Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
New Financial And Statistical Measures To Monitor The Success Of GE - Online Papers

New Financial And Statistical Measures To Monitor The Success Of GE



To : The Board of Directors, GENERAL ELECTRIC COMPANY
Subject : NEW FINANCIAL AND STATISTICAL MEASURES TO MONITOR
THE SUCCESS OF GENERAL ELECTRIC COMPANY
After Mr. Weltch announced my new assignment, I pondered how I could go
about guaranteeing the best possible result: a creditable and well organized
work that is going to help you, the Board of Directors, plan for the future of
the company in a better way. Before starting my analysis, I must specify that
my target is not to abolish the traditionally used financial and statistical
measures but to develop new ones to be used as guidance for the corporation's
future development.
Our Chairman recently wrote that "the hottest trend in ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

$120 billion
compared with $58 billion in 1990. In other words, if the forecast proves to be
correct, it will obtain an average annual rate of growth of 7.5%. This high
rate is mainly attributed to the expansion of the services 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. Today nearly 60% of GE's profits
comes from services -- up from 16.4% in 1980.2
This is our new direction and therefore my target is to find these
measures that are going to help us understand how the business is going to
perform in that particular field. I also consider that our attempt to expand
internationally is extremely important and in a way is something new for us.
International operating profit was $3.0 billion for 1995 compared with $2.3
billion in 1993.3 This extremely rapid expansion hides a lot of dangers, and at
the same time shows another new "trend" of our corporation. In my analysis I
will ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.


Already a member? Login

expenses comparison,
compares the amount of money spent for the service industry to the expenses made
for the manufacturing industry. Thus it is equal to :

Expenses made for the service industry
MIEC = --------------------
Expenses made for the manufacturing industry

Therefore, according to the financial statements of the previous years
we would have6:

MIEC 1992 = 15842/29991= 0.52
MIEC 1993 = 18560/30657= 0.60
MIEC 1994 = 19787/30890= 0.64
MIEC 1995 = 26156/33152= 0.78

By establishing the MIEC, we can see the relationship between the amount
of money spent on service and the amount of money spent on manufacturing. MIEC
is a simple ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


CITE THIS PAGE:

New Financial And Statistical Measures To Monitor The Success Of GE. (2007, May 20). Retrieved December 23, 2024, from http://www.essayworld.com/essays/New-Financial-Statistical-Measures-Monitor-Success/65157
"New Financial And Statistical Measures To Monitor The Success Of GE." Essayworld.com. Essayworld.com, 20 May. 2007. Web. 23 Dec. 2024. <http://www.essayworld.com/essays/New-Financial-Statistical-Measures-Monitor-Success/65157>
"New Financial And Statistical Measures To Monitor The Success Of GE." Essayworld.com. May 20, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/New-Financial-Statistical-Measures-Monitor-Success/65157.
"New Financial And Statistical Measures To Monitor The Success Of GE." Essayworld.com. May 20, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/New-Financial-Statistical-Measures-Monitor-Success/65157.
JOIN NOW
Join today and get instant access to this and 50,000+ other essays


PAPER DETAILS
Added: 5/20/2007 06:10:24 PM
Category: Economics
Type: Premium Paper
Words: 3914
Pages: 15

Save | Report

SHARE THIS PAPER

SAVED ESSAYS
Save and find your favorite essays easier

SIMILAR ESSAYS
» Lesbian By Choice
» Endangered Species Study: Jagua...
» Elements Of Romanticism In Word...
» The Scarlet Letter 2
» Life's Too Short
» Slavery - An Era Of Inhumanity
» King Lear
» Around The World In Eighty Day
» Why Electronics Should Be Allow...
» Edgar Allen Poe's The Black Cat
Copyright | Cancel | Contact Us

Copyright © 2024 Essayworld. All rights reserved