General Electric Research Goh Boon Ping Terence CT0283996 Kaplan Higher Education GOH, B. Note General Eletric PESTEL & Porter’s Five Forces Analysis Page Break TABLE OF CONTENS 1.0 Summery Abstract of Company 3 1.1 Introduction 4 1.2 Present Condition 5 1.3 Competitors 5 2.0 PESTEL 6 2.1 Political 6 2.2 Economic 6 2.3 Social 7 2.4 Technological 7-8 2.5 Environmental 9 3.0 Five Forces Model 10 3.1 Current Competitor 10 3.2 New Entrants 10 3.3 Threat of Substitute Products 11 3.4 Bargaining Power of Buyers 11 3.5 Bargaining Power of Suppliers 12 4.0 Opinion Table 12 4.1 Discussion 13 5.0 Conclusion 14 6.0 Reference 15-16 6.1 Book 16 Page Break Summery Abstract of company There is no deficiency of data on GEs, one of the biggest and surely understood multinational aggregates from the field of medicine to the universe of jet aviation to kitchen apparatuses. It is really unimaginable for them to cover such a huge field, it’s protected to state that General Electric has complete a reasonable piece in this world. In the twentieth century GES has ventured into numerous fields, and in 2002 the organization obtain wind control resources from Enron when they went bankrupt things being what they are Enron wind was the main surviving us producer of huge Air turbines at the time before the finish of the twentieth century and the begin of the 21st century GE was a genuine worldwide mammoth and easily recognized name. Keywords: background of General Eletric Page Break The beginning of GES Introduction General Electric or GE for short was established by Thomas Edison in 1889. Around then Thomas Edison joined a scope of organization and businesses into one major enterprise, he for sure didn’t do this without anyone else’s helping hand, he did it with the assistance and help of JP Morgan and Anthony Drexel. Also, that company as we probably are aware of it today is General Electric. GES biggest money maker is in fact not in aircraft aviation or medication or kitchen appliances. from aviation to wind energy assets being one of its major industries they are not GEs most profitable department, for that being said what is the most profitable field in GEs, many may say GES biggest moneymaker is Aviation and Energy however that’s not truly the case in this situation the table below shows GES 3-year consolidated revenue by segments. from: http://www.dividend.com/how-to-invest/how-does-general-electric-make-money-ge/ 1.2 Present Condition Today General Electric is ranked number 23 in the fortune 500 in terms of revenue let’s take a look at the aspect of its actual size general electric has two hundred and ninety-five thousand employees (general-electric, 2018). with a total revenue of over one hundred and forty-six billion dollars (Pylypczak-Wasylyszyn, Sharma & Sharma, 2015) and over six hundred and fifty billion dollars’ worth of assets that’s more than the GDP of Sweden or Norway or two times the GDP of Singapore the company is also listed as number seven on the Forbes world’s most valuable brand list (Canal, 2018). 1.3 Competitors General electric is indeed a big company twice the GDP of Singapore its quite impressive, however GEs do have a rival they are one of the most successful conglomerates worldwide. The headquartered can be found in Berlin and Munich, it all started out small founded by Werner von Siemens and Johann Georg Haskew in 1847 this giant today as we know is Siemens. Their company quickly grew based on the invention of the telegraph that uses a needle to point at letters as compared to using Morse code (“Siemens History Site – Company development 1847-1865”, 2017). In 1848 the company has produce at the time the first long-distance telegraph line in Germany, revolutionizing the telecommunication industry, it has been involved in a number of industries including wind power, gas power, energy management, transportation, healthcare, and automation. The fore principle division of the company is energy, healthcare, infrastructure and cities it is currently the largest industrial manufacturing company in Europe with branch offices abroad. 2.0 PESTEL 2.1Political over the years, GE has grown substantially, covering our world market in every expects from Aviation like an engines in a fighter jet to household goods to wind energy to oil and gas, their indeed looking at every angle in hope to lead to a better future and ways to improve its industries, however the government has begun to show some support for the digitization of the industries this however has open new doors for this multinational corporation to further expands its business to the next level. when it comes to political factors, externally it has shown a sharp spike in the demand for the digital technologies, for that being said it is indeed a great news for general electric as GE already is in the tech industry (“GE.com Singapore”, 2018). GEs is continuing to aim to achieve its goal to become one of the largest technological industries (Thompson, 2017). 