Sun Lida, vice president of GE, described his future growth strategy for China to the reporter: first, use local resources to develop local productivity and serve the local market and customers; second, use local production resources to increase exports; and, third, purchase finished products, raw materials and components from Chinese markets and companies to serve GE's business around the world. China's accession to the World Trade Organization and the 2008 Olympic Games offer broad growth prospects for all GE's business units. By then, GE, which has 12 business units including finance, home appliances, lighting, medical and plastics, will provide a full range of services for China.
What will happen to GE in the post-Welch era? Not only do Wall Street analysts and investors carry such questions, but even the general public is skeptical about whether Immelt can continue the growth myths of this sprawling business empire. In the General Electric Board of Directors announced that Jeff Immelt to take over the helm of General Electric a week ago, Jeff Immelt that issued a change of China's marshal of the information: the former GE Plastics Group Greater China President Sun Lida (Steve Schneider), will be from September 1 this year to become the chairman of the board of directors of General Electric (China) Company Limited and Chief Executive Officer. Mr. Wang Jianmin, the former president of GE (China), has withdrawn from the company's headquarters to take up a new position as GE's director of strategic development in China, where he will be responsible for evaluating future growth opportunities for GE's business in the country. It has been noted that Mr. Sun Lida has not only been entrusted with the heavy responsibility of GE (China) Chairman and CEO, but also jumped to become a vice president of GE at the same time. Obviously, the change of command in China is not due to the change of power at the top of GE and affected in the slightest, but on the contrary, the layout of China is also another proof of GE's search for business growth opportunities.
No "plastic gang" only talent general
41-year-old German-American Sun Lida, since 1984 to join the GE Plastics Group up to 16 years of work history, there are eight years in the GE Plastics Group Asia-Pacific region marketing position spent. The media, when sizing up the new leader of GE China, naturally linked his sectoral origins to GE's new CEO, Immelt. Jeff Immelt, who joined GE two years earlier than Sun Lida, had been doing leadership work in sales, marketing and global product management at GE Plastics before becoming chairman and CEO of GE's Medical Systems Group.Immelt joined GE Appliances as vice president in charge of consumer services in 1989. After tasting the brutal competition in the appliance industry, Immelt swung back to the nest in 1992 to continue to do his old job, and Sun Lida, then director of operations for GE Plastics' U.S. Southeast Region, was Immelt's subordinate.
It is worth noting that Gary Rogers, who was just promoted to vice chairman of GE, was previously president of GE Plastics. Therefore, when people coincidentally Sun Lida, Gary Rogers and Immelt's departmental origins linked together, and thus produce GE internal whether there is a "plastics gang" confusion, Sun Lida explained that this is purely coincidental. Personnel transfer within GE is a common occurrence, GE's appointment principle is in accordance with the current business opportunities and the company's performance needs, a reasonable deployment of manpower. Even GE Greater China public relations manager Liu Bo also said that this is a strong evidence of GE's globalization strategy, that is, known as the world's first CEO said Welch, GE not only enables enterprises around the world to achieve localization (using local talent), they can be integrated into the GE culture, and these local talents grow up, there is no need to stay in the local, to the rest of the world, including the The United States to work in order to adapt to the needs of global development. Looking back at Sun Lida and Wang Jianmin's "change of guard", it is not difficult to find that the general in the global free flow and be **** enjoy the intellectual resources, has been seized by GE.
Today, GE's annual senior management meeting, more and more non-American faces, and a non-American management team is growing within GE. Ten of the 21 direct reports in Immelt's former Health Systems Division are from abroad. The 23,000-employee International Consumer Lending division has fewer than 200 Americans. As Welch once said in a letter to shareholders, "Continuously sharing the essence of business experience and culture from around the world will lead to a truly globalized enterprise, both in terms of operations and in terms of thinking." GE China now has 8,000 employees, only 20 Americans. Today, the term "change of guard" is a common occurrence for GE's department heads, and engaging in a business with which they are unfamiliar is a necessary part of the process GE has traditionally used to evaluate its future successors.
