This is the Analysis of Case Study over General Electric.

1. Case Analysis over General Electric after GE Capital
General Electric

2. 2
-Larry Culp-
Chief Executive Officer
 The GE conglomerate consists of eight subsidiaries in different industries
 GE Aviation, GE Capital, GE Global Research, GE Healthcare, GE Home & Business Solutions, GE Oil & Gas, GE Power & Water,
and GE Transportation
 Culp is the first outsider to helm GE in its more than 120 years of operation

3. 3
Periods of The Leaders Throughout General Electric History
Timeline of General Electric
Charles Coffin
 48 years old
 Businessman
 1892 – 1922(30 years)
 The line of eletrical products
 The 1st industrial reseach laboratory
 35 millions -> 184 millions
Owen D. Young
 48 years old
 Advocate
 1922 – 1939(17 years)
 The base of GE Capital
 Focused on consumer appliances
 Created more demand for electricity
 184 millions -> 396 millions
Phillip D. Reed
 31 years old
 Engineer
 1940 – 1958(18 years)
 Importance of war effort
 Expertise in stream turbines
 Production of aviation turbo supercharges
 396 millions > 4 billions

4. 4
Ralph J. Cordiner
 58 years old
 Salesman
 1958 – 1963(5 years)
 The 2nd largest defense contractor in nation
 Invested in atomic research and computers
 Strategy: Consumer products, aerospace and
defense, capital goods, industrial products.
 4 billions -> 4.8 billions
Fred J. Borch
 53 years old
 Auditor
 1963 – 1972(5 years)
 Focused on commercial jet engine
development in addion to nuclear power
and computer
 5 billions -> 10 billions
John F. Welch
 46 years old
 Engineer
 1981 – 2001(20 years)
 Fix, Close or Sell
 Sold 117 businesses in the first 4 years.
 Agressive downsizing(selling and firing) for
productivity.
 993 acqusitions.
 14 billions -> 410 billions
Reginald H. Jones
 55 years old
 Auditor
 1972 – 1981(19 years)
 Focused on materials, natural resources,
services, transportation
 10 billions - > 14 billions
Timeline of General Electric

5. 5
If the rate of CHANGE on the outside exceeds the
rate of change on the inside, the end is near.
”
“
John F. Welch
Former CEO – Generel Electric

6. 6
GE’s External Environment
Strategic
Immelt became CEO four days before the september 11 terrorist
attack followed by several disasters: Enron, Hurricane Katrina,
Fukushima, the global financal crisis.
The financial crisis had the greatest impact on GE. GE had cut its
dividend for the first time since the great depression, and it would
lose its AAA credit rating three days later. For the second time in its
corporate history, GE’s existence was threatened by its vast financial
holdings. It is about the environment, not the immelt.

7. 7
Immelt decided that GE needed to focus on its industrial roots
and he drove this change in four distinct ways:
 Divesting non core businesses
 Acquiring industrial companies
 Prioritizing globalization
 Increasing spending on R&D
Strategic
Immelt as a Strategic Leader

8. 8
Strategic
Factors John F. Welch Jeffrey Immelt
Portfolio
Real time planning
Cash Generator
Long Term Strategy
Growth Engine
Responsibility Within the law Social responsibility
External Conditions
Domestic competition
Recession
High unemployment
Economic global slowdown
Terrorist attack
Global competition
Organizational
Structures
He removed the sectors layer. He made 11 business units into 6.
Paradigm
Imposing leadership
Strong business and downsizing
More people-oriented paternal
Growth engine for the future
Methodology
Fix, Close or Sell
6 Sigma: Session C – Management appraisal,
development, planing reviews
Risk Taking, innovation
External growth, marketing, more openness
and trust
Target Market European Union, USA Developing countries
John F. Welch vs. Jeffrey Immelt

9. SWOT Analysis
A look at our internal and external strengths and weaknesses
 Global strength and recognition
 Excellent management
 Diverse product range
STRENGTHS
 Conglomerate
 Company size / acqusition restriction
WEAKNESSES
 Green technology
 Divesting consumer and industrial business
 Geographing growth
OPPORTUNITIES
 Technology disaster
 Exposure to global economy
 Competition
THREATS
Positive Negative
Internal
External
Strengths
S
Weaknesses
W
Threats
T
Opportunities
O

10. 10
GE should invest in power and water field.
 Power generation products, Power
generation services, Nuclear Energy,
Renewable Energy, Distributed Power,
Water & Process Technologies.
Strategic
Where to invest?

11. Case Analysis over General Electric after GE Capital
General Electric
Thank you…