General were down 40% last year alone, and

General Electric (GE), one of the biggest and oldest United States conglomerates has fallen on hard times and is on the brink of breaking itself apart. Once rated the most valuable company in the US, GE has been operating over a century and has been the back bone of American industries which “sells everything from airplane engines to hospital incubators” In the past year, the company had endured major problems which has resulted in the sales of its major assets, frequent change of CEOs and slashing of dividend. The Boston’s company’s shares were down 40% last year alone, and further dipped another 2.9% last week after it announced “it would book a $6.2 billion charge in its fourth quarter related to its insurance operations and needed to set aside $15 billion over seven years to bolster insurance reserves at its GE Capital unit.” -….. Mr. Flannery their current CEO has shifted his target towards offloading some the company’s operations which include home appliance and mainly focusing on their three main units which include power, aviation and healthcare. This new step of revamping is to transform the company into a smaller entity, and this will not shut down GE as many fear. Many people who have close ties to GE have warned that pensions and the company’s debt structure could threaten this new strategy greatly, but those problems could be easily resolved.Taking bold steps into the right direction, GE announced last month that it will cut 12,000 jobs in its power unit that manufacture turbines for power plants around the globe. In the wake of all these mishaps, businesses in the US, both large and small have been pressurized by their investors to shape up their operations. The current CEO has been working to facilitate the once wide spread GE Capital to focus on funding GE’s industrial units that make MRI machines and jet engines. This step he feels will steer the company into the direction of focusing on its three core values.                                              WHAT I HAVE LEARNED  The General Electric company has spent years of operation in building itself up and generating a financial-services arm that compete with the biggest banks on the market and own a media powerhouse like NBC.The company has chalked so much success that has generated profits running into billions of dollars, and this has drawn the attention of so many investors and shareholders in to the company. In the last ten years, financial crisis has crippled the company’s operations to channel its interests on the three core industrial units; health care, aviation and power. The company also endured major loses by investing in the coal and oil industry which have seen little or no progress in recent times. The company announced last year that it had been struggling to raise sufficient capital to fund its shares. Following years of underachievement, the company’s dividends took a great fall losing more than $100 billion in its market value. The company is yet to disclose its 2017 fourth quarter financial statements this week.GE’s rival companies like United Technologies Corp and Honeywell International Inc. have been following these developments closely in order to avoid similar occurrence.