Case - General Electric, GE Capital, and the Financial Crisis of 2008: The Best of the Worst in the Financial Sector?
Case Study Analysis - Outline
- Overview
- Problem Statement
- Dilemma
- Corporate Posture
- Financial Analysis
- Internal Environment
- External Environment
Keep GE Capital -
- Refocus on objectives of GE Capital
- It can continue financing other business units of GE
- Straying from originally objectives was the major reason of trouble
- Investment that didn't match with core business objectives was major reason of problems
- Develop committee to make new policies and procedures for credit granting and reducing the risk exposure
- Realign GE Capital with GE's core objectives
Restructuring GE Capital
- Check divisions of GE Capital which are not in line with business requirements
- Sell of the specific divisions of GE Capital instead of closing all divisions of GE Capital
Development of Credit approval process
- Develop new credit approval process and make it more stricter to approve project financing
- Committee should be formed comprising of top management of GE Corporate and GE Capital to finalize the new plan
- Pro forma budgets can be developed and agreed upon
Finance Feasibility
- Restructuring does not require more funding, so it is financially feasible.
Assignment Files - https://www.dropbox.com/s/yo7djzxgk3vksgv/Assignment%20Files.rar?dl=0