GENERAL ELECTRIC (GE) IMAGINATION BREAKTHROUGH: THE EVO PROJECT PRESENTATION 1. Where would you place GE on an organisation life-cycle chart as Immelt became CEO? 2. In broad term, what were Immelt’s goals? 3. How did GE’s organisational structure have to make as a result of its shift in strategic focus? 4. What risk is GE running as a result of this change in emphasis? 5. What should Transportation recommend and why?

1. Imagination Breakthroughs : The Evo Project Imagination at Work

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

4. GE’s Organisational Life-cycle (OLC) Jeffery Immelt Jack Welch 2000 2007 1994 (Elaboration) Acquisitions (Revitalisation)Imagination Breakthrough 1981 2002

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

7. The Strategies and Trade-Offs

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

10. End of Presentation