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    Case Teaching Note - General Electric

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    khang gaming
    1. This case examines General Electric's history from the 1960s to the present, focusing on the tenures of CEOs Jack Welch and Jeff Immelt. Welch greatly improved GE's performance over 20 years, while Immelt struggled to match Welch's success. 2. Under current CEO John Flannery, GE faces challenges dealing with the excesses of the Immelt era and reviving the company's fortunes. 3. Key lessons include how to effectively manage a diversified conglomerate through organizational structure, incentives, and leadership changes during different phases of the company.

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    Case Teaching Note - General Electric

    Uploaded by

    khang gaming
    32 views2 pages
    1. This case examines General Electric's history from the 1960s to the present, focusing on the tenures of CEOs Jack Welch and Jeff Immelt. Welch greatly improved GE's performance over 20 years, while Immelt struggled to match Welch's success. 2. Under current CEO John Flannery, GE faces challenges dealing with the excesses of the Immelt era and reviving the company's fortunes. 3. Key lessons include how to effectively manage a diversified conglomerate through organizational structure, incentives, and leadership changes during different phases of the company.

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    General Electric_GR

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    1. This case examines General Electric's history from the 1960s to the present, focusing on the tenures of CEOs Jack Welch and Jeff Immelt. Welch greatly improved GE's performance over 20 years, while Immelt struggled to match Welch's success. 2. Under current CEO John Flannery, GE faces challenges dealing with the excesses of the Immelt era and reviving the company's fortunes. 3. Key lessons include how to effectively manage a diversified conglomerate through organizational structure, incentives, and leadership changes during different phases of the company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views2 pages

    Case Teaching Note - General Electric

    Uploaded by

    khang gaming
    1. This case examines General Electric's history from the 1960s to the present, focusing on the tenures of CEOs Jack Welch and Jeff Immelt. Welch greatly improved GE's performance over 20 years, while Immelt struggled to match Welch's success. 2. Under current CEO John Flannery, GE faces challenges dealing with the excesses of the Immelt era and reviving the company's fortunes. 3. Key lessons include how to effectively manage a diversified conglomerate through organizational structure, incentives, and leadership changes during different phases of the company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Case Teaching Note – General Electric

    Case Synopsis

    This case looks at the history of General Electric since the 1960s, with particular focus on the
    tenure of CEOs Jack Welsh (1981-2001) and Jeffery Immelt (2001-2017), and the company’s
    struggles in the post Immelt era. The case opens by detailing the main strategic challenges faced
    by this large diversified enterprise in the pre-Welch era. Next, the case explores how Welch
    articulated a strategy, restructured GE, and drove performance accountability and productivity
    improvement programs throughout the company over his twenty-year tenure. Welch was
    followed by Immelt, his hand-picked successor, who struggled to match his mentor’s
    performance. The case documents how Immelt tried to move on from the Welch era while
    matching Welch’s performance record. As described in the case, he ultimately failed to do this,
    leaving GE in a worse state than he found it. The case closes with a discussion of the steps taken
    by Immelt’s immediate successor, John Flannery, to try and deal with the excesses and errors of
    the Immelt era (and perhaps the Welch era too).

    Learning Objectives

    The learning objectives from the text that this case addresses include the following:

    Differentiate between multibusiness models based on related and unrelated


    diversification
    Explain the five primary ways in which diversification can increase company profitability
    Discuss the conditions that lead managers to pursue related diversification versus
    unrelated diversification, and explain why some companies pursue both strategies
    Describe the three methods companies use to enter new industries—internal new
    venturing, acquisitions, and joint ventures—and discuss the advantages and
    disadvantages associated with each method
    Explain the concept of organizational architecture
    Articulate how strategy is implemented through the right combination of organizational
    structure, controls, incentives, process, culture, and people
    Discuss how effective organizational design enables a company to implement its
    business-level strategy
    Discuss how effective organization design enables a company to implement its corporate-
    level strategy

    Strategic Issues and Suggested Discussion Questions

    1. What problems was General Electric struggling with during the 1960s and 1970s?

    Under Ralph Cordiner


    How did Reg Jones try to fix these problems?
    2

    2. How did Jack Welch move to fix the problems that Jones was dealing with?

    Welch’s Initial Moves 1981-88

    Second Act 1988-2001 – Boosting Performance

    Major Strategic Initiatives 1988-2001

    3. What is your assessment of Welch’s tenure?

    4. What was Immelt trying to achieve at GE? What is your assessment of his tenure? What
    were the positive aspects? What didn’t work and why?
    5. What are the challenges now confronting Flannery? What should he do?

    6. What does the GE case teach you about how to create value through corporate
    diversification?

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