Its infrastructural and industrial arms (which contributed to 45.2% of revenue & 36.6% of earnings during 2007) are still its forte.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Time and again, many experts have opined that GE’s earnings are stable, year after year and that Wall Street likes a company that is more stable in meeting forecasts. Yet, what they missed out was that fact that it was GE Capital (whose financials are separately filed with the SEC) which was the well of capital for GE. So if GE’s earnings were either missing or over achieving set targets, there would be a ‘legal’ funds transfer between the entities. Now with GE Capital in deep trouble, the time for this stable ship to face reality is here. Troubles galore for a hero to thrive indeed. But is Immelt up to it? Well, all’s not lost yet, and his options are not few. However, he’s got to act fast. So what can Immelt do to guarantee his crew and passengers that ‘Titanic’ is not used as a metaphor for ‘GE’ in future business case studies?

First, the finance arm. GE has known to be a stable giant alright, and thankfully most (more than 54%) of its earnings in 2007 were earned from sectors that have always been a part of GE’s core game for decades. Its infrastructural and industrial arms (which contributed to 45.2% of revenue & 36.6% of earnings during 2007) are still its forte. Be it electrical equipment, energy, aviation, oil and gas or the services market, GE has been the frontrunner in this segment. Jet engines, drilling equipment, sensors, power controls and turbines et al, are categories whose demand will remain stable amongst the corporate community for very long. It should therefore strengthen its core business and expand further to achieve greater economies of scale in this regard.

Then comes its healthcare business which is making good grounds, especially considering that it is a sector which is virtually immune to any economic downturn. People will still fall ill, boom or crash! This segment which made 10.2% of its revenues last year is still a great bet for a widely-diversified GE future. The same rule applies to its media arm, downturn or no downturn. Yet what ails the Healthcare and the media division respectively is its link to the Capital arm.


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

ZEE BUSINESS BEST B SCHOOL SURVEY


For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...