Financial Strategy at General Electric

In life’s battle, everything is not being won by strength and physical prowess, but it is by strategy. Different sectors in the society employed different strategies in order for that particular sector top achieve its goal.

In the sector of the military, military officers used strategy in order to defeat their enemies and these is also even to the lives of a person living a normal life. You need to have your strategy in order for you survive the hard blows of life.

Since everything is about strategy, companies’ success stories also involve a sound investment strategy. One of the leading brands in the world of technology and home appliances is General Electric. This company also had its financial strategy that had a guide this company to the position where it is right now.

General Electronics had earned its reputable mark in the technology industry, this mark can be traced on the Financial Strategy at General Electric. This company is considered as the 6th largest company in the United States according to Fortune 500, and this has been based on gross revenue.

The company operates on several sectors such as in the sector of Energy, Technology Infrastructure, in Consumer and Industrial and in the sector of Capital Finance. You can already gauge that indeed this company had been on top of the competition.

Financial Strategy at General Electric is based on the conglomerate structure, in this type of business strategy the different or diversified assets that are supposed to be independent is served to support each other and in a way will be considered related to the other.

General Electric diversified both in product lines and geography can be considered as one of the Financial Strategy at General Electric.

This lucrative strategy has been analyzed to be somewhat not responsive to the needs of the times. Reality will put General Electric to check if the Financial Strategy of using a conglomerate structure will still be applicable these days, attention must be given on what had happened in 2008.

Wherein as of this time, executives of General Electric must stir the steering wheel and could possibly use some changes on the way they drive their company. A financial analyst commented that in order for General Electric to maintain its being on leading position it must analyze their investment strategy.

The financial analyst commented that the Financial Strategy at General Electric that is of conglomerate structure must be revisited and re-examined by the top executives of the company. Some financial analysts believe that it will be better for General; Electric is to divide the company into different stand alone companies.

The basic plan will be to divide the company into a stand alone company such as GE Capital, Energy Infrastructure, Technology Infrastructure and NBC Universal and also as Consumer and Industrial.

This could be a total opposite approach of the conglomerate structure wherein each business is supporting each other. This proposed financial plan is to make each business independent from each other. This was just be driven by some financial analysts as to how they see the Financial Strategy at General Electric.