General Electric Research Paper

1549 Words May 7th, 2013 7 Pages
General Electric is a well-known company in many regions of the world, but what people aren’t particularly aware of are the steps that General Electric has taken to get to where it is at today. When I think of General Electric the first thing that comes to mind is the role that the company plays in the production of household appliances, but General Electric is a much bigger contributor to people’s lives than is most people realize. People aren’t familiar with the internal business decisions that General Electric makes to ensure that the company continues to grow and run as smoothly as possible, allowing the company to continue to provide people with the services that they have grown to recognize as being a trademark of General Electric. …show more content…
Acquisitions and greenfield ventures gave General Electric the power to make decisions and have control over the input and outcome of production either in the companies that it acquired through acquisitions or established through greenfield ventures. General Electric was opposed to joint ventures because it entailed “establishing a firm that is jointly owned by two or more independent firms” (Hill, 429), which would give General Electric little or no control in the new company.
I think that General Electric has changed its strategy in recent years, to prefer joint ventures as opposed to acquisitions or greenfield ventures, because the company wants to avoid the possibility of overpaying when acquiring a company, have a security blanket when entering into foreign markets, share the risk of building a new business, and it serves as the easiest option for entering into a market. Joint ventures allow General Electric to avoid the possibility of overpaying for an acquired company, at a time when prices for acquisitions have been bid higher than usual, by allowing General Electric to put money into a company that may have problems beneath the surface, rather than take full responsibility for that company’s problems through an acquisition and run the risk of losing money through the company. Joint ventures provide General Electric with a security blanket when entering a foreign market by allowing General

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