Welch
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- Jack Welch was appointed CEO of GE in 1981 and retired in 2001, transforming the company through his leadership. He believed in constructive conflict, annual planning meetings with business units, and "stretching" goals to drive vision. - Welch streamlined GE by eliminating layers of management, selling off non-core businesses, and acquiring other companies. He reduced the workforce from 404,000 to 221,000 between 1981-1994 but grew it to 310,000 by 2001 through foreign expansion. - Welch's management philosophy and innovations to GE's culture, like its operating system of biannual initiatives, became widely influential and made him renowned as one of the greatest managers in business history.
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General Electric’s Corporate Strategy Case Write-upIndividual .docx
General Electric’s Corporate Strategy Case Write-up
Individual Assignment
Please read the GE Case and address the following four questions:
(1) What role do culture and values play in GE’s strategy?
(2) Is GE’s corporate strategy viable for the future?
(3) Why is GE proposing to sell its light bulb and appliances divisions?
(4) What are the threats to the corporate strategy?
These questions will be the basis for a class discussion.
The Task is to create a five-page critique of the article, “When Altruism Isn’t Moral,” by Sally Satel. The critique should identify the thesis, method the author is using to support the thesis, the audience, tone, bias, manipulation, believability, and support of the thesis.
Paper Requirements
The analysis requires the additional components:
· One nameless/anonymous or web reference.
· Three APA formatted short quotes used to support the paper.
· One APA formatted figure.
· APA formatted paper including:
o Font: Times New Roman, 12 point, and double-spaced.
o Margins: One-inch margins, all around.
o Indents: One-half inch indent as to begin a paragraph.
o Proper APA citations and references.
o Proper use of Level 1 headings as to label the introduction, main body, and conclusions segments.
o Proper use of Level 2 headings as to label the sections within the main body and conclusions.
o A reference page utilizing hanging indents and alphabetized by the last name of the first author.
TB0383
Copyright © 2014 Thunderbird School of Global Management. All rights reserved. This case was prepared by Professor Andrew
C. Inkpen with research assistance from Wes Edens and Siva Palli for the purpose of classroom discussion only, and not to indicate
either effective or ineffective management.
Andrew C. Inkpen
General Electric’s Corporate Strategy
Like the premature obituary of writer Mark Twain, reports of the death of the conglomerate are often
exaggerated. Diversified companies, straddling multiple industries, or even just different parts of one
large sector, remain a dominant, if not always fashionable, feature of stock markets from the U.S.
to continental Europe and Asia. But a new backlash against conglomerates suggests that a more
lasting shift in investor preferences may be taking place—driven in part by the growing influence of
hedge funds and private equity houses. In public markets, big has rarely appeared less beautiful.1
Through the 1990s and 2000s, large diversified firms, often called conglomerates, largely fell out of favor with
investors. Arguments against conglomerates ranged from complexity in management to the difficulties that
analysts and investors had in understanding their operations. More recently, conglomerates have regained some
respect. As the largest of the U.S. diversified multinational firms, General Electric Company (GE), with over
300,000 employees, generated a variety of opinions, such as:
Increasingly restive General Electric Co. shareholders, frus ...
4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
4 Shaping and Sustaining Change
Ryan McVay/Photodisc/Thinkstock
Learning Objectives
After reading this chapter, you should be able to do the following:
1. Describe the major reasons why organizational change programs fail and succeed.
2. Evaluate how to recruit and empower employees.
3. Analyze the five pillars of successful, sustainable change.
4. Explain the characteristics of built-to-change organizations that position themselves to successfully sustain
change.
5. Examine useful principles and practices in sustaining change.
wei82650_04_c04_155-206.indd 155 12/15/15 9:44 AM
© 2015 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
Introduction
Nothing is easier than saying words. Nothing is
harder than living them day after day.
—Arthur Gordon
Pretest Questions
1. True/False: Because speed and efficiency are hallmarks of the American business
system, a short–term fix approach to organizational change is often successful.
2. True/False: Recruiting experienced individuals to a company that is planning trans-
formational change is risky because such people tend to resist change.
3. True/False: Knowledge management is a system in which organizations sustain
change by making intellectual capital available to employees so they can continu-
ously learn.
4. True/False: Built-to-change organizations prioritize temporary competitive advan-
tage over long-term stability by continuously implementing important changes.
5. True/False: A self-designed organization is one in which stakeholders choose the
direction of the company.
