Develop committee to make new policies for credit granting – Strategic Management
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