2.2Economic General Eletric or GE for short was founded by Thomas Edison in 1889. 25 years prior, GEs has however got caught up with this situation. Its market valuation, once finished $400 billion, is currently nearer to $150 billion. Its offer cost has fallen by around two-fifths this year alone. The firm as of late supplanted Jeffrey Immelt, its long-serving administrator and CEO, with John Flannery (imagined), another organization veteran. What turned out badly at one of America’s best-known and most established organizations? (“Why General Electric is struggling”, 2017) GEs has been looking for ways to promote the policies, in return of hoping it will have a positive impact on the growth in the long-term (“Strengthening Global Economies – GE Sustainability”, 2018). 2.3Social they have a core believes that business is social, what this mean is that social technology is going to change the way GEs do their business, it’s not just a consumer application it’s a business application. After further research it turns out that the popularity of staying green is being circulated globally and it has catch the eyes of the government and to the world. GE quickly notice thus a great opportunities and GEs are already on a good position to begin with, for example the wind energy this recyclable energy is beneficial due to the growing demands wind energy assets is one of general electric best money maker at 18 percent of the 3 year revenue by segment(Pylypczak-Wasylyszyn, Sharma & Sharma, 2015). this however poses a threat to the oil and gas department. the constant growing popularity of the mobile technologies has open doors for general electric to new heights, this new height will bring in technological innovation. GEs has a rather well followed social media account (Instagram) with approximately 322.000 followers. this will reach out to the to the world as an advertisement, the goal to get our sales team a hundred percent digitized and that social technology is Salesforce this is a nice tool as it aggregates communities in this case, a community of service reps that way the sales team can get data and feedback from the customers and work together to solve the challenges that may arise. 2.4Technological over the years GEs has been producing energy with the help of a gas turbine. GE has since further improved its turbine technologies. this new HA technology is pushing the boundaries of what’s possible. GE configured the HA gas turbine solution to deliver unmatched levels of performance, with the world’s most innovative advanced materials, cooling, aerodynamics, combustion, and digital capabilities, GE’s HA turbines provide the most cost-effective conversion of natural gas to electricity in their class with record-breaking combined cycle efficiency. in an ever-changing world, versatility is critical. the development of HA technology to accommodate a wide gas variability, including liquid fuels. the turbines also have the flexibility to ramp up and turn down quickly while maintaining emissions compliance, helping to meet increasingly dynamic grid demands. the turbine enables the lowest air emissions across all forms of fossil fuel-based power generation while also using less water. (“technology and innovation at GE”, 2011). The advancements and improvement are as shown. From: https://www.ge.com/sites/default/files/ge_global_research_citi_industrials_09212011_0.pdf 2.5Environmental protecting our environment has become a priority for everyone, GEs included. the fossil fuel is accounted for more than 2/3 of the worlds electrical power generation and more then 60 percent of energy demand in industry. from the start of the industrial revolution producing million tons of Co2 gas into the air. GEs challenges are to create and generate cleaner power and lower industrial emissions to protect the global environment (AQCS) GEs are setting the standard for the performance and air quality control solutions, they are one of the world’s leading AQCS providers for powerplants and industrial application, with over 80 years on environmental controls, ge is a recognized leader with a comprehensive portfolio for innovative solutions, mitigating all pollutions causes, (“Our Energy Choices: Coal and Other Fossil Fuels”, 2017). Page Break 3.0 Five Forces Model 3.1 Current Competitor being a global giant does not mean there is no competitors to compete against, General Electric has been well equipped, from Aircraft aviation, wind energy, gas turbines, and Health-care thus GEs has a firm grip on the opportunity this has to do with the large range of services GEs provide, as we explain earlier GEs main competitors is Siemens. Siemens is another global giant that is in the businesses of Wind power, gas power, energy management, transportation, healthcare, and automation (Kumar, 2017). 