The search for growth is the focus of the inauguration of China
General Electric Chairman and Chief Executive Officer Immelt and Vice Chairman Gary Rogers successive visits to China, will be Sun Lida nine weeks on the job to fill the time. Even a top GE China Ltd. source said the two top figures in less than a month's time to visit the same place, which in other multinational companies is not common. And will Sun Lida layout in China also highlights in the search for new growth opportunities in the core issue, GE has long been the goal of the focus on China. September 11, GE in the Beijing economic and technological development zone of the medical system industrial park foundation stone laying, the next day GE Toshiba Silicone Shanghai Waigaoqiao factory opened. early October, the old superiors of the GE new chairman and chief executive officer Jeff Immelt's visit, let Sun Lida take the opportunity to put GE in a position to make the new chairman and chief executive officer of GE, the new chairman and chief executive officer of GE. Sun Lida took the opportunity to carefully sort out all the important customers of GE China, and in mid-October, at the meeting of the vice presidents and above of General Electric, Sun Lida introduced the development status of GE business in China at the "GE Development Report in China". Seek new growth opportunities in GE China in this meeting to reach *** knowledge and make the corresponding deployment. October 22, Sun Lida will be located in Hong Kong's home to move to Beijing, which began his Beijing as the center, radiated across the country to seek GE China's new growth strategy implementation. early November, Sun Lida began to visit Xiamen, Shenzhen, Guangzhou, Qingdao, Wuxi and other places to visit government officials, communicate with the media, and hold employee exchange meetings, kicking off the new growth strategy of GE China. In early November, Mr. Sun began visiting Xiamen, Shenzhen, Guangzhou, Qingdao and Wuxi, meeting with government officials, communicating with the media, and holding employee meetings, kicking off his foreign liaison work on behalf of GE in various foreign affairs. Sun Lida said more than once in media interviews, China is GE's main growth area, but also an important market for GE to seek new growth points, and the production industry, exports and procurement will be his three major strategies to seek growth opportunities in China in the future. Currently, GE's investment in China totals $1.5 billion, with annual sales revenue of nearly $1.5 billion, and it has established more than 20 offices and 30 joint ventures and wholly owned enterprises in China, employing 8,000 people.
If GE (China) Ltd.'s predecessor Wang Jianmin and the current Sun Lida in China strategy is different, then, Sun Lida played more is to pull GE China sudden speed, expanding GE's growth share of the role. In the past 10 years, Wang started from the initial GE (China) Aviation and Healthcare Systems Co., Ltd. and gradually opened up the situation of GE Medical Systems' dominance in the Chinese market. So far, GE Medical Systems has three factories in China, producing X-ray machines, CT machines, nuclear magnetic **** vibration, nuclear medicine, medical imaging network systems, ultrasound imaging systems and other series of products, of which there are more than 600 sets of popularized CT machines each year to China and the world's major hospitals, so that China has become the world's fifth-largest CT producer, whose sales accounted for one-tenth of the world's total sales. One-tenth of the world's total sales. Sun Lida is now facing is how to GE medical equipment China market, from the current global ranking of third to one of the top two positions. "In the last two years, we will move the global manufacturing center and technology for CT scanners to Beijing."
Medical and plastics systems are two of GE's fast-growing business groups in China, and when Sun Lida was managing the plastics business in China from Hong Kong, Welch reprimanded him without naming him for planning too long a period of time to open a plastics plant in Shanghai, which led to enormous pressure on Sun Lida within GE. As a result, it took only nine months for Sun Lida to build the new factory and wait for Welch to cut the ribbon. Today's GE Plastics Group also has three production enterprises in China, including Motorola, Canon, including many multinational companies are using advanced plastic products produced by GE. In June of this year, GE Plastics Group Asia-Pacific Customer Creative Center and online service center in Shanghai at the same time, marking the GE China market plastics business has transcended the concept of intercontinental, to shake off Europe and become Asia's largest market as Sun Lida to promote GE China's rapid growth of the next trump card.
Many people overlooked GE has engine business at the same time, its aircraft leasing business is also done in full swing. Today, there have been 90 GE Financial Group aircraft in service with major domestic airlines. Among them GE Engine Services (Xiamen) Co., Ltd.'s second largest shareholder, General Electric CFM series engines in China's largest user of China Eastern Airlines, has 13 aircraft. 1999, GE bought 13 MD82 aircraft in one fell swoop, and will be 10 Airbus A320 and 3 MD82 new aircraft leased to each other. Today,*** there are more than 1.5 billion dollars worth of large commercial airliners serving major domestic airlines, and more than 20 airlines use 80% of the total number of GE engines. In addition to aircraft leasing, GE has also incorporated engine repair and service into its flagship business of scrambling for the aviation market. 28 June, GE Engine Services (Xiamen) Co., Ltd. opened, marking the German Lufthansa and the French Snecma company's equal division of the world was broken, Beijing, Chengdu, Xiamen, three male hegemony has been highlighted in the great Chinese land. And the final joining of China Eastern Airlines and Hainan Airlines, heralding the GE in the future of China's aviation market cake has been ahead of the sprint.
"There are two ways to grow a business, one is the 'organic' way, by expanding existing production and developing technology. The other is the 'inorganic' way, which is achieved through acquisitions and mergers, increasing product variety and expanding sales territories. As long as it helps the business grow, we will do it. Mergers and acquisitions will also be one of them. If we were to draw up a five-year plan, GE China would grow at a double-digit rate every year, and by 2005, GE China's sales revenue would reach $4 billion to $5 billion." That's how Sun Lida outlined a blueprint for his China posting that would ignite a fissure in growth.
