general electric business plan

• My View My View
• Following Following
• Saved Saved

GE, an industrial conglomerate pioneer, to break up

• Medium Text

Sign up here.

Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru Additional reporting by Tim Hepher in Paris Writing by Sweta Singh and Rajesh Kumar Singh Editing by Anil D'Silva, Nick Zieminski and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Thomson Reuters

Abhijith leads a team of reporters who cover aviation, legacy automakers, conglomerates, transportation and travel in the United States. An economics graduate, Abhijith has written stories across the manufacturing file with a focus on the aviation industry. In his previous role, he was part of the team that won the Reuters Journalist of the Year award under the speed category.

Business Chevron

Canada's BMO misses profit estimates on higher provisions, US weakness

Bank of Montreal missed analysts' estimates for quarterly profit on Wednesday, hemmed in by weakness at its U.S. segment and higher loan loss provisions, sending its shares down 6%.

• Share full article

Advertisement

Supported by

G.E. Breaks Up With Its Storied Past

The company, once the epitome of corporate ambition, plans to split itself into three separate companies.

By Steve Lohr and Michael J. de la Merced

It was the quintessential American company, a corporate behemoth whose ambition matched the country’s.

Formed in 1892, General Electric reached into nearly every home over the next century. It sold light bulbs, televisions and washing machines. Its jet engines opened up long-distance travel, its generators lit houses, and its medical equipment helped diagnose patients.

Now G.E. is making a final break with its storied past, splitting itself into three businesses, a victim of the lingering effects of the 2008 financial crisis and a fast-growing economy less hospitable to global conglomerates.

On Tuesday, the company said it would spin off its health care division in early 2023 and its energy businesses a year later. That would leave its aviation unit as its remaining business .

H. Lawrence Culp, the chief executive brought in to revive the company three years ago, called it a “defining moment.”

“G.E. got caught in the past — and now it’s the end, it’s over,” said Scott Davis, chief executive of Melius Research, an independent financial analysis firm.

G.E.’s history goes back 129 years, to when Thomas Edison’s Edison Electric Company merged with another business in a deal backed by J. Pierpont Morgan, the financier who helped birth many of America’s great companies.

In the company’s heyday, during the last decades of the 20th century, G.E. invested billions of dollars in profits in new businesses, and that expansion made its brand inescapable. “We bring good things to life,” became G.E.’s marketing motto.

G.E. was long considered to be a “widow-and-orphan stock,” widely held, cherished for its dividend and safe. Its size and reach were part of the company’s pitch to investors. Under Jack Welch, who led G.E. for two decades until 2001, revenue jumped nearly fivefold, to $130 billion. The value of its shares on the stock market soared to more than $410 billion from $14 billion.

Fortune magazine named Mr. Welch the “manager of the century,” and in 2000 The Financial Times named G.E. “the world’s most respected company” for the third straight year.

Under Mr. Welch, G.E. became a training ground for a growing cadre of star managers. They were developed and moved from one business to another every few years.

Ambitious young people flocked to the company. Former managers at G.E. were recruited for the top jobs at other companies including 3M, Home Depot and Albertsons.

But Mr. Welch also built up a huge finance arm at G.E. The assumption was that G.E.’s managers were the best in the world, and there was easy money to be made on Wall Street.

The buildup backfired when the financial crisis hit in 2008, putting G.E. in a credit crunch. Its chief executive at the time, Jeffrey R. Immelt, moved to drastically pare back the big finance unit, GE Capital.

Other businesses hit hard times because of the financial crisis as well, and some Wall Street firms collapsed. But few outside of Wall Street are still paying a price like G.E. As the company scrambled to shed many of its troubled financial assets, its overextended power-generation business became a drag on the operation.

Over time, analysts say, size and complexity worked against the company, as bureaucracy sapped corporate agility.

In 2017, John Flannery, a longtime G.E. manager, replaced Mr. Immelt. Mr. Flannery proclaimed the era of the giant conglomerate to be over, and said the new G.E. would be smaller and simpler.

While Mr. Immelt had said that G.E. would become “a Top 10 software company” by 2020, adding software and sensors to industrial equipment, Mr. Flannery announced plans to cut that business’s spending by $400 million.

But Mr. Flannery’s cuts in that division, and other moves across G.E., were not enough to turn around a huge company with disparate businesses.

In June 2018, G.E., the last original member of the Dow Jones industrial average, was dropped from the blue-chip index . By the fall of that year, Mr. Flannery had been forced out, replaced by Mr. Culp , a former chief executive of Danaher, a more compact conglomerate that makes scientific, medical and automotive equipment.

Under Mr. Culp, the company has paid hundreds of millions of dollars to settle with the Securities and Exchange Commission over claims that it misled investors before his arrival. He has also accelerated cost-cutting at the company. G.E., which had more than 300,000 employees worldwide in 2014, now has 161,000 workers.

Mr. Culp on Tuesday described the breakup of the company as being in step with the times, as other industry conglomerates have streamlined. In the last few years, G.E.’s big German rival Siemens has spun off its health care and energy businesses. And Honeywell International, another wide-ranging industrial company, has sold off some operations.

The spinoff plan, he said, “heightens focus and accountability” and “just makes everybody better.”

Investors, including Trian , the activist shareholder firm led by Nelson Peltz, have pressured the company to spin out or sell various businesses, and they cheered the move on Tuesday.

“Trian enthusiastically supports this important step in the transformation of G.E.,” a spokeswoman for Trian said.

Shares of G.E. climbed about 3 percent in trading on Tuesday.

The three new stand-alone companies will be sizable. The jet engine business had revenue of $22 billion last year. There are 36,000 G.E. engines on commercial airliners worldwide and 26,000 engines on military aircraft.

Its health care business had $17 billion in revenue last year, with four million of its imaging and other machines in use at hospitals and clinics around the world.

The new energy and power company will include wind turbines and gas-fueled power generators that produce about one-third of the world’s electricity.

Each of those businesses faces challenges — the aviation unit is emerging from the pandemic falloff in air travel, and the power business must adapt to the shift to alternative energy sources.

But each one, Mr. Culp insisted, would be a strong competitor in its respective market, “a simpler, stronger and more focused company,” easier to manage and easier for investors to understand.

It is a message very different from the G.E. of old.

Steve Lohr has covered technology, business and economics for The Times for more than 20 years. In 2013, he was part of the team awarded the Pulitzer Prize for Explanatory Reporting. He is the author of “Data-ism” and “Go To.” More about Steve Lohr

Michael de la Merced joined The Times as a reporter in 2006, covering Wall Street and finance. Among his main coverage areas are mergers and acquisitions, bankruptcies and the private equity industry. More about Michael J. de la Merced

Explore Our Business Coverage

Dive deeper into the people, issues and trends shaping the world of business..

What Happened to Ad-Free TV?: ​​Not long ago, streaming TV came with a promise: Sign up, and commercials will be a thing of the past. Here’s why ads are almost everywhere on streaming services now .

