How Does Welch Face The President Of The United States Economy? How Effectively Did He Take Charge?

1843 WordsJun 14, 20158 Pages
1. How difficult a challenge did Welch face in 1981? How effectively did he take charge? Even though Welch’s overall performance during his GE years was outstanding, his start was a little rocky. When Welch became CEO, in 1981, he came in with a strong message “be better than the best.” He faced the challenge that his predecessor was a very credible CEO, so any new strategy presented to the company, by the new and young CEO, was going to be received with certain skepticism. For a while, Welch could not articulate an overall strategy for the corporation. It wasn’t until 1983, that he was able to wrap up in a sentence his vision of what the company should become. Once he got there, Welch’s message was strong and clear “Become #1,…show more content…
The labs were small and intimate, and a charged, excited atmosphere encouraged achievement. On the other hand, he also felt underpaid and thought of GE as victim of bloated bureaucracy. Those two thoughts would stay with Welch, and became fundamental in his vision to what GE should become. So, when Welch took over in parallel to all the portfolio external changes, a de-staffing process started to take place internally. Fifty percent of the employees were let go in his effort to make the company stronger, faster and better. He wanted to keep people who were more focused on removing obstacles for the employees on the line, rather than pointing at the mistakes that were being made. Welch wanted an atmosphere that encouraged achievement and tried to keep the same level of enthusiasm throughout his career. 2. What is Welch’s objective in the series of initiatives he launched in the late 1980’s and early 1990’s? What is he trying to achieve in the round of changes he put in motion in that period? Is there a logic or rationale supporting the change process? Prior to Welch taking over the position as the CEO, General Electric’s organizational structure was a little out of hands even for his predecessor. There were too many layers of sectors transmitting information to the CEO. Welch came with a new strategic planning idea in mind. Restructuring was one of his early priorities. Shortly after, Welch became the new face of the company;
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