Introduction about General Electric Company, (GE)

General Electric Company (GE) was incorporated in 1876, in Schenectady, New York. GE traces its beginning by Thomas Edison, who established Edison Electric Light Company 1878. In 1892, GE was created by merger of Edison General Electric and Thomas-Houstan Electric Company. GE is a technology, media and finance services company. It is a multinational conglomerate headquartered in Fairfield. Nowadays, GE serves customers in more than 100 countries and has more than 323000 employees around the world. GE participant in a wide variety of markets provide products and services ranging from generation, transmission and distribution of electricity, aircraft jet automation, medical imaging equipment, railway locomotives and aviation. The operating of businesses of company including NBC Universal, Technology Infrastructure, GE Capital, GE Energy Infrastructure, and consumer& industrial.

General Electric Company Organization Structure

Since Thomas Edison started General Electric Company (GE) in 1876, the company has steadily grown into a tremendously successfully organization and one of largest companies in the world. CEO Jeff Immelt, “at the top, we don’t run GE like a big company. We run it like a big partnership, where every leader can make a contribution not just for their job, but to the entire company” (GE, 2005). The company learned to listen to its leaders on all levels which keep the company connected to the daily needs of the employee and customers.

GE is a divisional company. In a divisional structure are more decentralized, each division has its own senior management teams. For example, in the organization chart of GE show that each of GE’s division has its own president and CEO, who in turn has vice president. Based on divisional structure, GE can easily contain a product or service structure within it.

General Electric Company (GE) Culture

The slogan of GE, “imagination of work” was clearly express what GE culture was. GE is constantly striving to create new and innovative products or services for their company and to our daily life. Every year, GE might come out with more than 100 ideas. With their ability to adapt to the very changing environment around them as lead the company’s success and drive over the years. GE objective is making and changing the life become well with news ideas and technologies. At GE, they are willing to learning in order to improve their skills, knowledge, and technologies to change and modify the current things become better. GE actually is type of uncertainty accepting. They had imagination and courage to take risk on both people and ideas.

General Electric Company (GE) International Strategy

There are 3 types of international strategy, which is multi-domestic strategy, global strategy and transnational strategy. GE was applying in transnational strategy. This is combine elements of global and multi-domestic strategy. Which means the balance of authority between the central office and business units, and the degree to which products and services are customized in order to accommodate tastes and preferences of local markets.GE is seeking to achieve both global efficiency and local responsiveness. This is simultaneous requirements for strong central control and coordination to achieve efficiency and local market responsiveness. GE develops home innovation to develop competitive position abroad. They also rapidly change technologies that are transforming the nature of organization and location of international production. To success in this industry, GE able to exploit technological forces, produce new products, drive innovation, build relationship, and duplicate the process in different national market.

Maintaining Flexibility through Acquisition

GE is conglomerate industry; they usually expand their business through the equity based, which is acquisition and joint venture. Acquisition means buying, selling and combining of different companies that can aid, finance or help a growing company in a given industry grow. GE employs a strategy of acquisition to maximize revenue and profit of the company. By enter and exit various industry, GE adjust portfolio of offerings to take benefit in any one market or industry. For example, to reduced commercial airline operating costs, a lowing them to expand their fleet of airplanes, GE has improved the fuel efficiency in airplane engines. GE has responded to this trend by expanding further into the engine production and airplane leasing businesses.

June 1998, Toshiba& GE establish two new ventures:

GE Toshiba Turbine Components de Mexico (GTTC)

Toshiba GE Turbine Components Co. Ltd (TGTC)

This can bring together and reinforce their manufacturing capabilities in airfoils, key components of steam turbines.

April 13, 2004 GE was completes Amersham acquisition. GE going acquisition with UK Healthcare Company Amersham in order to create a new company of healthcare. The company healthcare segment has been increased from $15 billion in 2005 to $17 billion in 2007.

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October 2, 2009. GE employed a joint venture strategy to going international (Thaindian News 2009).

GE was merges healthcare units with Wipro joint venture. GE has merges its business units and manufacturing plant in India. It’s aimed to help in growth in the healthcare industry.

Company Issues of GE

August 4, 2009. GE pays $50 million to settle accounting fraud charges (Securities and Exchange Commission 2009). GE has been involved in used of improper accounting method by misleading the unfair financial result to the investor. GE wanted avoid reporting negative financial performance, thus increased its reported earning or revenue. GE violating the antifraud, reporting, record-keeping and internal control provision of the federal securities law in year 2002 and 2003. The Securities and Exchange Commission (SEC) charges GE with accounting fraud. GE was agree to the penalty and agrees to pay $50 million to settle SEC charges.

