Beatrice Lang
General Electric Company (GE) is an American multinational conglomerate with a rich history dating back to its founding by Thomas A. Edison in 1889. Over the years, GE has grown to signify innovation, trust, reliability, and invention, with a presence in various industries, including aerospace, energy, healthcare, and lighting. The company has undergone several transformations, including the recent spinoff into three independent publicly traded companies: GE HealthCare, GE Aerospace, and GE Vernova. GE has a strong commitment to transparency and social responsibility, and its brands are well-known for their innovative and reliable products. With a global reach and a diverse range of businesses, GE continues to play a significant role in shaping the future of multiple industries.
| Characteristics | Values |
|---|---|
| Date of founding | 1889 or 1892 |
| Founder | Thomas A. Edison |
| Headquarters | Boston, Cambridge, Massachusetts |
| Divisions | Aerospace, Energy, Healthcare, Lighting, Locomotives, Appliances, Finance |
| Number of countries with GE operations | 100+ |
| Number of employees | 52,000-80,000 |
| Ranking in Fortune 500 | 33rd |
| Ranking in Forbes Global 2000 | 64th |
| Ranking in Fortune 20 | 14th |
| Number of wind turbines | 55,000-57,000 |
| Number of gas turbines | 7,000 |
| Annual revenue | $19 billion |
| Number of patients served annually | 1 billion+ |
| Installed base equipment | 4 million+ |
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What You'll Learn
GE's commitment to transparency and social responsibility
General Electric Company (GE) is committed to transparency and social responsibility. With over 130 years of experience, GE has a longstanding history of tackling the world's challenges and leading industries into the future. The company is dedicated to open reporting as a cornerstone of its commitment to integrity, providing disclosures and reports on its social responsibility and sustainability initiatives.
GE's social responsibility programs address significant issues facing the business, including sustainability, ecological impact, and green business ethics. The company prioritizes the social impact of its multinational business, considering human rights, health, and employment for its employees, reliability and safety for its customers, and the economic interests of communities. GE's corporate citizenship programs are aligned with prevailing corporate social responsibility principles on social development.
GE's commitment to transparency is evident in its willingness to share information publicly. The company provides access to its sustainability reports, performance data, and disclosures on its website, covering a range of topics such as carbon emissions, waste and pollution, water management, and social initiatives. GE also shares information about its business operations, finance and accounting, human resources, and supply chain through its multifunctional shared services centers located worldwide.
GE's approach to social responsibility is multi-faceted and guided by its corporate vision and mission. The company engages with stakeholders and incorporates their insights into its initiatives. GE's social responsibility strategy focuses on three key aspects: social, environmental, and governance. This strategy aims to benefit communities and individuals, shareholders, employees, customers, and the environment.
GE's dedication to transparency and social responsibility is integral to its business and is reflected in its commitment to continuous evolution and innovation. By prioritizing these aspects, GE strives to create a positive impact and contribute to a more sustainable future.
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The company's history of acquisitions and mergers
General Electric Company (GE) was founded in 1892 through the merger of Edison General Electric Company and Thomson-Houston Electric Company. The new company was incorporated in New York and, over the years, expanded into multiple divisions, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance.
In 1893, a year after its formation, GE bought the business of Rudolf Eickemeyer in Yonkers, New York, along with all its patents and designs. Eickemeyer's firm had developed transformers for use in the transmission of electrical power. In 1896, GE was listed on the newly formed Dow Jones Industrial Average, where it remained for 122 years, though not continuously.
In 1949, GE launched the popular J-47 jet engine, and in 1997, it founded Genpact (initially called GE Capital International Services) in Gurgaon. In 2001, GE acquired Spanish-language broadcaster Telemundo and incorporated it into its National Broadcasting Company, Inc. subsidiary. In the same year, GE made a counter-offer to buy Honeywell, which was approved by Honeywell. However, the European Union prohibited the acquisition, citing competition concerns.
In 2013, GE received a National Jefferson Award for Outstanding Service by a Major Corporation. In 2014, GE partnered with collaborative design company Quirky to announce its connected LED bulb called Link. In 2015, GE's largest acquisition was that of Alstom - Power and Grid businesses for $12.4 billion. In 2016, Haier acquired GE's appliance division for $5.4 billion, and GE Oil & Gas agreed to a deal valued at about $30 billion to combine with Baker Hughes.
In 2018, GE ended its more-than-100-year run as a component of the Dow Jones Industrial Average. In 2020, GE ranked 33rd in the Fortune 500 as the 33rd largest firm in the US by gross revenue. In 2023, it was ranked 64th in the Forbes Global 2000. In 2024, GE split itself into three companies: GE HealthCare, GE Aerospace, and GE Vernova (energy).
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GE's presence in the energy sector
General Electric Company (GE) is an American multinational conglomerate founded in 1892. The company has had multiple divisions over the years, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance.
GE's energy business has a meaningful role to play in the energy transition, and the company has made strategic acquisitions to strengthen its local presence and better serve its customers. In 2012, GE Energy announced the integration of its acquisition of Converteam by renaming the business Power Conversion. Power Conversion's technologies in process controls, automation systems, and high-efficiency power electronics, motors, and generators enable GE to better meet the needs of customers looking to improve operational efficiency and productivity.