London Moves to Revive Its Reputation: ​​As fears have grown that the city is losing its attractiveness for publicly traded businesses, Britain’s government is making changes  to bring them back.

What Do Elite Students Want?: ​​An increasing number of students desire “making a bag” (slang for a sack of money) as quickly as possible. Many of Harvard’s Generation Z say “sellout” is not an insult, appearing to be strikingly corporate-minded .

D.C.’s Empty Offices: ​​Workers in Washington have returned to the office slowly , with a pervasive and pronounced effect on the local economy.

Trump’s Financial Future: ​​Donald Trump has treated Trump Media, which runs his social network Truth Social, as a low-cost sideshow. Now a big portion of his wealth hinges on its success .

• Skip to main content
• Keyboard shortcuts for audio player

Storied General Electric plans to split into 3 public companies

The Associated Press

The General Electric logo appears above a trading post on the floor of the New York Stock Exchange in 2018. Richard Drew/AP hide caption

The General Electric logo appears above a trading post on the floor of the New York Stock Exchange in 2018.

General Electric, the storied American manufacturer that struggled under its own weight after growing to become a sprawling conglomerate, will divide itself into three public companies focused on aviation, healthcare and energy.

It is the culmination of an arduous, yearslong reshaping of a symbol of American manufacturing might that could signal the end of conglomerates as a whole.

"It's over now," said Nick Heymann of William Blair, who has followed GE for years. "In a digital economy, there's no real room for it."

GE is no longer bringing good things to light as it sells its bulb business

Planet Money

What happened to ge.

The company has already rid itself of the products most Americans know including its appliances and last year, the light bulbs that GE had been making since the late 19th century when the company was founded.

The announcement Tuesday marks the apogee of those efforts, divvying up an empire created in the 1980s under Jack Welch, one of America's first CEO "superstars."

Jack Welch, legendary CEO of General Electric, is dead at 84

GE's stock became one of the most sought after on Wall Street under Welch, routinely outperforming peers and the broader market. Through the 1990s, it returned 1,120.6% on investments. GE's revenue grew nearly fivefold during Welch's tenure, and the company's value increased 30-fold.

Yet the stock began to lag in the summer of 2001, the waning days of Welch's rule. At as the decade came to a close GE was struck by near ruin with the arrival of the worst financial crisis since the Great Depression. General Electric's vulnerabilities were laid bare and the epicenter was GE Capital, the company's financial wing.

Shares lost 80% of their value from the start of 2008 into the first few months of 2009 and has only recently begun to recover as the company unwinds much of what Welch built. The stock is up 30% this year as the asset sales keep coming, and shares rose 6% in heavy trading Tuesday to reach a new high for the year.

GE's aviation unit, it's most profitable, will keep General Electric in the name. GE will spin off its healthcare business in early 2023 and its energy segment including renewable energy, power and digital operations in early 2024.

The decision to split at GE was well received Tuesday, both in general markets and by those who had pushed for the change.

"The strategic rationale is clear: three well-capitalized, industry leading public companies, each with deeper operational focus and accountability, greater strategic flexibility and tailored capital allocation decisions, wrote Trian Fund Management, a large stakeholder whose founding partner serves on GE's board.

Heymann, of William Blair, said the conglomerate model no longer works in a marketplace in which only the quick and agile survive.

Culp will become nonexecutive chairman of the healthcare company, with GE maintaining a 19.9% stake in the unit. Peter Arduini will serve as president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will become CEO of the combined renewable energy, power, and digital business. Culp will lead the aviation business along with John Slattery, who will remain its CEO.

Culp achieved a major milestone this year in reshaping General Electric with a $30 billion deal to combine GE's aircraft leasing business with Ireland's AerCap Holdings. Because the arrangement pushed GE Capital Aviation Services into a separate business, Culp essentially closed the books on GE Capital, the financial division that nearly sank the entire company during the 2008 financial crisis.

The company said Tuesday that it expects operational costs of approximately $2 billion related to the split, which will require board approval.

The Boston company also announced Tuesday that it expects to lower its debt by more than $75 billion by the end of the year.

The question now is whether other conglomerates will see their own company structure as a relic of the past.

The decision to break up General Electric, an industrial bellwether, could set into motion similar actions at other large conglomerates with the "urge to demerge," according to RBC Capital Markets.

"GE's announcement today could embolden the boards of several other Multi-Industry companies to move ahead on more aggressive portfolio simplification moves, including Emerson, Roper Technologies, and 3M," analysts with the firm wrote.

Unlike GE, which continued to shed assets this year, all three industrial conglomerates have underperformed the S&P 500 in 2021.

• General Electric

• Search Search Please fill out this field.
• GE's Financials
• Business Segments
• Recent Developments

The Bottom Line

• Company Profiles
• Industrials

How GE Makes Money

Aerospace generated the most revenue and profits in 2023

General Electric Co. ( GE ) was a global industrial company that provided power generation, renewable energy, and industrial aviation products. GE served customers in over 160 countries and had manufacturing and service operations globally.

As of 2024, GE now operates solely in the aerospace industry under the name "GE Aerospace." Its competitors include Honeywell International Inc. ( HON ), RTX ( RTX ), and Safran ( SAF ).

Key Takeaways

• For FY 2023, GE operated in the aerospace, power, and renewable energy industries.
• Aerospace generated the most revenue for GE.
• In April 2024, GE spun off its power and renewables business into a new, independent entity, called GE Vernova.
• GE now operates as a standalone aerospace company.

GE's Financials

GE has refocused its operations on aerospace, executing a plan to split its businesses into three separate and independent public companies. In 2023, the company completed the spinoff of its healthcare business, so for 2023, its reporting segments were Aerospace, Power, and Renewable Energy. There is also a Corporate segment.

In 2024, GE spun off its renewables and power business into a standalone entity, GE Vernova, leaving GE with only one business: aerospace.

For the fiscal year ending 2023, the company reported net earnings attributable to its common shareholders of $9.19 billion, a significant increase from the previous year's earnings of $51 million. GE's total revenues were $67.95 billion for 2023, up 16.96% year over year (YOY) .

GE's Business Segments

For FY 2023, GE operated through three industrial segments: Aerospace, Renewable Energy, and Power. It also has an additional segment it calls Corporate, which it uses to account for revenues and earnings that are not included in the other three segments. The corporate segment will not be discussed below as GE accounts for it separately in its financial statements.

The Aerospace segment designs and produces commercial and military aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also provides aftermarket services to support its products.

The Aerospace segment's profit rose by 28% YOY to $6.1 billion in FY 2023. It composed about 99.8% of the total profit. Annual revenue rose by 22% YOY to $31.77 billion. The segment made up 49.22% of total segment revenues.

Renewable Energy

The Renewable Energy segment offers renewable energy generation products, services, and integrated solutions. It provides onshore and offshore wind, blades, hydro, storage, grid solutions, and hybrid renewables.