6. True/False: A common mistake in implementing change strategy is to reject a
“blockbuster” innovation in favor of small, unexciting changes.
In Chapter 3 we discussed three companies that underwent significant planned organizational
changes. They are summarized here to illustrate two successful overall outcomes (Ford and
AlliedSignal/Honeywell) and one unsuccessful change (Avon).
Ford
After working at Ford for 25 years, Alan Mulally retired as CEO on July 1, 2014—8 years after
leading Ford’s transformation. Chair Bill Ford said, “Alan deservedly will be long remembered for
engineering one of the most successful business turnarounds in history. Under Alan’s leadership,
Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto
companies” (as cited in Media.Ford.com, 2014, para. 4).
Mulally’s change strategy, “One Ford,” worked. In 2006 Ford lost $12.7 billion, its worst
performance ever. In 2010, however, the company had net income of $6.6 billion, its highest
profit in a decade. The stock price was $1.25 a share in 2006 when Mulally came on board;
it closed at $17.21 on the day he retired. In 2011 he was awarded stock bonuses worth
$56.5 million (Henry, 2011).
After careful research, Mulally targeted major problems at Ford as “inefficiencies in production,
bad relationships with suppliers, unrealist.
4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
4 Shaping and Sustaining Change
Ryan McVay/Photodisc/Thinkstock
Learning Objectives
After reading this chapter, you should be able to do the following:
1. Describe the major reasons why organizational change programs fail and succeed.
2. Evaluate how to recruit and empower employees.
3. Analyze the five pillars of successful, sustainable change.
4. Explain the characteristics of built-to-change organizations that position themselves to successfully sustain
change.
5. Examine useful principles and practices in sustaining change.
wei82650_04_c04_155-206.indd 155 12/15/15 9:44 AM
© 2015 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
Introduction
Nothing is easier than saying words. Nothing is
harder than living them day after day.
—Arthur Gordon
Pretest Questions
1. True/False: Because speed and efficiency are hallmarks of the American business
system, a short–term fix approach to organizational change is often successful.
2. True/False: Recruiting experienced individuals to a company that is planning trans-
formational change is risky because such people tend to resist change.
3. True/False: Knowledge management is a system in which organizations sustain
change by making intellectual capital available to employees so they can continu-
ously learn.
4. True/False: Built-to-change organizations prioritize temporary competitive advan-
tage over long-term stability by continuously implementing important changes.
5. True/False: A self-designed organization is one in which stakeholders choose the
direction of the company.
6. True/False: A common mistake in implementing change strategy is to reject a
“blockbuster” innovation in favor of small, unexciting changes.
In Chapter 3 we discussed three companies that underwent significant planned organizational
changes. They are summarized here to illustrate two successful overall outcomes (Ford and
AlliedSignal/Honeywell) and one unsuccessful change (Avon).
Ford
After working at Ford for 25 years, Alan Mulally retired as CEO on July 1, 2014—8 years after
leading Ford’s transformation. Chair Bill Ford said, “Alan deservedly will be long remembered for
engineering one of the most successful business turnarounds in history. Under Alan’s leadership,
Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto
companies” (as cited in Media.Ford.com, 2014, para. 4).
Mulally’s change strategy, “One Ford,” worked. In 2006 Ford lost $12.7 billion, its worst
performance ever. In 2010, however, the company had net income of $6.6 billion, its highest
profit in a decade. The stock price was $1.25 a share in 2006 when Mulally came on board;
it closed at $17.21 on the day he retired. In 2011 he was awarded stock bonuses worth
$56.5 million (Henry, 2011).
After careful research, Mulally targeted major problems at Ford as “inefficiencies in production,
bad relationships with suppliers, unrealist.
4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
4 Shaping and Sustaining Change
Ryan McVay/Photodisc/Thinkstock
Learning Objectives
After reading this chapter, you should be able to do the following:
1. Describe the major reasons why organizational change programs fail and succeed.
2. Evaluate how to recruit and empower employees.
3. Analyze the five pillars of successful, sustainable change.
4. Explain the characteristics of built-to-change organizations that position themselves to successfully sustain
change.
5. Examine useful principles and practices in sustaining change.
wei82650_04_c04_155-206.indd 155 12/15/15 9:44 AM
© 2015 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
Introduction
Nothing is easier than saying words. Nothing is
harder than living them day after day.
—Arthur Gordon
Pretest Questions
1. True/False: Because speed and efficiency are hallmarks of the American business
system, a short–term fix approach to organizational change is often successful.