Paving the bridge to the WTO to win the Olympic Games business opportunities
If the WTO accession to bring tariff reductions, the opening of the aircraft, aircraft maintenance and ground services market and distribution, the liberalization of the right to trade, and other good news, then the GE in the good news before the explosion of the start of the long term investment plan. Today, GE Engineering Plastics Group's production plants in Guangzhou and Shanghai, it is not too much to say that business is booming. Sun Lida believes that although tariff reductions will allow multinational companies in the imported products and the local introduction of a comparison between, but GE Engineering Plastics' localized production and rapid response to the "time lag", and ultimately will allow them to choose the latter. In addition, constitute one of GE China's future growth strategy of sourcing business, after WTO accession will accelerate the speed of procurement in household appliances, industrial, power and lighting. "Don't wait for the WTO, China's accession to the WTO has been talked about for 15 years, while our joint ventures and wholly-owned projects in the market have done many WTO things. I don't think it's necessary to wait until after WTO accession to think about doing it, many things must be prepared before it happens." Sun Lida so and so said the GE people's long-term investment plan.
Few people have paid much attention to what the 2008 Olympics will bring to GE's business in China. Beijing's initial investment plan, including infrastructure and venue construction, is $36 billion, according to some sources. 31 venues will be built with lighting, power and engineered plastics, and Beijing's promise to the world of an "Eco-Olympics" will give clean energy a run for its money. GE's diversified businesses have opened the door for it to take orders for the Olympics. GE's Power Systems is ready to provide a variety of power generation equipment; the Industrial Systems Group's eight joint ventures will be ready to provide automation and control system products for the Olympics; GE Lighting Engineering Group, which has been a leader in the world's lighting industry for more than 100 years, is also ready to prepare for the Olympics; and even GE's financial services and NBC television broadcasts are ready to go. Even GE's financial services and NBC's television broadcasts are ready.
Looking forward to the world event in seven years, Sun Lida has now begun to consider and the Beijing Municipal Government, the U.S. Government, the U.S. Embassy, the U.S. Chamber of Commerce, the Olympic Committee, the business groups, etc., *** with the discussion of how to use GE products for the Beijing Olympic Games to do a good job of service. Just like Welch with more than six years to select Immelt as the ultimate successor, and Immelt said the past 15 years GE in China is still only a preliminary understanding of the development of the same, GE people in the decision-making process before always remain prepared, careful measurement, fast strike, hit the nail on the head style. This mentality has enabled GE to write a 20-year sustained growth, market capitalization expanded 30 times the myth. A vice chairman of GE's view of GE's entry into China is quite representative of GE's investment mentality over the past 15 years. He believes that the development of China's business will be long-term and arduous, and therefore must be very careful in China, reflecting the investment should be stable and not more, but must take a resolute entry strategy, patiently waiting for the right time.
From GE's 30 joint ventures in China, wholly owned enterprises on the investment is not difficult to see, in addition to Shanghai Jiabao lighting investment of 180 million U.S. dollars, the other are not more than 30 million U.S. dollars. When many media on why GE will not bring 60% of its profits for the financial business to move to the Chinese market is confused, Sun Lida explained: "We will not because the WTO has opened up the potential of a huge consumer market and rush to run into, we will be very cautious."
Don't do things you're not sure of, and once you see an opportunity to strike back. Since the establishment of the Dow Jones Industrial Average in 1896 and still on the list of General Electric, with 109 years of uninterrupted performance, won the global counterparts to look up to it. Now, GE is building a high-speed growth engine to win China. Are Sun Lida and his team the propellers that will ignite this growth spree? "In the next 20-25 years, there are six things we can focus on: the future of China could become one: a huge consumer market, two: the second or third-largest industrial market, three: the largest aviation market, four: a big market for healthcare with the emergence of the middle class, five: the demand for clean energy will increase as industry shifts inland from the coast, and six: it could turn into a very large consumer financing market. There will be a lot of opportunities for our aircraft engine group, our healthcare systems, our power systems, our financial services systems, our industrial systems, and so on. And my aim is for the head office to better support the growth of the business groups in China." Sun Lida concluded. Wen/Yang Qing
History of GE China
Started to develop business in China in 1910
Invested in the first, and at the time largest, project (Shanghai Electric Power Company) in 1929
Rebuilt its business in China and opened an office in 1981
Still continued to develop the business in 1989, and signed the first joint venture agreement in 1990 (operational in 1991)
In 1994, GE (China) Co., Ltd. was formed to expand business and increase investment
Overview of GE's operations in China
Sourcing of raw materials and finished products from China is growing by 50-70% annually
Nearly 200 turbines with GE technology are in operation at or on order from power plants in China
More than 40 units of installed capacity amounting to 900,000 units
Over 40 units of installed capacity amount to 600,000 units
These units have been installed in more than 100 power plants. More than 40 hydroelectric power plants with an installed capacity of more than 9 million kilowatts operating or on order using GE technology
Best track record of safety and reliability for aircraft engines (CFM-type) in China
Largest technology lighting joint venture in China
Two state-of-the-art engineering plastics composites to serve local customers
Building and developing world-class CT scanning systems in Beijing. Production and development of world-class CT scanners for global service
Research and development center in Shanghai
Establishment of China's first wholly foreign-owned sourcing and exporting company
GE China today
All business groups have operations in China
8,000 employees in technology, manufacturing and services
30 investment projects (joint ventures), including the following 30 investment projects (joint ventures and wholly owned enterprises), including technology production and export, technical training, consumer product development, manufacturing, marketing and export