GE has a long history and operates in many industries globally. It uses a multi-divisional structure to manage its diverse businesses. Over time, GE's culture and values have shifted from an earlier focus on competition and individual performance under Jack Welch, to emphasizing local decision making, global expansion, and spreading ideas quickly under Jeff Immelt's leadership. GE has implemented various processes like Six Sigma and Work-Out to drive innovation and improvement, and now focuses on initiatives like Ecomagination for sustainable growth through new technologies and effective use of its resources and portfolio.

1. Group 4
Bijoyini Ganguly [B13143]
Roopan Roy [B13168]
Saiyam Sanghvi [B13169]
Santanu Mallick [B13170]
Suhas Kini [B13175]
GENERAL ELECTRIC

2. GE Timeline

3. GE: MultiDivisional Structure
3

4. Advantages
 Increased control
 Profitable growth
 Internal labor market
GE: MultiDivisional Structure
Disadvantages
 Managing corporate-
divisional relationship
 Coordination Problems
between Divisions
 Transfer Pricing
 Bureaucratic Costs
 Communication
Problems

5. GE: Tall or Flat ?

6. GE Values
• Six Sigma
• Design for Six Sigma (DFSS)
• Lean manufacturing
• Work-Out (WO)
• Change Acceleration Process (CAP)
• Quality Management System (QMS)
The GE Advantage

7. Creating Value

8. GE
Customers Distributors
UnionsGovernment
Suppliers Competitors
Demographic and
Cultural Forces
International Forces Political Forces
Environmental Forces Economic Forces Technological Forces
GE: Interactions with Environment

9. GE: Workout

10. GE: Strategy for Growth

11. GE: Focus
Pay: By taking the focus off profits,
instead refocusing on new Ideas to drive
innovation, improvement and growth
Risk: investing in the future, by
implanting Ecomagination projects for
sustained growth by innovation
Experts: bring in project specific
knowledge from experts in the domain
Portfolio: effective utilization of
established capacity and mix for gaining
greater leverage and closer fit.

12. GE: ECOMAGINATION

13. GE: Beyond Welch

14. GE Culture
GE's culture is very, very American. GE is more American than most US-based
companies.
Some key aspects of this are:
 individual effort is much more important than group or collective efforts
 rebels are heroes (Jack Welch was an effective rebel against most of GE's
official management practices throughout his career before he became CEO)
 going around the hierarchy is encouraged (this is the hidden purpose of work-
out, not team-based participation and improvement)
 competition is king, internally and externally
 loyalty is determined by performance
 poor performers loose face publicly
 communications are direct and confrontational
 leadership comes from individuals, not groups or teams
GE is highly admired and features in all lists of the world's most admired
corporations.

15.  There’s a subtle difference in the way Immelt is steering GE’s culture
from the way Welch did. While they are both passionate about
“spreading ideas quickly,” Immelt is pushing decisions without
second thought about expansion.
 When Immelt took over, two thirds of GE’s revenue was in the U.S.
Now, the majority of it is outside the U.S. He’s moving his senior
leaders out into the field, like Vice Chairman John Rice in Hong
Kong.
 Immelt wants a culture of local decision making fueled by senior
leaders in place locally with the knowledge and skills to make the
right decisions.
Relevance of Culture in Long Term Strategy

16. GE: Shift in Culture

17. GE: Shift in values
• Number one, number
two.
• Correct, close down or
sell out.
• Speed, simplicity and
self-confidence.
• Being unlimited
• Finding solutions
• Exaggerating
• Quality
• Service
With Welch Post Welch

18. GE:Growth
Fast paced innovation
and patent protection
Controlled Explosive
growth: Welch
Decentalized to 12
divisions
Business Integration

19. The GE way

20. Public Hangings at GE- The GE way?
“Public hangings are teaching moments. Every company has to do it. A
teaching moment is worth a thousand CEO speeches. CEOs can talk and
blab each day about culture, but the employees all know who the jerks
are. They could name the jerks for you. It’s just cultural. People just don’t
want to do it.”- Jack Welch

21. GE: Managing Conflict