The Renewable Energy segment had a loss of $1.44 billion, which was an improvement over 2022's loss of $2.24 billion. As the segment generated a loss, it did not contribute to profit. Revenue for the segment increased by 15.97% to $15.05 billion in 2023, making up about 23.31% of total segment revenues.

The Power segment provides products and services related to energy production. Its products and technologies utilize oil, gas, fossil, diesel, and nuclear to produce electric power. This GE segment offers gas and steam turbines, a full balance of plant, upgrade, and service solutions, and data-leveraging software.

The Power segment's profit rose to $1.45 billion in FY 2023; a 19.06% increase. It made up 0.2% of total profits. Revenue rose to $17.3 billion; a 9.03% increase. It accounted for 27.47% of GE's total segment revenues.

Renewable Energy and Power spun off to become GE Vernova, which is now an independently traded company. General Electric is now split into three different companies: GE Aerospace, GE Vernova, and GE Healthcare.

GE's Recent Developments

In April 2024, GE completed the spin-off of its power and renewable energy segments into a new, standalone entity: GE Vernova. GE itself now operates as GE Aerospace. GE Vernova will focus on power, wind, and electrification. Both companies, along with GE Healthcare, are publicly traded companies.

What Products Does GE Make?

GE's products include electrical, energy, aviation, healthcare, and financial services products. These products are now served across separate GE companies.

Why Did GE Fail?

After its CEO, John Welch, left, it became clear that GE was operating inefficiently. General Electric took a substantial stock price hit in the 2008 financial crisis, and the company struggled financially through the COVID-19 pandemic. It continues to divest and work to recover, which has resulted in it spinning off into three different companies.

What Is General Electric's New Name?

As of 2024, GE has spun off into three separate companies: GE Aerospace, GE Vernova, and GE Healthcare.

General Electric has been a staple in the U.S. economy for more than 125 years. After suffering substantial financial difficulties in the first two decades of the twenty-first century, it is still working to regain its standing. It has restructured and rebranded itself as an aerospace company and divested other endeavors to focus on its most profitable segment.

General Electric. " GE 2023 Annual Report ," Page 8. (Page 10 of the PDF).

General Electric. " GE 2023 Annual Report ," Page 8 (Page 18 of PDF).

GE HealthCare. " GE HealthCare Completes Spin-Off and Begins Trading on Nasdaq ."

Renews.biz. " GE Vernova Complets Spin-Off ."

General Electric. " GE 2023 Annual Report ," Page 41 (Page 51 of PDF).

General Electric. " GE 2023 Annual Report ," Page 10 (Page 20 of PDF).

General Electric. " GE 2023 Annual Report ," Page 11 (Page 21 of PDF).

GE Vernova. " Home ."

MacroTrends. " General Electric - 61 Year Stock Price History | GE ."

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Premium News
• Biden Economy
• EV Deep Dive
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds
• Top Mutual Funds
• Highest Open Interest
• Highest Implied Volatility
• Stock Comparison
• Advanced Charts
• Currency Converter
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Mutual Funds
• Credit cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Personal Loans
• Student Loans
• Car Insurance
• Morning Brief
• Market Domination
• Market Domination Overtime
• Asking for a Trend
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Decoding general electric co (ge): a strategic swot insight.

General Electric Co ( NYSE:GE ) showcases robust revenue growth, with total revenues hitting $68.0 billion, a $9.9 billion increase year-over-year.

GE's strategic focus on air travel and energy transition aligns with global sustainability goals, presenting significant opportunities.

Operational execution and the successful spin-off of GE HealthCare highlight GE's commitment to streamlining and focusing its core businesses.

Supply chain constraints and cybersecurity threats remain critical challenges that could impact GE's operational efficiency and market position.

Warning! GuruFocus has detected 9 Warning Sign with GE.

On February 2, 2024, General Electric Co ( NYSE:GE ) filed its 10-K report, revealing a company in transformation, with a rich history of innovation and a forward-looking strategy. GE, a global leader in air travel and energy transition, reported a significant revenue increase to $68.0 billion, up from the previous year. This financial performance underscores GE's resilience and adaptability in a dynamic market. With a strategic plan to form three industry-leading, global, investment-grade public companies, GE is poised to capitalize on its strengths while addressing the challenges of a complex global business environment. This SWOT analysis delves into the details of GE's filing to provide investors with a comprehensive view of the company's strategic position.

Global Market Leadership and Innovation: GE's century-long legacy of innovation has cemented its status as a market leader in high-tech industrial sectors. With a focus on air travel and energy transition, GE has developed a differentiated product and technology portfolio that positions it at the forefront of these industries. The company's commitment to research and development is evident in its efforts to pioneer next-generation engine programs and renewable energy solutions. GE's global installed base of equipment, including aerospace engines and wind turbines, provides a steady stream of high-margin service revenue, demonstrating the company's ability to leverage its technological prowess for long-term financial stability.

Strategic Business Restructuring: GE's strategic plan to separate into three distinct entitiesGE Aerospace, GE Vernova, and the recently spun-off GE HealthCarereflects a clear vision for streamlining operations and focusing on core competencies. This restructuring is designed to enhance operational efficiency, improve customer focus, and drive growth in each business segment. The successful spin-off of GE HealthCare as an independent company is a testament to GE's execution capabilities and strategic foresight, potentially unlocking shareholder value and enabling more targeted investment strategies.

Supply Chain Vulnerabilities: GE's extensive global supply chain is susceptible to disruptions, as highlighted in the 10-K filing. The company faces challenges such as raw material shortages, supplier capacity constraints, and production disruptions, which can adversely affect its ability to meet customer commitments and impact profitability. Despite efforts to mitigate these risks through lean initiatives and diversified sourcing, the complexity and interconnectivity of GE's supply chain remain a significant vulnerability that requires ongoing attention and strategic management.

Cybersecurity Risks: As a high-tech industrial company, GE is exposed to cybersecurity threats that could compromise sensitive data, disrupt operations, and damage its reputation. The increasing interconnectedness with suppliers and customers amplifies this risk. While GE has implemented measures to strengthen its cybersecurity framework, the evolving nature of cyber threats and the potential for significant financial and operational impacts necessitate a continuous investment in robust cybersecurity defenses and incident response capabilities.

Opportunities

Growth in Air Travel and Renewable Energy Markets: GE is well-positioned to benefit from the growing demand in the air travel and renewable energy sectors. The recovery from the COVID-19 pandemic and the global shift towards sustainable energy sources present significant opportunities for GE's Aerospace and Vernova businesses. With its advanced technology and service offerings, GE can capitalize on these trends by providing innovative solutions that meet the increasing needs for efficiency and sustainability in these markets.

Alignment with Global Sustainability Goals: GE's strategic focus on developing technologies for a more sustainable world aligns with broader societal and environmental goals. The company's efforts in sustainable aviation fuel, hybrid electric and hydrogen technologies, and renewable energy generation position it as a leader in the energy transition. This alignment not only enhances GE's brand reputation but also opens up new markets and revenue streams driven by regulatory incentives and customer demand for green technologies.

