Caroline BIROS, Hanane EL JAMALI, Willy MARMUSE, Nicolas PETIT, François PITTET, Thomas ROMEYER

HEC MS Management de Grands Projet

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General Electric Presentation

• Born in 1892 from the merger of Edison

General Electric company and Thomson Houston company

• 300.000 employees in more than 100

countries

• Turnover 2001:125.9 billions USD • Profits 2001: 14,1 billions USD 2

General Electric Presentation

• 13 businesses in 3 types of product: – long cycle life (40% of profits : infrastructure technology and services: aircraft engines, medical systems…) – Short cycle life (20% of the profits: Industrial systems, consumer products, specialty materials…) – Financial services (40% of profits: commercial finance, consumer finance, insurance…) 3

GE Medical system

• Turnover 2001: 9 billions USD • Leader in diagnostic and interventional medical imaging, in formation and services technology • Products: X-ray, Functional imaging, radiology, cardiology, obstetrics… • Centres of excellence: located in the Americas, Europe, Asia (more than 40 manufacturing facilities) 4

France & GE Medical system : History

1960 • Commercialisation of US

products

1970 • GE + Airbus • Airbus + Air France • SNECMA + GE 5

France & GE Medical system: History

1980 • Thomson CGR GE RCA 1990 • GEMS GE-CGR europeen Headquarter Headquarter London Issy les moulineaux 6

France & GE medical systems : Today

2000 • Issy les moulineaux Opportunity: 15 Ha Excellence + Technology concentration Buc 2002 • The headquarter European (Europe, the Middle East, Africa) International (Asia, Australia) Global efficiency + Management skills 7

French characteristics: Opportunities

• French administration Possibility of state mobilisation for high interest projects (infrastructures, authorizations, …) • Infrastructures Logistic + Telecom network • U.E. + Euros (VS England) Strategic economic position 8

French characteristics: Opportunities

• Localization in Europe Central position in the European continent • Efficient Management Skills of managers • Well trained Workforce Good qualification 9

French characteristics: Opportunities

• Good abilities to strategic change / flexibility Despite bad French image (strikes, 35h, …), government + population are able to be very reactive when needed.

• Capability in high + new technologies Modern development of technologies / sciences • Quality of life Manager appreciate life in France 10

French characteristics: Threats

• Disastrous international image 35H, RTT, strikes,.etc media aspect: French social change = a mess • Cultural gaps between Firms / French people Problem of economical opening : Cultural misunderstanding of industry interests and development • Union Action Political engaged Not enough oriented to a common employer-employee interest 11

French characteristics: Threats

• Facility / Taxes / Costs of benefits Complex, high, non uniformed, … Not motivating • Administrative Relation Daily heavy management at mid-low level 12

Suggestion of

• Communicate on facts / realization.

• Put the stress on French state implications + efforts.

• Reduce the social fracture between companies and employees  Reconcile population with « enterprise »  Educate/train workforce to industry needs • Encourage initiatives such as « invest in France » agency 13

Conclusion:

comparison between GE’s criteria and others companies Criteria’s rank Strategic Threats Opportunities

1 - 6

Social environment Flexibility/ work law Internal Market Logistics Infrastructures Telecom Infrastructures Monetary stability Administration

7 - 12

Taxation burdens Salary cost Work force quality Localization in Europe Quality of life Local centres of excellence

13 -17

Subventions Expatriates Taxation Stock options Taxation

< 10%

Critical handicap Financial place

10 - 25% Source: Ernst & Young, France je t’aime… moi non plus > 40%

Average satisfaction rate

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Conclusion:

comparison between GE’s criteria and others companies GE criteria’s rank Strategic Threats Opportunities

1 - 6

Social environment

7 - 12

Local administration Flexibility/ Work law « French image » Taxation burdens Local centre of excellence Internal market Localization in Europe National administration Infrastructure s Quality of management Work force Quality Euro zone Quality of life

13 -17

Subventions Critical handicap Expatriates Taxation Financial place Stock options Taxation

< 10% 10 - 25% Source: Ernst & Young, France je t’aime… moi non plus, used with GE’s information.

> 40%

Satisfaction rate

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Thanks

We would like to thank: • Francis BAILLY,

National Executive GE France

• Sébastien DUCHAMP,

GEMS International Corporate Communication Manager

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Any Questions ?

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Thank you for your attention

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