GE is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses. The company currently operates in more than 100 countries and has over 300,000 employees. Jeffrey R. Immelt is the current Chairman and Chief Executive Officer, replacing Jack Welch. .
The company was formed in 1892; a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company currently listed in the Dow Jones Industrial Index today that was a part of the original index in 1896. For the past 20 yrs, GE has consistently outperformed the market measured by total shareholder return. Time magazine named GE "company of the century", in 2000. Fortune magazine named GE three times," World's Most Respected Company", Americas Greatest Wealth Creator and "Americas Most admired Company". InternetWeek named GE as e-Business of the Year in 2000. GE superior performance can also be measured by its high operating margins and profit margins. GE's efficiency ratios are better than the industry average and the market. GE has a higher income per employee, sales per employees and better inventory turnover ratios on average.
Much of GE's success during the past 20yrs has been attributed to Jack Welch's innovative leadership and entrepreneurial style. Jack's legacy included the three-circle concept, streamlined organization and his ability to bring about organizational change. GE's restructuring effort has been very aggressive, over 600 businesses were acquired since 1981.
Jack Welch initially focused on GE products striving for market leadership and higher ROE. He believed that being No. 1 or No. 2 would give them " a set of businesses which will be unique in the world business equation at the end of this decade"(1981) and would also provide them with an unmatched competitive advantage.
