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  • GE's Case Notes

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    GE transformed significantly over the 20th century from focusing on electric power generation to becoming a diversified industrial giant. In the 1980s and 1990s, Jack Welch led a major restructuring through acquiring over 370 companies, selling over 200 businesses, and instituting a strategy of being #1 or #2 in all market segments or exiting. Welch emphasized speed, simplicity and self-confidence in GE's culture. By 1985, under Welch's leadership, revenues grew to $29.2 billion and operating profits doubled to $2.4 billion from 1981 through aggressive restructuring.

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    GE's Case notes

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    GE's Case notes

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    GE transformed significantly over the 20th century from focusing on electric power generation to becoming a diversified industrial giant. In the 1980s and 1990s, Jack Welch led a major restructuring through acquiring over 370 companies, selling over 200 businesses, and instituting a strategy of being #1 or #2 in all market segments or exiting. Welch emphasized speed, simplicity and self-confidence in GE's culture. By 1985, under Welch's leadership, revenues grew to $29.2 billion and operating profits doubled to $2.4 billion from 1981 through aggressive restructuring.

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    43 views1 page

    GE's Case Notes

    Uploaded by

    PratikJain
    GE transformed significantly over the 20th century from focusing on electric power generation to becoming a diversified industrial giant. In the 1980s and 1990s, Jack Welch led a major restructuring through acquiring over 370 companies, selling over 200 businesses, and instituting a strategy of being #1 or #2 in all market segments or exiting. Welch emphasized speed, simplicity and self-confidence in GE's culture. By 1985, under Welch's leadership, revenues grew to $29.2 billion and operating profits doubled to $2.4 billion from 1981 through aggressive restructuring.

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    Submitted by: Nishant Singh (E058)

    GEs Two Decase of Transformation: Jack Welch

    Founded in 1878 by Thomas Edison


    First focus: Generation, distribution and use of electric power.
    Century later: One of the worlds leading divesified industrial companies

    Year
    Structure
    1930
    Highly Centralized
    1950
    Greater Decentralization
    Profit less growth in 1960 lead to having strategic planning systems

    Reg Jones (1973-1980)

    43 Strategic units to support strategic planning


    GE was benchmarked for other companies
    Unable to review and approve massive volume of information generated by 43 SBUs
    Formed a covering on GEs departments, divisions, groups and SBUs with SECTORS
    Countrys leading business statesmen, Handed over the reins to Jack Welch.

    Jack Welch (1981-2001)

    Economy has lot of problems when he joined


    He challanged to be better than the best
    Set in motion series of changes to restructure the company over the next five years
    #1 or #2: Fix, Sell or Close. Three pillars: Service, Technology and Core
    Sold over 200 business and acquired over 370.
    Replaced strategic planning system with real time planning
    Budgeting process was redefined
    Insisted on making GE more Lean and Agile by Delayering, Downsizing and Divestitutre

    Year
    Revenues
    Operating Profit
    1981
    $27.2 Billion
    $ 1.6 Billion
    1985
    $29.2 Billion
    $ 2.4 Billion
    Drastic restructuring earned Welch nickname Neutron Jack
    Second Stage rocket: Focus on software
    Priorities shifting to Culture: Speed, Simplicity and Self Confidence

    Work out and Best Practices

    Bureaucracy out. Forums formed for open dicussions


    Competetive intelligence:Best practices of Ford, HP, Xerox, Toshiba
    Going Global
    Problem=Opportunity
    Developing leaders
    Crotonville Management development facility
    Boundryless company(Third Wave of change)
    Stretch: Achieve the impossible
    Focus on Service business
    All A players with 4 Es
    Closing out the decade with Six Sigma quality initiative

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