GE could have performed in a different way that could have been better and more socially responsible, and the company would still maintain its competitive advantage in the market. Instead of coming into the company with a “firing quota,” Welch could have evaluated employees and restructured the management hierarchy to include talented employees from other areas of the business. Employees with many years of experience should have been used to try and remedy employee productivity issues…
In April 1981, when Jack Welch became the CEO of GE, US was in recession. There were high interest rates. Strong dollar resulted in country’s highest unemployment rates. In this rapid changing and uncertain environment it was extremely difficult task for him to handle a conglomerate as big as GE and ensure that general confidence among the investors is not lost. His predecessor, Reg Jones, had set the bar extremely high at the company leaving a legacy for Welch to compete with as the new CEO. Also, acquiring new businesses and ensuring that each business unit under the GE umbrella was one of the best in its field was another challenge.…
The tenure of Jeff Immelt as CEO of General Electric has been nothing short of interesting. With accusations of unethical practices by his firm (allegations of cooking their books), along with unethical dealings domestically such as his appointment in the Obama administration after being one of its biggest campaign contributors (Int. Ref. #4), and internationally dealing with countries like Iran and Syria by the company (Int. Ref. #2), one cannot overlook GE’s current culture that has been established by Immelt and draw reasonable conclusions. Here we will look at the CEO and the culture he has put forth though the company since his appointment in 2001.…
In 1981, Jack Welch became the eight chairman and Chief Executive Officer of General Electric, and served until his retirement in September 2001. Under his leadership, Welch “increased the value of the company from $13 billion to several hundred billion” (ge.com, n.d.) What strategies led to the success of GE under the management of Jack Welch, and what does the future hold for the company?…
In the case, “The Jack Welch Era at General Electric”, indicate that during the period of Jack Welch was a CEO at General Electric from 1981 to 2001, the company became remarkable profit. Earnings per share rose from $.46 in 1981 to $1.07 in 2001. GE is a company which has a very long history, and Jack Welch was the first working-class person that finally became the famous manager in GE history. He changed and built lots of rules to fulfill his ambition to make the company more wealthy such as eliminated workers, changed GE’s culture by promoting the notion of a “boundary less” organization, used identical 20-70-20 percent curve to manage managers, and reshaped GE stocks. The story of the Welch years has the elements of legend, however, within GE businesses his powerful manage strategy turned him into a very controversial person. The lead editorial branded Welch as a corporate titan opposed to rules of society and said that his actions were “disastrous” for workers and communities.…
John Francis Welch, Jr., also known as “Jack”, became the CEO of General Electric in 1981 and maintained this title for the next 20 years until his retirement in 2001. He was widely known as a “national business hero” because he had a different approach on management that provided increasing results. For this very reason, many also despised his tactics. He was very aggressive in cutting out the weak, because he believed that it was holding back the company. One of the main principles that General Electric emphasized was loyalty. After Welch took over, loyalty meant next to nothing. He led General Electric to become a highly profitable and successful firm, but a major question is how successful he was as a…
Welch took bold actions to improve GE 's ability to compete globally before it ran into serious difficulty. Welch leads two different "revolutions" in his tenure as CEO.…
Jack Welch and Herb Kelleher are regarded as two of America’s best leaders. First and foremost by definition Welch and Kelleher are leaders because they have followers; employees who do something opposed to nothing. Where the two are differentiated is in the types of followers that are underneath their hierarchy, in largely created by their personal traits and systems imposed. According to What Every Leader Needs to Know About Followers, several of Jack Welch’s followers who ranked in manager positions were ‘activists’- trying to avoid differentiating employees. This differs from Herb Kelleher’s followers, who can be regarded more so as ‘diehards’- people who are so deeply engaged in the Southwest Company that allows it to end up as one of America’s top-10 companies to work for. One could regard the difference between the two CEO’s followers as good versus bad, but both had followers who engaged themselves.…
The focus of this study is about Evaluation Case which to analyse the Jack Welch leadership characters in managing the GE company. Jack Welch took over GE in 1981 and became the youngest CEO in GE’s history, the legendary leader made a resolution to transform GE into the world’s most competitive enterprise. If leadership is an art, then surely Welch has proved himself a master painter. With his unique leadership style and character, Welch made history during his two decades journey at GE.…
A strong company learns to adapt to different factors in the world. Most of these factors come from within a company which tends to break the company down over time. General Electric has learned to watch for issues like this and works to keep its employees as a major part of the company’s decisions. It was best stated by the company’s CEO Jeff Immelt back in 2005, “At the top, we don't run GE like a big company. We run it like a big partnership, where every leader can make a contribution not just to their job, but to the entire Company” (GE, 2005). The company learned to listen to its leaders on all levels which keep the company connected to the daily needs of the employees and its customers. General Electric learned that these individuals see more of the company everyday and in order to make sure they have the best leaders in each level to control the daily business they have built their own team training program. For over 50 years the General Electric company has been sending its leaders to the John F. Welch leadership center to further educate the company’s employees in order for better results out of the next generations leaders. On top of the continued education of their employees the company faces external challenges each day. For years the challenge has presented its self for the company to produce energy efficient products and they have risen to the occasion. Today you will find that they are still given the challenge to help our…
This paper analyzes the: strengths, weaknesses, opportunities, and threats (SWOT) for General Electric Corp (GE). A SWOT analysis is an outline for producing strategic alternatives from the study of a company’s situation. The General Electric Growth Council used this form of analysis in the 1980 's because it concentrates on the issues that potentially have the most impact on a company. SWOT analyses tend to generalize the circumstances. They are often divided into two categories: Internal analysis and External analysis.…
Much has been said and written about Jack Welch and his success. Many managers struggle daily to lead and…
1. What do Kleinfeld’s efforts at Siemens tell you about the difficulties of restructuring organizations?…
GE MENAT is a large share of that income, as well as it was assessed to develop by 12% in 2012, it was key that GE saw how to develop the business in that region. In 1981, CEO Jack Welch started cutting back the company from 404,000 workers in 1980 to 292,000 by 1989. Welch took this activity to make the company more aggressive amid a serious economic retreat in the U.S. The contextual investigation states that to position the firm for development, $21 billion was contributed to secure more than 370 firms in businesses, for example, protection and financial administrations and goes further to express that Welch expanded GE's income from $27 billion to more than $100 billion by 2001. While CEO Jack Welch was extraordinarily effective, GE had focused the vast majority of its endeavors on the U.S. furthermore, held a proportion of residential and worldwide incomes far underneath the 50-50 split. The GE corporate technique manager could see that huge improvement had been made to assemble a business position for GE in the MENAT region. The prospects were brilliant, particularly with the euro crisis in Europe and an American economy that had yet to completely recoup from the Global Financial Crisis. He investigated the challenges that GE MENAT's management group had confronted in the course of recent years and began recording the…
Prior to year 2010, GE’s previous CEO, Jack Welch, had built GE into a highly disciplined, extremely efficient machine that delivered consistent growth in sales and earnings. However, after Immelt took over GE from Welch, Immelt recognized the necessity for strategic change in the GE when he took considering the situation of economic downturn. 9/11issue and Enron Scandal triggered a downturn in the economy, which in turn affected GE’s stock market price. Immelt saw little need to challenge the basic business model no which GE had operated for decades.…