2. True/False: Recruiting experienced individuals to a company that is planning trans-
formational change is risky because such people tend to resist change.
3. True/False: Knowledge management is a system in which organizations sustain
change by making intellectual capital available to employees so they can continu-
ously learn.
4. True/False: Built-to-change organizations prioritize temporary competitive advan-
tage over long-term stability by continuously implementing important changes.
5. True/False: A self-designed organization is one in which stakeholders choose the
direction of the company.
6. True/False: A common mistake in implementing change strategy is to reject a
“blockbuster” innovation in favor of small, unexciting changes.
In Chapter 3 we discussed three companies that underwent significant planned organizational
changes. They are summarized here to illustrate two successful overall outcomes (Ford and
AlliedSignal/Honeywell) and one unsuccessful change (Avon).
Ford
After working at Ford for 25 years, Alan Mulally retired as CEO on July 1, 2014—8 years after
leading Ford’s transformation. Chair Bill Ford said, “Alan deservedly will be long remembered for
engineering one of the most successful business turnarounds in history. Under Alan’s leadership,
Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto
companies” (as cited in Media.Ford.com, 2014, para. 4).
Mulally’s change strategy, “One Ford,” worked. In 2006 Ford lost $12.7 billion, its worst
performance ever. In 2010, however, the company had net income of $6.6 billion, its highest
profit in a decade. The stock price was $1.25 a share in 2006 when Mulally came on board;
it closed at $17.21 on the day he retired. In 2011 he was awarded stock bonuses worth
$56.5 million (Henry, 2011).
After careful research, Mulally targeted major problems at Ford as “inefficiencies in production,
bad relationships with suppliers, unrealist ...
If you read nothing else on change, read these definitive ar.docx
If you read nothing else on change, read these definitive
articles from Harvard Business Review.
www.hbr.org
Product #12599
Included with this collection:
Leading Change: Why Transformation Efforts Fail
by John P. Kotter
Cracking the Code of Change
by Michael Beer and Nitin Nohria
Change Through Persuasion
by David A. Garvin and Michael A. Roberto
Tipping Point Leadership
by W. Chan Kim and Renée Mauborgne
A Survival Guide for Leaders
Leading Change When Business Is Good:
An Interview with Samuel J. Palmisano
by Paul Hemp and Thomas A. Stewart (Editors)
HBR’s 10 Must Reads
on Change
2
86
13
49
63
24
www.hbr.org
Radical Change, the Quiet Way
by Debra E. Meyerson
37
The Real Reason People Won’t Change
by Robert Kegan and Lisa Laskow Lahey
75
Why Change Programs Don't Produce Change
by Michael Beer, Russell A. Eisenstat, and Bert Spector
110
The Hard Side of Change Management
by Harold L. Sirkin, Perry Keenan, and Alan Jackson
97
by Ronald A. Heifetz and Marty Linsky
http://www.hbr.org
www.hbr.org
B
EST
OF
HBR
Leading Change
Why Transformation Efforts Fail
by John P. Kotter
•
Included with this full-text
Harvard Business Review
article:
The Idea in Brief—the core idea
The Idea in Practice—putting the idea to work
3
Article Summary
4
Leading Change: Why Transformation Efforts Fail
A list of related materials, with annotations to guide further
exploration of the article’s ideas and applications
12
Further Reading
Leaders who successfully
transform businesses do eight
things right (and they do them
in the right order).
Reprint R0701J
http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=itemdetail&referral=4320&id=R0701J
http://www.hbr.org
B
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Leading Change
Why Transformation Efforts Fail
The Idea in Brief The Idea in Practice
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Most major change initiatives—whether in-
tended to boost quality, improve culture, or
reverse a corporate death spiral—generate
only lukewarm results. Many fail miserably.
Why? Kotter maintains that too many
managers don’t realize transformation is a
process,
not an event. It advances through
stages that build on each other. And it
takes years. Pressured to accelerate the
process, managers skip stages. But short-
cuts never work.
Equally troubling, even highly capable
managers make critical mistakes—such as
declaring victory too soon. Result? Loss of
momentum, reversal of hard-won gains,
and devastation of the entire transforma-
tion effort.
