Ge's Two-Decade Transformation Case Analysis

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GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary 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? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a…show more content…
Welch has shepherded a corporate entity comprised of several diverse lines of businesses that became the ”Most respected company in the world.” according to the Financial Times. Will GE be able to sustain the success that it has realized during the past twenty years under Welch as the acting CEO once he departs? Immediate Concern A successor has to be found to replace the retiring Jack Welch, as no suitable candidate has yet been determined. This is becoming a concern for shareholders who want to realize the same returns they have been receiving under the Welch regime. The new CEO needs to be dynamic to lead this complex organization, and sustain the rate of growth realized during the Welch era. Secondary Issues Upon selecting a successor, the first issue that GE will encounter will be how to transition from Welch as the CEO to the new individual. This has to be done very carefully in order to strike a balance. The new CEO has to commence the job and have the ability to act and make decisions while being mentored by Welch so they are not “thrown to the wolves” while enabling Welch to tie up loose ends before departing. 4 GE has to minimize the disturbance when this transition occurs not only at the top, but throughout the entire organization. The firm as a whole must be able to continue to operate as if nothing has changed. GE has to examine what strategy the firm is going to follow. Will the firm’s
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