Economic and Geopolitical Uncertainties: GE operates in a complex global environment where economic and geopolitical developments can significantly impact its business. Factors such as macroeconomic conditions, trade policies, and geopolitical tensions can affect customer investment decisions and disrupt global supply chains. The potential for economic downturns or political instability in key markets poses a threat to GE's financial performance and strategic objectives.

Intense Competition and Technological Disruption: The competitive landscape in which GE operates is characterized by rapid technological advancements and aggressive competitors. The company must continuously innovate and adapt to maintain its market position. Failure to keep pace with technological changes or to meet evolving customer needs could result in lost market share and reduced profitability. Additionally, competitors may develop disruptive technologies that challenge GE's traditional business models, necessitating proactive strategic responses.

In conclusion, General Electric Co ( NYSE:GE ) presents a compelling case of a company with deep-rooted strengths in innovation and market leadership, strategically restructuring to enhance focus and efficiency. However, it must navigate weaknesses such as supply chain vulnerabilities and cybersecurity risks. Opportunities for growth in burgeoning markets and alignment with sustainability goals offer promising avenues for expansion, while economic uncertainties and competitive pressures pose significant threats. GE's ability to leverage its strengths, address its weaknesses, capitalize on opportunities, and mitigate threats will be crucial in shaping its future success.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus .

• About / Contact
• Privacy Policy
• Alphabetical List of Companies
• Business Analysis Topics

General Electric’s (GE) Generic Competitive Strategy & Growth Strategies

General Electric Company (GE) has a generic competitive strategy that, along with intensive growth strategies, ensures business growth in global markets. Michael Porter’s generic strategies are used to develop and maintain firms’ competitive advantages. In this case, GE uses its generic strategy for competitive advantage in the aerospace/aviation industry. On the other hand, based on the Ansoff Matrix, a company’s intensive growth strategies are employed to support and sustain business growth. General Electric relies on product development as a major growth factor through the years. The combination of intensive growth strategies used in GE’s business facilitates continued growth despite changing economic conditions and challenges involving competitors, like Rolls-Royce and Siemens. These strategies boost business resilience to reach the strategic goals of General Electric’s mission statement and vision statement . For long-term growth and competitiveness, General Electric’s generic competitive strategy and intensive growth strategies must remain relevant to industry conditions.

General Electric’s management uses the company’s generic competitive strategy and intensive growth strategies to determine business tactics and operational approaches. For example, GE’s operations management approaches are evaluated based on how they contribute to the competitive advantage and growth of the business. The managerial aim is to address the external forces coming from General Electric’s competitors.

General Electric’s Generic Competitive Strategy (Porter Model)

General Electric’s main generic strategy for competitive advantage is differentiation . In this strategy, the company’s goal is to attract target customers to products that are special and unique. These products are made through research and development that GE is known for. For example, the company has advanced research and development processes for products in the aviation industry. Because of its focus on research and development, General Electric Company has one of the biggest portfolios of company-owned patents in the United States. Also, this generic competitive strategy involves offering products to many market segments. GE maximizes sales based on a larger customer base. This generic competitive strategy influences other strategies and tactics in the business, such as General Electric’s marketing mix or 4Ps . GE aligns its intensive growth strategies with the competitive advantage targets based on strategic differentiation objectives.

One of the strategic objectives in using the differentiation generic competitive strategy is to intensify General Electric’s research and development programs. This objective supports product uniqueness necessary to capture and retain customers in GE’s target markets. Another strategic objective based on this generic strategy is to strengthen the company’s presence in market segments. For example, General Electric can utilize its competitive advantage to maximize customer loyalty to the GE brand in the avionics market. Moreover, an additional strategic objective is to implement intensive growth strategies that contribute to General Electric’s business growth while enabling the successful application of the differentiation generic competitive strategy.

General Electric’s Intensive Growth Strategies

Product Development (Primary) . Product development is the primary intensive growth strategy in General Electric’s business. Growth is achieved through new products that increase the company’s sales revenues. For example, under this intensive strategy, GE maintains high-productivity research and development processes. These processes ensure a leading edge against competitors in the aerospace industry, thereby contributing to the strengths identified in the SWOT analysis of General Electric . The differentiation generic competitive strategy requires that product development must focus on product uniqueness. In this regard, a strategic objective based on product development is to integrate cutting-edge technologies in every new product that General Electric develops.

Market Penetration (Secondary) . General Electric Company implements market penetration as its secondary intensive growth strategy. In market penetration, the company grows by increasing its customer base in current markets. For example, General Electric applies this intensive strategy through marketing campaigns that aim to add new customers and corresponding accounts. In this way, GE grows its revenue base despite competitive forces. The generic competitive strategy of differentiation enables General Electric to succeed in implementing market penetration. For instance, through competitive advantages based on product uniqueness and advanced features, GE penetrates the market for jet engines. A strategic objective based on market penetration is to increase General Electric’s aggressiveness in marketing its products against the products of competitors, like Rolls-Royce, 3M, and Siemens.

Diversification . Diversification is a minor intensive growth strategy in General Electric’s operations. In diversification, growth occurs through new businesses. For example, through this intensive strategy, General Electric entered multiple industries throughout its business history, with operations in the energy, aerospace/aviation, healthcare, electric lighting, oil and gas, and transportation industries. However, the company is currently in a spin-off process. Diversification has only a minor role in contributing to GE’s growth because it is applied only infrequently, as it entails major investment and organizational change, among other challenges. General Electric’s differentiation generic competitive strategy is applied every time diversification happens, such as when the company develops new products upon adding a new industry to its portfolio. A strategic objective based on diversification is to spread risk across various industries and markets to minimize market-specific risk exposure. The PESTEL/PESTLE analysis of General Electric shows that various industries develop business opportunities based on technological advancement. In diversification, GE continuously searches for such opportunities in industries where it currently does not operate.

Market Development . General Electric Company implements market development as a minor intensive growth strategy. In this strategy, the company grows by establishing new applications, new markets, or new market segments for its current products. For example, this intensive strategy is applied whenever GE introduces its aviation technologies into the transportation industry and creates a new market or market segment, accordingly. However, market development has a minor role in the business because General Electric focuses on advancing products in its current industries of operations. The generic competitive strategy of differentiation helps facilitate market development for GE products. Differentiation creates competitive advantages that General Electric uses to successfully enter new markets or market segments. A strategic objective based on market development is to create new revenue streams by developing hybrid or new applications of General Electric’s current products.

• Ali, B. J., & Anwar, G. (2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science, 7 (6), 42-51.
• General Electric Company – Form 10-K .
• General Electric Company – Our Innovation .
• López, D., & Oliver, M. (2023). Integrating innovation into business strategy: Perspectives from innovation managers. Sustainability, 15 (8), 6503.
• U.S. Department of Commerce – International Trade Administration – Aerospace Industry .
• Copyright by Panmore Institute - All rights reserved.
• This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
• Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

• General Electric Business Model

Featured in:

© Shutterstock.com | Carsten Reisinger

GE is one of the oldest and biggest corporations in the world. In this article, we will look at 1) introduction to GE , 2) history , 3) business model , and 4) business segments , and its products and services .

