/ GE China
/110/2004-07-17/298.html
Since the 1960s, the corporate management systems of major American companies have been To adapt to the needs of technological progress, economic development and market competition, it emphasizes a system that combines systematicity with flexibility, centralization and decentralization. By the mid-1970s, the U.S. economy was stagnating, and some companies were experiencing a trend of recentralization in their management systems. There is a management system called the "super-division system", which is that under the top leadership of the enterprise and above each division, some organizations that govern the divisions have emerged. General Electric Company in the United States began to implement the "executive department system" in January 1979, which is a form of this "super-division" management system.
Basic information about General Electric Company
General Electric Company is the largest electrical and electronic equipment manufacturing company in the United States and the world. Its output value accounts for 1% of the total output value of the US electrical industry. /4 or so. General Electric Company is headquartered in Fairfield, Connecticut, USA. GE is composed of multiple diversified basic business groups. If ranked individually, 13 business groups can be ranked among the Fortune 500. This company's electrical product technology is relatively mature and has a wide variety of products. It is said that there are more than 250,000 varieties and specifications. In addition to producing consumer appliances and industrial electrical equipment, it is also a huge arms contractor, manufacturing aerospace instruments, jet pilot and navigation systems, multi-warhead ballistic missile systems, radars and space flight systems. In the 1977 selection of one hundred new products held by the American Industrial Research magazine, the new products of the American General Electric Company won the most awards. The world-famous Atlas rocket and Thor rocket that can carry atomic bombs and hydrogen warheads are produced by this company.
This electrical company was formed by the merger of three companies including Edison General Electric Company and Thomson-Houston International Electric Company in 1892. During the two world wars, the company made huge war fortunes and developed rapidly. After World War I, the company dominated the emerging electrotechnical sector, radio, and in 1919 established a subsidiary, the American Radio Company, which almost monopolized the U.S. radio industry. The Second World War caused General Electric's output and profits to increase dramatically.
In the more than 80 years since its founding, General Electric has annexed many domestic and foreign companies in various ways and seized shares of many companies. In 1939, it had only more than thirty domestic factories. By 1947 The number increased to 125 in 2016, and by the end of 1976, it had 224 manufacturing plants in 35 states in the country. Abroad, it gradually merged with electrical companies in Italy, France, Germany, Belgium, Switzerland, the United Kingdom, Spain and other countries. In 1972, the company's foreign subsidiaries included: 33 in Europe, 10 in Canada, 24 in Latin America, 11 in Asia, 3 in Australia, and 1 in Africa. By the end of 1976, it had 113 manufacturing plants in 24 countries and became a huge multinational company.
General Electric Company is a large industrial company controlled by the Morgan consortium. It has been operating for decades and has made huge profits. It has strong assets and a large scale. In 1976 and 1977, it ranked ninth among the largest companies in the United States. According to statistics from the American "Happiness" magazine on May 8, 1978, the total assets of General Electric Company in 1977 reached US$13.696 billion, and total sales reached US$17.515 billion. The net profit for this year was US$1.088 billion. It ranks fifth among large companies, with a total number of 384,000 employees. The company began building new plants in 1956 to produce missiles and provide nuclear weapons to foreign countries. For example, Japan engages in atomic energy, atomic fuel, and naval torpedoes. In 1976, it cooperated with France to develop turbine aircraft and engines that can be equipped with torpedo submarines or launch vehicles. In 1973, it received US military orders worth US$1.42 billion, ranking second among major companies.
GE in China
As early as 1906, GE began to develop trade with China and was one of the most active and influential foreign companies in China at that time. In 1908, GE established its first light bulb factory in Shenyang. In 1934, GE bought Shen Chang Yang Co., Ltd. and began to provide installation and maintenance services for imported electrical equipment in China. In 1979, GE reestablished trade relations with the People's Republic of China. In 1991, the first joint venture, GE Hangwei Medical Systems Co., Ltd., was established in Beijing.
To date, all of GE's industrial products groups have operated in China, with more than 11,000 employees, and GE has established 40 operating entities. With the gradual opening of the market after China's accession to the WTO, GE's financial business is also actively seeking development opportunities in China. In 2005, GE's sales revenue in China reached US$5 billion.
In addition to business investment, GE is also committed to being a good corporate citizen and actively participating in various public welfare activities, such as setting up scholarships at educational institutions in China. In addition, GE employee volunteer organizations have also established branches in Beijing, Shanghai, Guangzhou, Dalian and Hong Kong to actively carry out volunteer activities such as community services and environmental protection.
GE’s six industrial divisions: Business Financial Services, Consumer Finance, Industrial, Infrastructure, Healthcare, NBC Universal, and Consumer Finance. Part of GE Money, GE Consumer Financial Services provides credit services and financial products, such as private credit cards, personal loans, bank cards, auto loans and leases, mortgages, group loans, to consumers, retailers and auto dealers around the world. Travel and shopping cards, bill consolidation, home equity loans and credit insurance.
