General Electric conducted a SWOT analysis to evaluate its strategic position. It has strengths in its partnerships with governments and infrastructure programs, but also weaknesses like higher prices. Opportunities include expanding into emerging markets, while threats include rising costs and increased regulation. A comparison with competitors like Siemens showed GE has a larger market cap and revenue. GE aims to address climate change through initiatives to reduce emissions and increase energy efficiency across its operations. It reports annual results by business segment, with capital finance declining but energy infrastructure growing.

1. General Electric Co.
INTRODUCTION
If the company is familiar with its position, it can address the issue, as could be
change. Keeping you both can get an idea of how, for certain activities change
company's market position. This may, consequently, promote the creation of new ideas.
Analysis strategic portfolio thus to facilitate thinking, thinking forward-looking. It is
also a means of communication because through it, can share some
strategic issues to others in the company, which is involved in strategic planning.
The importance of such analysis is that it allows you to preview the status of the
company (or major competitors) in a particular market. Similar analysis of the majority will
force senior managers to think about their own market position not only in the
time, but also in the future, possibly also in connection with major competitors from. It is
actually diagnosis on its own market position.
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2. General Electric Co.
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the General electric business identifying the internal and
external factors that are favorable and unfavorable to achieve that objective.
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3. General Electric Co.
Exihibit 1 SWOT analysis of General electric
Strengths Weaknesses
Partnership with governments across the world Price point is higher as than average due to manufacturing
process and fulfillment costs
Focus on the process with changes of governments regulatory Decision making process can not be instant
Improved incentive programs for renewable energy Credit Losses and Reserves down
Infrastucture and human resource development programs Lower advertising and local television markets
Improved conditions - Sustainable Leadership Program,
Colombia, Serbia, Yemen
Financing businesses in commercial lending & leasing
Improved healthcare system efficiency in the United States
and internationally
Produced a training module to educate business leaders on
human rights in business contexts
Monthly, quarterly reports for shareholders
Opportunities Threats
Developed local technologies in emerging markets - India,
China, Russia, Brazil, Middle East and Africa.
Costs of row materials may continue to rise
Expand ecomagination products and services Attacks, penalties, loss of reputation for mistakes in
business
Increase investments in cleaner technologies - reduced
greenhouse gas emissions
Decline of market value - changing stakeholders needs
Risk of loosing experienced stuff
Number of global suppliers is increasing - outside from
U.S.
Changes in government policies - discrimination law,
consumer law, antitrust law, employment law, and health
and safety law
Trend of regulation of international trade - incerease taxes
Increased interest rates, exchange rates and the inflation
rate cost of capital
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4. General Electric Co.
COMPETITORS
Exihibit 2: Direct Competitor Comparison
C = Citigroup, Inc.
PHG = Koninklijke Philips Electronics NV
SI = Siemens AG
Industry = Conglomerates
Source: http://finance.yahoo.com/q/co?s=ge, 21.5.2011
GE C PHG SI Industry
Market Cap: 208.08B 119.80B 26.16B 113.58B 45.52M
Employees: 287,000 260,000 117,246 348,000 3.66K
Qtrly Rev Growth (yoy): 6.20% -1.30% 5.50% 7.20% 14.90%
Revenue (ttm): 152.46B 61.18B 36.77B 113.28B 95.21M
Gross Margin (ttm): 37.76% N/A 37.87% 30.16% 36.83%
EBITDA (ttm): 31.89B N/A 4.77B 15.42B 7.01M
Operating Margin (ttm): 13.31% 19.80% 8.44% 9.97% 4.36%
Net Income (ttm): 13.43B 9.30B 2.11B 8.71B N/A
EPS (ttm): 1.20 3.06 2.08 8.86 N/A
P/E (ttm): 16.36 13.41 13.29 14.68 15.05
PEG (5 yr expected): 1.01 2.58 0.57 0.32 1.20
P/S (ttm): 1.39 1.98 0.74 1.04 1.33
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5. General Electric Co.
Top Competitors Performance Comparison: GE
Exihibit 3:Top Competitors Key Measures: GE and C
General Electric Citigroup
Valuation
Price/Earnings (TTM) 15.63$ 13.51$
Price/Cash Flow 6.11 5.98
Price/Sales (TTM) 1.31 1.21
Price/Book 1.72 0.76
Per Share Data
Last Dividend 42.97 0.33
Book Value 11.38 —
EPS (TTM) 1.25 3.20
Revenue 149.06 B $ 115.86 B $
Profitability
EBIDTA 37.21 B $ 27.26 B $
Operating Margin 21.18% 12.60%
Profit Margin 7.80% 9.07%
Gross Profit Margin 51.89% —
Dividend
Dividend Yield 2.55% 0.10%
Payout Ratio 42.97 0.33
Annual Dividend (TTM) 1.56 B —
Dividend Yield 5 Year Average 3.62% 5.26%
Growth
Net Income 12.80 B —
EPS (TTM) 1.25% 3.20%
Revenue 149.06 B 115.86 B
PEG 0.96% 2.44%
Financial Strength
Quick Ratio (MRQ) 7.80 9.07
Current Ratio (MRQ) 1.03 —
LT Debt to Equity Ratio (MRQ) 288.45 208.66
Total Debt to Capital (MRQ) 79.40 78.93
ROE 10.22 6.38
ROA 2.87 0.86
ROIC (Return on Invested
Capital)
3.30 2.47
Assets
Asset Turnover 0.20 0.06
Asset per Employee 2.62 M $ 7.36 M $
Inventory Turnover 5.25 —
Source: http://www.dailyfinance.com/company/general-electric-company/ge/nys/top-competitors, 21.5.2011
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6. General Electric Co.