INTRODUCTION TO GE

General Electric or GE is a multinational conglomeration organization that originated in the United States. It is incorporated in New York and the headquarters are based in Fairfield, Connecticut. The company operates in several areas including Energy, Technology Infrastructure, Capital Finance and products in the Consumer and Industrial category.

The company was created by Thomas Edison, the inventor of the light bulb. The company is often considered the most successful conglomerate in the world. The basis for this is that it reached its conglomerate status before this became a common practice for companies. Since its inception, the company has continued to grow, expand and innovate in a variety of industries and fields including things that range from electric fans to airplanes.

The company was ranked the 26 th largest company and the 14 th most profitable one in America in 2011. This was based on gross revenue but another list ranked the company 4 th among the Forbes Global 2000 by considering more detailed metrics. It has also been listed as the 7 th best company for leaders and 15th most admired company by Fortune in 2011/2012, number 5 for best global brand by Interbrand, and by Fast Company as the 19 th most innovative company.

The GE founder Thomas Edison is considered a genius both as a businessman and as an inventor. He began his legacy from a workshop that set the groundwork for GE. This workshop was set up in 1876 when he set out to explore the potential for various inventions that he had seen at the Centennial Exposition in Philadelphia the same year. Eventually this workshop was where he created his most important invention, the electric light. Over the years that followed, his early inventions became the basis for different lines of products through the 19 th and 20 th centuries to present day.

A timeline of General Electric is given below

1878 – 1904

© Flickr | Marion Doss

Thomas Edison created the Edison Electric Light Company in 1878. The following year he finalized the first commercially viable incandescent lamp that survived a 40 hour duration test. By 1979, Edison and his team had managed to create dynamos, devices that were used to turn mechanical energy into electrical energy. The application was these would allow entire neighborhood lighting systems to be powered. Edison patented his lamp in 1880 and continued to improve his design by using different materials and ideas. By 1882, he set up the Edison Electric Illuminating Company and began construction on New York City’s first power station. He set up a lamp factory in New Jersey in 1890 and in 1892, GE was formed by the merger of Edison’s company and another prominent manufacturer of dynamos and electric lights. Thomson-Houston. By 1895 the company had begun producing items such as large electric locomotives and transformers and with the discovery of the X-ray, electrical equipment to produce these Xrays. By 1900, the company’s distinct logo was registered and the establishment of the brand began. In the same year, the company set up a 3 person laboratory to conduct scientific research, a first of its kind. By 1902, the company patented the electric fan.

1905 – 1934

In 1932, the company created the GE Credit Corporation to help sell appliances to American families during the great depression.

In the same period, GE contributed to the electricity operated controls for the Panama Canal, as well as advancements to cathode ray tubes and the electric stove. The company also began producing precursors to modern refrigerators. The company also developed the technology that was used both in WW2 radars and microwave ovens. The company continued to improve its technologies and find applications in real world products such as airplane altitude controls, electronic controls and safety switches, panel board and switchboards used in the construction of the Empire State Building. The washing machine was also introduced.

In 1905, GE’s first contribution to the kitchen, the electric toaster, appeared. This was followed by efforts in the direction of business capitalization and cash flow by the setup of the Electric Bond and Share Co. The aim of this was to finance small utilities, setting the basis for GE’s Commercial Finance division. A GE engineer worked for two years to help the world’s first voice radio broadcast become successful in 1906 by designing and creating a high frequency alternator. Advancements in technology continued and the GE research lab created ductile tungsten filament, making the lamp more efficient. This material is still used in light bulbs. In 1910 the company created the first electric cooking range and in 1912 improvements were made to the vacuum tube. This is what made modern electronics possible. In the same year, the company also finished work on the first electricity propelled US Navy vessel as well as on the molding of plastic parts for use as an insulation material.

1935 – 1970

Continuing with both home appliances and major scientific inventions, the company opened a space center in 1961 to increase its stake in putting a man on the moon. A year later the solid state laser was invented by a GE scientist as well as a superconductor magnet in 1962. These technologies led to inventions such as the CD player, laser printer, fiber optic communication and advances in modern medical imaging and diagnostics. Xray technology also evolved allowing reduced exposure to xrays as well as clearer pictures. In 1969, the first man on the moon took his first steps in boots developed from GE silicone rubber. Other GE involvement included overall quality control, systems engineering support, launch vehicle testing and ship to satellite systems that allowed live color TV images of the splashdown and recovery.

In 1935 the company’s Novalux lamps led to the first major league baseball night game. Other contributions included the GE supercharger in the the plane that set the air flight record in 1937. In 1939, the first woman scientist to join the GE lab invented glass that is used in all camera lenses and optical devices till today.in 1940 the company made advancements with new silicone chemistry which has widespread applications. In 1942 the company built the first jet engine in the US as well as demonstrating the first turboprop and in 1943 the autopilot was invented. By 1945, the company had developed the first commercial radar and in 1946 a GE scientist developed cloud seeding technology. Military work during this time included the jet engine J79 which was a ground breaking technology. In 1953, GE scientists discovered Lexan polycarbonate resin which is a transparent plastic with extensive uses to this day. Other discoveries and inventions during this time included industrial diamonds, an engine for the fastest jet transport, further work on plastics, a jet engine that operated at three times the speed of sound, a licensed nuclear power plant, the electric can opener, the oven toaster, the halogen lamp, the first manmade object to orbit the earth, the Lucalox lamp, and powerful and compact motor and rechargeable batteries which led to devices such as the electric toothbrush, hair dryers and slicing knives

The company continued developments in all sectors. In the home improvement category, the company launched a food waste disposal system in 1935. The following year the company launched a series of smaller kitchen appliances including a juicer, a table cooker, a portable mixer, an automatic roaster and a coffee machine. In 1947 the company made advancements to its refrigerator by creating a two door freezer-refrigerator combination. The same year, cooking equipment was developed for fast food operations. In 1954, a fully automatic dishwasher was introduced.

1971 – 2000

Through the 1970s, the company continued its advancement in technology by producing the first portable room air conditioner. Other innovations included a computed tomography scanner, innovations in kitchen appliances and consumer electronics as well as fused quartz ingots that can be used to make long fiber optic strands. In 1983 the company created the MRI system making it possible to image soft tissues within the human body. In 1989, the company diversified further and launched a news and business news channel. In 1992, the company continued its foray into space by building the Mar Observer for NASA. In 1993, clinical investigations began in the company’s MRT system to help physicians view internal organs real time. In 1994, GE became the first fortune 500 company to go online and in 1996 the comprehensive portal GE.com was launched. In three years the site was also selling items online. Other major events in this period included development of the world’s most powerful commercial jet engine for Boeing, functional anatomical mapping, a cardiovascular mapping system and the world’s first diagnostic agent to identify Parkinson’s disease.

