Business Analysis Part Iii

Business Analysis Part III

Tracy Harriss

MGT/251

March 5th, 2012

Clifford M. Lavin MSIM

Business Analysis Part III

General Electric (GE) is an American multinational conglomerate corporation ranked as America’s sixth largest company and the 16th largest in the world (CNN Money, 2012). GE successfully operates in the global marketplace with the assistance of its subsidiaries. The GE global market includes operations in more than 100 countries and currently employees over 304,000 employees worldwide in several segments of business.

Mutual fund managers must take several elements of business into consideration when deciding whether or not to invest in a company. These elements include reviewing the effects of recent economic trends, strategies that GE uses to adapt to changing markets, and tactics that a company can implement to achieve strategic goals. Strategic planning tools evaluates a company or product’s strengths, weaknesses, opportunities, and threats (SWOT) (Nickels, McHugh, & McHugh, 2010).

A SWOT analysis provides a clear picture of what a company is working with and what they need to work on. Finally, reviewing the company’s income statement, balance sheet, and cash flow will aid in determining the company’s financial health. Comparing the financial statement, technology, best practices, operations processes, and products to other companies will determine GE’s standings in the industry. The combination of these elements are a business analysis. A thorough business analysis is essential in a mutual fund manager’s decision-making process.

Influences of Economic Trends on Business

Today’s wavering economy influences GE’s business. In 2000 GE’s stock price peaked at $53 a share (Quinn, 2008). As a result of the financial crisis of 2008, GE stock prices dropped to $6.66 in March 2009 (Marcial, 2012). GE Capital’s performance contributed more than 50% of GE’s profits. GE Capital is financial division that provides financing in consumer and...