Determine The Value Of General Electric – Admission/Application Essay Example
General Electric Future Performance With the critical situation faced by the world today, the chairman of General Electric, Jeffrey Immelt, had beenpositive about coming out of the situation, reshaped and successful (McGregor). However, the recent struggling Capital unit of the company had kept him from adopting an aggressive approach for the company. But with $18 billion of profits last year and $48 billion cash reserves, GE does have great potential to become a great company again. (McGregor)
Immelt has a focus on exploring opportunities in the green energy sector in future. Also, with plans to trim down on the financial business of GE, Immelt could focus more on building up the industrial ones. However, even though GE has a good amount of cash reserves, it is likely to save them to heal the company from the losses faced by GE Capital due to the current state of financial markets. Considering the $5 billion cost cuts and increasing expenditures in research and sectors such as the green energy, Immelt aims to focus on small scaled acquisitions and growing them. (McGregor)
The main area of concern for GE is its finance arm, General Electric Capital. Moody’s Corporation, which performs financial analysis on companies, downgraded the credit worthiness of the company and showed doubts on the future performance of GE Capital. It said that the global economic weakness is going to impact GE Capital’s asset quality even more. It would be hard for General Electric to show quick sign of improvements in the future unless the economic condition prevailing in the world are improved. (Ackerman)
Ackerman, Ruthie. "GEs Outlook Dims." 27 January 2009. Forbes. 13 April 2010 .
McGregor, Jena. "GEs Jeffrey Immelt: All Boxed In." 2 April 2009. Business Week. 13 April 2010 .