Address: General Electric Company

Internet Registrations
3135 Easton Turnpike
Fairfield, CT 06828-0001
USA
FT153009 RANJITH RAMAN
FT153020 MINNA MARIA THOMAS
FT153037 NIPUN SAHRAWAT
FT153058 APOORV MOHAN
FT153079 SOUVIK DEY
FT153098 VISHAL GUPTA
Founded in 1878 by Thomas Edison.
Focus on Generation , Distribution, and use of electric
power to become.
1978 Power Generation , household appliances,
lighting + Aircraft engines, medical systems and Diesel
Locomotives.
1930
centralized
1950
Decentralization
1960
strengthen its
corporate staff
and develop
sophisticated
planning
systems
GE a Bellwether of American Management Practices
Strategy-SBU based structure and planning processes
10 groups, 46 divisions, 190 departments, and 43 strategic business units
Develop a constructive business-government dialogue
Wall Street Journal proclaimed him as a management legend
Success
Sales more than doubled ($10 billion to $22 billion) and earnings grew even
faster ($572 million to $1.4 billion)
A major thrust into international markets
Expansion of world trade and restoration of U.S. competitiveness




1935: born in Salem, Massachusetts
1957: BS in Chemical Engineering
1960: MS and PhD in Chemical Engineering
1960: Joined GE as a chemical engineer
1972: Elected GEs youngest VP
1979: Vice Chairman
April 1, 1981: Became the 8
th
Chairman and CEO
of General Electric

Challenge form outside GE
Economic recession
High interest rates
Highest unemployment rate since the depression

Challenges from GE
Massive information and inefficient macro-business

A decade from now, I would
like General Electric to be
perceived as a Unique, high-
spirited, Entrepreneurial
enterprisethe most profitable,
highly diversified company on
the earth, with world quality
leadership in every one of its
product lines. -- Jack Welch
Services


GECC Information
Construction &
Engineering
Nuclear Services
Technology

Industrial
Electronics
Medical Systems
Material
Aerospace
Aircraft Engines
Core

Lighting
Major Appliance
Motor
Transportation
Turbine
Construction
Equipment
Support
Ladd Petroleum
Semi Conductor
GE Trading Co.
Utah Mining

Ventures
Calma
Outside
Housewares
Central Air-Conditioning
TV&Audio
Cable
Mobile
Power Delivery
Radio Stations
Three-Circle Vision for GE
Challenged everyone to be better than the best
Sold more than 200 businesses and made over 370
acquisitions
Insisted GE become more lean and agile resulting
Delayering: elimination of the sector level
Downsizing: elimination of about 123,450 jobs
Divestiture: elimination of an additional 122,700 jobs
Replaced 12 of his 14 business heads

Work Out
Best
Practices
Going
Global
Developing
Leaders
Second Wave
Software
Iniatives
Boundaryless
Behavior
Service
Businesses
Six Sigma E-Business
Third Wave


A process designed to get unnecessary bureaucratic
work out of the system while providing a forum in
which employees and their bosses could work out new
ways of dealing with each other.
How to increase Productivity ?


Michael Fraizer of GEs Business Development

They focused more on developing effective processes than controlling
individual activities.
Customer satisfaction was their main gauge of performance.
They treated their supplier as partners
They emphasized the need for a constant stream of high quality new
products designed for efficient manufacturing
1989 appointed Paulo Fresco as head international
Operations.


a key negotiator on the thompson swap
Continued to broker numerous international deals
a joint venture with German-based Robert Bosch
a Partnership with Toshiba
Acquisition of Sovac , the French Consumer credit Company
Loyal Creative Strong People
Professional
Self-
Confidence
Passion for
Excellent
Aggressive
Capacity to
develop
global brain
Change
To strengthening GEs Individual Businesses
Integrated Diversity
Boundaryless Company
The Boundaryless
company we envision
will remove the barriers
among engineering,
manufacturing,
marketing, sales, and
customer service; it will
recognize no distinctions
between domestic and
foreign operation ..
1990 , Welch Introduced the notion of stretch to set
performance targets and described it as using dreams
to set business targets, with no real idea of how to get
there.
Stretch Targets did not replace traditional forecasting
and objectives-setting process.

In 1994, Welch launched a new strategic initiative
designed to reinforce one of his earliest goals: to
reduce GEs dependence on its traditional industrial
products.
1
85%
2
15%
1980
1
55%
2
45%
1990
1
45%
2
55%
1995
1
33%
2
67%
1998
Products Services
Issue
When a 1995 Company Survey showed that GE
employees were dissatisfied with the quality of its
products and processes.
Six Sigma (Motorola Inc and AlliedSignal)
Improve Quality
Lower Cost
Increase Productivity
1996 Boca Raton- Welch announced a goal of
reaching Six Sigma quality levels company wide by
the year 2000, describing the program as the biggest
opportunity for growth, increased profitability , and
individual employee satisfaction in the history of our
company.

G
r
e
e
n

B
e
l
t
s

4 weeks training
5 Months
implementation
B
l
a
c
k

B
e
l
t
s

6 weeks of
instruction in
statistic , data
analysis and
other six sigma
tools
M
a
s
t
e
r

B
l
a
c
k

B
e
l
t
s

Full time six
sigma
instructors
mentored the
Black Belt
candidates
through the two
years process
destoryyourbusiness.com (www.dyb.com)
A Players
Individuals with vision , leadership, energy and courage
4 Es
Energy ,
Ability to Energize others ,
Edge , the ability to make tough calls
Execution , the consistent ability to turn vision into
results.
GEs
Restructuring
First
Wave
Cultural
Changes
Second
Wave
Boundaryless
ness
Third
Wave
Work Out
Best Practices
#1 or #2 fix, sell, or
close
1981 1988
1990