GE Capital & 2008 Financial Crisis

This report analyzes the impact of the 2008 financial crisis on GE Capital, a major strategic business unit of General Electric. It employs Porter's Five Forces and SWOT analysis to assess GE Capital's external and internal environments. The report examines GE Capital's organizational structure, mission, vision, marketing strategies, and financial performance before, during, and after the crisis. Strengths such as global reach and innovation are highlighted, alongside weaknesses like reliance on traditional training and underperformance in certain markets. The conclusion summarizes GE Capital's ability to maintain market share despite the crisis, while also identifying areas for improvement in future strategies.

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GE CAPITAL AND FINANCIAL CRISIS OF 2008
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1GE CAPITAL AND FINANCIAL CRISIS OF 2008
Table of Contents
Introduction......................................................................................................................................2
Current scenario...............................................................................................................................2
Organizational structure...................................................................................................................2
Mission vision statement.................................................................................................................3
External analysis..............................................................................................................................3
Porter’s 5 Force Analysis.................................................................................................................3
Opportunity......................................................................................................................................3
Threat...............................................................................................................................................4
Internal analysis...............................................................................................................................4
Marketing.........................................................................................................................................4
Finance.............................................................................................................................................5
Strength............................................................................................................................................5
Weakness.........................................................................................................................................6
Analysis of General Electric............................................................................................................6
Conclusion.......................................................................................................................................6
Reference list...................................................................................................................................8

2GE CAPITAL AND FINANCIAL CRISIS OF 2008
Introduction
General Electric is termed as the global leader and the most ironic brand in the world.
General Electric is known for their innovative idea and leadership to achieve something. They
deal in energy, technology, infrastructure, capital and various business solutions. They started to
operate from 1878, and the founder was Thomas Edison. General Electric is formed by the
merger of two companies. The products which they are offering are medicine, aviation, and
transportation. The General Electric capital serves as a great tool for the use of household
appliances which will lead them to the extension of payments for the consumers through
innovation. In this study, several uses of analytical tools are being used to analyze the
performance of General Electric.
Current scenario
General Electric is ranked as the most innovative company which is listed in the fortune
as the 15th most admired company in the world. General Electric is termed as the 5th most
globally trusted brand in the 19th century. They are operating in more than 100 countries and
have employee strength of 30,000. They are the 14th most profitable company till date.
Organizational structure
General Electric is operating in various sectors of America and other countries to
establish their business through various innovative ideas which they are famous for. General
Electric is flexible enough to change their organizational structure according to the change in the
dynamics of the business. Mainly the laboratory products were turned in to marketable goods.

3GE CAPITAL AND FINANCIAL CRISIS OF 2008
Mission vision statement
In earlier days the main mission and vision of General Electric were to make the laboratory
products in to marketable goods. But now they have shifted to more innovative products. General
Electric capital main objective is to provide easy finance to the people of America.
External analysis
General Electric deals in diversified industrial products. They have direct spanning
towards their competitors with a total market capitalization US$ 137 billion. The main strength
of the company lies in the cost cut down method for its shareholders. This mainly because of the
six sigma approach which was introduced in General Electric.
Porter’s 5 Force Analysis
This analysis studies about the various key aspects which drive an organization towards
ensuring a bright future of the company. The analysis is done by opportunity and threat. This will
help in gaining a good knowledge about present scenario of General Electric.
Opportunity
General Electric capital is the largest strategic business unit which was created to help the
customer. This would certainly help the customers to finance the products which they are willing
to buy General Electric appliances. The contracts offered by the company helped the customers
to gain believe for investing in the products of the c0omany through low monthly payments. This
made the products more affordable.

