A A S DISCUSSED IN the Chapter Case, General Electric has
been refocusing its businesses through aggressive corporate
divestitures and restructuring. It divested NBC
Universal, chemicals, and insurance. It also restructured
GE Capital.
GE’s focus on clean-tech seems to be bearing some
fruit, with the industrial sector experiencing double-digit
earnings growth in the last few years. The GE Energy division
grew to almost $50 billion in annual revenues, partly
through acquisitions, making up roughly one-third of
GE’s total revenues. Because GE management believes
the energy business has become too big to be managed
effectively, it continued its corporate restructuring and
split the energy business into three standalone strategic
business units in 2012: Power and Water; Oil and Gas;
and Energy Management. This move comes in response