General Electric Case Essay

1103 words - 5 pages

4. General Electric Company’s Aircraft Engine Business Group (AEBG) develops and produces aircraft engines for the airline industry. The airline industry demand is driven by safety, efficiency, and economic effect. The Unducted Fan Engine (UDF) design must meet this industry’s needs and expectations. The airline industry has three main players to consider, Boeing, McDonnell Douglas, and Airbus Industrie. The UDF can provide an economic advantage to the industry. The propeller design makes small-middle sized planes more fuel efficient. Planes will require 70 percent less fuel while carrying the same number of passengers, so in turn will be able to travel farther distances. This will provide ...view middle of the document...

Demand is more elastic as prices rise, and inelastic with lower prices. Profitability relies on finding the point where quantity and price work together to maximize revenue. The decrease in fuel costs and travel time per trip, while retaining same number of maximum passengers, provides the airline industry with the possibility to increase sales when at full capacity.

6. The overall problem at General Electric is due to the development of the UDF line. The root cause of the problem is if pursued will the engine have enough demand for business to be profitable.

7. General Electric has made predictions of UDF’s demand based on airline industry forecasts. One potential buyer, Boeing, is expected to introduce 3909 deliverables over the next ten years. Of these, 55 percent will be short-to-medium range airplanes that could use UDF. This illustrates that General Electric does have a demand for their product. However, Boeing and McDonnell were both cautiously enthusiastic about the anticipation of the UDF. The companies are scheduling their deliverables for the future at this time, and airlines have increased negotiation power. General Electric’s success in signing a contract would all depend on cost and date of availability.
Analyzing General Electric’s costs to the airline industry is derived from the costs they are encountering. Investment costs for General Electric’s UDF project is between $1.25 and 1.5 billion, where $50 million has already been invested. While looking to the possibility of production, they will also incur an 80 percent learning curve cost on the project. General Electric anticipates selling the engines for $5 million. They have also forecasted each airline to purchase additional lots of spare engines in conjunction with the amount of deliverables desired. Looking at sales even farther down the line, General Electric has predicted a 15 year life on new engines. All of this however is a prediction. There are still many factors that depend on the success of the project. Demand for air travel, financial conditions, actual rate of engine replacement, actual number of aircrafts capable of using UDF engines, and what share of airline market General Electric is able to obtain are all parts that could cause profitability to take a turn. The costs of the engine to the...

Other Papers Like General Electric Case

To Review the Company, General Electric (Ge) Supply Chain and Its Components. Show How Expansion Within a Company Can Be Profitable over Time

1060 words - 5 pages | GENERAL ELECTRIC (GE) | | | To review the company, General Electric (GE) supply chain and its components. Show how expansion within a company can be profitable over time. | General Electric also known as GE has been around for many years. GE is a global company that provides a variety of products in the United States and abroad. The company started in 1900 in a barn and they have been much more advanced as the

Electirc Car Essay

1859 words - 8 pages . 1972 Victor Wouk, the "Godfather of the Hybrid," builds the first full-powered, full-size hybrid vehicle out of a 1972 Buick Skylark provided by General Motors (G.M.) for the 1970 Federal Clean Car Incentive Program. The Environmental Protection Association later kills the program in 1976. Vanguard-Sebring's CitiCar 1974 Vanguard-Sebring's CitiCar makes its debut at the Electric Vehicle Symposium in Washington, D.C. The CitiCar has a top

Ge in Radiology Supply Chain

5039 words - 21 pages General Electric Supply Chain in Radiology Jose Luis Rodriguez II Our Lady of the Lake University Abstract General Electric has continued to be a leader in the industry over the last hundred years. General electric not only works in the energy field, but in transportation and healthcare as well. The company has made a name for itself by providing high quality products. General Electric has been able to innovate and develop radiology

Tesla Motors Inc. Case Synopsis

3248 words - 13 pages BUS 478 – STRATEGY / SECTION: D300 Tesla Motors Inc. Case Synopsis Date: March 17, 2014 [Edited] Yafeng(Elsie) Liu Yingying Kang Hao Wu Chan Chen Edith Hon Firm history Background Tesla Motors, Inc. is an American company that was founded in 2003 by a group of brilliant and innovative Silicon Valley engineers. These engineers proved that electric vehicles could be awesome substitute of the gasoline powered cars. Tesla not only

Analysis on Tesla Motors

4973 words - 20 pages Safety Administration, the Pipeline and Hazardous Materials Safety administration, as well as by laws set forth by individual states. In the case of electric vehicles, the industry is also affected by regulations and changes in law that effect the energy industry and the production of electricity. Electric vehicles that are exported to foreign markets are subject to the laws and regulations of those markets as well. These are conditions that must

