Module 1 - SLP

Initial public offerings

Module 1 - SLP

Initial public offerings

1- I have selected GE General Electric Company which is a diversified industrial corporation engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. It's a NYSE listed company and as a result of acquisitions, divestitures and reorganizations, GE continues to be one of the top 15 Fortune 500 Companies.

GE describes itself as composed of a number of primary business units or "businesses." Each "business" is itself a vast enterprise, any of which would, even as a standalone company, rank in the Fortune 500. The Company's "business" is divided into the following segments: Aircraft Engines, Commercial Finance, Consumer Finance, Consumer Products, Equipment Management, Insurance, Power Systems and NBC. GE operates in more than 100 countries and employs more than 307,000 people worldwide. General Electric has pursued a conservative growth strategy by focusing on being the number one or number two in each industry where it competes as Tyco has pursued a very aggressive sales and earnings growth strategy through rapid, multiple acquisitions.

2- Having understood how equity investing and growth are converged, top management of GE changed the company's strategy. It was decided that GE Equity should make investments in companies, technologies, and distribution channels that could further the strategic interests of the various GE businesses. General Electric is clearly the better investment based on their results provided. GE is also the leader in their industry with much greater Market Capitalization, net income and margins. Tyco is in transition as it tries to sell off some of it's under performing divisions, but also trying to define and streamline their business, which could in the long run become a better investment. GE Equity's venture investment goal is to build a ...