New Financial And Statistical Measures To Monitor The Success Of Ge :: essays research papers

new fiscal and Statistical Measures to Monitor The Success of GETo      The get on with of Directors, GENERAL electric automobile COMPANYSubject NEW FINANCIAL AND statistical MEASURES TO MONITOR     THE advantage OF GENERAL ELECTRIC COMPANY     After Mr. Weltch inform my spic-and-span assignment, I pondered how I could goabout guaranteeing the best thinkable result a creditable and well organizedwork that is vent to help you, the bill of fare of Directors, plan for the afterlife ofthe company in a better way. onwards starting my analysis, I must specify thatmy rear is not to eliminate the traditionally used financial and statisticalmeasures besides to develop new cardinals to be used as guidance for the corporationsfuture development.Our Chairman tardily wrote that "the hottest social movement in production line in 1995-- and the unrivaled that hit hand-to-hand to home -- is the rush toward fracture up multi-business companies and spinning collide with their components, under the theory thattheir size and diversity hold their competitiveness ... breaking up is theright settlement for some sorry companies ... for us it is the hurt answer.1 For usthe new trend is the door into the service industry. The indecision must thenbe is this the right answer?     GE is expecting to sum up its revenue by the year 2000 to $120 one thousand millioncompared with $58 zillion in 1990. In other words, if the forecast proves to becorrect, it will bump an average one-year rate of growth of 7.5%. This heightsrate is generally attributed to the expansion of the services sector of the company,which is estimated to increase by an average annual rate of 13% compared with acorresponding one of 2.1% for manufacturing. Today tight 60% of GEs earnscomes from services -- up from 16.4% in 1980.2     This is our new bursting charge and therefore my tar get is to find thesemeasures that are waiver to help us understand how the business is going toperform in that particular field. I also consider that our attempt to expandinternationally is extremely big and in a way is something new for us. world-wide operating profit was $3.0 billion for 1995 compared with $2.3billion in 1993.3 This extremely quick expansion hides a lot of dangers, and atthe same time shows other new "trend" of our corporation. In my analysis Iwill embroil the international sector. I will also narrow in on employees,stockholders, goodwill and on potential investors.     1) MIEC (Manufacturing Industry Expenses Comparison)     As we know, the basic arranging of the company s continuingoperations consists of 12 key businesses, which hold management units ofNew Financial And Statistical Measures To Monitor The Success Of Ge essays research cover New Financial and Statistical Measures to Monitor The Success of GETo      The Board of Directors, GENERAL ELECTRIC COMPANYSubject NEW FINANCIAL AND STATISTICAL MEASURES TO MONITOR     THE SUCCESS OF GENERAL ELECTRIC COMPANY     After Mr. Weltch announced my new assignment, I pondered how I could goabout guaranteeing the best possible result a creditable and well organizedwork that is going to help you, the Board of Directors, plan for the future ofthe company in a better way. Before starting my analysis, I must specify thatmy target is not to abolish the traditionally used financial and statisticalmeasures but to develop new ones to be used as guidance for the corporationsfuture development.Our Chairman recently wrote that "the hottest trend in business in 1995-- and the one that hit closest to home -- is the rush toward breaking up multi-business companies and spinning off their components, under the theory thattheir size and diversity inhibited their competitiveness ... breaking up is theright answer for some big companies ... for us it is the wrong answer.1 For usthe new trend is the entrance into the service industry. The question must thenbe is this the right answer?     GE is expecting to increase its revenue by the year 2000 to $120 billioncompared with $58 billion in 1990. In other words, if the forecast proves to becorrect, it will obtain an average annual rate of growth of 7.5%. This highrate is mainly attributed to the expansion of the services sector of the company,which is estimated to increase by an average annual rate of 13% compared with acorresponding one of 2.1% for manufacturing. Today nearly 60% of GEs profitscomes from services -- up from 16.4% in 1980.2     This is our new direction and therefore my target is to find thesemeasures that are going to help us understand how the business is going toperform in that particular field. I also consider that our attempt to expandinternationally is extremely important and in a way is something new for us.International operating profit was $3.0 billion for 1995 compared with $2.3billion in 1993.3 This extremely rapid expansion hides a lot of dangers, and atthe same time shows another new "trend" of our corporation. In my analysis Iwill include the international sector. I will also narrow in on employees,stockholders, goodwill and on potential investors.     1) MIEC (Manufacturing Industry Expenses Comparison)     As we know, the basic organization of the company s continuingoperations consists of 12 key businesses, which contain management units of