Why General Electric Company (NYSE:GE) Is Choosing To Think More Locally
General Electric Company (NYSE:GE) has figured out that its future and interest are better served by localization. The company’s CEO, Jeffrey Immelt, recently hinted that increasing protectionist political pressures were pushing GE to rethink its globalization agenda. As such, the coming few years would see GE more focused on building local capabilities as it ends the nearly seven decades of globalization.
Immelt was speaking to graduates at the NYU’s Stern School of Business when he expressed his worries about what had become of politicians. According to GE’s chief, there has never been a time he can remember that globalization had come under vicious attack as it is today. In GE’s view, protectionist politics has made the global economy more uncertain that it ever was in the past.
Response to political pressures
To navigate the complex global economic environment, General Electric Company (NYSE:GE) is choosing dramatic transformation. Therefore, GE’s strategy to localize is a direct response to the rise of protectionist economic policies. The company hopes that its transformation would help level the playing field at a time when the government is not doing it.
Although Immelt didn’t mention any politician by name, he seemed to believe that candidates in the 2016 Presidential Elections are all protectionists. Immelt isn’t happy that politicians think that globalization is the cause of joblessness and wage inequality.
As a company that has spent many decades building a global empire, General Electric Company (NYSE:GE) leadership seems critical of politicians who lack global context. Immelt seems to believe that blames leveled against globalization could be fixed by increasing the competitiveness of American companies rather than trying to rip off the benefits of globalization.
When push comes to shove and localization seems to be the best way out, General Electric Company (NYSE:GE) isn’t afraid to do it. The company says that its 420 plants around the world give it the much-needed flexibility to build local capabilities. The thinking at GE is that protectionist policies cannot shut down localization and the company is going for it.
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