Ge Transformation

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1 GE’s Two Decade Transformation Team Globalization Case Analysis GE’s Two Decade Transformation: Jack Welch’s Leadership Yasmine Abdo Al-Kouraishi Muhammad Howard Steven D. Johns Kenneth V. Oliver Kimberly N. Lomax AMBA 670 Managing Strategy in the Global Workplace July 25, 2012 2 GE’s Two Decade Transformation Executive Summary Team Globalization has conducted an in depth analysis on General Electric 's (GE) two decade transformation achieved by the company’s former Chief Executive Officer (CEO) Jack Welch. This report consists of a reflective examination performed by the team, incorporating perspective gained through professional experience and key concepts gleaned from selected course reading selections. As CEO of GE,…show more content…
Hierarchical organizational levels were dramatically reduced, enabling the company to operate as a “lean and agile” business. From the moment he took over the business, Welch went full force into implementing a “real time planning” strategy. At the time of his appointment, the United States economy was in a recession. To combat this situation, Jack Welch had to develop a plan of action aimed at keeping the company thriving in the business world. In order to accomplish this, GE sold many of their businesses, which represented 25% of their sales. However, during that time, Welch simultaneously and strategically invested in other businesses, increasing their revenue and operating profits. How effectively did he take charge? Welch was extremely effective in taking over the GE reins. Although his predecessor was quite successful during his reign and the business thrived, there was still the need for change. The business world was evolving and competitors attempted nonstop to stay ahead of GE. Fortunately, Jones had left the company in a “good place” during 5 GE’s Two Decade Transformation the transition, allowing Welch to come in with his new and innovative ideas to take the company even further in the business world. What was Welch’s objective in the series of initiative he launched in the late 1980’s and early 1990’s? Jack Welch repaired the structure of GE with his initial changes, but now had to manage the human resources aspect to “rebuild the
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