Circuit failure? (General Electric)

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 4

Guerrera F. and , Baer J.Financial Times, 20 November 2008, Start page: 15, No. of pages: 1

Purpose – Examines the challenges facing Jeff Immelt, chief executive of General Electric, a company hit badly by the economic downturn. Design/methodology/approach – Describes how GE is in trouble; outlines how the downturn in the financial markets had a detrimental effect on GE’s financial wing, GE Capital, which turned from being a profit achiever to loosing money for the parent company. Discusses whether GE’s conglomerate model will be able to ride out the economic storm; quotes chief executive, Jeff Immelt, on how he remains confident that GE’s strengths will see it through the bad time. Provides details of GE’s financial standing; outlines GE’s business model; identifies those sectors that Immelt has jettisoned and those that have been strengthened; highlights how he is focusing the business into industry’s that meet peoples’ basic needs; looks at whether GE will be forced to make further cuts. Originality/value – Explores whether GE’s business model can survive the economic downturn.ISSN: 0307-1766Reference: 38AB267

Keywords: Business performance, Corporate strategy, Economic conditions, Financial performance, General Electric