GE Case Study V13

GENERAL ELECTRIC The General Electric Company or GE is a multinational American technology and services conglomerate incorporated in the State of New York. The organization is composed of a number of primary business units or "businesses". Each "business" is itself a vast enterprise, many of which would, even as a standalone organization, rank in the Fortune 500. The list of GE businesses varies over time as the result of acquisitions, divestitures, and reorganizations.

GE was founded in 1878 by Thomas Edison who opened a new laboratory in Menlo Park, New Jersey. Out of the laboratory; came arguably one the most famous inventions of all times — a practical incandescent electric lamp. By 1890, Edison had organized his various businesses into the Edison General Electric Company.

General Electric is nowadays a leading business in electrical generation, distribution and use worldwide. It is a diversified technology, media, and financial services organization dedicated to creating products that make life better. GE engages in the development, manufacture, and marketing of various products for the generation, transmission, distribution, control, and utilization of electricity. It operates through eleven segments: advanced materials, commercial finance, consumer finance, consumer and industrial finance, energy, equipment and other services, healthcare, infrastructure, insurance, NBC Universal, and transportation in more than 100 countries and employs more than 3, 27,000 people worldwide. At General Electric, corporate values are so important to the organization, that Jack Welch, the former legendary CEO of the organization, had them inscribed and distributed to all GE employees, at every level of the organization. The sum is greater than its parts at GE as both business and people diversity is utilized in the most effective way. A major American enterprise with a diverse group of huge businesses, GE is steeped in a learning culture and it is this fact that makes GE unique. As Jack Welch puts it: “What sets GE apart is a culture that uses diversity as a limitless source of learning opportunities, a storehouse of ideas whose breadth and richness is unmatched in world business. At the heart of this culture is an understanding that an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage”. GE even consults their project management services to other organizations. GE and Six Sigma Six Sigma is a popular tool used at GE. It’s a powerful breakthrough improvement business strategy that enables companies to use simple and powerful statistical methods to define measure, analyze, improve, and control processes for achieving and sustaining operational excellence. Employees at GE are motivated towards the Six Sigma programme through various reward and recognition schemes. The goal of Six Sigma is to enable others how to understand both a simple and a complex business solution and why it‘s the best answer to improve business. In today's global business environment there is no room for errors which is the key to customer satisfaction. This is why Six Sigma has become a part of today's business culture, especially for GE.

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