The Power Conversion business has helped GE expand its presence in the fast-growing energy efficiency, electrification, and automation sectors. This expansion aligns with the company's purpose of "The Energy to Change the World," as GE Vernova works towards delivering a more affordable, reliable, sustainable, and secure energy future.
In addition to its work in the energy sector, GE has a long history of innovation and has been credited with changing the look and function of American homes through its electric home appliances. The company has also supplied military equipment and executives during World War II and has been a leader in propulsion, services, and systems sectors for aircraft engines.
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The company's performance and rankings
General Electric Company (GE) has had a long history of innovation and success, dating back to its founding in 1892 as an American multinational conglomerate. Over the years, GE has diversified into multiple divisions, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance.
In terms of rankings, GE has had a notable presence in various prestigious lists. In 2020, GE ranked 33rd among the Fortune 500 as the largest firm in the United States by gross revenue. Additionally, in 2016, GE held the 11th rank on the same list, appearing on it for 22 consecutive years. However, in 2023, the company's position dropped to 64th in the Forbes Global 2000. In 2011, GE reached a high point, ranking 14th among the Fortune 20 as the most profitable company. Unfortunately, they then severely underperformed the market, with their profitability collapsing by about 75%.
GE's stock performance has also been a concern. The company was a component of the Dow Jones Industrial Average from 1907 to 2018, the longest continuous presence of any company. However, in the years leading up to its removal, GE was the worst-performing stock in the Dow, experiencing significant declines. Following its removal, the company continued to lose value. In 2018, GE also faced legal troubles, with a lawsuit (the Bezio case) being filed against them in New York state court, alleging violations of securities laws.
Despite these challenges, GE has continued to innovate and adapt. In 2014, GE announced plans to open a global operations center in Cincinnati, Ohio, supporting various shared services. The company has also undergone strategic transformations, such as selling off divisions and assets to focus on core businesses. In 2024, GE split itself into three independent companies: GE HealthCare, GE Aerospace, and GE Vernova (energy). This move aimed to capitalize on growth sectors like aviation, healthcare, and energy, enabling each entity to concentrate on its strengths.
GE's scientific performance has been evaluated based on research, innovation, and societal impact. Their research ranking considers the volume, impact, and quality of its output. The innovation ranking assesses patent applications and citations, while the societal ranking examines the company's online presence and social network mentions. Overall, GE's scientific performance has been commendable, with a presence in over 100 countries and a rich history of industry leadership.
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GE's business process outsourcing (BPO)
The General Electric Company (GE) is an American multinational conglomerate founded in 1892 and incorporated in the state of New York. It has had multiple divisions, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance. In 2020, GE ranked 33rd among the Fortune 500 as the largest firm in the United States by gross revenue.
In 1997, GE founded Genpact (initially known as GE Capital International Services or GECIS) as an experimental concept in the BPO industry. GECIS initially focused on outsourcing back-office activities for GE Capital, such as processing car loans and credit card transactions. Over time, GE sold stakes in Genpact, turning it into an independent business. However, GE continues to be a significant client of Genpact, utilising its services in areas such as customer service, finance, information technology, and analytics.
GE's BPO strategy has also extended to other areas of its business. For example, in 2002, GE sold a division called GE Information Systems (GEIS) to Francisco Partners and Norwest Venture Partners. Additionally, GE has established multifunctional shared services centres worldwide, including in Cincinnati, Ohio; Pudong, China; Budapest, Hungary; and Monterrey, Mexico. These centres support various functions, including finance/accounting, human resources, information technology, supply chain management, and legal and commercial operations.
Through BPO, GE has been able to enhance its operational flexibility, reallocate resources to core competencies, and access cutting-edge technologies. BPO has allowed GE to transform fixed costs into variable costs, providing greater financial flexibility. However, management must carefully consider potential challenges, such as service level issues, contractual uncertainties, and unforeseen charges, which can impact the overall flexibility of the organisation.
In summary, GE's BPO strategy has been a significant aspect of its business model, allowing it to outsource non-core functions, improve efficiency, and access specialised services and technologies. By utilising BPO, GE has been able to focus on its core strengths and maintain its position as a leading multinational conglomerate.
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Frequently asked questions
The General Electric Company (GE) was an American multinational conglomerate founded in 1892. It has since split into three independent companies: GE Aerospace, GE Vernova, and GE Healthcare.
GE was founded by Thomas A. Edison in 1889 or 1892 and grew to signify innovation, trust, reliability, and invention. It has been publicly traded on the New York Stock Exchange since its incorporation in 1896. GE has a presence in over 130 countries and employs more than 80,000 people worldwide.
GE's business areas have included aerospace, energy, healthcare, lighting, locomotives, appliances, and finance. The company has a diverse portfolio of technologies, including wind turbines, gas turbines, and electric vehicles.
GE has had a history of success and innovation, ranking 14th on the Fortune 20 list in 2011. However, the company has also faced challenges, with its profitability collapsing by about 75% at one point. In 2020, GE ranked 33rd on the Fortune 500 list.
GE, particularly through its Vernova division, is committed to leading the energy transition to a more sustainable future. It aims to reduce the carbon intensity of the world's power systems and achieve carbon neutrality in its facilities and operations.
