Ge Transformation

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

Achievement Motivation: Leaders have a relatively high desire for achievement. The need for achievement is an important motive among effective leaders. Leading achievers obtain satisfaction from successfully completing demanding tasks, attaining higher standards, and augment better ways of doing things. They are intrinsically motivated to achieve. For instance, Jack Welch of General Electric had high need for achievement. When he was appointed CEO of GE in 1981, US economy was in recession and high unemployment rates. He set up a plan to bring about changes that would radically restructure the company over the next five years, his first move was for each business under GE to become #1 or #2 competitor in its industry or to shut down. Eventually in times of recession, it was difficult to become #1 or #2 and they shut down many business units. Such as central air-conditioning, housewares, coal mining. GE freed up over $11 billion of capital by selling off more than 200 businesses. Meanwhile, the company made over 370 acquisitions, investing more than $21billion in major purchases as Westinghouse’s lighting business, employers reinsurance, RCA, kidder Peabody.

This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future?

Analysis - GE has likely been so successful over the years because of its ability to foresee major trends and capitalize upon them. In the 1960s, for instance, GE was one of the eight major computer companies. Even recently, since 1986, GE has continued to acquire several organizations; portions of NBC, wind manufacturing, universe pictures, aerospace industries, international firms, software and hardware manufacturing, even oil companies abroad. The company culture describes itself as not one company, but many each unit a vast and complex enterprise in and of itself, with a corporate

When one thinks of General Electric (GE) they envision a well diversified, elite, global corporation. GE employs more than 300,000 people worldwide and serves customers in 160 countries. GE 's culture is well defined by its mission, vision and values. This company has become recognized for its unparallel training and career development as well as for its significant organizational processes. These practices have enabled GE to provide the utmost quality while maintaining their aggressive commitment to leadership

Before Jack Welch stepped up into corporate office position, the world-famous corporation was on its route for imminent crisis which was barely noticed by anyone. As a result, he decided the company needed a change to combat economic and competitive challenges of the market place. With his various strategies regarding business leadership, he has led the company into salient and radical revolution of corporate restructuring, with the goal of transforming GE into a global leader for benchmarking and achieving maximized productivity and labor efficiency. His tactics for restructuring included purchases and sales of business units, moving away from bureaucratic culture and structure to one of openness and flexibility, removing unnecessary

Christopher A. Bartlett, M. W. (2005). GE 's Two-Decade Transformation: Jack Welch 's Leadership. Harvard Business Review, 1-24.

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.

GE is the ninth greatest and second most productive organization on the planet. The organization was revived by impelling fearlessness and embracing instruments like workout and Change Acceleration Process (CAP) to numerous specialty units in distinctive commercial enterprises. GE was the first corporate to methodically apply various administration ideas. Its prosperity is established in its developments of thoughts and administration ability around the gathering. The solid execution of GE is its effective corporate portfolio administration.

            In 1980 right before Welch took the position as CEO of General Electric, GE 's organizational rigid structure, resistance to change, and bureaucratic climate made it impossible to perceive important environmental changes. Furthermore, the organizational structure, decision-making process and information management procedures no longer fit the organization 's needs. In 1981 Jack Welch was not considered a leading contender for GE 's top job. However, his performance and earnings record ultimately won him the position over six other candidates. When Jack Welch took office as the new chairman and chief executive officer of General Electric, the company had entered the stage between the maturity

General Electric (GE) is a true global company with presence 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 dynamic 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.

This report talks about the successful strategies adopted by GE that was accountable for its success. It will start by answering the question the importance of studying GE recent globalization strategies and practices, and then, by giving a quick background of the company globalization process evolution. After that, the report will demonstrate a close analysis to 4 main strategies of the company. Finally a conclusion will be given based upon the current challenges and future perspective.

The management developments that GE has formulated over the past century appear to reflect the same sequential pattern that has been suggested by the management theory. GE’s first organizational innovation was the establishment of their corporate research and development lab in 1900. I believe this innovation directly germinated out of the advancements that where being made in managerial theory at the time. Frederick Taylor a pioneer of scientific management conducted studies that demonstrated that paying employees with a piecework pay system helps achieve a higher quality and quantity of output from workers, along with improved moral among the groups of workers. Soon after these studies GE in 1930 became the first U.S firm to offer pension and profit sharing plans to their workers.

In this case GE in the Jack Welch Era able to meet its primary economic responsibility to the society, as an evidence, GE able to generated high profit, Welch has managed to achieve the main goal for organizations which is profit

Welch spent more time with his HR executive than he did with his CFO. Therefore, he always found the right people for the right positions. NAME corroborated the business world’s perception of GE’s leadership cultivation practices saying, “When a company needs a CEO, it goes to General Electric, which mints business leaders the way West Point mints generals” (Get Me A CEO From GE, P1).