‘Ge’s Growth Strategy: the Immelt Initiative’

1036 WordsApr 14, 20115 Pages
Case summary: ‘GE’s Growth Strategy: The Immelt Initiative’ The General Electric Company (GE) is an American multinational conglomerate corporation incorporated in New York. The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, Capital Finance and Consumer & Industrial. The company has 287,000 employees around the world. Products are Appliances, Aviation, Consumer, Electrical, Energy, Entertainment, Finance, Gas, Healthcare, Lighting, Locomotives, Oil, Software, Water, Weapons and Wind turbines. In 2010 company’s Revenue was US$ 104.635 billion, Operating income was US$ 15.166 billion, Net income was US$ 12.163 billion, Total assets was US$ 751.216 billion Total equity was US$ 124.198. GE’s…show more content…
In the first year, the commercial finance business expected to save $300 million over three years. In another simplification move, bringing in its three existing headquarters into one, saved more than $100 million in structural costs. And the transportation and energy businesses began sharing some IT and operational assets that also reduced structural costs by some $300 million annually. As 2004 progressed, the worldwide economy gradually started to turn around, and GE began showing signs of more robust growth. By year’s end, nine of its 11 businesses had grown their earnings by double digits. To drive growth platform challenge deep into the organization, Immelt launched a process he called “imagination breakthroughs,” (IBs). Immelt had assigned the company’s best people to drive them and had committed $5 billion over the next three years to fully fund them. In that time, they were expected to deliver $25 billion of additional revenue growth. By 2005, 25 IBs were generating revenue. To stimulate ideas, Immelt set spending at least five days a month with customers, he began creating forums he called “town hall meetings.” Here, several hundred customers would gather together to hear where GE’s CEO wanted to take his company, to provide input on that direction, and to

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