Evidence from General Electric and Westinghouse Electric: Common Cost Manual

GE and Westinghouse use the same cost manual with the intention of * * * winning * *! ! ! ! ! ! ! ! ! ! ! According to the accusation of the U.S. Department of Justice, during the period of 1963- 1964, the two companies eliminated competition by consciously adopting and publishing the same price strategy. Turbine engines are generally customized according to customers' requirements, so there are inevitably differences, but both companies have published a manual, including: the prices of all parts that may be used in the process of manufacturing engines; How to use the price of these parts to calculate the relevant engine price; A detailed example of using the above method; The price multiplier is specified, and any actual price change only changes the value of the multiplier, and the price of the parts remains unchanged. General Electric Company was founded in 1892, which was formed by the merger of Edison General Electric Company and Thomson Houston Electric Company. With its economic strength (backed by Morgan Bank) and R&D capability (the earliest research laboratory of the company was established in 1900), the company has achieved success in the competition. In the 1920s, General Electric Company established joint ventures with Westinghouse Electric Company, AT&T Company and RCA Company. 1956, General Electric Company set foot in the computer industry, but sold its computer enterprise to Honeywell Company in 1970 because it was unprofitable. By 1980, the company's income from selling plastics, household appliances, nuclear reactors and jet engines reached $25 billion. In the 1980s, GE's strategy was to keep only those businesses that were capable of being among the best in the world market. To this end, the company has taken various measures, including closing factories, selling assets and dismissing employees. During the period of 1980- 1989, the company sold 25% of the sales of 1980, mainly focusing on medical devices, credit services and high-performance plastics and ceramics. 1984 bought employee reinsurance company, 1986 bought American radio company, 1990 bought Kidder Peabody investment bank company. 1990, General Electric Company entered Eastern Europe and acquired most of the property rights of Tuslam Lighting Company in Hungary. 199 1 year, the company acquired the property rights of Thorne light source company in Britain. 1994 GE's holding company in China-GE China co., ltd. was formally established and became an investor in ge's business in China. GE is developing joint ventures and cooperation with China in power plants, power generation equipment, household appliances, motors, aircraft engine services, financial services and other business areas.

Scope of business GE Company is a diversified multinational company. Lighting, transportation, power transmission and medical equipment are GE's traditional businesses, which have continued to this day. Involved in 12 main fields: aero-engine manufacturing, broadcasting and television (NBC), power distribution equipment manufacturing, electrical machinery and industrial systems, financial services, electric power systems, information services, lighting engineering, locomotive manufacturing, household appliances manufacturing, medical equipment systems, and plastic engineering.

The main product GE's products and services range from household appliances to aircraft engines, from personal finance to aircraft financing. The company's main products in the aerospace field are: GE90 engine (for Boeing 777), CF6 series engine (for Airbus A300/A330 and Boeing 767, 747), CFM56 series engine for international cooperation, F4 14 engine, F10 engine and T700 engine.

Organizational structure GE company is a listed company. The board of directors is the decision-making body of the company, with a senior executive office, consisting of CEO, senior executive vice president, chief financial officer, chief information officer, manager of human resources department, manager of business development department, manager of global research department, consultant and secretariat department. The three business units under it mainly include: long-term business: including aircraft engine group, medical equipment system group, power system group and transportation system group. Short-term business: including household appliances group, industrial systems group, National Broadcasting Corporation (NBC), plastics group and special materials group. Financial services: including commercial financial services companies, consumer financial services companies, equipment management companies (mainly financial leasing) and insurance companies.

General aviation engine group

General aviation engine group

Mailing address: Cincinnati (No.Newman Road 1, Cincinnati, Ohio, USA: 452 15 630 1)

Tel: (1-5 13) 243-2000.

Fax: (1-513) 786-1568.

Website:

Person in charge: David L. calhoun, President and CEO.

