are devoted towards converting their innovative ideas into products and services (barbradozier.wordpress.com).

History of the company General Electric dates back to year 1890 when Thomas Alva Edison, inventor of the incandescent lamp, founded the company. The General Electric Company is the 5th largest company of the world based on revenues. It is an American multinational technology and services conglomerate incorporation in New York State. In order to remain competent in the market the company began to expand its operations in various other countries to target customers in the international market and generate larger revenues. It has the aim to be the number 1 or 2 company in the world (GE, 2012).

History of the General Electric Company

In the year 1890 Thomas Edison started the Edison General Electric Company by bringing many of his business ideas together under one enterprise. During the same period another company Thomas Houston which was founded by Charles A. coffin was gaining success by acquiring its competitors, later in the year 1892 Edison merged his company with Thomas Houston to form General Electric Company. The company rapidly expanded its business by absorbing the National Electric Lamp Association, into General electric's Lightning Business, in the year 1911. During 1960s General Electric was considered to be one of the eight computer companies, the company began manufacturing computers in the year 1950 as it was the largest user of computer outside America. However by the year 1970 company sold its computer division to Honeywell (barbradozier.wordpress.com). GE was continuously dedicated in expanding its business activities and achieving growth successfully. It acquired Vivendi's television and movie assets, which lead the company to become the third largest conglomerate in the world. In 2004 GE formed an independent company Genworth Financial in Richmond which comprised of mortgages and life insurance assets. In 2008 GE planned to disassociate most of its consumer and industrial business (Morrison, 2006).

Development of GE and Challenges for the Company

In the year 2001 GE took a major step by taking the decision to acquire Honeywell which proved to be significant in achieving further growth for the company successfully. Boards of the both the companies agreed to the deal for merger. The deal increased company's revenues and its earning simultaneously. The company continued to further acquire various other companies for growing internationally (Morrison, 2006). The CEO of the company Jack Welch has led GE to propel through his leadership abilities. However yet to achieve its mission of profitability remaining profitable and consequently maximizing shareholders and employees' value, was ...