Reference no: EM131385817

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