Oil factory of relevant national standards and industry standards implementation

617 words - 3 pages progress of the society and the improvement of rural demand, oil press industry in general is in progress, some aspects is a breakthrough in the past, in order to improve the yield efficiency, the three level 4 press, electric heating;In order to improve the product quality, increase the vacuum filtration device, etc., the developing trend for belt vacuum filter and high degree of automation, such as electric heating plate type oil press will gradually replace simple oil press. 6. The development of the industry restricting factors analysis and Suggestions to promote the development of industryair product

Banks and Scams

2320 words - 10 pages their business. In general, a lower P/E ratio indicates a bargain, a troubled company, or a very steady consistent company, while a higher P/E either means the company is a “best of breed” or it is overvalued. Calculated as: Market Value per Share / Earnings per Share (EPS) Adobe Systems Inc P/E Ratio = $63.22. / $0.53 = 120.10. For American electric power = = $52.40. / $3.04.  = 17.30 From looking at these two P/E Ratio' it can be

Ward-Leonard Control System

2321 words - 10 pages ). Literature Survey: The earliest practical application of the Ward Leonard System can be traced back to the late 19th century. At the time, a lot of effort and research was going on in the improvement in the functioning and efficiency of Electric elevators. The Otis Electric Company, co founded by the Otis brothers and General Electric in 1892, was started to make electric elevator motors based on Eickemeyer’s electric motor design, by

Organization Final

4077 words - 17 pages I choose to do my research paper on General Electric. General Electric is a very successful conglomerate company. I looked at how General Electric manages to be so successful in this area. In this class I have learned that to be a successful company there is another area of concern that is structure of management and how it affects the company. When looking at General Electric Company and why this company is successful conglomerate company. I

Ge Alstom

2562 words - 11 pages Find our latest analyses and trade ideas on bsic.it Alstom saga ends with a “ménage à trois” General Electric; Market Cap: $299.6bn (as of 06/11/2015) Alstom; Market Cap: $9.06bn (as of 06/11/2015) Introduction General Electric finally concluded its €9.7bn (about $10.6bn) acquisition of Alstom’s power business after getting the final regulatory approvals. The deal represents GE’s biggest ever industrial acquisition. GE's offer was

Effects of Magnet Size

3548 words - 15 pages DISCUSSION …………………………………………….12 V. CONCLUSION/ RECOMMENDATION…………………………………...13 BIBLIOGRAPHY……………………………………………………………iii ABSTRACT This study aims to evaluate the potential of magnet size in producing electricity. This magnet producing electricity was conducted to make a substitute light in case of urgent situation as a replacement for using flashlight that needs batteries. The researchers assembled the electric generator by inserting magnet

Related Essays

General Electric&Ww Case Hbs Essay

1103 words - 5 pages Bogazıcı unıversıty executıve mba program | ADEX 509 STRATEGIC MANAGEMENT SEMINAR | GENERAL ELECTRIC VS WESTINGHOUSE CASEPOSITION PAPER | | OZDE KARAKAS | 03/03/2012 | ADEX 509: STRATEGIC MANAGEMENT SEMINAR Ozde KARAKAS / Position Paper This position paper aims to illustrate the competitive environment in large electric tribunes market in 60’s between General Electric and Westinghouse and will be evaluating the competitive

General Electric Essay

699 words - 3 pages Case: Globalization at General Electric Summary: The closing case explores General Electric’s quest to become the number one or two company in global market for every business which it take part. General Electric (GE) is the largest industrial conglomerate in America, produces a wide array of goods and services, from medical equipment, power generators, jet engines, and home appliances, to financial services and even television broadcasting

General Electric And The Hudson Essay

5781 words - 24 pages uses of private property that might injure the public.[2] General Electric had acquired a Clean Water Act permit from the EPA and the Department of Environment and Conservation allowing them to discharge up to thirty pounds per day of PCBs into the Hudson River.[3] This should not have been permitted because of the Clean Water Act that Congress created. GE used this as the main basis for their case placing some of the blame on the EPA and DEC

Jack Welch And General Electric Essay

2091 words - 9 pages Case 1: Jack Welch at General Electric Bujar Berisha – G1217167 Mirza Zia – G1213229 Nik Badriah Binti Nik Rahimi – G1215608 Nur Auni Afifah Hanapi – G1210096 Nurul Izzah Aziz – G1214870 QUESTION 1 Based on the definition in chapter, GE under Jack Welch was not able to fulfill his duty. Even though he did create considerable wealth during his tenure as CEO, he did so at the cost the societal harmony and environmental well-being