GE's Imagination Breakthroughs: The Evo Project

3036 Words Mar 3rd, 2015 13 Pages
GE’s Imagination
Breakthroughs: The Evo
Project
Case 3-3

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EXECUTIVE SUMMARY
Problem: Primary
The Transportation management team must make a difficult and very important decision to determine the Hybrid’s future because its opportunity cost is currently high and is under limited financing.

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Alternatives:
1. Continued Commitment with the Hybrid Concept
2. Place the Hybrid IB on Hold and Invest in Batter Technology
3. Discontinue the Hybrid

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Facts Considered:
1. Immelt is committed to the Hybrid project and its potential.
2. Organic growth and risk-taking are an important part of GE culture.
3. IB’s will play an important part in future revenues for GE.

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Recommendation:
GE must continue with the Hybrid project as it
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IMPLICATIONS ON THE PERSONNEL
• An inability by Compte to make a decision ahead of the meeting with Immelt and to properly inform him of the actions needed to be taken with the Hybrid project could put
Compte’s job on the line.
• GE seems to have turned a corner as of 2006. Any poor decision on future IB’s and the
Hybrid project could lead to low a morale for the managers and employees if any managers have to be let go.
• A decision to drop the Hybrid as an IB could be displeasing to Immelt and put more pressure on Dineen and his team to come up with a new IB alternative. This could also lead to a low morale for the employees who had been working on the Hybrid because they may fear that they will be let go.
• The traditions managers of GE were seen by Immelt to lack certain skills to succeed in the current business culture that Immelt was trying to change and create. Any difficulties to properly adapt as Immelt wants could see these managers lose confidence in themselves, but also from Immelt.

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IMPLICATIONS ON THE ENVIRONMENT
• If GE were to move forward with the Hybrid and continue to improve it, it would mean a complete change in the locomotive industry and a benefit to the environment because of reduced fuel emissions.
• As of 2006, GE has been able to either maintain or increase its 70% market share of the locomotive industry. Therefore they have significant influence over
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