2001 – 2014

In this period, the company made advancements in cancer diagnostics, lighting technology, new generation ultrasound imaging, involvement with the international space station, medical information systems, fuel efficient rail systems, transportation tracking systems, smart home solutions, portable narcotics and explosives identification systems, miniature cardiovascular ultrasound system, TV technology, organic LED technology, HD medical imaging systems, advanced PET/CT scanning systems, high power white LED, a hybrid locomotive prototype, a compact ECG machine, an HD CT scanner, super hyrdrophobic nano coatings which have implications for industry, biofuel, printed OLEDs, remote assembly from a kit, hybrid haulers, biomarker technology to map proteins in tumors, a genome project, airborne toxin detection, holographic data storage, energy smart LED and energy management. In this period the company sold of its media arm as well as its appliances business.

BUSINESS MODEL

GE has a successful business model that can help other companies learn and grow. The key is to not forget organizational culture, history and context and consider how specific techniques were used in key features of the company. The main features of the GE business model include:

The Culture

• A focus on individual achievement
• A consideration of a rebel as a hero (Jack Welch rebelled against much of the management practices before he became CEO )
• An encouragement of circumventing the hierarchy
• The importance of competitiveness both within the company and externally
• Performance as a determining factor of loyalty
• Direct and confrontational communication
• Leaders who are individuals and not groups or teams.
• The culture is a background which drives a company’s success. The GE culture specifically is extremely American.

Core Competencies

• The company selects best practices that are most relevant to its immediate future
• The company adapts and implements these practices perfectly
• The company continues to evolve and change its management practices as the need emerges. This is done by adopting new practices and discarding older methods that may have led to success at some point but are no longer relevant.

BUSINESS SEGMENTS AND ITS PRODUCTS AND SERVICES

Basic segments for the company are vast and diversified. Some of these include:

This is the financial services arm of the company. The services offered include commercial lending, leasing and financial services for healthcare, media, communications, entertainment, consumers, real estate and aviation.

The company underwrites loans and leases to hold on its own balance sheet and the focus is not on generating revenue from the same. The company targets small and medium companies and is not restricted to a particular industry or geography. The loans are secured by tangible assets.

GE Energy Management

This are took over some of the activities of GE Energy in 2013. Products and services include automation and process control, drives, critical power, geospatial systems, electrical distribution, high voltage equipment, industrial communication, monitoring and diagnostics, power conversion, motors and generators, protection and control and smart metering among others. These products are divided into three main categories and further subcategories.

1. Industrial Solutions

• GE Power Electronics
• GE Power Components
• GE Critical Power
• GE Intelligent Platforms

2. Power Conversion

3. Digital Energy

GE Oil and Gas

The Oil and Gas segments offers products and services that include condition monitoring and diagnostics, EOR solutions, fuel dispensers, LNG solutions, gas storage, industrial power generation, land drilling, measurement and sensing, offshore drilling, plant and unit controls, pipeline integration services, refinery and petrochemicals and subsea solutions.

GE Power and Water

This segment offers power generation products, power generation services, distributed power, Hitachi nuclear energy, renewable energy and water and process technologies.

GE Home & Business Solutions

This division of the company was created in 2007. The unit included appliances, lighting and intelligent platforms. The last was later moved to energy management. In September 2014, the company sold this unit to Electrolux. Lighting was moved to the Growth and Innovation division within the company.

GE Aviation

This division is based in Ohio and is one of the world’s leading suppliers of aircraft engines for commercial aircraft. Main competitors include Rolls-Royce and Pratt & Whitney. Main products include turbojets, high bypass turbofans, light and low bypass turbofans, turboshafts, turboprops and fans, industrial aero derivatives, vehicle propulsion, and marine propulsion.

GE Transportation

Formerly called GE Rail, this division provides equipment for railroad, marine, mining, drilling and energy generation industries. Rail products include freight and passenger diesel-electric locomotives and related items such as railroad signaling equipment and locomotive parts and repairs. Propulsion products include electric motors and systems for mining, oil drilling and wind turbine industries. Battery products are made for rail, marine, telecommunications and energy industries.

GE Healthcare

This is the largest division of GE that is based outside the US and provides transformational medical technologies and services. Products include medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery and biopharmaceutical manufacturing technologies. Key competitors for this division include Hitachi Medical, Carestream Health, Philips Healthcare, Siemens Healthcare and Toshiba Medical Systems.

Comments are closed.

Related posts

How to Get More Women to Start a Company

Women are now playing bigger roles in small businesses in the United States. According to data from …

40 Advanced and Alternative Search Engines

There’s tons of information on the internet, and without search engines, it would be next to …

Using the Science of Persuasion to Become a Successful Entrepreneur

Have you ever thought about what it takes to sell a product successfully to potential customers? …

408,000 + job opportunities

Not yet a member? Sign Up

join cleverism

Find your dream job. Get on promotion fasstrack and increase tour lifetime salary.

Post your jobs & get access to millions of ambitious, well-educated talents that are going the extra mile.

First name*

Company name*

Company Website*

E-mail (work)*

Login or Register

Password reset instructions will be sent to your E-mail.

UK Edition Change

• UK Politics
• News Videos
• Paris 2024 Olympics
• Rugby Union
• Sport Videos
• John Rentoul
• Mary Dejevsky
• Andrew Grice
• Sean O’Grady
• Photography
• Theatre & Dance
• Culture Videos
• Fitness & Wellbeing
• Food & Drink
• Health & Families
• Royal Family
• Electric Vehicles
• Car Insurance Deals
• Lifestyle Videos
• UK Hotel Reviews
• News & Advice
• Simon Calder
• Australia & New Zealand
• South America
• C. America & Caribbean
• Middle East
• Politics Explained
• News Analysis
• Today’s Edition
• Home & Garden
• Broadband deals
• Fashion & Beauty
• Travel & Outdoors
• Sports & Fitness
• Sustainable Living
• Climate Videos
• Solar Panels
• Behind The Headlines
• On The Ground
• Decomplicated
• You Ask The Questions
• Binge Watch
• Travel Smart
• Watch on your TV
• Crosswords & Puzzles
• Most Commented
• Newsletters
• Ask Me Anything
• Virtual Events
• Betting Sites
• Online Casinos
• Wine Offers

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in Please refresh your browser to be logged in

General Election 2024: What are the key Labour and Conservative manifesto policies?

Rishi sunak has called a snap general election for july, article bookmarked.

Find your bookmarks in your Independent Premium section, under my profile

Sign up for the View from Westminster email for expert analysis straight to your inbox

Get our free view from westminster email, thanks for signing up to the view from westminster email.

After a day of fervent speculation, Rishi Sunak has finally called a snap general election on July 4 .

Mr Sunak confirmed the news in a speech outside No 10. Almost upstaged by the rain – and pranksters loudly playing D:Ream’s ‘Things Can Only Get Better’, closely associated with Tony Blair’s 1997 Labour victory – the prime minister reminisced on his time in office, before making the big announcement.

