Ge's Two-Decade Transformation: Jack Welch's Leadership

Alignment and collaboration between business and IT was increased as a result of a highly

It was an extension of the growth strategy put in place by Eisner, yet it exposed the company to risks related to synergy and brand effectiveness. While thus far they had been successful at vertical integration within their existing lines of

Having ability to use resources across more effectively (transfer of human capital, utilising group’s plants, facilities and services) that would lead to creating various synergies and benefit from economies of scope.

* Identification of the strategic goals of both the SBU and the parent company, Sony, and reevaluating goals as the market or technologies shift, or as Sony adjusts its corporate strategies;

Growing through integration can have a positive effect on the competitiveness of a business in that firms are able to buy out or merge with other large powers in the market to make a ‘super power’ in the market. This ‘super power’ gains a larger % of the market as the two original

Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com

Please read Case Study: The Jack Welch Era at General Electric in Chapter 5 and answer questions 1 & 3. Please submit the answers by the end of week #3. At least one page is required.

* Immelt wanted to use GE’s size and diversity as sources of strength and to drive growth by investing in places and in ways that others could not easily follow.

General Electric is a well-known company in many regions of the world, but what people aren’t particularly aware of are the steps that General Electric has taken to get to where it is at today. When I think of General Electric the first thing that comes to mind is the role that the company plays in the production of household appliances, but General Electric is a much bigger contributor to people’s lives than is most people realize. People aren’t familiar with the internal business decisions that General Electric makes to ensure that the company continues to grow and run as smoothly as possible, allowing the company to continue to provide people with the services that they have grown to recognize as being a trademark of General Electric.

General Electric Co. (GE) is a major American corporation one of the biggest and the most differentiated corporation and most powerful business in the world. According to Fortune 500 GE, gross revenue registered as the 26th foremost business association and its name incorporated among the top rankers in the survey. The company functioning in many different sectors its invention consist of electrical and electronic appliance, aircraft engines, financial services, and Energy Technology (Electric, General Electric Success Story, 2016). In 1878, Thomas Alva Edison founded General Electric, in 1892, the company combined Edison General Electrical Company, Schenectady, and Thomson-Houston Electric Company of Lynn, Massachusetts while its headquarters are in Fairfield, Connecticut United State, its operating plants were in New York. Jeffrey Immelt chairperson and chief executive officer of General Electric on September 7, 2001 to replace Jack Welch after his retirement (Electric, General Electric Success Story, 2016).

Background Information- General Electric Company, known as GE the world over, is an American-based, multinational corporation headquartered in Connecticut. In 2010, the company reported in excess of $150 billion in revenues, net income of over $12 billion, and almost 300,000 employees. It operates through four basic segments: Energy, Technology Infrastructure, Capital Finance and Consumer and Industrial Production. In 2011, GE was ranked the 6th largest firm in the United States as well as the 14th most profitable. Since its founding by Thomas Edison in 1990, and becoming one of the original 12 companies listed on the Down Jones Industrial Average in 1986, GE has been iconic in its relationship as an American innovator. In fact, GE founded RCA in 1919 to further the use and disbursement of international radio, just one example of their early commitment to innovation (GE Fact Sheet, 2012).

     When Jack Welch was named CEO of General Electric, Welch saw a company in trouble even though the business world saw GE as an intrinsically healthy corporation, secure in its position as a world industrial leader. Welch knew that the company was too large to fail yet GE was too unwieldy to adapt for further growth. The changes he instituted restructured and revolutionized GE and made Welch the most respected CEO in business today. After reading the book there were three parts that really stood out for me.

Currently, GE has six business units: GE Infrastructure, GE Industrial, GE Healthcare, NBC Universal, GE Commercial Finance, and GE Consumer Finance. And with strategic horizontal diversification, GE could strengthen its economic stability throughout the last 20 years among all the different challenges came up into the business environment, and rather to keep its growth increasing.

General Electric (GE) is a true global company with attendance in more than 100 countries. Clearly, with a workforce of more than 320’000 employees, GE also has to have proper human resources processes established. Its energetic Business Operation Model and sophisticated and evolved human resources strategy are results of the steady growth over more than 130 years of corporate history. Since its incorporation in 1878, many CEOs have shaped the company’s products, people and processes, few very intensive and a bit less (GE, 2011).

With direct-connect structure, the business leaders or functional managers of specific business divisions report to their headquarters in the U.S.. After the direct-connect structure is implemented, it has changed the operation in GE Canada. In the past, the Canadian CEO was fully responsible for the profitability of the Canadian operating division, with the manufacturing plants made a full line of products primarily for the Canadian market with some exporting possibilities. After the new management system implemented, the U.S. divisional bosses is responsible for the profitability of each operational business division both in the U.S. and Canada. With the change in management system, the business development group has changed its position in GE Canada by switching the role of conducting feasibility studies and new market development for the business unit in Canada to the role of looking for opportunities to leverage the strengths of Canadian activities on a global basis. The business development group felt that the change in management system has made the U.S.-based business leaders to ignore the potential business opportunity in Canada and added more uncertainty to the business development group role. Most decisions need approval from the U.S. divisional bosses, whom do not have a complete picture of the business potential in Canada and want full control of the business operations