Globalization in General Electric

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Globalization in General Electric


General Electric (GE) is a multinational company based in America and headquartered in Boston. GE has aggressively invested in the foreign expansion of its company. There exist various reasons for GE to expand its business operations globally. The main reason is GE’s attempt to explore and exploit new opportunities in different countries. Increasing globalization forces have altered GE’s nature and terms of doing business irreversibly and significantly (Sechler, 2012). This paper discusses the impacts of globalization on General Electric business operations and policies.


Exposure to New Business Opportunities

GE is largely known in its success at the segments of healthcare, digital, lighting, venture capital and finance, oil and gas, power, aviation, additive manufacturing and transportation. Through globalization, GE has been presented with a wide range of business opportunities to contribute to the revenue levels (Roberts, 2010). Examples of these opportunities include outsourcing of various business operations abroad and products exportations to global markets. Internationally, GE has diversified its financial and technology services and other commodities such as water processing, aircraft engines, household appliances, industrial products, and business and consumer financing.

International Growth and Job Creation

Through globalization, GE greatly enjoys international growth. In 2011, GE realized 18 percent growth internationally- this made the company consolidate profits of $147 billion in the same year (Istrate, Rothwell, & Katz, 2010). Additionally, globalization has made GE create more job opportunities to people in different countries. According to the GE Annual Report of 2011, the company created over 13,000 jobs in the US. Moreover, international sales of American-made products by the company have also been increased by globalization, amounting to $18 billion in 2011.

Shift of Research and Development Centers Overseas

Globalization has greatly impacted the GE policies. In business, globalization exposes a company to more opportunities. As a result, GE has shifted various vital R&D centers in the international markets. Effective research and development by GE is a major source of its competitive edge in the overseas markets (Dicken, 2010). The launching of major R&D business units in different nations positions GE in a better place to design products and equipment that suit the market needs and specifications. These advantages are a result of globalization, and GE’s policy and decision to go global. Globalization in General Electric (GE)


Shifting Head Offices Overseas

The intensity of globalization forces have also affected GE policies in a manner that various vital division head offices have been shifted to overseas countries. The first GE business to be managed outside the US was healthcare in UK (Caselli, 2012). Additionally, this similar strategy has been used by the company in the field of oil and gas that has been shifted to Florence, Italy. Also, the GE money financial services were relocated in 2008 to London. This policy of shifting offices to different countries is a result of globalization, and affects GE positively. The main advantages of this strategy are gaining a wider geographical existence and a wide vast experience of more markets.


In a nutshell, GE has been able to enjoy substantial business benefits from the transformations in the marketplace as a result of intense focus of globalization until now due to divisive efficient business strategies. However, due to emerging economies like India and China who claim a bigger role in the global marketplace, further intensity rates of globalization may establish substantial challenges to GE.

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