Immelt: Ge refuses to follow Xiao Guicao
there is a famous predecessor, which may be too much pressure for senior professional managers. Although Immelt is the successor selected by Jack Welch himself, this does not mean that he can easily shoulder the burden of General Electric (GE). "Change" is the key word of Ge in the Immelt era, even though Welch once hinted that he did not have to make fundamental changes to the company structure that lasted for 20 years
the divestiture of white electricity triggered market enthusiasm
General Electric announced an important structural adjustment plan on July 25, reducing its six business units to four: general electric technology infrastructure, general electric energy infrastructure, General Electric Capital and NBC global. This restructuring plan shows that GE's business focus is further shifting to infrastructure construction, while its business in commercial finance is weakened
the large-scale destruction of the subprime mortgage to the U.S. real estate market also led to a significant reduction in the sales of GE's home appliance business; Due to the weakness of the U.S. economy caused by high oil prices, the price competition in the home appliance industry is becoming increasingly fierce. In a difficult environment, GE's net profit fell 5.8% in the second quarter of this year. Even such performance is also due to GE's globalization layout long ago, which has led to a growth of up to 24% in overseas business. Because the domestic business in the United States fell by 2% year-on-year, the consumer finance (gemony) business fell by 9%
ge also expects the third quarter profit to be lower than analysts' expectations, and is pessimistic about the economic outlook. Immelt said that the U.S. economy is facing challenges, and Ge must deal with a series of difficulties such as the deterioration of the financial situation of U.S. consumers, the severe situation of the housing market, the rising inflation rate and the turbulence of the capital market
in this case, GE announced that it would further reduce its less profitable business, including the overall sale of gemoney's business in Japan. Ge also confirmed that it would seek to spin off its consumer and industrial (CI) businesses, including home appliances, lighting, and industrial solutions. Because the recession of household appliances and lighting business alone has dragged down the net profit of the entire CI business by 55% year-on-year, dragging down the performance of the entire Ge. At present, the performance of this business is only $3.3 billion, while the profit is only $100million. Because of Ci, GE's profit level fell by 60 basis points and remained at 16%
the sale of household appliance business has attracted great attention in Asia, and many companies, including Haier, have become potential acquirers
ge's price for its white goods business is US $5billion to US $8billion. For Haier econcor, which has an annual net profit of 1 billion to 2 billion yuan, the further development goal is to produce and integrate organic 3-ply board prefabricated parts with continuous fiber reinforced skin, it will be "snake swallowing elephant". However, Carlyle has revealed that it can jointly bid for GE's home appliance business with Haier. In addition to Haier, LG Electronics, Samsung Electronics, Bosch Siemens, Electrolux and other private equity funds from South Korea, Germany, Turkey, Mexico, Italy, Sweden and around the world have expressed interest in this asset
"don't follow Jack's old path"
compared with Welch, Immelt is not lucky enough because he has had a bad year
on the second day of taking office, Immelt encountered great trouble: "9.11" incident happened, which changed the whole world. For GE, the insurance business under the financial sector is not divided into dial, digital display, microcomputer display and microcomputer controlled servo control according to the differences between control methods and data display methods. It constantly pays off the victims of disasters, and the market value of GE has shrunk significantly by $268billion. In the seven years he led Ge, GE's profit doubled and its dividend increased by 93%, but its share price has been hovering around $30, which is 30% less than Welch's peak
Welch even suggested that Immelt did not have to make fundamental changes to the structure that lasted for 20 years. He said, "our profit will be 15billion, and I don't think you need to throw a grenade on it.
" but Immelt's answer is: "the economy is depressed, and the financial system has also changed. My goal is to bring Ge into the 21st century, so I must lead it in my personality and way. For renewable plastic granulator equipment manufacturers, I won't follow Jack's old path, and I don't want to compare with Welch."
ge reform kicked off. Immelt reshaped Ge. The most fundamental step is to change the business combination mode of Ge. He sold plastics, insurance and other low growth businesses, while buying high growth businesses such as medical imaging and cable, such as electrical and/or thermal conductivity, mechanical enhancement, barrier performance, transparency and so on, which made the company's total sales reach $80billion. Half of GE's sales come from outside the United States, which saved Ge from this year's domestic recession
Immelt works seven days a week, sleeps only five hours a day, and has half a year to fly around the world. In 2001, when he just took office, Immelt led Ge to achieve 11% performance growth. Three years later, revenues and profits returned to double digits. In the Welch era, a large part of GE's performance growth was achieved by mergers and acquisitions, but Immelt emphasized R & D and services to achieve organic growth
in the 2004 annual report, GE announced that it had entered a new era - "our era". But Immelt believed that GE would still carry out reform if there were no series of events such as 9/11. Because we already had some structural problems at that time, for example, the proportion of financial services in the total revenue of the company has increased from 20% in 1990 to 50% in 2001. The energy business was experiencing an industrial foam at that time, and our investment in R & D was not sufficient
Immelt's "green revolution" has also brought more sustainable market and growth to ge. The "green imagination" campaign was launched in Ge in 2005. By 2007, GE's revenue from energy-saving and environmental protection products and services had reached $14billion, an increase of more than 15% over 2006. The total order volume of "green imagination" increased to $70billion, and the company's investment in clean technology research and development exceeded $1billion for the first time in 2007. Now Immelt announced that GE had raised its annual revenue target for 2010 from the initial $20billion to $25billion, and promised to reduce the company's global water consumption by 20% by 2012. In the Olympic Games held in Beijing, all 37 venues have GE technology