4GE CAPITAL AND FINANCIAL CRISIS OF 2008
Through various market researches, General Electric has developed the most innovative
way to attract customers towards them. The future market opportunity will arise to a great level.
This will enhance the various sectors of General Electric for a better enhance.
Threat
The recession has hit a great deal to the General Electric capital. This would misbalance
the entire organizational structure of General Electric. There is a high rate of competition and
high depression. General Electric is not flexible enough to handle all this pressure (Saddoughi &
Gupta et al. 2008). There is a high chance that the profitability structure might get hampered.
On of the main threat that General Electric is facing the media involved. The main revenue
comes outside America which accounts for 53%. There is a chance that a slight drop in the
goodwill may result in the international business dealings which will affect its growth and future
development.
Internal analysis
After having a strong external drive force, General Electric is internally built to handle all
the pressures. This would make them internally strong to face the core competences of the world.
Marketing
General Electric targeted market areas was all the stratus of the society. The main
mission is to provide the market with the goods which worked better together. They wanted to
fulfil the needs of everyone who are using the appliances of General Electric. The strategic
implementation of the products in the market helped them to attain a growth around 22%.

5GE CAPITAL AND FINANCIAL CRISIS OF 2008
Finance
The diversified way of business contracts is helping General Electric to gain market
capitalization. Net income of General Electric roused to 13,120 million dollars from that of last
year, this mainly because of the monthly payment structure which made the appliance more
affordable. The main expertise is in the field of mid marketing financing. They provide finance
to various sectors ranging from aviation to corporate finance. They have volatility in their capital
structure. This volatility helped in the growth of Net profit margin of General Electric which
showed an increase of 15.1%. Total revenue showed a massive improvement which amounted to
147,300,000. After the financial crisis, they changed their strategic viewpoint which changed the
lending credibility which reduced the risk. The overall growth increased to 4% despite the
financial recession.
Strength
The biggest strength of General Electric is to create a striving policy for the customer and
create a need in the minds of the customer. This happens mainly because of their worldwide
recognition and a strong philosophy adapted by General Electric. The strategy revolved around
innovation of products internally by the employees (King, (1989). The involvement of
transitioning in the industrial sector to become a leader will maximize the internal strength of
General Electric in the market. Various growth cycles helped in building a good strength within
the company to grow.
Due o their global domination and employees expertise has helped them to achieve their
desired goals. The large network of business has helped them to cut down the costs and maintain
a good relation with the employees by providing a good leverage in the relationships.

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Weakness
Despite a good dominating position, several weaknesses can be found. General Electric
failed to show maturity in various industrial appliances which they were reluctant to explore
different markets or to involve in their main innovative strategies. This will reduce their
efficiency in operations because of low performance of energy sector of General Electric.
General Electric relied too much on the traditional way of training their employees. This
showed weakness among the general managers which reduced their quality of work.
The main weakness which was highlighted was the underperformance of General Electric
in some markets of Europe and Asian markets. General Electric did not gain much from this
market which did not allow them to grow much (Bücker & Janssen, 2008). This shut down the
profit count and their potential to gain new opportunities from this regional market.
Analysis of General Electric
The current scenario of General Electric is to develop the potential market by increasing
the quality of the existing products. They are redirecting their main mission to energy and health
care. This will be done through the help of unique position which they enjoy as General Electric
receives certain financial help. The leadership of distributing the turbines helped in this cause
which served as a critical renewable energy.
Conclusion
This study helps the reader to gain knowledge about the competency level of General Electric.
Despite the financial crisis, they were able to have a strong market hold which helped them in
their survival period. Though the traditional strategy is much old still is helping General Electric

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to gain new market potions. However, there are certain faults which General Electric needs to
identify to gain advantages over their competitors.

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Reference list
Bücker, A., Janssen, W., & Lütze, H. (2008). U.S. Patent No. 7,321,221. Washington, DC: U.S.
Patent and Trademark Office.
Henderson, K. M., & Evans, J. R. (2000). Successful implementation of six sigma:
benchmarking General Electric Company. Benchmarking: An International Journal, 7(4),
260-282.
King, R. D. (1989). U.S. Patent No. 4,862,009. Washington, DC: U.S. Patent and Trademark
Office.
Rivers Jr, C., Caggiano, R. J., Delica, R., & Berkcan, E. (2009). U.S. Patent No. 7,546,214.
Washington, DC: U.S. Patent and Trademark Office.
Saddoughi, S. G., Gupta, A., & Giguere, P. (2008). U.S. Patent No. 7,387,491. Washington, DC:
U.S. Patent and Trademark Office.