General Motors Reaction paper

General Electric is world biggest companies in the engineering solution for technical
products. General Electric is very well known for creating reliable products and providing
Engineering solutions at a better cost.
General Electric has a very wide span of product Range. It starts from aviation to the
consumer electronics, motors, finance, energy generation, healthcare, lighting, software as
well as oil extraction. All of these are a part of the diverse portfolio.
James Immelt decided to focus GE’s focus on its industrial roots and led this change in four
different ways : divesting (R&D) non-core companies, acquiring industrial firms, prioritizing
globalization and increasing spending on research and development. Immelt sold 65% of the
company he had inhertited from Welch to obtain an Org Chart and he has been working to
enhance GE’s industrial capabilities through a series of targeted acquisitions.
James began the largest acquisition on April 30, 2014, with a 13.5$ billion bid for the energy
business of France’s Alstom. Negotiations with the French government led to General
Electric’s acquisition of gas turbines and the international steam turbine business, but formed
joint-ventures with Alstom and the French government in grid, nuclear and renewable energy
business units. Therefore, this is considered one of the regional developments that immelt
undertook. This regional expansion created the emergence of manifestations of GE’s
globalization strategy and it is one of the most important changes and factors that affected
GE.

There are two sorts of diversification strategy. One is operational, while the other is corporate.
GE's current level of diversity is represented by this corporate strategy. When multiple
businesses share their resources and operations to manufacture more items, the operational
strategy is realized. This is not commonly used at GE. And the corporate strategy is realized
when certain of the firm's companies effectively convert corporate level core competencies.
The best illustration of this strategy is GE, whose economy is produced by their core
capabilities. As a result of their innovation, technology, and service sector, they may penetrate
any consumer services and appliances market.

GE has become more diversified, although their products cover most of the markets, they all
rely on these core values. When they deal with new products, they make sure that the
producer can apply GE technology and their management expertise to accelerate the
company’s growth.

GE has been moving to this direction because all GE companies share one important trait,
they each harness the power of imagination to make life better for our customers and
consumers around the world

Mr. Immelt was a disciplined, adaptable, creative, and innovative strategic leader whose
objective was to make GE one of the most technology-dependent industrial businesses in
order to develop and provide more productivity for customers and employees. He saw that the
world was changing and that the company's sustainability relied on either anticipating change
or being at the forefront of those who deal with it. In order to commit to transformation, he
goes all-in.

Both Jack Welch and Jeff Immelt have been CEOs of GE for a long time. To evaluate the
evolution of GE's approach, we must take into account the several aspects that influenced
them:
 Welch was a junior engineer in his early years, whereas Immelt got an MBA from
Harvard University.

 Welch's era was radically different from Immelt's, the period of Welch was lack of
turbulence, and Welch was a guy who could adjust to the development and progress
witnessed in his region. Immelt's life was filled with fights, crises, and worldwide
economic bubbles.

 The Welch plan advocated for cost reductions through labor rationalization and quality
management. The Immelt strategy sought to return GE to its industrial origins by
divesting non-core businesses, purchasing industrial enterprises, prioritizing
globalization, and boosting R&D investment.

One of the primary roles of CEOs is to determine the best areas for their cash to be invested.
One of the most important characteristics that a CEO should have is the ability to make
capital deployment decisions. Immelt, who succeeded Welch, made the wrong moves at the
wrong moment. His decision to invest in the wrong locations finally led to the demise of the
well-known company. Immelt made terrible merger and acquisition selections. Immelt made a
significant choice to acquire Alstom's power division, which cost GE around $9 millions
dollars. Alstom manufactures coal-fired turbines, which are mostly utilized in power plants.
Since solar was becoming more popular, there was little need for coal-fueled turbines.
Because this was GE's largest-ever purchase, there was a severe liquidity issue because the
firm did not produce profits. Immelt might have made investments in solar and other
renewable energy firms.
Furthermore, during Immelt's tenure, GE overpaid for many of its oil and gas holdings,
requiring the business to combine with Baker Hughes, which is the leading provider of
equipment and accommodates its oil drilling services. This transaction was a flop because the
business overpaid for several of its oil and gas properties. The merger did not go as planned.
Because industrial mergers result in losses, Immelt might have invested GE cash in retailing
and consumer goods.