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General Electric S Recent Takeovers Term Paper

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GE's Recent Acquisitions General Electric Co. has developed to become the most acquisitive industrial firm across the globe since its inception. The company is renowned for spending huge amounts of money on takeovers or acquisitions as part of its strategy to ensure increased growth and profitability. In essence, General Electric's acquisitions are fueled by the focus on ensuring good returns across its operations through obtaining a considerable market share and competitive advantage. Acquisitions are important strategies in the company's operations given that they are regarded as initiatives that enhance organic growth. In the past few years, General Electric has made several acquisitions including the acquisition of Dresser Inc. and Alstom.

GE's Acquisition of Dresser Inc.

General Electric completed a $3 billion takeover of Dresser Inc., which is an international energy infrastructure technology and service provider in 2011 (Reuters, 2011). This acquisition transformed the international energy portfolio of GE by expanding its energy offerings and industrial customers throughout the world. Following the acquisition, GE enhanced its focus on research and development to Dresser's tailor made solutions and provided an opportunity for workers to significantly expand their businesses.

Reasons

General Electric's acquisition of Dresser Inc. is justified by the need for growth, which is the reason for the takeover. This acquisition...

Actually, this takeover focused on promoting GE's growth by enhancing its offerings for energy and global industrial customers.
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Generally, companies usually experiences integrations difficulties following mergers and acquisitions because of several reasons and factors. These integration difficulties occur during the post-acquisition phase and usually occur in different forms. Some of the most common difficulties include challenges in establishing effective working relationships, different financial and control systems, and combining dissimilar corporate cultures. The source of integration difficulties that is seemingly of concern in GE's acquisition of Dresser Inc. is working relationships. This is primarily because General Electric has different management styles as compared to Dresser Inc. While the companies are a natural fit together, they have different management styles, particularly because Dresser has custom solutions for its employees. This would present integration difficulties since GE would need to understand these solutions and develop management styles that promote effective working relations with GE's employees.

GE's Acquisition of Alstom

The second recent acquisition by General Electric is its takeover of Alstom SA, which was supported by the French government in 2014 for $13.5 billion. The…

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References

Reuters (2011, February 1). GE Completes $3 Billion Acquisition of Dresser, Inc. Thomson Reuters. Retrieved November 24, 2015, from http://www.reuters.com/article/2011/02/01/idUS233735+01-Feb-2011+BW20110201

Team, T. (2014, June 25). GE Set to Expand Its Power Business With Alstom Acquisition. Forbes. Retrieved November 24, 2015, from http://www.forbes.com/sites/greatspeculations/2014/06/25/ge-set-to-expand-its-power-business-with-alstom-acquisition/
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