General Electric Company’s organizational management
Continuously reforming the management system
Due to the diversification of General Electric Company’s operations, complex varieties and specifications, and fierce market competition, it plays an important role in the enterprise. Organizational management is also actively engaged in reform. In the early 1950s, the company fully adopted the "decentralized division system." At that time, the entire company was divided into 20 divisions. Each business unit operates independently and is accounted for separately. In the future, as time goes by and the needs of business operations arise, the company will continue to adjust its organizational structure. In 1963, when Boych took over as chairman, the company's organizational structure was divided into five group groups, 25 divisions and 110 departments. At the time, the company's sales were stagnant, with sales of only about $5 billion within five years. After 1967, the company's business grew rapidly, with sales of almost every group reaching US$1.6 billion. Pochi believes that after business expansion, the original organizational structure can no longer adapt. So the 5 group groups were expanded to 10, the 25 branches were expanded to 50, and the 110 departments were expanded to 170. He also reshuffled the leadership structure, appointing eight new group general managers, 33 division managers and 100 new department heads. At the same time, a five-member board of directors was also established. Their responsibility is to supervise the entire company and formulate relatively long-term basic strategies for the company.
New Measures - Strategic Business Units
In the late 1960s, General Electric encountered fierce competition in the market from Westinghouse Electric Company, and the company's finances had been in deficit. Swing up. In order to avert the crisis, the company's top leaders adopted a new strategic measure in the corporate management system in 1971, namely the establishment of "strategic business units" within business divisions. This kind of "strategic business unit" is an independent organizational department that can selectively manage certain products individually within the business department, so that the business department can allocate and use manpower and material resources flexibly and effectively, and manage various products, sales, and equipment and organize a rigorous and foreseeable strategic plan. Such "strategic business units" can be equivalent to the group level; they can also be equivalent to the division level, such as medical systems, equipment components, and chemistry and metallurgy; and some are equivalent to the department level, such as tungsten carbide tools and engineering Use plastic.
The leadership group of General Electric attaches great importance to the establishment of "strategic business units" and considers it a "very meaningful step" and an "important way" for the company's development. In 1971, the company's sales and profits were All set records. Judging from the company's rapid development from the 1960s to the mid-1970s, this measure indeed played a significant role. In the 11 years from 1966 to 1976, General Electric's sales doubled from US$7.177 billion to US$15.697 billion; net profit increased from US$339 million to US$931 million. During the same period, total fixed assets increased from US$2.757 billion to US$6.955 billion.
Recentralization - Executive Department System
In the mid-1970s, the U.S. economy stagnated again. Jones, who took over as chairman of General Electric Company in 1972, was worried that There may be a relatively long-term economic downturn in the 1980s. By the end of 1977, he further reorganized the company's management system and implemented an "executive department system" in January 1978, which is also a "super business department system." This system is to establish some "super divisions" on top of each division to govern and coordinate the activities of each division, which means there is an additional level of management above the divisions. In this way, on the one hand, the top leadership can reduce the daily work and concentrate on mastering the decision-making strategic plan related to the development of the enterprise; on the other hand, it also enhances the flexibility of the enterprise. In the restructured system, Chairman Jones and two vice-chairmen form the Executive Bureau, the top leadership body, which is responsible for long-term strategic planning, dealing with the government, and studying issues such as the tax system. There are 5 "Execution Departments" under the Executive Board (i.e., "Super Business Departments", including Consumer Products and Services Execution Department, Industrial Product Parts Execution Department, Power Equipment Execution Department, International Execution Department, and Technical Equipment and Materials Execution Department). Each The execution department is headed by a deputy general manager. The executive department has 9 headquarters (groups), 50 business departments, and 49 strategic business units. The daily affairs of each business unit, as well as strategic decisions related to markets, products, technology, customers, etc., used to be reported to the company's top leadership organization, but now they are reported to each execution department separately. These five executive departments, plus other international companies, are each led by two vice-chairmen. In addition, the three staff departments of finance, human resources and legal are directly led by the chairman.
Establishing a network system
After General Electric Company widely used computers in corporate management, it established a network system, which greatly accelerated work efficiency. This network system connects 65 sales departments in 49 states, 18 product warehouses in 11 states, and 40 manufacturing departments (53 manufacturing plants) in 21 states. When a customer calls to place an order, the salesperson enters the data into the network system, and it automatically performs the next series of tasks: such as checking the customer's credit status and checking whether the product is in stock at the nearest warehouse. After the two points are answered in the affirmative, the network system will simultaneously accept orders, issue invoices, and register warehouse accounts. If necessary, it will also issue production scheduling orders to the factory to replenish warehouse inventory, and then notify the sales staff that the goods required by the customer have been shipped. Shipping. This entire process can be completed in less than 15 seconds. Another thing worth noting is that in addition to fast service speed, this network system has actually combined different functions such as sales, inventory management, and production scheduling.