October 10, 2008. GE’s Quality of Earning Problems

GE was weak in third-quarter report and GE capital has problems may need to take some write-offs, but he continues to like the industrial side of the conglomerate empire. GE capital market has fall down to $189bn, stock has lost 55% of its value. Furthermore, GE find it difficult access to the credit market and facing capital raise spells trouble, such as has a large debt overhang in the balance sheet, it can’t readily sell of $54.7bn in debt securitizations. Besides that, GE also facing with a problem of higher funding costs. It is a reason GE capital rise in the form of a new $15bn stock offering.

In my opinion, GE will overcome all this challenges. It is again based on fears and not substance. This is a diversified company that has reduced its leverages via GE Capital and will certainly gain business through healthcare, infrastructure, and water treatment business.

November 1, 2009. GE’s nuclear revival leaves waste issue unresolved.

GE Company is facing one big issue, which is the worldwide unresolved problem the radioactive waste issue (Bloomberg 2009). However, if there is solution to permanently resolve radioactive waste, GE Company is profitable since nuclear reactor is considering green energy.

April 2, 2009. Intel & GE working together with medical devices-Home Monitor (Steve L. 2009).

Intel& GE come across to join forces in a focus on healthcare. Intel was represented by its Health Guide remote monitoring system, which can gather the results of home tests performed, and relay them to remote healthcare professional. While GE represented by its QuietCare technology, a suite of motion sensors that relay information about the activity of patients in a way that allows long term tracking of their behaviors.

October 30, 2009 GE to close plant in Bloomington.

GE was announced that the plant in Bloomington would be close by the end of 2010 (Examiner 2009). This was plant manufactures electric control equipment for commercial and industrial use. GE Consumer and Industry was planning to close its plant because of operating under capacity. The plant was opened in 1955 and until now have nearly 100 workers. The work would be transferred to others GE plant in US, Mexico and Puerto Rico.

GE worldwide Activities

GE has been greatly expanding its business across the world. GE serves customer and working over 100 countries around the world. This covered in Northern Asia, Southeast Asia, Australia, New Zealand, Europe, Middle East Africa, North America, and Latin America.

For example, GE improve healthcare in Africa. Based on their skills, knowledge, and technology to help improve access to healthcare in rural Africa and around the world. GE also plays an essential role in building up Southeast Asian economics. GE’s contribution on supplying cutting edge technology to hospital in Malaysia, infrastructure construction in Indonesia, providing clean energy and water solution which is environment friendly definitely carry out the value at GE.

International Consideration of GE

The decision to go international must be made with care, as there are many risks and potential obstacles to consider. The difficulties inherent in expanding into foreign markets are market structure, customer segmentation, competitive advantage, financial considerations, economics issues, political risk, legislation& regulation and so on.

The consideration of going other country of General Electric (GE) is applied on competition based. GE has a number of competitors, but they are more specialized, which is focusing in one industry. GE is more involved in many different industries. Siemens AG (SI) is a major competitor of the GE. Siemens conduct in a number of different industry, many of it’s competing with GE. Moreover, NBC Universal is the only one that Siemens does not directly compete with. GE was accessing what competitors do and striving to do it better. As long as Siemens going into china’s market established the energy infrastructure industry, while GE also particularly expand the infrastructure businesses into china. However, GE also will perform a PEST Analysis (political, economic, socio-cultural, and technologies). GE need to evaluate the political risk of the country, economy policy, the tax regulation of the government, the inflation rate, long term economic prospects, gross domestic product, the social and cultural influence, will technology help reduce the cost and quality of products and services, how is distribution altered by new technology, and etc. thorough analysis and understanding of the market GE want to enter will insights and help to determine whether or not this is the right to enter to the foreign market.

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The significant to evaluating the country

Doing business or invest in foreign market is not easy thing. To avoid losing money, we need to do research before going entry to foreign country. Thus, we can evaluate the culture, the customs, the management of all sections, the economic policy of the country, political risk may have, rule and regulation of the government and etc. By doing this, its can reduce the failure of the business and also reduce the mistake of doing business. We shouldn’t invest blindly, but need to do research and evaluate in deed. Well preparation always better than to take effort on correct mistake after it already take place will cause unaccountable loss. Furthermore, through the evaluation, we will actually found out the risk might be faced in order to get the resolution of it. We also need to clearly know that our competitor strength and weakness in that country, to reduce risk taking. The evaluation of country before doing business with them is important, because sometime products that are successful in the one country may be useless in another. Foreign demand for company’s product may be greater than, the same as, or weaker than domestic demand. So that, country evaluate and doing market research prior market entry is necessary.

About Yemen

Yemen, official name Republic of Yemen, is a country located on the Arabic Peninsula in Southwest Asia. The major city of Yemen is Sanaa. Yemen is one of the world’s oldest civilizations; it’s the poorest country in the Arab world as well as a haven for Islamic jihadists (Central Intelligence Agency 2009). The population in Yemen has more than 23 million people.

