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To : Â Â Â Â Â Â Â Â The Board of Directors, GENERAL ELECTRIC COMPANY
Subject : Â Â Â Â Â Â Â Â NEW pecuniary AND STATISTICAL MEASURES TO MONITOR
        THE SUCCESS OF GENERAL ELECTRIC COMPANY
        After Mr. Weltch announce my new assignment, I pondered how I could go about guaranteeing the dress hat possible result: a creditable and well form work that is going to help you, the Board of Directors, plan for the forthcoming of the company in a better way. Before starting line my analysis, I must specify that my localise is not to obliterate the traditionally used financial and statistical measures but to weaken new ones to be used as guidance for the corporation¹s future development.
        Our Chairman recently wrote that the hottest trend in business in 1995 -- and the one that hit closest to home plate -- is the rush toward time out up multi-business companies and spinning off their components, beneath the theory that their size and diversity inhibited their competitiveness ... breaking up is the right dissolving agent for some big companies ... for us it is the wrong answer.1
For us the new trend is the entrance into the dish out industry.
The question must then be: is this the right answer?
        GE is expecting to increase its revenue by the year 2000 to $long hundred billion compared with $58 billion in 1990.
In otherwise words, if the forecast proves to be correct, it will obtain an average yearly rate of growth of 7.5%. This high rate is mainly attributed to the magnification of the operate sector of the company, which is estimated to increase by an average annual rate of 13% compared with a corresponding one of 2.1% for manufacturing. now nearly 60% of GE¹s profits comes from services -- up from 16.4% in 1980.2
        This is our new direction and therefore my target is to...
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