Value on a GE stock based on the market value of the issuer's assets and the outlook
for its earnings = 15.63$, it´s 2.12$ more than Citigroup.
A share of the after-tax profit of a GE, distributed to its shareholders according to the
number and class of shares held by them. Dividend per share is 42.97$.
37.21 B $ EBITDA margin means how profitable GE is with regard to operations. It´s
calculated by taking the company's earnings before interest, tax, amortization and
depreciation and dividing it by the company's total amount of revenue.
Stocks: price: 19.62 $1
Change: -0.34
-1.70% = goes to down
Key to success
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Source 04:00 PM EDT on 05/20/2011 in USD (NYSE Delay: 15 mins.)
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7. General Electric Co.
GE business model is founded on three pillars, and to make money, that was ethically
and make a difference. Corporate culture developed in each area within the company among
employees as well as outside, as shareholders, the third sector.
Strategy GE is trying to respond to the challenges and opportunities that it came from.
She understands the trend brother more emphasis on Environment and improve the business
environment.
Challenges
The three pillars that characterize GE are: energy and climate change, sustainable
health care and community building. These areas are important for growth of the company
itself as well as to improve the business environment.
GE provides the infrastructure, technology and finances greener prosperity, and also
participates in the development of these technologies. Each of these pillars do at a high level,
with an emphasis on perfection in every way in this business. GE's emphasis on cooperation
with other businesses, government, to contribute to an improvement in their conditions of
business in each country. Business is the emphasis on the environment, wealth and security of
operations worldwide. GE is convinced that green represents wealth, health.
GE contributes to the political debate on creating sustainable health care to low carbon
economy. Founded in the United States Climate Action Partnership (USCAP) and
involvement with the Intergovernmental Panel on Climate Change (IPCC), we are engaged in
an ongoing, solutions-oriented dialogue about the United States, China, India and Brazil to
help shape markets that reward responsibility.
Enviroment – Climate changes
GE continues at reduced GHG emissions and improve energy intensity of pollution.
For example GHG emissions down 22%, GHG emissions intensity down 39%, energy
intensity down 34 %. And also reduced water use by 30% compared to 2006 levels.
GE gave the following commitments in the area of energy by 2015: 50% improvement
in energy intensity by 2015, 25% reduction in GHG emissions by 2015, and also wants to
continue the reduction of water 25% reduction in fresh water use by 2015.2
Segments results
2
http://www.ge.com
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8. General Electric Co.
Capital Finance revenues decreased 15% y-o-y to $12.5B, driven by a lower asset
base (down 6%) of $537B and lower interest rates.
Energy Infrastructure
Revenues decreased 9% y-o-y to $10.4B. Segment profits increased 10% y-o-y to
$2.2B and margins improved 350 bps to 21.1% (vs. 17.6% LY).
Technology Infrastructure
Tech Infrastructure sales declined 10% y-o-y at $11.3B. Segment profits decreased
16% to $2.1B, and margins decreased 120 bps to 18.7% from 19.9% last year.
Energy Infrastructure
Revenues decreased 9% y-o-y to $10.4B. Segment profits increased 10% y-o-y to
$2.2B and margins improved 350 bps to 21.1% (vs. 17.6% LY).
Oil & Gas: Revenue grew 10% y-o-y to $2.3B with equipment growth of 4% and
services up 18%.
Consumer delinquencies continue to stabilize, with 30-day+ delinquencies up 140
bps y-o-y and 2 bps sequentially to 8.82%, as North American delinquencies increased only
32 bps to 7.59% compared to a normal 50 bps seasonal swing from 3Q to 4Q.
NBCU
NBCU reported revenue of $4.3B, down 4% y-o-y, as continued positive results in
cable were offset by tough DVD comps in film.
Figure 1 Summary of GE 2010 Profit Framework
2308 mil$
6843 mil$
7489 mil$
400 mil$
2264 mil$
Capital Finance
Energy Infrastructure $
Technology Infrastructure
Consumer and Industrial
NBCU
Source: Data from Company reports and Oppenheimer & Co. Inc.
Figure 2 Annual Sales and Profits mil $ by Segment, 2006-2012E
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9. General Electric Co.
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Technology
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Energy
Infrastructure
Capital
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NBCU Consumer
and Industrial
2010
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Source: Data from Company reports and Oppenheimer & Co. Inc.
Figure 3 Total Revenue Growth
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2009 2009,1 2009,2 2009,3 2009,4 2009,5 2009,6 2009,7 2009,8 2009,9 2010
2009 2010
Source: Data from Company reports and Oppenheimer & Co. Inc.
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10. General Electric Co.
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Infrastructure
Energy
Infrastructure
Capital
Finance
NBCU Consumer
and Industrial
2010
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Source: Data from Company reports and Oppenheimer & Co. Inc.
Figure 3 Total Revenue Growth
-15,00%
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2009 2009,1 2009,2 2009,3 2009,4 2009,5 2009,6 2009,7 2009,8 2009,9 2010
2009 2010
Source: Data from Company reports and Oppenheimer & Co. Inc.
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