ACC6020: Managerial Planning and Control: Comprehensive GE Analysis

This report provides a comprehensive analysis of the General Electric Company (GE), examining its background, mission, vision, products, and market presence. It delves into GE's strategic approaches, including cost leadership and differentiation, alongside a SWOT analysis and Porter's Five Forces model to assess its competitive landscape. The report investigates GE's performance through various lenses, including financial ratios (profitability, liquidity, efficiency, and leverage) and investor ratios, highlighting trends in profitability, financial stability, and operational efficiency. Additionally, it explores GE's social and environmental performance, emphasizing its corporate social responsibility (CSR) initiatives and environmental impact. The analysis concludes with insights into GE's organizational structure and its position as a leading brand, emphasizing the significance of its aviation and healthcare sectors. References include a comprehensive list of sources used in this report.

ACC 6020
ACCOUNTING FOR
MANAGERIAL
PLANNING AND
CONTROL

INTRODUCTION
 This assignment will provide a brief description
about the General Electric Company which will
include its mission and vision, the products it
sells, places where the products are sold and
also investments plans. The assignment will
also provide information about a particular
services or product of the company which
earns plenty amount of money. The researcher
in this assignment is going to explain the
company’s background and what position does
the company hold in the present time. The
information about the company and its
products has been mentioned below.

COMPANY AND BACKGROUND
 The general Electric Company is a multinational
conglomerate company that was founded in the
1892 on 15th April.
 57% of the share of the General electric are
institutional holdings. Vanguard group, Blackrock,
State Street Corporation, FMR LLC and Price T
Rowe are major share holders of the firm.
 . It can be said that the company is looking at
expanding and growing in fields of Aviation and
Renewable energy units. The company is aiming
for better investment in these two sectors to
benefit and gain shareholder within these two
sectors of operations.

STRATEGY
 Cost Leadership strategy : Under this
strategy of business the company seeks
to have the lowest cost of operation
within the industry to have an
competitive edge over others within the
market.
 Differentiation strategy: Under this
strategy differentiation of product is one
of major process through which
companies seek competitive advantage
over others in the market.

SWOT ANALYSIS

PORTER’S FIVE FORCES MODEL
 Rivalry in the industry: The competition for General
electric is quite high as there are different rivals in different
industry in which the company and its subsidiary are working
 Power of suppliers: Bargain Power of suppliers are depend
on their availability when the number of suppliers are limited
the bargain power increases and vice versa
 Power of consumers: There is a diversified market win
which General Electric is working in this means that there is a
wide range of consumer which are valuable to the firm
 Threat of new entrants: The company is a Colomegratnate
Firm hence a company within one industry can not threaten
the existence of this firm hence the threat of new entrants is
low.
 Threat of substitutes goods: The degree of this threat is
low as the company deals in various products and service
which it offers to its customers

CONTD.
 Threat of new entrants: The company
is a Colomegratnate Firm hence a
company within one industry can not
threaten the existence of this firm hence
the threat of new entrants is low.
 Threat of substitutes goods: The
degree of this threat is low as the
company deals in various products and
service which it offers to its customers

CURRENT OBJECTIVES AND
STRATEGY

PERFORMANCE ANALYSIS
 According to the figures and valuations
it can be said that the cost
mananfremnet of firm has been dine
with respective to various adjustments
during the year. It can be said that the
firm have been implying various
activities and operations regarding the
cost management and reduction over
the years.

FINANCIAL PERFORMANCE ANALYSIS
 Profitability ratio indicates towards the current
profitability status of the company. It can be said
that in accordance to the current profitability
ratio trends it can be said that gross profit margin
as well as the net profit margin of the company
has decreased in the recent times.
 Liquidity ratio of the firm will indicates its
financial stability and ability to cover liabilities of
the firm through liquid assets.
 Efficiency Ratio of the firm shows the efficiency of
the the firm in conducting their business the cash
conversion cycle of the firm is negative which
shows that the company is gaining payment
before operations are conduct

CONTD.
 The leverage ratio of the firm shows the
equilibrium between debt and equity
capital which means the capital
structure of the firm
 The investor ratio in this analysis shows
the firm’s capability in meeting investor
benefits. It can be said that Dividend
payout ratio has increased and EPS has
increased which is a positive sign for the
company’s operational activities

SOCIAL PERFORMANCE ANALYSIS
 The company has been socially very active and
conduct its CSR responsibility in the area of
operations within every company it is working
in. In Australia the company has invested in
social welfare of the society and and in the
development of rural areas within the country.
The company has also invested in the
educational institution of the country which has
helped the firm to do social activities within
Australia as well (Fleisher & Bensoussan, 2015).
The social perforences of a firm widely
anticipated and observed over the years and
hence the social wellbeing and messages are to
be provided from the hosting of such events.