By understanding the stages of change—
and the pitfalls unique to each stage—you
boost your chances of a successful transfor-
mation. The payoff? Your organization flexes
with tectonic shifts in competitors, markets,
and technologies—leaving rivals far ...
www.hbrreprints.orgBE S TO F H B R.docx
www.hbrreprints.org
B
E S T
O F
H B R
Leading Change
Why Transformation Efforts Fail
by John P. Kotter
•
Included with this full-text
Harvard Business Review
article:
The Idea in Brief—the core idea
The Idea in Practice—putting the idea to work
1
Article Summary
2
Leading Change: Why Transformation Efforts Fail
A list of related materials, with annotations to guide further
exploration of the article’s ideas and applications
10
Further Reading
Leaders who successfully
transform businesses do eight
things right (and they do them
in the right order).
Reprint R0701J
For the exclusive use of M. Montgomery, 2016.
This document is authorized for use only by Megan Montgomery in Strategy Implementation-16WBM taught by Dr Ramon Baltazar, Dalhousie University from January 2016 to July 2016.
http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=itemdetail&referral=4320&id=R0701J
http://www.hbrreprints.org
B
E S T
O F
H B R
Leading Change
Why Transformation Efforts Fail
page 1
The Idea in Brief The Idea in Practice
C
O
P
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R
IG
H
T
©
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6
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IN
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S
S
S
C
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IN
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P
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A
T
IO
N
. A
L
L
R
IG
H
T
S
R
E
S
E
R
V
E
D
.
Most major change initiatives—whether in-
tended to boost quality, improve culture, or
reverse a corporate death spiral—generate
only lukewarm results. Many fail miserably.
Why? Kotter maintains that too many
managers don’t realize transformation is a
process,
not an event. It advances through
stages that build on each other. And it
takes years. Pressured to accelerate the
process, managers skip stages. But short-
cuts never work.
Equally troubling, even highly capable
managers make critical mistakes—such as
declaring victory too soon. Result? Loss of
momentum, reversal of hard-won gains,
and devastation of the entire transforma-
tion effort.
By understanding the stages of change—
and the pitfalls unique to each stage—you
boost your chances of a successful transfor-
mation. The payoff? Your organization flexes
with tectonic shifts in competitors, markets,
and technologies—leaving rivals far behind.
To give your transformation effort the best chance of succeeding, take the right actions at each
stage—and avoid common pitfalls.
Stage Actions Needed Pitfalls
Establish a
sense of
urgency
• Examine market and competitive reali-
ties for potential crises and untapped
opportunities.
• Convince at least 75% of your man-
agers that the status quo is more dan-
gerous than the unknown.
• Underestimating the difficulty of driving
people from their comfort zones
• Becoming paralyzed by risks
Form a pow-
erful guiding
coalition
• Assemble a group with shared commit-
ment and enough power to lead the
change effort.
• Encourage them to work as a team
outside the normal hierarchy.
• No prior experience in teamwork at the
top
• Relegating team leadership to .
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Saylor URL: http://www.saylor.org/books Saylor.org
273
Chapter 9
Executing Strategy through Organizational Design
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. What are the basic building blocks of organizational structure?
2. What types of structures exist, and what are advantages and disadvantages of each?
3. What is control and why is it important?
4. What are the different forms of control and when should they be used?
5. What are the key legal forms of business, and what implications does the choice of a business form have
for organizational structure?
Can Oil Well Services Fuel Success for GE?
Chapter 9 from Mastering Strategic Management was adapted by The Saylor Foundation under
a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 license without attribution as requested
by the work’s original creator or licensee. © 2014, The Saylor Foundation.
http://www.saylor.org/site/textbooks/Mastering%20Strategic%20Management.pdf
http://creativecommons.org/licenses/by-nc-sa/3.0/
Saylor URL: http://www.saylor.org/books Saylor.org
274
General Electric’s logo has changed little since its creation in the 1890s, but the company has grown to become the
sixth largest in the United States.
Image courtesy of The General Electric Company,
http://en.wikipedia.org/wiki/File:Early_General_Electric_logo_1899.png.
In February 2011, General Electric (GE) reached an agreement to acquire the well-support division of
John Wood Group PLC for $2.8 billion. This was GE’s third acquisition of a company that provides
services to oil wells in only five months. In October 2010, GE added the deepwater exploration capabilities
of Wellstream Holdings PLC for $1.3 billion. In December 2010, part and equipment maker Dresser was
acquired for $3 billion. By spending more than $7 billion on these acquisitions, GE executives made it
clear that they had big plans within the oil well services business.
