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

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Case Analysis # 7 GE’s Two-Decade Transformation: Jack Welch’s Leadership Submitted by Group -5 Group Members: Name | NSU Id | Nek Parveen | 071 759 030 | Mashior Rahman | 081 342 530 | Md. Kaderi Kibria | 091 0727 030 | Farah Mehnaz Alam | 091 0858 030 | Gaws- Al- Alam | 091 0919 030 | Background: General Electric is the core of a holding company holding exhaustive list of divisions and business units which are designed to support the centralized strategic planning. Jack Welch as a CEO restructured GE and took off to the world’s most successful corporation with high stock prices derived from top caliber operating margins and seemingly unending revenue streams. Vision and Mission: GE’s core values are based on…show more content…
Parenting strategy that GE followed was mainly Development and Linkage. This is because the Welch era constantly went through restructuring and the purchase and sale of new SBUs. At the same time, the parent company created synergies in the SBU which were operational in nature and had a high degree of corporate intervention. Most of the time it is quite difficult to align new SBUs with the culture of the acquiring company but Welsh was able to do that thus creating synergies. Corporate Parenting: General Electric Company Linkages | Development | Central service | Stand-alone | High Degree of corporate intervention Low Operating Financial Nature of corporate intervention Synergies: i. Business unit synergy: GE handled its SBU’s quite successfully & tried to create business unit synergy by increasing compatibility & complementarities. For example it has increased its compatibility when they tried to learn job shop techniques from Canadian appliances which increased efficiency by applying similar strategy. However, it also tried to increase its complementarities as GE was not stuck into only on the product, they also focused on the service business later which also increased their revenue, and here synergy arises from the differences. In addition GE’s boundary less behavior also helped them to increase their compatibility as they learnt from other SBU’s like asset management from appliances, transaction

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