Jack Welch

1064 Words Apr 17th, 2011 5 Pages
1 How difficult a challenge did Welch face in 1981. How effectively did he take charge?

Welch encountered a very difficult situation in 1981; the economy was in a recession, almost one of the worst recessions any organization has witnessed since the Great Depression of 1929. The strong dollar was losing value and the unemployment rate was at an all time high. Interest rates were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational and transactional leader who displayed an aggressive competitive style of leadership. He did not let the recession deter him from maintaining a competitive advantage over the competition. His philosophy was to ensure that GE was either #1 or #2
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How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welch 's various initiatives added value? If so, how?

A cardinal rule of any CEO is to "refrain from fear" of taking risks. From the moment Welch took control of the company his strategy for change implementation was a risk, GE 's method of downsizing over 100,000 employees could have endured significant ramifications during a recessionary period, however, in the midst of a very difficult time he maintained his focus to change, resulting in a successful turnaround. Not only was Welch determined to move forward with his change initiative, he also understood the importance of developing a work staff to be the best they can be. He took pride in restructuring and reformulating an adequate staff that adheres to meeting the same objective as GE 's new leader. An organization in general will drastically increase revenue if the organization values and appreciates their staff members like Welch demonstrated through his competitive leadership style. GE has ventured into new opportunities, enhanced their global markets and expanded the realm of their service industry thus adding value of a 60% increase.

4. What is your evaluation of Welch 's approach to leading change? How important was he to GE 's success? What are the implications for his replacement?

In my opinion, Welch was a prominent

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