Before now, the prime minister had resisted calls to go to the polls, despite constant pressure from the Labour Party to do so over the past year.

Follow The Independent’s live coverage for the latest updates

However, it is speculated that Mr Sunak had been waiting for an opportune time to make his move. Bolstered by the positive downturn in inflation to 3.2 per cent, it appears his mark has been met.

Taking a swipe at the Labour Party, the prime minister said:

“I don’t know what they offer”, adding “they have no plan, there is no bold action, and as a result the future can only be uncertain”.

Responding to the news, Labour leader Keir Starmer released a video saying “it’s time for change”.

“They have failed. Give the Tories five more years, and things will only get worse,” he said.

While neither party has released an official election manifesto yet, as they will only come after an election is officially called, both have dropped hints and promises over the course of the past few years, which offer a clue for their vision for the country.

Here’s where the UK’s two largest parties stand on some of the key issues:

Economic policies have been a focal point of Mr Sunak’s premiership, making up three of the Conservatives’ five key priorities . They are: reduce inflation, grow the economy, and reduce national debt.

The first of these aims has largely been achieved, with inflation falling since the pledge was made, from 10.1 per cent to 2.3 per cent, although it is still above the Bank of England’s target of 2 per cent.

However, the respected IFS economic think tank has questioned Mr Sunak’s taking credit for the economic good fortune, with director Paul Johnson arguing that it is the Bank of England’s job to cut inflation and that the prime minister’s pledge was always “inappropriate”.

The economy has shown signs of growth since Mr Sunak’s pledges were made, with the economy forecast to have grown 0.5 per cent in 2023, and wages rising steadily. However, debt has risen to 89.9 per cent of GDP, up from 85.1 per cent in late 2023, when the prime minister promised to reduce it.

Labour has been critical of the government’s economic record, with shadow chancellor Rachel Reeves promising to take an approach of ‘securonomics’ as an antidote to the economic turmoil caused by Liz Truss’s catastrophic 2022 ‘mini-budget’.

Outlining Labour’s ‘first steps for change’ in May, Keir Starmer said the party would impose strict rules on themselves.

Mr Starmer also says the party would introduce an ‘Office for Value for Money’ to ensure taxpayers’ money is spent wisely and halve government consultancy spending, instead focussing on long-term staffing.

Finally, the party says it would appoint a ‘Covid Corruption Commissioner’ to recoup billions in taxpayer money wasted on fraudulent Covid contracts, as well as ending what it calls the VIP ‘fast lane’ government contract procurement process.

Both parties have expressed reluctance to raise taxes.

Labour’s Rachel Reeves has confirmed the party would not seek to undo the government’s 2p cut to National Insurance tax if it came to power, looking to other measures to raise funds.

Chief amongst these measures is scrapping the controversial ‘non-dom’ tax status held by some wealthy foreign nationals in the UK, as well as a crackdown on tax avoidance, and introducing VAT and business rates to private schools.

In April Mr Sunak beat Labour to the punch on non-doms by announcing that the tax regime would be phased out over a transitional period. Labour has said they would scrap the transitional measures, saving a further £2.6 billion.

Conservative chancellor Jeremy Hunt has also indicated a desire to cut NICs even further, if he can “afford” to. This is despite a warning from the International Monetary Fund of a potential £30bn hole in the public finances, which the Treasury disputes.

Both Labour and the Conservatives have ruled out increasing income tax (or changing its bands), capital gains tax, or corporation tax.

NHS waiting times have skyrocketed over the past two years, with the number of people waiting for a hospital treatment hitting a record 7.8 million in late 2023, with around a third waiting over 6 months.

The proportion of people waiting over 4 hours in A&E has also increased, reaching a peak of over 50 per cent last Summer, and now at around 45 per cent.

Both parties have pledged to reduce these waiting times.

The Conservatives have pointed to the Covid pandemic as the driving force behind the increases, pledging to work hard to reduce them.

Mr Sunak has said his government will do this by introducing “record” funding, up 35 per cent since the start of the last parliament, as well as record staffing levels.

However, the IFS argues that, in real-terms, the increased spending amounts to no real growth in the NHS budget between 2023/24 and 2024/25.

The prime minister also plans to “reform” the NHS. This includes allowing people to receive prescriptions directly from pharmacies, improving health technology, and giving people the choice to be referred to the private sector.

Labour’s shadow health secretary Wes Streeting has said the party will get the NHS “back on its feet” by delivering 40,000 more evening and weekend appointments a week, funded by their economic policies.

However, Mr Streeting raised some eyebrows in April when he announced his intention to use “spare capacity in the private sector” to work towards Labour’s NHS goals, despite what “middle-class lefties” might think.

The shadow health secretary has since clarified that this does not mean Labour wishes to privatise the NHS in any way, and that he believes the health service should always be free for everyone.

Immigration

Immigration has been a key issue for both parties. The Conservative government has taken a hard stance on the issue, pledging to “stop the boats” and increase measures to deter immigrants and asylum seekers from heading to the UK. Mr Sunak announced last year his goal of reducing net migration from 606,000 in 2022 to 240,000 in 2024.

His 12-point plan includes measures such as capping the number of people claiming asylum in the UK, raising the minimum salary threshold for skilled workers, and cutting visas for care staff and students.

However, Mr Sunak has not yet delivered on his promise to reduce the number of people arriving into the UK via small boats, with a record number of migrants crossing the channel in the first three months of 2024 .

The government’s controversial and long-standing Rwanda bill is also likely to feature prominently in the run up to the general election. Despite approval by parliament in April, it is unlikely a flight will take off under the scheme until late June or July.

Labour’s plan on immigration similarly looks to reduce the UK’s reliance on overseas’ workers. It says it would implement policies that tackle “home-grown skills shortages” to fill key sectors facing employment gaps.

The opposition party says it would take inspiration from Australia’s points-based immigration system, which assesses a migrant workers’ suitability for a visa based on factors such as education, language skills, and work experience.

The Labour party has also pledged to secure the UK’s borders by introducing a Border Security Command, which would use counter-terror style tactics, as well as a Returns Unit to more efficiently removed asylum seekers with failed applications.

Environment

In 2019, the Conservatives under Theresa May committed to a net zero target of 2050. Rishi Sunak has said he remains committed to this goal.

The government’s current policies include a transition to electric vehicles by 2035, meaning no new petrol or diesel cars should be sold after that year, as well as encouraging households to transition from gas boilers to heat pumps.

However, the prime minister was criticised last year for pushing back the transition period for both of these measures, alongside announcing new oil and gas licences.

Labour has laid out its plans for ‘Great British Energy,’ a publicly-owned sustainable energy company, which it says will reduce household energy bills and create half a million jobs.

Shadow environment secretary Ed Milliband says the party would pay for the plan with a windfall tax on excess profits made by oil and gas companies.

