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1. Raghav Agarwal Akash Jauhari Alok Mishra Karan Verma Lokesh Chaudhary Varun Sehgal Akash Jauhari IMT Ghaziabad Corporate & Business Strategy For GE

2. Key Findings Major Spinoff of business portfolio required. Geographic redistribution of focus and resources required. It will be more viable to introduce with current business in emerging markets than getting into a break through industry altogether. Internal Strategies should not conflict with – shareholder wealth maximization principle in long run. Akash Jauhari IMT Ghaziabad

3. Recommendations Divest from Insurance Business Divest from Consumer & Industrial Business Key focus areas – Energy, Healthcare and Consumer Finance Geographic Redistribution : China, India, Brazil, South Africa Invest in Alternative Energy Sector (Solar & Wind) in India Invest in Healthcare Sector (Medical Equipment) in China M&A opportunities with financial verticals of crisis hit companies in United States like Merrill Lynch. Akash Jauhari IMT Ghaziabad

4. Classification of Businesses - BCG Matrix Energy Financial Services, Aviation Financial Services, IT Solution, Real Estate, Enterprise Solution Energy Oil & Gas Healthcare Market Growth Aviation, Transportation, Finance, GE Money, NBC Insurance Consumer & Industrial Plastics Relative Market Share Akash Jauhari IMT Ghaziabad

5. Divestment Divest from Insurance Business - Expected Income through the divestment to be around $10 billion Divest from Consumer & Industrial Business - Expected Income through the divestment to be around $2 billion (The above businesses are a drag for GE, affecting its cash flows and profits. GE stock is under valued and among poor performers in-spite of solid foundations.) Akash Jauhari IMT Ghaziabad

7. Gaining first mover advantage

9. Few Indian Players – Titan, Mosarbaer, HVV

11. Low prices of Polysilicon in Global Mkt.

13. PPA by Govt. of India

15. Govt. protected sector

16. Continuous Innovation & breakthrough Technology requiredAkash Jauhari IMT Ghaziabad

17. Alternative Energy Sector in India: Porter’s 5 Forces Forecast: Thin film to be $ 1380 million industry by 2020. Total industry size to exceed $ 11300 million by 2022 (Garter Sector Research). Conclusion: Competition Intensity: Low Profitability: High Core Competency: Need to develop Strategy: M&A, Collaborations and Tie-Ups Akash Jauhari IMT Ghaziabad

18. Enter Medical Equipment Industry in China GE Strength: GE Healthcare is the market leader with $17 billion revenue and more than 46,000 employees in over 100 countries . Market Size: China is World’s 4th largest & fastest growing healthcare market Healthcare expenditure to be $ 220 billion for 2007 (only 6.5% vs. 15.6% for US) Annual Revenues around $20billion in 2009 for medical equipment Strong growth in tier II cities - increasing purchasing power Large (1.2 billion) and ageing population People moving from conventional to advanced medical sciences Akash Jauhari IMT Ghaziabad

19. Medical Equipment Industry in China Government Policies: NRCMCS started in 2005 Govt Spending on healthcare to be $ 47 billion annually after 2005 Focus on advanced technology medical equipments Key Success Factors: 85-90% of advanced equipments are imported in china (as of 2004-05) Company, if, sets up a manufacturing plant in China, will get major market share & high margins Competitors: Abott Labs, Backman Coulter, Philips Product Range: Diagnostic, Hematology Analyser, Biochemistry Analyser, Ultrasonic Imaging Akash Jauhari IMT Ghaziabad

23. Performance RecognitionAkash Jauhari IMT Ghaziabad

25. Ecomagination Investment GE plans to invest $1.5 billion by 2009 in Ecomagination R&D Revenues By 2009, expected revenues from Ecomagination projects to increase by more than 5% to $18 billion Greenhouse Gas Emission (GGE) Between 2002-07, GE cut GGE by over 20% and increased energy efficiency by over 30% Water Consumption It reduced by 30% between 2003-07 Eg: Flexefficiency 50 - A 510 MW power plant based on Natural gas with a efficiency of 61% in France Akash Jauhari IMT Ghaziabad

26. Corporate Structure in 2002 Akash Jauhari IMT Ghaziabad

27. Corporate Structure in 2007 Akash Jauhari IMT Ghaziabad

28. Legacy of GE Akash Jauhari IMT Ghaziabad