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