Scientific research organization system
Similarly, General Electric Company of the United States also attaches great importance to scientific research work and has a long history. In the second year after the company was founded, a young German mathematician Steinmetz engaged in scientific research, and a laboratory was established in 1900. According to a 1970 "American Industrial Research Institute" report, the company had 207 research departments, including a research and development center and 206 product research departments. ***There are more than 17,200 scientific research personnel, accounting for 4% of the total number of employees in the company.
In 1973, General Electric Company had 31,000 professionals with technical degrees, more than half of whom were engaged in research and development. In 1972, the company's total scientific research expenses exceeded US$800 million, of which US$300 million was borne by the company, and US$500 million was mainly used for research and development work under contract with the US government.
GE’s scientific research work is divided into two aspects: basic theory and applied research. Its research and development center is engaged in these two aspects of work, focusing on basic theoretical research to serve the entire company, and at the same time conduct joint research on some topical topics in various industries. The predecessor of this research and development center was a laboratory established by the company in 1900. It was also the first industrial laboratory engaged in basic research in the United States. Its founders were Whitener, a young chemist from the Massachusetts Institute of Technology, and two technicians from General Electric Company. The early research work of this laboratory mainly focused on basic research on light bulbs, X-ray tubes, thyristors and related chemistry and metallurgy. During both world wars, this research laboratory studied communications and radar equipment used in the war. At the end of World War II, the research laboratory's research staff expanded to more than 600 people. In 1968, this research laboratory was officially named the Research and Development Center. By 1973, it had 17,000 employees, 325 of whom were Ph.D.s in physics. Currently, one of the company's deputy general managers also serves as the director of the research and development center. This research and development center consists of two research departments: the Materials Science and Engineering Department (divided into four research laboratories) and the Physical Science and Engineering Department (divided into five research laboratories). In addition, there are three administrative departments:
(1) Research and Application Department, which consists of four departments: external liaison, plan analysis, personnel research, and information research, responsible for quickly promoting research results to the company's Various production departments and establish extensive technical contacts outside General Electric Company;
(2) Research Management Department, responsible for managing experimental factories and service stations, leading the Accounting Department, Equipment Department and Welfare Department;
p>
(3) Legal Advisory Department, composed of 11 people, is responsible for the review of patents, the evaluation of inventions and legal affairs in patent applications. In addition, the company's 206 product research departments are generally located near product manufacturing plants, with researchers ranging from dozens to hundreds, focusing on applied research.
About Welch
In 1960, Welch joined CE and became a junior engineer in Pittsfield, Massachusetts. A year later, he felt that the company's bureaucracy was suffocating and wanted to resign and find another job. When his farewell party was about to be held, his young boss Ruben Gutov tried his best to persuade him to stay. At the dinner table After a nearly four-hour persuasion campaign against Welch, he finally agreed to stay and work for CE on the condition that he would not be hindered by the company's bureaucracy. Gutov's move gave CE one of the greatest leaders in their history. In 1968, Welch became the youngest general manager of General Electric Company. At the age of 37, Welch became group executive and in 1979 became vice chairman. In 1981, after nine years of evaluation, Welch succeeded Reginald Jones as the eighth president of General Electric Company (GE). At this time, GE had gone through 117 years of history.
From 1981, when Welch became president, to 1998, GE's major indicators have maintained double-digit growth. During this period, GE's annual revenue increased from US$25 billion to US$100.5 billion, net profit rose from US$1.5 billion to US$9.3 billion, and its employees were reduced from 400,000 to 300,000. By the end of 1998, GE's market value exceeded US$280 billion, and it has been ranked at the top of the "Fortune500" for many years. The above-mentioned performance in 1998 generated free cash flow of US$10 billion, coupled with the company's AAA debt credit rating, which enabled it to invest US$21 billion in 1998 to acquire 108 companies to support the company's three major measures. Two of them: globalization and services.
In terms of shareholder returns, neither Microsoft's Bill Gates, Intel's Andrew Grove, Warren Buffett or Wal-Mart's retail king Sam Walton can compare to Jack Welch. compared to. GE shareholders already own more than $17 billion in GE stock through the company's savings plan. In 1998, the total return per share of GE stock was as high as 41; over the past 18 years, GE has given shareholders an average annual return of 24. Over the past 18 years, although many other companies have fallen like dominoes in the severe global economy After the collapse, their presidents also changed frequently like a revolving door, but Welch always led General Electric and created one miracle after another in revenue and earnings.
The corporate brand ranked sixth in the 2006 "World's Top 500 Brands" compiled by World Brand Lab, and ranked among the 2006 Global 100 published by "Barron's" Ranked second among major companies in terms of respectability. The company ranked eleventh in the 2007 Fortune ranking of the world's 500 largest companies.
Thank you also. If it weren’t for your high-scoring question, I wouldn’t have learned more about GE