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· Posted on
February 21, 2024

It's not you, it's me: General Electric split themselves up into three separate businesses

General Electric are a global energy conglomerate founded back in 1892 by Thomas Edison - aka the inventor of the light bulb.

What's the key learning?

  • General Electric's decided to split the conglomerate into 3 separate companies focused on aviation, healthcare and energy to boost their bottom line
  • A conglomerate is a corporation that's made up of a number of different business (like Wesfarmers)
  • By splitting up, GE hopes each company can focus on what it's good at...and make more money.

Background: General Electric are a global energy conglomerate founded back in 1892 by Thomas Edison - aka the inventor of the light bulb.

What happened: Fast-forward to 2021, and this crew are worth around $165 billion...and they're kinda like the jack of all trades (but master of none).

What else: GE have been underperforming for years because they've got too much on their plate. So, they've decided to split the conglomerate into 3 separate companies focused on aviation, healthcare and energy to boost their bottom line.

So what's the key learning?

💡A conglomerate is a corporation that's made up of a number of different business (like Wesfarmers, which has Kmart, Bunnings, Officeworks and more under its umbrella).

💡Often, businesses within the conglomerate aren't related, and it can mean that the conglomerate is straying away from its core competency - aka what they're good at. Sometimes it works, but sometimes...not so much.
💡By splitting up, GE hopes each company can focus on what it's good at...and make more money.

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