Overview: Aircraft Engine Group is mainly engaged in the design, production, sales and service of gas turbine engines, and its products are used in military aircraft, civil aircraft, ships and other industrial fields. The 37 engines produced by the group are widely used in industrial systems such as 9 1 aircraft system and 42 ships. The Group consists of nine divisions, namely, product and procurement division, civil engine division, engine service division, marine and industrial engine division, business planning and market development division, military engine division, engineering division, finance and information system and business development division, legal affairs department and human resources department. Group * * * has 26,000 employees, and the annual sales revenue in 200/kloc-0 is11400 million USD, and it has set up engine service organizations in 40 different places around the world. Subordinate groups: Product and Purchasing Department, Military Engine Division, Civil Engine Division, Marine and Industrial Engine Division, Engine Service Department, Business Planning and Market Development Department and other business departments.

(1) Commercial Engine Operation Company is located in Cincinnati, Oklahoma. Its main products include CF6, CFM56 and GE90 engines for large civil transport aircraft. CF34 and CFE738 are used for business jets and regional jets.

(2) Military engine operations are located in Cincinnati, Oklahoma and Lane, Massachusetts. The main products are F 108 (used for KC- 135r), f10 (used for F- 16C/D and F- 15e) and f1. A- 18E/F), T64 turboprop engine (for C-27a and DHC-5d), CT7 turboprop engine (for Saab340 and casa -IPTN CN-235) and T64, T700 and CT7 turboprop engines for military and civil helicopters.

(3) Marine and Industrial Engine Division (Marine &; Industrial engine department. Located in Cincinnati, Oklahoma and Lane, Massachusetts, it mainly produces marine or industrial gas turbines such as LM500, LM 1600, LM2500, LM5000 and LM6000.

There are also some joint ventures, such as CFAN Company (partner: Snecma Company), CFE Company (partner: Lian Xin Engine Company), CFM International Company and GE- Pratt & Whitney Engine United Company (partner: Pratt & Whitney Company).

Scale and Capability General Electric Company is currently the largest manufacturer and exporter of commercial jet engines in the world. It operates in more than 65,438+000 countries around the world, including about 250 factories in 26 different countries. During the period of 1994, GE and CFM International (a joint venture between GE and Snecma of France, each holding 50% of the shares) won more than 50% of the global orders for large commercial jet engines. 1993 has 220,000 employees and sales of $65.8 billion. 1994, the company's total sales were $6 billion/kloc-0 billion, net profit was $4.726 billion, and the total number of employees reached 22 1 10,000. The company's total sales from 65438 to 0995 were $70 billion; 196 The total sales of the company was 79 1 100 million dollars, ranking second in Forbes 100 list of the largest enterprises and15 in Fortune 500 list of the largest enterprises; From 65438 to 0997, the company has 276,000 employees, with a total turnover of $90.8 billion and a net profit of $8.2 billion. Among them, Aircraft Engine Group has 34,000 employees and a turnover of 7.8 billion US dollars. At present, GE's total assets are about US$ 495 billion, its annual sales of 20 billion/kloc-0 are US$125.9 billion (including international sales of 50 billion, accounting for about 40% of the total sales), its net profit is US$ 14 1 billion, and its R&D expenses are US$ 2.3 billion. In 200 1 year, the company's aerospace sales reached113.89 million US dollars, ranking eighth in the global 100 aerospace industry. In 2002, Fortune magazine ranked 9th among the global 500 companies and 6th among the American 500 companies. General electric's operation in recent years:

1999 200 1 year in 2000

Sales (USD 100 million)116.30198.531083883

Net profit (USD 100 million)107.17127.35136.84

Local representative office

Harbin office

Tel: 045 1-53009575 53009565

Fax: 0451-53009567 5300951

Address: Block A, 25th Floor, Obis Development Building, Hong Jun Street, nangang district, Harbin 150090.

Shenyang office

Tel: 024-228 12468

Fax: 024-22812121

Address: Room 907, Block C, President Building, No.69 Heping North Street, Heping District, Shenyang, 1 10003.

