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ID number:744374
Evaluation:
Published: 10.11.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Our Chairman recently wrote that "the hottest trend in business in 1995 -- and the one that hit closest to home -- is the rush toward breaking up multi-business companies and spinning off their components, under the theory that their size and diversity inhibited their competitiveness ... breaking up is the right answer for some big companies ... for us it is the wrong answer."1
For us the new trend is the entrance into the service industry.
The question must then be: is this the right answer?
GE is expecting to increase its revenue by the year 2000 to $120 billion compared with $58 billion in 1990. In other words, if the forecast proves to be correct, it will obtain an average annual rate of growth of 7.5%. …

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