General Electric Company is a diversified industrial corporation engaged in developing, manufacturing and marketing a wide variety of products

Essay by maintainer6University, Bachelor'sB, May 2004

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General Electric Company is a diversified industrial corporation engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. Over the years, GE has developed or acquired new technologies and services that have considerably broadened the scope of its activities. These activities will ensure continuous growth for the future. The Company's business is divided into the following segments: Aircraft Engines, Commercial Finance, Consumer Finance, Consumer Products, Equipment Management, Insurance, Power Systems and NBC. GE operates in more than 100 countries and employs more than 315,000 people worldwide.

GE Equity's initial plan was only to invest in areas unrelated to GE, with an eye toward making some money. Having understood how equity investing and growth are converged, top management of GE changed the company's strategy. It was decided that GE Equity should make investments in companies, technologies, and distribution channels that could further the strategic interests of the various GE businesses.

GE Equity's venture investment goal is to build a world-class, global, private-equity business. The second goal is to extend GE's management and operating systems to other companies.

Yahoo financial analysis predicts GE will increase 10% (per annum) over the next five years. GE is a solid company. It can be said with confidence that, GE will remain in business and making a predictable profit for the balance of their business life. In their case, the rate of return of the discount rate should be chosen from low-risk investment vehicles; giving them a low discount rate.

GE equity does not seek to dominate the companies in which it invests. This approach characterized by support and respect for smaller enterprises as well as willingness not to seek control is an important aspect of the company's success. On their part, entrepreneurs see in...