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General Electric recently announced the financial arm restructuring. It was interesting to find article Say Bye To General Electric. 30 sec summary: GE will fail because of disintegration, cockiness of managers and ailing US financial arm. Yes, financial crisis is sucks and I-am-mega-businessman managers who cannot even to a spreadsheet or lead simple change in organization properly are pain. But I do see opportunities embedded into this strategic situation: - GE Money / Capital is disintegrated. Yes it is. The good things about it: first, you can sell them separately or let them manage their own balance sheet; second,you can integrate them and finally leverage GE brand.
- US division is sucks. So separate it form the rest of GE Money / Capital worldwide. Let US business go bankrupt.
- Back to basics strategy is still viable: aggressive lending to GE corporate partners can dramatically support GE industrial businesses.
Not really long time ago Jeff seriously was considering to sell all industrial businesses and be a financial company. Not now, not now. Have a good weekend! |
