1. Jack Welch led GE to strong growth through acquisitions and productivity gains, but organic growth slowed to 4% annually by the end of his tenure. Immelt aimed to reinvigorate organic growth through innovation and global expansion. 2. Immelt faced challenges early on from the dot-com crash and 9/11 attacks, which drove GE's stock price down sharply. He pursued a growth strategy focused on technical leadership, services, commercial excellence, and growth markets like China and India. 3. Key elements of Immelt's strategy included rebalancing the portfolio, establishing growth platforms, funding R&D and acquisitions, improving operations, and expanding in developing countries to

1. 1. MANEESH GUPTA
2. ARINDAM DUTTA
3. PUSHPAL CHAKRABORTY
4. NITIN NARAYAN

2. GE – Pre Immelt
Jack Welch as CEO
Yearly Shareholder Return (last 20-year period): 23 %
History of double digit revenue growth in 90’s
A fine tuned productivity company
A high discipline in working efficiently to maintain bottom-line
Top line growth largely through geographical expansion and acquisition.
Low organic growth rate of 4%
Only Company listed in Dow Jones Industrial Index that was
included in the original index in 1896

3. Immelt – A Turbulent Year to Begin
GE : $110 billion Company
• Stock price now Stuck around $ 35
• 20 times earnings, half of the P/E from Welch era
• Four days later, the 9/11 attacks occurred and the world was
thrown into chaos.
• At the end of first week, stock dropped 20%
• Bankruptcy of Enron and market manipulation accusation of
Tyco a “Mini GE”
• By the end of 2002, Stock crashed further to $ 24
Concern: Large and complex operations are too difficult to understand

4. But
Immelt was determined for a Marathon
He stuck to a Plan
Determined to Pursue his
Growth Strategy Agenda

5. Immelt – Thought Process
1. Organizations will be driven by innovation
2. Premium would be placed only on those companies
that could generate their own growth
3. A new and equally disciplined focus on organic
growth
To leverage GE’s traditional strength of process
orientation and ability to develop, test and deploy
management ideas in inventing repeatable growth
process for reliably drawing new revenue streams
from existing businesses
Goal– Sustained organic growth of 2-3 times
the growth of global GDP (~ 8%)

6. 5 Key Elements of Growth
Immelt created a growth strategy made up of 5 key elements:
1. Technical Leadership – A key driver of future growth
2. Services Acceleration – GE already had a large amount of product out in the
industry that would eventually need servicing as the products aged and wore down.
3. Commercial Excellence – Shifting focus from GE’s internal processes to external
customer requirements.
4. Globalization – Main focus on China and India.
5. Growth Platforms – Build new businesses based on high-growth areas that will
provide “unstoppable” opportunities.

7. Immelt’s Initiatives
Establish much more openness and trust
Organic Growth
• Rebalance and renew business portfolio
• New platforms and new processes
• Growth in developing countries
• Innovation
• Operational efficiencies
• Customer focus: At the Customer, For the Customer (ACFC)
HR initiatives
Re- organization

8. Immelt’s Initiative – To increase Public
Understanding and Awareness
Transparent Operations
• Separate Balance Sheets and explicit growth strategy
• Frequent and detailed communications with investors
• Kept on communicating that GE was not an overgrown, slow to
move and slow to react conglomerate
Commitment to Corporate Social Responsibility
• To be a great company today, you also have to be a good company.
The reason people come to work for GE is that they also want to
work for a company that makes a difference, a company that’s
doing great things in the world.
• . . . It’s up to us to use our platform to be a good citizen. Because
not only is it a nice thing to do, it’s a business imperative.

9. Immelt’s Initiative – Driving for Growth
To maintain a portfolio of strong businesses in high technology areas where GE could
have a competitive edge and others could not follow easily
Rebalance and renew the portfolio to drive growth from a
revitalized base
• Acquired Telemundo and Bravo networks to capture fast growing
Hispanic advertising market
• Acquired Enron’s Wind Energy Business as new platform for long term
growth and high returns in future
For strong innovation foundation and future market
opportunities
• Acquired Interlogix, an excellent technology company in Security
systems
• Acquired BetzDearborn in Water Services
Invested USD 35 billion in acquisitions during first year

10. Rebalancing the Portfolio I
Integrating into Leverage
Identification of
Small GE by applying Financial
high growth
Acquisition GE growth strength for
segment
initiatives rapid growth
Add Subtract
+ New technologies - Low Return
+ New Geographies - Low Growth
+ New Growth Plaforms - Low Technology
+ Scale/Cost Reduction
+ Capabilities
Universal Entertainment Business of Vivendi was acquired at a price of USD 5.5 billion adding content,
production facilities, cable distribution, a strong management team and assets valued at USD 14 billion
Acquired Amersham, a British Life Sciences and Medical Diagnostics company at a price of USD 10 billion
which could boost GE’s medical business to USD 15 billion from USD 9 Billion.
Sold 3 units of Insurance business unit valued at USD 4.5 billion

11. Rebalancing the Portfolio II
Growth Engines: Businesses having market leadership that accounted 85% of
earnings and could grow at rate of 15% annually with high returns.
Commercial
Finance
Transportation
Consumer
NBC
Finance
Infrastructure Healthcare
Energy

12. Rebalancing the portfolio III
Cash Generators: Businesses that are more cyclical but with
consistent strong cash flows
Advanced
Insurance
Materials
Consumer
Equipment
&
Services
Industrial

13. New Platforms, New Process
Health Care Water
Security and Oil & Gas Hispanic Consumer
Information Technology
Sensors Technology Broadcasting Finance
System and Services
GE’s top leaders identified 6 business growth platforms that would
lead to way for GE’s growth opportunities over the next few years and
will have a potential to generate USD 1 billion within next few years
These businesses were averaging a 15% annual organic growth rate
and represented USD 9 billion in revenue and USD 2 billion in
operating profit.