94% 3.2 New Entrants as far as new contenders there is extremely near none at all for General Electric, is little, because of the tremendous size of the company, they have cover relatively every part of the business. A significant number of GE’s specialization require a lot of brand. acknowledgment to keep up a fruitful organization. The size of economy that GE works in places a hard test for new contestants to any of the three portions of GE. The monetary administrations industry would require a to a great degree substantial measure of startup cost and capital making it troublesome for little organizations to contend. The back business additionally relies on a set up and put stock in name for progress. The danger of new contestants to the back business contending on the scale that GE contends in is little. 3.3 Threat of Substitute Products Each organization needs to stress over the risk of new items being made which would make their item out of date. GE is no special case. Pretty much each item that General Electric makes has the risk of substitute items. The financial of GE isn’t as helpless to a risk of substitutes as different units of GE. A customer isn’t as prone to switch their money related supplier, as they are their more than likely to stay loyal to their financial providers (Harrigan, 2003). 3.4 Bargaining Power of Buyers On account of the span of General electric, they have broad wheeling and dealing because of that, control for a huge bit of their products. For countless associations, the trading cost for buyer is to an extraordinary degree (high). This is substantial with the cash related, telecom and advancement industry. For a few associations, for instance, GE Restorative administrations, the volume per buyer is tremendous in both measure of stock and cost of items. This influences the trading cost for buyers high, giving GE yet another favored point of view over their buyers. This is legitimate by far of their associations, however not all. Some of General Electric’s associations, for instance, GE Purchaser and Mechanical, the trading cost of obtaining a substitute product is insignificant. In these couple of circumstances, GE must stay centered in the price wars with their restriction (The General Electric story, 1989). Page Break 3.5 Bargaining Power of Suppliers The bartering energy of providers is moderately low for General Electric’s numerous ventures. Because of the sheer volume of merchandise that GE purchases from their providers, the providers have no capacity to deal with GE. The vast majority of GE’s providers couldn’t survive on the off chance that they lost GE’s business. GEs is likewise exceptionally adaptable in who they be their providers. This gives them the upside of having providers battle for their business (Evans, 2015). 4.0 Opinion from: http://www.dividend.com/how-to-invest/how-does-general-electric-make-money-ge/ 4.1 Discussion From aviation to wind energy assets to oil and gas to healthcare for that being said, what is the most profitable field for GEs, many may say GES biggest moneymaker is Aviation and Energy however that’s not the case in this situation the table above shows GES 3-year consolidated revenue by segments as you can see the largest segment surprisingly is actually financed at 31 percent (Pylypczak-Wasylyszyn, 2015) this is anything from personal loans and credit cards to any energy related financial services. an interesting fact within the capital markets, in terms of market share they’re about half that of JPMorgan chase, bank of America, while CitiGroup and that is significant because those tree banks are actually the result of a merger of twenty-eight banks since 1990, (Desjardins, 2016). Thus, they are indeed no small feat to measure up to. Their next biggest segment for General Electric is power and water at 18 percent, this includes gas, wind, and steam, turbines, nuclear reactors, solar power and generators, next up at 14 percent is in the department of aviation, so these are things like aviation