Question: What is General Electric'a Level and type od diversification? Justify the answer (8 marks).

SECTIONA - Case Study/ Scenario Instructions: Answer ALL questions in this section after reading the case study. (30marks) General Electric's Diversification Strategy General Electric (GE) competes in many different industries ranging from appliances, aviation, and consumer electronics to enersy financial servicelt health care, oil, and wind turbines. These industries are quite diverse, but there are similarities among several of them fin fact, GE's businesses are grouped in four divisions: GE Capital, GE Energy, GE Technology Infrastructure, and GE Home and Burtiness Solutions. In recent years, more than 50 percent of GE's annual revenue has come from its financial services businesses. in 2013CE wis ranked the eight largest corporation in the Fortune 500 , thus GE has been a highly successful company. GE has an impressive history and is one of the few widely diversified firms to achleve such success. GE is a highly influential global company and is becoming a major player in the energy equipment, making several recent acquisitions. Additionally, GE is making larse investments to be a major player in the new industrial internet industry that is developing. GE has developed a new software R.CD centre in San Francisco with plans to have 400 computer scientists and software developers and invest $1 billion by 2015 . The intent of CE is to develop and market internet-connected machines that are designed to collect data and communicate it for a variety of purposes fe s. servicing needs. quality control etci). GE is also beginning to experience strong growth from its investments in emerzing economies in China, India, and Brazit. A common strategy to achieve growth (and diversification) for GE over the years has been mergers and acquisitions. For example, in 2013 . GE acquired Lulkin Industries for $3.3 billion. This company provides support equipment for oil and natural gas production industry. in addition, GE has at least $6 to $9 billion in cash to use for additional acquisitions in the near term from its sale of NBC Univerail to Comcast. GE is also reversing its strategy of outsourcing to ensure that it has parts needed to fulfil its large amounts of backorders af jet engines. For example, it acquired Avio, an italian parts supplier, for $4.4 billion, It also plans to expand its new vertical integration strateiv across its other businesses to provide it more control over the quality and timing of the output