Desition making - Case Study Example

The GE Commercial Equipment Financing Division Internal Analysis Marketing The Commercial Equipment Financing (CEF) is another GE Capital branch concerned with giving loans to large transport and construction companies. CEF did not deal with any company that had been in the business for less than three years. In addition, the company applying for the loan had to generate enough cash flow to cover the monthly interest payment on the new loan (Silk and Grasby 136).Production GE Capital is a combination of various businesses with many subsidiaries in different countries like the North America, Latin America, Asia Pacific regions, and Europe.

Operating several subsidiaries expanded production in the market. PeopleThe company loaned individuals to start commercial truck companies through financing purchase of trucks. Finance Steve Rendl, the assistant accountant manager for the Commercial Equipment Financing Division of GE Capital Canada, reviewed a loan request for $270,000. Rendl had to decide on the loan request then pass it for approval by the senior account manager (Silk and Grasby 135). The loan issued to the tune of $30,000 to $1 million to purchase transport trucks, trailers, paving equipment and heavy machinery.

The company was under duress to make much profit applying the selling strategy of find, Win, and Keep new and existing clients.External AnalysisCustomersThe company’s client Clark Carriers Ltd intended to purchase two new Freightliner transport trucks, and four new 53-foot trailers and mobile satellite by submitting the loan request. The company had a large customer base in North and Latin America, Europe as well as Asia-Pacific region. CompetitorsWith the net earnings of over US$15 billion, Capital was the major competitor in every market field achieving record net earnings of US$3.6 Billion. The Company expects 20 percent after –Tax profit from its subsidiaries, and if the profit falls below 20 percent, there must be justification for that.

SuppliersA new supply contract was signed in May 2003 with Ford that was intended to increase the trucking volume. StockholdersThe transportation industry in southern Ontario had been profitable from 1985 to 1988 until a massive recession in 1989.The Company faced numerous tribulations during the recession going bankrupt and lowering the prices to remain competitive. TechnologyThe Clark Carriers Ltd intended to buy mobile satellite systems used to track the location of the transport vehicles.Social and Political FactorsIt was mandatory that all vehicles used by the truck company meet safety standards set by the Ministry of Transportation of Ontario (MTO).

Works CitedSilk, Tim and Eliabeth, Grasby. Ge Capital Canada: Commercial Equipment Financing Division- case 3.4. Ivey Publishing, 1999. Print.