services and systems and commercial to military engines. the next segment at 12 percent is healthcare, this means things like magnetic resonance imaging or MRIs to computed tomography or CT scanners to x-rays and surgical and molecular imaging machines GES takes out about 38 percent of the medical equipment industry in terms of market share, with that being said what about oil and gas, surprisingly the oil and gas sector only makes up 10 percent of GES income. so aside from all of this GES also makes some other things such as refrigerators, freezers, electric and gas ranges, cooktops, dish washers, dryers, microwaves,(Pylypczak-Wasylyszyn, Sharma & Sharma, 2015). and you get the idea. With this huge range of profit and income it is safe in my opinion to invest large amount of the fund in the Research and development department(R&D) as this will bring new innovation with a better edge in securing the future and businesses to come. 5.0 Conclusion To sum up, for every multi-national top conglomerate, on the off chance that the company neglects to perceive the new rivalries and opportunity, moving of buyer interests and social pattern, and develop business with innovative technologies, it will lose their market share and eventually fail its business and profitability. Even though General Electric have been very successful in the business, in terms of global scene, it’s the constant growth of innovation in the associations may turn out to be more imperative or vital in future and the worldwide, thus this technique is fundamental to ensure a guarantee future accomplishment of the entire association in the world of ambitious and competitor of the international market. There for this analysis is crucial to a giant like General Electric (The General Electric story, 1989). Page Break 6.0 Reference general-electric, g. (2018). General Electric. Fortune. Retrieved 2 January 2018, from http://fortune.com/global500/general-electric/ Pylypczak-Wasylyszyn, D., Sharma, A., & Sharma, A. (2015). How Does General Electric Make Money? (GE). Dividend.com. Retrieved 2 January 2018, from http://www.dividend.com/how-to-invest/how-does-general-electric-make-money-ge/ Canal, E. (2018). #7 General Electric – pg.8. Forbes. Retrieved 2 January 2018, from https://www.forbes.com/pictures/fihh45eeeg/7-general-electric/#7338740e6966 Pylypczak-Wasylyszyn, D., Sharma, A., & Sharma, A. (2015). How Does General Electric Make Money? (GE). Dividend.com. Retrieved 2 January 2018, from http://www.dividend.com/how-to-invest/how-does-general-electric-make-money-ge/ Desjardins, J. (2016). The Making of the “Big Four” Banking Oligopoly in One Chart. Visual Capitalist. Retrieved 8 January 2018, from http://www.visualcapitalist.com/the-banking-oligopoly-in-one-chart/ Pylypczak-Wasylyszyn, D. (2015). How Does General Electric Make Money? (GE). Dividend.com. Retrieved 7 January 2018, from http://www.dividend.com/how-to-invest/how-does-general-electric-make-money-ge/ Strengthening Global Economies – GE Sustainability. (2018). GE Sustainability. Retrieved 14 January 2018, from http://www.gesustainability.com/enabling-progress/public-policy/strengthening-global-economies/ Why General Electric is struggling. (2017). Economist.com. Retrieved 14 January 2018, from https://www.economist.com/blogs/economist-explains/2017/11/economist-explains-21?zid=298=0bc99f9da8f185b2964b6cef412227be GE.com Singapore. (2018). Ge.com. Retrieved 13 January 2018, from https://www.ge.com/sg/ Thompson, A. (2017). General Electric’s (GE) Vision Statement and Mission Statement – Panmore Institute. Panmore Institute. Retrieved 13 January 2018, from http://panmore.com/general-electric-ge-vision-statement-mission-statement Siemens History Site – Company development 1847-1865. (2017). Siemens.com. Retrieved 20 January 2018, from https://www.siemens.com/history/en/history/1847_1865_beginnings_and_initial_expansion.htm technology and innovation at GE. (2011). Ge.com. Retrieved 21 January 2018, from https://www.ge.com/sites/default/files/ge_global_research_citi_industrials_09212011_0.pdf Our Energy Choices: Coal and Other Fossil Fuels. (2017). Union of Concerned Scientists. Retrieved 21 January 2018, from https://www.ucsusa.org/clean-energy/coal-and-other-fossil-fuels#.WmYki6inFhE 6.1 BOOK The General Electric story. (1989) (p. 129). Schenectady, N.Y. Kumar, R. (2017). Strategic Financial Management Casebook (p. 259). Harrigan, K. (2003). Declining demand, divestiture, and corporate strategy (p. 70). Washington, D.C: Beard Books. Peng, M. (2009). Global Strategy (p. 361). 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