Founded in 1878 by Thomas Alva Edison Merger in 1892 The Edison General Electric Company The Thomson-Houston Company One of the 12 stocks that made up the first DJIA index in 1896. In the list continuously since 1907,The Heritage,美国通用电气公司的战略管理模式（GE）,Todays Basics,Revenue: $125.7 B Domestic: Foreign 2:1 Net Income $13.7 B Market Capitalization: $244B Employees: 310,000 13 major businesses More than 100 countries,Compare and Contrast,The Three Families,Long-Cycle Businesses,GE,Short-Cycle Businesses,Financial Services,Long-Cycle Businesses,Long-Cycle Businesses,Aircraft Engines,Power Systems,Medical Systems,Transportation Systems,Short-Cycle Businesses,Short-Cycle Businesses,Consumer Appliances,Industrial Systems,Specialty Materials,NBC,Plastics,Financial Services,Financial Services,Commercial Finance,Consumer Finance,Equipment Management,Insurance Business,A Summary of Business Finances,The Share of the Pie,The Share of the Pie,The Era: How the Market Valued it,Compare & Contrast with Pre-Welch Era,From Following the Economy,To Setting the Pace,The Turnaround,How did they do it?,SWOT Vision Restructuring Growth Engine Sustaining Competitive advantage Dynamic Perspective,4 blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Jack Welchs vision,Be number 1 or 2 (Fix, sell or close) Welch set the standard for each business to become the #1 or #2 competitor in its industry “A decade from now, I would like General Electric to be perceived as a unique, high-spirited, entrepreneurial enterprise . . . the most profitable, highly diversified company on earth, with world quality leadership in every one of its product lines”,SWOT Vision Restructuring Growth Engine Sustaining Competitive advantage Dynamic Perspective,4 blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,SWOT Vision Restructuring Growth Engine Sustaining Competitive advantage Dynamic Perspective,4 blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,SWOT analysis in 1981,Jack Welchs vision,Be number 1 or 2 (Fix, sell or close) Welch set the standard for each business to become the #1 or #2 competitor in its industry “A decade from now, I would like General Electric to be perceived as a unique, high-spirited, entrepreneurial enterprise . . . the most profitable, highly diversified company on earth, with world quality leadership in every one of its product lines”,SWOT Vision Restructuring Growth Engine Sustaining Competitive advantage Dynamic Perspective,4 blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Business RestructuringGE-McKinsey Matrix,Question mark Appliances Specialty Materials,Winner Aircraft Engines Power Systems,Winner Medical Systems Capital,Loser Consumer Electronics,Average Business Plastics Industrial Systems,Winner Transportation,Loser Central A/C House wares Coal mining,Loser,Profit Producer Lighting,High,Medium,Low,Low,Medium,High,Market Attractiveness,Competitive Position,Reorganization of businesses,Changing composition of businesses,Business Restructuring. contd,SWOT Vision Restructuring Growth Engine Sustaining Competitive advantage Dynamic Perspective,4 blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Scientific Management,Vs,Transformational leadership,Writing Speaker Cautious Aggressive Harmony Confrontational System oriented Individual oriented Integration thru committees Thru Processes Relies on Reports On employee feedback Avoided uncertainty Accepted it Controlled change Reveled in change,Reginald Jones Jack Welch,Path-breaking Leadership of GE,Grooming a generation of leaders,Type III Got rid off quickly,Type I Star,Type II Given another chance,Type IV Asked to leave,Low,High,High,Low,Team Values,Performance,Leaders of the future,The 4 Es Energy - excited by ideas because of the opportunity brings Energize - infecting everyone with the same enthusiasm for an idea Edge - the ability to make tough decisions Execute - the ability to turn vision into results,“Work-out” was a process initiated by Jack Welch and James Baughman to address the issue of increasing productivity by changing the in-house culture to reflect that of an small firm, characterized by Speed Simplicity Self Confidence,“Work-out”,Self-Confidence,Simplicity,Speed,Organizational Restructuring - “Work-out”,Culture in 1980s Fine tuned Financial Analysis Long Strategic Deliberations Centralized Controls Multilevel Approvals,Culture in late 1980s 1990s Speed Simplicity Self Confidence,Work-out Process,