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Welch vs. immelt


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Welch vs. immelt

  1. 1. Jeffrey ImmeltThe growth story of the GE empire under the two emperors ---Presented by GROUP 1 : Seunghyuk Choi Cesar Bravo De Rueda Sandoval Tanay Agarwal Narisa Luanporn Anudeep Paduru Paloma Aguirre munoz
  2. 2. Junior engineer in Pittsfiel, Mass Reason Bureaucracy, 1961: About to quit Felt underappreciated Dinner with Reuben Gutoff Decides to continue at GELater he became Vice President ofGE in 1972  Senior Vice 1981: Became CEOPresident in 1977  ViceChairman in 1979
  3. 3. M.B.A. from Harvard Business School 1982: Joined GE His father managed General Electric Aircraft Engines Vice president of GE home Division applianceVP of GE international marketing and manufacturing President of GE medicals 2001: Became CEO
  4. 4. JACK WELCH JEFFREY IMMELT Imposing leadership More people-oriented Efficiency: paternal-like personality - Strong business and PARADIGM Effectiveness-oriented: down-sizing - Growth engines for the - Top 2 positions or “fix, future sell or close” Risk-taking , sophisticated marketing and innovation Cost cutting, efficiency and Growth: dealmaking -external growth Six Sigma: - marketing -quality and cost -Commercial council- 12METHODOLOGY - Session C- management member board(from appraisal, development, different departments) in planning reviews marketing- ideas discussed -Wanted generalists -Removing the rotation and made specialists -More openness and trust European UnionTARGET MARKET Developing countries USA
  5. 5. JACK WELCH JEFFREY IMMELT “real time planning” Long-term strategy Cash generator: Growth engine: PORTFOLIO - Finance -Infrastructure(focus on - Services green energy) RESPONSIBILITY Within the law Social responsability - Domestic competition - Economic global - Recession and High slowdown interest rates, strong - Recent terrorist attacksEXTERNAL CONDITIONS dollar (September 11, 2001) - High unemployment - Increased to global competition ORGANIZATIONAL He removed the “sectors” He made the 11 business STRUCTURE layer units into 6 in 2005.
  6. 6.  Under his tenure, GE’s market cap grew  $18 billion to $500 billion Shareholders received 23% per annum return during his tenure. Promote-from-within strategy Work-Out  Boundarylessness  Best Practices Stretch Last strategic initiative: E-business
  7. 7.  "Imagination Breakthrough" proposals per year  receive billions in funding.  each one has to give GE incremental growth of at least $100 million. Welcoming outsiders into the highest ranks More investment in R & D. Tying executives compensation to their ability  to come up with ideas  show improved customer service  generate cash growth  boost sales instead of simply meeting bottom-line targets.
  8. 8.  Welch made the brand stronger in the United states. Entry into Europe, Asia in difficult conditions Immelt- : Revenues from emerging markets like China, India, Turkey, East ern Europe, Russia and south America  Create or expand research centers in New York, China, Germany, In dia, Brazil
  9. 9.  The success of both the CEOs are different-  Expansion wise  Stock price wise
  10. 10. Thank you for your attention