GE’s Imagination Breakthrough: The Evo Project

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GENERAL ELECTRIC (GE) IMAGINATION BREAKTHROUGH: THE EVO PROJECT PRESENTATION

1. Where would you place GE on an organisation life-cycle chart as Immelt became CEO?
2. In broad term, what were Immelt’s goals?
3. How did GE’s organisational structure have to make as a result of its shift in strategic focus?
4. What risk is GE running as a result of this change in emphasis?
5. What should Transportation recommend and why?

Published in: Business, Technology

GE’s Imagination Breakthrough: The Evo Project

  1. 1. Imagination Breakthroughs : The Evo Project<br />Imagination at Work<br />
  2. 2. Overview<br />GE’s Organisational Life-Cycle<br />What were Immelt’s Goals?<br />GE’s Organisation Structure Change<br />The Strategies and Trade-Offs<br />The Risks as a Result of the Changes<br />Transportation Recommendations<br />
  3. 3. General Electric Co (GE:NYQ)<br />Formalisation<br />Revitalisation<br />Elaboration<br />Source: Financial Times Online, Market Analysis Tool<br />
  4. 4. GE’s Organisational Life-cycle (OLC)<br />Jeffery Immelt<br />Jack Welch<br />2000<br />2007<br />1994<br />(Elaboration) Acquisitions<br />(Revitalisation)Imagination <br />Breakthrough<br />1981 <br />2002<br />
  5. 5. What were Immelt’s Goals?<br />Organic Growth<br />Imagination Breakthrough<br />Encouraging Innovation<br />Risk Taking (Entrepreneurial Approach) <br />Ecomagination: <br />Cleaner technologies<br />Reduction in emissions (Regulations)<br />Alternative energy (Hybrid Dual-Fuel: Diesel + Electric)<br />Development of Infrastructure:<br />Emerging markets (i.e. China, India, Africa, Russia)<br />Increasing Marketers and Engineers<br />Modernisation (i.e. Modularisation of components)<br />Deliver Shareholder Value<br />
  6. 6. GE’s Organisation Structure Change<br />Transportation Marketing:<br />Commercial & Engineering put into Marketing Roles<br />Globalisation of Production Plants (i.e. Kazakhstan)<br />A further 3 groups introduced for:<br />Growth Initiatives/ New Business <br />Product Marketing<br />Marketing Strategy (7 Country Regions)<br />Immelt Setup a Commercial Council:<br />Made up of 20 commercial leaders<br />Drive & Monitor changes<br />
  7. 7. The Strategies and Trade-Offs<br />
  8. 8. The Risks as a Result of the Changes<br />Pressure of delivering increased EPS to share holders<br />23% growth (1981 to 2000 )<br />7% growth (2001 to 2009)<br />Product Management & Sales team under pressure<br />SEC filing of “Inappropriate Accounting” – (Aug 2009)<br />Increased costs for IB projects<br />$100 million USD<br />Divestment of assets to cover losses:<br />Sale of Home Appliances (nytimes, May 2008)<br />NBC Universal to Comcast (timesonline.co.uk, Nov 2009)<br />
  9. 9. Transportation Recommendations<br />Commitment to “Ecomagination” project:<br />Hydrogen Fuel Cells<br />Solar Power & Batteries <br />Reducing GHG Emissions (G8 & G20 Summit ‘09)<br />Additional investment in R&D<br />Lobby the government to provide incentives for using the technology<br />Marketing needs to deliver more education<br />Licensing the technology to other businesses<br />
  10. 10. End of Presentation<br />

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