General Electric's ( Ge ) Ceo

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1. Jeff Immelt, General Electric’s (GE) CEO as of September 7th 2001, has made tremendous improvements to the organizations strategy in terms of the firm-strategy interface and the environment-strategy interface. The foundation had been set by the “near legendary CEO” Jack Welch, his predecessor who had been the CEO for 20 years and built GE into a “highly disciplined, extremely efficient machine that delivered consistent growth in sales and earnings—not only through effective operations management that resulted in organic growth (much of it productivity-driven) of 5% annually, but also through a continuous stream of timely acquisitions and clever deal making”. Unfortunately, Immelt was faced with numerous difficulties as problem after…show more content…
Although Welch’s strategy was successful during his time as CEO, Immelt became conscious of how impossible it would be to continue to provide that level of performance by merely continuing upon the same strategy. Therefore Immelt decided that a change to the firm’s strategy would be necessary for the continual growth of GE. b. Immelt disagreed with applying the term conglomerate as he preferred to view it as a “well integrated, diversified company” that had outstanding financial disciplines, practiced sharing top talent, and possessed unyielding integrity. Having committed to the assets, resources and capabilities currently at his disposal, he shared his vision of moving into the market of “big, fundamental high-technology infrastructure industries” where he believed GE would have a competitive advantage due to its size, and the fact that it could dominate that market because of the high barriers to entry that would be involved. c. Immelt believed that despite the need for a shift in strategy, he would build upon the firm’s core elements that have resulted in such a strong success such as the “portfolio of strong businesses, bound through a set of companywide strategic initiatives and managed by great people in a culture that was performance driven and adaptive.” Immelt understood the importance of this key constituent as it provided the competitive advantage that is difficult
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