Labour has made education a key part of its policy programme in its time as in opposition. Their headline measure is to recruit 6,500 new teachers in key subjects, as well as creating a ‘national excellence programme’ which would see teachers given continuous support with professional development.

The party has also said it will set out to review the national curriculum, giving it wider scope to improve creativity, and digital and communication skills, alongside more mental health support staff in schools.

Meanwhile, the Conservatives have promised a new qualification framework called the ‘Advanced British Standard’ for 16- to 18-year-olds. It will increase the number of A-Levels students study from the typical three to five, and ensure everyone will study “some form” of maths and English to age 18.

The Department for Education has said the rollout will take around a decade, pledging £600 million in the first two years, as well as a £30,000 bonus for for teachers in key shortage subjects, spread out over the first five years of their career.

The government has clashed with teacher’s unions during Mr Sunak’s tenure, seeing a number of teacher strikes organised over the course of 2023.

After accepting a pay offer last year, teachers’ unions are now looking to secure a further pay increase for September 2024. Education secretary Gillian Keegan was due to table a new pay offer soon, but this now looks unlikely and will probably fall to the next government.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Subscribe to Independent Premium to bookmark this article

Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.

New to The Independent?

Or if you would prefer:

Want an ad-free experience?

Hi {{indy.fullName}}

• My Independent Premium
• Account details
• Help centre

• Election 2024
• Entertainment
• Newsletters
• Photography
• Personal Finance
• AP Investigations
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Election Results
• Delegate Tracker
• AP & Elections
• Auto Racing
• 2024 Paris Olympic Games
• Movie reviews
• Book reviews
• Personal finance
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

Nickel-rich Indonesia pitches EV battery plant plan to Elon Musk

Elon Musk met with Indonesia’s President Joko Widodo Monday, while attending a water conference on the island of Bali. Indonesia’s top investment official said that the government has proposed to Tesla CEO the construction of an electric vehicle battery plant in the nickel-rich country.

Elon Musk, center, arrives for the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

• Copy Link copied

Elon Musk en Denpasar, Bali, Indonesia, el 19 de mayo de 2024. (Foto AP/Firdia Lisnawati)

Indonesian military officers walk at a venue of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Indonesian presidential guard of honor line up as they prepare for the opening ceremony of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

A participant walks at a venue of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Fijian President Wiliame Katonivere, center, walks upon his arrival of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Moroccan Prime Minister Aziz Akhannouch, center, walks upon his arrival of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Participants walk at a venue of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Elon Musk, center, attend the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

Janos Ader, a former Hungarian president, walks upon his arrival of the 10th World Water Forum in Nusa Dua, Bali, Indonesia on Monday, May 20, 2024. (AP Photo/Firdia Lisnawati)

DENPASAR, Indonesia (AP) — Indonesia’s top investment official said Monday that the government has proposed to Tesla CEO Elon Musk the construction of an electric vehicle battery plant in the nickel-rich country.

The official spoke after Musk met with Indonesian President Joko Widodo while attending a water conference on the island of Bali.

“We made an offer, is it possible to build an EV battery factory, precursor to cathodes, here. And he said he will consider it,” Coordinating Maritime Affairs and Investment Luhut Binsar Pandjaitan, told reporters.

Indonesia is keen to build up industries to exploit is rich natural resources, which include the world’s largest nickel reserves. Nickel is an important material for EV batteries and solar panels.

The billionaire head of Tesla and SpaceX and owner of social platform X was visiting the Indonesian resort island to launch a Starlink satellite internet service there.

He also spoke to officials and experts attending the conference on global water challenges, saying he believed that desalination could solve water shortages if enough energy was provided.

Indonesia supplies 40% of the world’s nickel and has the potential to increase this to 75% by 2030, according to the government data. The government has set a goal of producing 600,000 electric vehicles by 2030, and will require EVs and related components produced in Indonesia to contain of 60% local content by 2027.

The country has been trying for years to secure deals with Musk’s Tesla on battery investment and for Musk’s SpaceX to provide fast internet access for remote areas of the sprawling archipelago.

Pandjaitan, a powerful cabinet minister and close ally of Widodo, said the president also asked the billionaire to invest in an AI center and for SpaceX to build a launchpad in Biak, an island in Indonesia’s easternmost Papua province.

Musk did not make any formal announcements related to his investment plans in Southeast Asia’s largest economy.

“Well, I think it’s likely that we will be investing,” Musk said in replying to a journalist’s question about his plans for Indonesia at a news conference on Sunday after the ceremonial launch of the Starlink service alongside Indonesian government dignitaries. “But I think it’s quite likely that my company will invest in Indonesia.”

Back in the United States, federal highway safety investigators are asking Tesla to explain how and why it developed a fix in a recall of more than 2 million vehicles equipped with the company’s Autopilot partially automated driving system.

Investigators with the U.S. National Highway Traffic Safety Administration have concerns about whether the recall remedy worked because Tesla has reported 20 crashes since the remedy was sent out as an online software update in December.

Karmini reported from Jakarta, Indonesia

• The Inventory

Support Quartz

Fund next-gen business journalism with $10 a month

Free Newsletters

GM's plan to make car enthusiasts buy EVs

General motors is hoping to change the stereotype that electric vehicles are no fun by developing a clutch pedal for future performance models.

After worries about charging and range anxiety , the biggest issue many car fans have with electric vehicles is that they’re no fun to drive. They argue that one-pedal driving , regenerative braking and no real gearbox to play with makes them soulless. Now, General Motors is hoping to change that and convert you to its electric way of thinking.

Related Content

The American automaker is reportedly working on a clutch pedal for electric vehicle transmissions, reports Motor Authority . The project follows similar steps to increase EV engagement from Hyundai and Lexus, which both previously outlined plans for manual EVs .

According to patents filed by GM, the company plans to develop a new type of clutch actuation for its future electric models, which would improve the transmissions found in high-performance electric vehicles. As the site explains:

In this document, GM discusses using a hydraulic actuator to operate a clutch in automatic transmissions used in electric cars. A controller would vary the pressure of the fluid in the actuator, which in turn would move a piston that would open or close the clutch depending on what the controller determines is best in a given scenario. This setup would be simpler than conventional automatic transmissions, something enabled by an electric motor’s need for fewer gearshifts, GM states in the patent filing. It would also avoid “instabilities at the electric motor” inherent in other types of clutch actuation, according to GM.

The patent, which was published earlier this month, explains that the new clutch would improve “efficiency and performance” of GM’s future electric models as it would give the driver “precise control over the clutch operation,” reports GM Authority .

Having additional control over the transmission attached to an electric motor would allow drivers to make real-time adjustments to their cars and would ensure much smoother gear shifts in some models.

However, it’s important to remember that just because GM has patented the tech doesn’t mean that it’s definitely going to appear in future electric models. After all, the number of manual cars offered in the U.S. is always on the decline, and sales of cars fitted with a stick have also been turbulent in recent years.

A version of this article originally appeared on Jalopnik .

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.