Evolution of GE's global business model: a strategic study

Abstract

People around the globe are more connected to each other than ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace. This phenomenon has been titled "globalization." "Globalization" describes the increased mobility of goods, services, labor, technology and capital throughout the world. It is also defined as the - "The process by which nationality becomes increasingly irrelevant". This process Increases the connectivity and interdependence of the world's markets and businesses. The term "globalization" has acquired considerable emotive force. Some view it as a process that is beneficial a key to future world economic development and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. Globalization and GE go back a long way. Globalization was an important part of Jack Welch's - GE's former Chairman and CEO - philosophy. He was ahead of his time; few U.S. businesses were going "global" when he pushed his own company-wide initiative. Almost from the time he became chairman and CEO of GE, Welch was convinced that GE's competitors were increasingly non-American, and that important opportunities existed for the company to grow by taking GE's business overseas. In the early 1980s, globalization was largely an alien concept to many businesspeople. At that time, fully 80 percent of GE's revenues were derived from doing business in the United States. Most business leaders believed it was too complicated to operate overseas; Welch, on the other hand, saw globalization as a reality and as a great growth opportunity for GE. Subsequently, things Evolution of GE?s Global Business Model A Strategic Study changed quickly to a more global model and the accompanying percentages reflected that. This study focuses on the evolution of the business model and the journey treaded by GE over the years.