AS DISCUSS 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 to external trends as well as internal needs. Externally, it is GE’s response to the shale gas revolution that is reshaping America’s energy industry. For example, lower gas prices drive up demand for GE’s gas turbines as more and more power providers retire coal-fired plants and replace them with gas-fired power plants. Internally, this restructuring was motivated to create three more CEO positions for the new SBUs for training a potential successor for Jeffrey Immelt. After running GE for more than a decade, Mr.Immelt needs to begin grooming a number of potential successors since the company tends to recruit its CEOs internally.GE has also been increasing its global footprint. International sales have soared from 19 percent of sales in 1980, to 34 percent in 2000, to over 52 percent in 2012. Immelt believes that tackling big problems on a global scale is a strength of conglomerates such as GE. An example of a large-scale problem is the fact that according to the United Nations, nearly one-fourth of the world’s population lives without access to reliable power. In India, one of the fastest-growing economies in the world, the electrical coverage rate is about 65 percent. India has set a goal to provide electricity to all its citizens using a combination of national-scale power systems for the major cities and smaller “micro grids” for rural areas. India and other rapidly developing nations are seeking to replicate a “leap frog” approach in energy similar to that used in telecommunications. Instead of investing in vast quantities of landline communications wires, India built extensive mobile capabilities for communication needs. In energy, this means using software-enabled “smart grid” electrical systems and smaller-scale but numerous renewable generation (such as wind, solar, and biomass) locations across the country. The Indian government is also encouraging smaller investments in order to improve the efficiency of existing fossil-fuel–based generators. When completed, this energy infrastructure is likely to be more economical and robust than most systems in the “more developed” Western economies