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General Electric: Wins and Losses from Integrating Production and Finance
Supervising professor: Ouyang Hui; Case Researcher: Deng Di    [ Language available : Chinese ]
Exploring the pros and cons of GE’s “production and finance” integration model

In the era of CEO Jack Welch, GE made a series of brilliant moves in financial services. After he stepped down, GE faced an all new economic environment under Jeffrey Immelt, and was buffetted by changes to financial markets and regulatory policies. The impact of the financial crisis led to plummeting business for GE Capital, and resulted in its “manufacturing and finance integration” model being subjected to increasing doubt and challenges. Immelt took the decision to divest the company of many of its financial services. This case takes a macroeconomic look at the rise and fall of GE’s financial services business, given changing supervisory conditions.

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