Beijing office

Tel: 010-65611166.

Fax: 010-65611521

Address: B 1 10004, 6th Floor, Han Wei Building, No.7 Guanghua Road, Chaoyang District, Beijing.

Tianjin office

Tel: 022-233043 1 1

Fax: 022-23300995

Address: Room 300050, Room 2302, Tianjin International Building, No.75 Nanjing Road, Tianjin

Qingdao office

Tel: 0532-5778987

Fax: 0532-5778995

Address: Room 250 1, Sunshine Building, No.61,Hong Kong Middle Road, Qingdao, China.

Xi an office

Tel: 029-7203085

Fax: 029-7203065

Address: Room 606, Zhong Da International Business Club, No.30 Xi South Street, 7 10002.

Lanzhou office

Tel: 093 1-8735653

Fax: 093 1-8735649

Address: Room 730000, Room 2 104, Jinjiang Sunshine Hotel, No.481Donggang West Road, Chengguan District, Lanzhou City.

Urumqi office

Tel: 099 1-2305008

Fax: 099 1-2305009

Address: Room 830002, Building B, Zhongquan Square 12, No.86 Zhongshan Road, Urumqi, Xinjiang

Chengdu office

Tel: 028-86 198282

Fax: 028-86 198369

Address: 6 100 15, building c, 9th floor, Guo Xin building, Chengdu.

Chongqing office

Tel: 023-63743900

Fax: 023-63743700

Address: 4000 10, Block B, 23rd Floor, Chongqing Hotel Business Building, No.235 Minsheng Road, Chongqing.

Wuhan office

Tel: 027-85758335

Fax: 027-85758332

Address: Room 430022, Wuhan International Trade Center, No.566 Jianshe Avenue, Wukou District, Wuhan/Room Kloc-0/018.

Nanjing office

Tel: 025-84720700

Fax: 025-84728654

Address: Room 21661664, Jinling Hotel World Trade Center, No.2 Hanzhong Road, Nanjing.

Shanghai office

Tel: 02 1-6288 1088

Fax: 02 1-62880908

Address: Room 20040, Floor 7, hang lung plaza 1266, Nanjing West Road.

Hangzhou office

Tel: 057 1-87970862

Fax: 057 1-87970860

Address: Room 906, Zhejiang World Trade Center, Shuguang Road 15, Hangzhou, 3 10007.

Changsha office

Tel: 0731-51268330731-5813555.

Fax: 073 1-58 12837

Address: Hunan Jiacheng Hotel/Room KLOC-0/309/Room KLOC-0/310, No.386 Laodong West Road, Changsha, Hunan.

Kunming office

Tel: 0871-3157171.

Fax: 0871-3157164.

Address: Room 2 103, Oasis Commercial Center, No.80 Tuotuo East Road, Kunming, 6500 1 1.

Xiamen office

Tel: 0592-268 1280

Fax: 0592-268 1283

Address: Room1815-1816, Xiahe Road Bank Center, Xiamen.

Guangzhou office

Tel: 020-83634828

Fax: 020-83633 128

Address: Room 5 15 12, Yi 'an Plaza, No.33 Jianshe Liu Ma Road, Guangzhou +00060.

Shenzhen office

Tel: 0755-82 125 157

Fax: 0755-82463650

Address: Room 51013, Wang Di Commercial Building, Xinxing Square, No.5002 Shennan Avenue, Shenzhen, George Westinghouse established Westinghouse Company in Pittsburgh. Since 120, the development scope of the group has spanned dozens of fields and sold tens of thousands of products. Westinghouse products cover nuclear power plants, radars, Westinghouse space cameras, refrigerators, microwave ovens, washing machines, special engines for submarines and so on.