The government of Yemen is type of republic unification of former south and north Yemen. The government are currently working with the private sector to develop a strategic plan to enhance the business environment in Yemen. It aims to provide more incentives than those currently provided under Yemen’s investment law, accelerate Yemen’s accession to the WTO, execute free trade agreements with the European Union and United Stated of America, and encourage privatization, particulary in the field of telecommunications.

In Yemen, reports average annual growth in the range of 3-4% from 2002-2007. In 2008, the growth declined slightly, this is related to the declining of oil resources, providing around 90% of the country export (Central Intelligence Agency 2009). The country is trying to diversify its earnings.

The environment current issues facing by Yemen are limited natural fresh water resources, inadequate supplies of potable water, overgrazing, soil erosion and desertification.

GE wanted invest in the healthcare of Yemen

GE was interested in the new venture with Yemen healthcare. The healthcare system in Yemen remains severely underdeveloped. Yemen faces a major challenge in improving the health status of its population. Access to healthcare services is limited which is less than half of the population has been access to basic health services in Yemen. GE looking for joint venture in the healthcare in Yemen. Through joint venture, GE willing to provide the knowledge, skills, technology to improve the healthcare in the rural communities in Yemen. GE will provide installed of water, power and communication systems and work closely with local government healthcare teams to strengthen their sense of ownership. GE wanted to develop health globally. If Yemen joint venture with GE, they can externalized transfer of people, expertise and technology together to help improve in healthcare system.

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The risks may face in doing business with Yemen

Poverty, low participation in education, high illiteracy rates, and limited access to potable water and proper sanitation all contribution to the poor health status. These are the terms need to settle in order to going develop the healthcare system in Yemen. In Yemen, there is major political issues will affecting the business climate. Bureaucratic corruption at all levels of government affects every aspects of business in Yemen. Judicial and administrative corruption has distorted the free market economy. Illegal commissions and nepotism involved in trading, tendering and investment undercut transparency and enforcement of related laws and practices. If GE going cooperate with Yemen government, this may involved in bureaucratic corruption. This will increase the cost of investment in the Yemen healthcare. Yemen also suffers from political unruliness, generally in impoverished rural areas, which is increases the risks and costs of GE entry into healthcare in Yemen. In addition, the incidence of injuries and chronic diseases such as cancer and heart diseases is on the rise. These indicators demonstrate an urgent need to improve access basic health services, while preparing for a rising demand for more costly specialized health services.


In my opinion, I suggest GE going joint venture with Yemen. I believe that, GE able to overcome all the challenges and enhance the improvement of the healthcare in Yemen. For example, GE was success help improving the healthcare system in Africa. Africa has a same situation with Yemen, both also are poor country and underdeveloped in the healthcare sector. Thus, GE can take place into the healthcare in Yemen. Furthermore, helping Yemen population access to basic to the healthcare services is showing a good sign to the company. GE Healthcare has experience to bringing solution to more than 100 countries and territories. GE may install of water, power, and communication system by overcome the limited access to potable water in Yemen. So that, this is a opportunities to invest into Yemen healthcare.


GE is renowned for hiring exceptional people and giving them unparalleled opportunities to build their careers and capabilities. Besides that, GE builds culture of integrity in today complex business world demands high governance standards in every area of the operation. GE commitment to full compliance is backed by an independent and full informed board, comprehensive processes, policies, communications and extensive training.

Despite of the fact that GE did fraud-attempt in the past that may discredit the reputation; there is simply no other company in the world with such a diverse set of business in which to work and development-focused culture in which to grow. GE is a global infrastructure, finance and media company taking on the world toughest challenges and continually shaped our world with groundbreaking innovation for over 130 years. With four businesses and operations in over 160 countries, GE employees have a unique foundation on which to build their careers, their abilities and their dreams. There is no reason to doubt that GE is imagination at work and create a miracle to life. From jet engines to power generation, financial services to water processing and medical imaging to media content, GE people worldwide are dedicated to turning imaginative ideas into leading products and services that help to solve some of the world toughest problems.




Corporate Executive Office

Board of Directors

Jeffrey R. Immelt

Chairman & CEO, GE

Michael A. Neal

Vice Chairman, GE

John Krenicki

Vice Chairman, GE

John G. Rice

Vice Chairman, GE

Energy Infrastructure

John Krenicki

President & CEO

GE Energy Infrastructure


Oil & Gas

Water & Process Technologies

Technology Infrastructure

John G. Rice

President & CEO

GE Technology Infrastructure


Enterprise Solutions



Keith S. Sherin

Vice Chairman & CFO, GE

NBC Universal

Jeffrey A. Zucker

President & CEO

NMC Universal





Sports & Olympics

Consumer & Industrial

James P. Campbell President & CEO GE Consumer & Industrial

Appliances Electrical Distribution Lighting

GE Capital

Michael A. Neal

Chairman & CEO

GE Capital



Europe, Middle East & Africa

Capital Aviation Services

Energy Financial Services

Real Estate

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