14. A New Growth Market in Developing
Countries
• In 2004, revenues from outside of the US grew by 18% to USD 72 Billion
• Leading the way was a massive increase of 37% from developing countries –
an area that Immelt was particularly focused on for long-term growth
Developing World to contribute 60% of the GE’s revenue during next 10 years.
China was the most visible growth opportunity

15. Innovations– Commitment to R&D
• Committed USD 100 m to upgrade GE’s major R&D facility at New York
Promoted close coordination between Scientists and Marketing Executives
Committed more resources on long term research that could fructify into businesses over a
period of 10 years in areas of Nanotechnology, advanced propulsion and bio technology
New facility at Shanghai
Proposal for adding another facility in Germany
Increased the size of R&D spent from USD 286 million in 2000 to USD 327 million in 2002.
Planned investment of USD 3 billion in technology
In 2004, 2500 GE researchers worldwide filed for more than 450 patents

16. Innovations : Promoting Technology
Imagination Breakthroughs
• These were projects – technological innovations, market expansion
opportunities, product commercialization proposals or ideas to create value
for customers
• Imagination Breakthroughs (IBs) were identified as large projects or business
opportunities that had the potential to generate at least $100 million in
earnings within 3 years.
• Within 1 year of launching an initiative to develop IBs, over 80 had been
identified within GE. By 2005, 25 of these were generating revenue.
Immelt committed USD 5 billion to fund those projects with a
targeted annual additional revenue of 25 billion
Shipping unassembled ships to Russia, India and China where
assembly was done – generation of USD 100 million revenue

17. Funding Growth through Operational
Efficiencies - I
• Immelt made cash flow GE’s number one financial focus. It was through
improved cash flow that Immelt would continue to invest in the business.
He first used tools like Six Sigma to reduce the cash tied up in inventory
and receivables.
Undertook the process of digitization for economic sourcing and
infrastructure efficiencies.
Digitization saved USD 2 billion savings which was one of the main reason resulting into increase in
cash flows by 10% in comparison to last year

18. Funding Growth through Operational
Efficiencies - II
Continued focus on operational efficiencies for better accounts receivable
and inventory turnover with a target of another USD 7 billion
Lean Sigma was introduced to reduce working capital and improving
return of equity in industrial businesses while in commercial finance
business it was on margin expansion, risk management and cost
reduction leading to improvement of USD 2.7 billion in working capital.
“Simplification Process” started to reduce overheads from 11% of
revenue to 8% with a target of removing USD 3 billion of such cost over 3
years time.

19. Customer Focus I
Initiated “At the Customer, For the Customer” (ACFC) to bring GE’s most effective
internal tools and practices to meet customer challenges
Immelt named Beth Comstock as GE’s first Chief Marketing Officer in 2001. This move
was meant to stress GE’s new focus on their customers and less on their internal
processes.
• Acting on the momentum created by the new marketing emphasis, Immelt formed
Commercial Council in 2003 to bring together GE’s top sales and marketing leaders.
Immelt chaired that council himself.
• GE began to work very closely with their customers to improve their customer’s
business (focus on providing service for GE). In 2002, GE completed 6,000 Six Sigma
projects with their health-care providers alone.
• Immelt wanted GE service to be a critical part of their customer’s operations.

20. Customer Focus II
Immelt started holding Town Hall Meetings with
customers to get a better idea of what they wanted out
of GE and how he could serve them better.
• He also created another type of forum known as
“Dream Sessions” in which he would meet with major
CEOs from major industries to discuss roadmaps,
implications for GE, and future opportunities for GE.

21. Re-Organizing and Efficiency
Aircraft engines
Rail products
GE Infrastructure
Water Energy
Oil and gas In a major re-organization GE’s 11 business
units were reduced to 6 large units
Some Financial Services
Targeted savings in administrative cost – USD
400 million
NBC Universal
Better alignment of business with customer
GE Finance and market needs
GE industrial The 6 macro business groups are: GE
Industrial, GE Commercial Financial Services,
GE Health care NBC Universal, GE Health Care, GE Consumer
Finance and GE Infrastructure.
GE Money

22. HR Initiatives
As GE’s growth strategy began to take hold, Immelt worried that
some of GE’s traditional managers may not have the skills to be able
to succeed in the more entrepreneurial environment that he was
trying to create.
Think Clearly
• Acting on this, HR developed new career paths for
managers, focusing on more in-depth job experience as opposed to
job rotations.
• HR also developed 5 action-oriented leadership traits that they
Inclusiveness would require all leaders to possess:
Expertise in a and
function Connection
with People
Leader To develop these skills, 20-30 “pillar jobs” were created within each
ship traits organization which required the continual use and development of
these 5 skills.
External Imagination
(customer) and Courage Further after re-organization into 6 macro-business group, each
focus to take risks group to be led by one of the GE’s most experienced top executive
These group heads would spend most of their time in coaching,
developing and supporting younger managers

23. FINANCIAL RESULTS
148 163 12.3
112 113 134 9.6
3.9
2002 2003 2004 2005 2006 2004 2005 2006
GROWTH OF REVENUE REVENUE FROM ACQUISTIONS
21
15.5 17 16
13.6 15
11.3 13
2004 2005 2006 2002 2003 2004 2005 2006
OPERATING PROFIT NET EARNINGS
All Figures in $ Billions

24. Conclusion & Learning's
LEARNINGS
1. Set Clear Long term goals for business growth and stick to it
2. Strive for organic growth
3. Focus and strengthen your core capabilities
4. Leverage on strengths – through synergies across diversified Businesses
5. Maintain competitive edge through innovation