1954 Westinghouse released the first black-and-white TV set in the United States. 1997 was acquired by CBS and became a member of CBS. In 2005, Westinghouse Digital achieved the fifth annual sales volume and the fourth annual sales volume in the American LCD market.

Historically, Westinghouse has brought light to the world (tungsten light bulb was produced for the first time in the world), helped people broaden their horizons (the first moon landing activity was filmed with Westinghouse camera) and provided energy for global technology and life (Westinghouse produced uranium for the first time). Now Westinghouse has transformed advanced LCD technology into display products, bringing digital life and entertainment to thousands of households.

You can be sure ... if it's Westinghouse electric

In the eyes of Americans, Westinghouse is an established company with its own brand in the United States. The recognition rate of American consumers is 88%, and the brand image is quite high. In addition, millions of Americans who have worked in Westinghouse Group agree that Westinghouse household appliances are high-end products. For American consumers, most people are very close to Westinghouse household appliances.

George Westinghouse, the founder of the company, is the inventor of the air brake on the train. Westinghouse's initial task is to find a suitable long-distance transmission solution for the booming American electrical industry. The company's strongest rival is the great inventor Edison (Edison's company later evolved into some major power generation companies and General Electric Company in the eastern United States). Alternating current favored by Westinghouse Electric finally defeated direct current favored by Edison and became the main form of power transmission and utilization in the western industrial world.

Like GE, Westinghouse Electric produces various products in the electrical industry chain, including light bulbs and radios. 1920, in order to promote the sales of radios, the company even established the first radio station in the United States in Pittsburgh. Of course, Westinghouse's main competitiveness still comes from large-scale power equipment, especially massive turbine equipment and generators. After World War II, with the expansion of the power of other industrial countries (especially Japan) in the electronic products market, American industrial companies kept withdrawing from the household appliances market. General Electric and Westinghouse Electric, which used to provide American families with various electrical products ranging from refrigerators and washing machines to dishwashers and toasters, were forced to withdraw from this market in the1970s.

Compared with GE, Westinghouse's fate is not good. In the mid-1970' s, the company's turbine engines lost a large number of markets due to quality problems, and Westinghouse was forced to embark on a long road of restructuring. From 1970 to 1980, Westinghouse constantly buys and sells various commercial companies. The first phase is diversified, and the other phase sells dozens of subsidiaries. Facing the challenges from outside China, the company has also established various joint ventures with foreign companies, such as electrical engineering and construction companies with ABB in Sweden, Siemens in Germany and Mitsubishi Heavy Industries in Japan.

But this did not completely change the fate of Westinghouse. 1993, the company welcomed the first non-internal CEO—— in history-Mike Jordan from Pepsi. Jordan inspected various operating departments and decided to operate the company, focusing on broadcasting network (including 18 radio station and five TV stations), national defense electronic products, electrical control and power equipment. To this end, Westinghouse launched a series of acquisitions, including the acquisition of the radar department of United Technologies Corporation (the company produced Norton anti-missile radar that played a prominent role in the Gulf War) and CBS TV broadcast network (1995).

A large number of acquisitions and stock exchanges with acquired companies have increased Westinghouse's radio and television business, and gradually changed Westinghouse's management philosophy and board preferences. For example, after 1997 acquired Unlimited Broadcasting for $4.9 billion, Chairman Unlimited suddenly became the largest shareholder of Westinghouse. Westinghouse Electric also acquired TNN and CMT TV channels, which are comprehensive literature channels, at a cost of/kloc-0.5 billion US dollars. Westinghouse is also the largest Spanish TV program provider in North America.

At the expense of Westinghouse's basic department. Westinghouse's thermal power business was sold to Ingersoll Rand and its thermal power business was sold to Siemens. Finally, the name of Westinghouse Group was changed, and its broadcasting business CBS was used as the group name. Westinghouse Electric's nuclear power business unit, which owns Westinghouse's last historical legacy, was sold to the British nuclear fuel company owned by the British government. Toshiba bought Westinghouse Electric from this company.