While many executives would struggle to integrate three new companies into their firms, experts expected
GE’s leaders to smoothly execute the transitions. In describing the acquisition of John Wood Group PLC,
for example, one Wall Street analyst noted, “This is a nice bolt-on deal for GE.”[1] In other words, this
analyst believed that John Wood Group PLC could be seamlessly added to GE’s corporate empire. The
way that GE was organized fueled this belief.
GE’s organizational structure includes six divisions, each devoted to specific product categories: (1)
Energy (the most profitable division), (2) Capital (the largest division), (3) Home & Business
Solution
s,
(4) Healthcare, (5) Aviation, and (6) Transportation. Within the Energy division, there are three
subdivisions: (1) Oil & Gas, (2) Power & Water, and (3) Energy Services. Rather than having the entire
organization involved with integrating Jo ...
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Saylor URL: http://www.saylor.org/books Saylor.org
273
Chapter 9
Executing Strategy through Organizational Design
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. What are the basic building blocks of organizational structure?
2. What types of structures exist, and what are advantages and disadvantages of each?
3. What is control and why is it important?
4. What are the different forms of control and when should they be used?
5. What are the key legal forms of business, and what implications does the choice of a business form have
for organizational structure?
Can Oil Well Services Fuel Success for GE?
Chapter 9 from Mastering Strategic Management was adapted by The Saylor Foundation under
a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 license without attribution as requested
by the work’s original creator or licensee. © 2014, The Saylor Foundation.
http://www.saylor.org/site/textbooks/Mastering%20Strategic%20Management.pdf
http://creativecommons.org/licenses/by-nc-sa/3.0/
Saylor URL: http://www.saylor.org/books Saylor.org
274
General Electric’s logo has changed little since its creation in the 1890s, but the company has grown to become the
sixth largest in the United States.
Image courtesy of The General Electric Company,
http://en.wikipedia.org/wiki/File:Early_General_Electric_logo_1899.png.
In February 2011, General Electric (GE) reached an agreement to acquire the well-support division of
John Wood Group PLC for $2.8 billion. This was GE’s third acquisition of a company that provides
services to oil wells in only five months. In October 2010, GE added the deepwater exploration capabilities
of Wellstream Holdings PLC for $1.3 billion. In December 2010, part and equipment maker Dresser was
acquired for $3 billion. By spending more than $7 billion on these acquisitions, GE executives made it
clear that they had big plans within the oil well services business.
While many executives would struggle to integrate three new companies into their firms, experts expected
GE’s leaders to smoothly execute the transitions. In describing the acquisition of John Wood Group PLC,
for example, one Wall Street analyst noted, “This is a nice bolt-on deal for GE.”[1] In other words, this
analyst believed that John Wood Group PLC could be seamlessly added to GE’s corporate empire. The
way that GE was organized fueled this belief.
GE’s organizational structure includes six divisions, each devoted to specific product categories: (1)
Energy (the most profitable division), (2) Capital (the largest division), (3) Home & Business
Solution
s,
(4) Healthcare, (5) Aviation, and (6) Transportation. Within the Energy division, there are three
subdivisions: (1) Oil & Gas, (2) Power & Water, and (3) Energy Services. Rather than having the entire
organization involved with integrating Jo.
Change Management
Change management is a collective term for all approaches to preparing and supporting individuals, teams and organizations in making organizational change
Organisational behaviour assignement (colour copy )
Organisational behaviour assignment (colour copy )
Similar to Welch (20)
General Electric’s Corporate Strategy Case Write-upIndividual .docx
General Electric’s Corporate Strategy Case Write-upIndividual .docx
4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
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4 Shaping and Sustaining Change Ryan McVayPhotodiscThink.docx
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If you read nothing else on change, read these definitive ar.docx
If you read nothing else on change, read these definitive ar.docx
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Saylor URL httpwww.saylor.orgbooks Saylor.org 273 .docx
Greek Industries Embracing Growth in The New Normal (13/10/2010)
Greek Industries Embracing Growth in The New Normal (13/10/2010)
Organisational behaviour assignement (colour copy )
Organisational behaviour assignement (colour copy )
Welch
- 1. Jack Welch and the General Electric Management System Presentation for MGT4133 Momchil Metodiev – M00237116 Yash K. Bajaj – M00241969 Masood Junaid Bin– M00236383
- 15. WE HOPE YOU DON’T HAVE ANY QUESTIONS… THE END!