9-907-048 REV: JUNE 30, 2008 CHRISTOPHER A. BARTLETT BRIAN J. HALL NICOLE S. BENNETT GE’s Imagination Breakthroughs: The Evo Project As he prepared for the December 2006 meeting with GE’s CEO Jeff Immelt, Pierre Comte faced some difficult decisions. Only eight months into his job as chief marketing officer (CMO) of GE’s Transportation business, Comte would be presenting Transportation’s recommendations on some of the most visible growth initiatives in its locomotive business—projects that had been designated “Imagination Breakthroughs.” IBs, as they were called within GE, were new projects with the potential to generate $100 million in new business within two to three years, and were a key part of Immelt’s organic growth …show more content…
Immelt Takes Charge: New Demands, New Responsesa On Friday, September 7, 2001, 43-year-old Jeff Immelt became GE’s ninth CEO in its 109-year history. Four days later, two planes crashed into the World Trade Center towers. In the turmoil that followed, an already fragile post-Internet bubble stock market dropped further, and the subsequent downturn in the economy resulted in a drop in confidence that spread rapidly around the globe. Despite his many efforts to tighten operations while continuing to grow the business, the new CEO did not have an easy initiation as he tried to deal with the resulting economic downturn, the post-Enron suspicions of large corporations, and the growing global political instability. In 2002, after promising that earnings would grow by double digits, Immelt had to report a modest 7% increase in GE’s profits on revenues that were up only 5% on the 2001 sales, which had declined 3% from the prior year. (See Exhibit 1 for GE financials, 1996–2006.) By the end of 2002, GE’s stock was trading at $24, down 39% from a year earlier and 60% from its all-time high of $60 in August 2000. With considerable understatement, Immelt said, “This was not a great year to be a rookie CEO.”1 Driving Growth: The Strategic
Analyzing GE’s corporate-level strategy from 2001 – present with Jeff Immelt as CEO, GE focuses on the growth and development platforms. Technology is the key driving force for GE’s future and growth. Advancements in industries such as energy, health and aviation fueled demand for cleaner and more efficient energy production. GE identified new markets with potential high-growth that offered attractive returns through strategic mergers and acquisitions. As CEO, Jeff Immelt established a process for identifying projects that offered attractive growth potential which were then nurtured and treated as special projects or initiatives that were not subject to strict budget constraints. Immelt introduced GE’s three strategic imperatives as: (1) sustaining its strong business model, (2) strengthening the business portfolio, and (3) driving its growth initiatives. www.ge.com
1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?
$15.3 million. The return on average invested capital in 1984 was around 20%. Over the past five
When Douglas Conant left his high profile position at Nabisco and became CEO of Campbell’s Soup Company in 2001, he inherited a company whose products had been a staple in the pantries of consumers since the late nineteenth century. However, despite a strong brand name and wide range of products, the company faced a slipping economy, tough competition, and a broken internal infrastructure. The organizational culture at Campbell’s was extremely weak, forcing Conant to make tough decisions and restructure the soup company from the inside out. His decision to fix the organization’s internal environment ensured that employees were engaged, excited, and had their voices heard. His leadership skills and
In October 2017 , Jeffrey Immelt announced his retirement from General Electric after being a CEO and the chairman of the massive company that he has led since September 2001 . After Immelt ’s retirement various speculations have risen about General Electric’s activities during Bush and Obama Terms . I am investigating whether these speculations are true or they will just stay as speculations .
Also; Citigroup, Inc. another competitor for the GE Company made a total of $64.95 billion in 2011, and when we compare it with GE and SI its earnings where even less in the same year, making General Electric a leader in the industry. With this valuable information GE management can analyze its competitor’s financial statements results and from there they can evaluate their faults and create new ways to increase their annuals earnings and secure their place as one of leading companies in their industry. Another way GE can go forward in the industry is by adapting its services and products to other countries that need them.
GE has to examine what strategy the firm is going to follow. Will the firm’s
All the initiatives like laying people off, streamlining things, globalization was like going by the turnaround book and yet the financial picture grew worse
Jack Welch was the CEO of General Electric (GE) for 20 years from 1981 to 2001. Jack transformed GE, taking a solidly profitable manufacturing company and turning it into an exceptionally profitable conglomerate dominated by service business. As such a big company who was running businesses for decades, GE has a lot of social responsibilities. Corporate social responsibility is the duty of a corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets. I will analysis the social responsibilities of GE from the following aspects.
GE Corp (GE) is the world 's largest diversified services company, but also to provide high quality, high-tech industrial and consumer products. From aircraft engines, power generation equipment to financial services, from medical imaging, television programs to plastics, GE is committed to creating a better life through a number of technologies and services. The history of the GE Corp can be traced back to Edison Thomas, who founded the Edison Electric Light Company in 1878. .Hailed as a critical corporate function during the late 1960s and 1970s, its effectiveness came under attack in the 1980s and 1990s.( Steiner 1969) In 1892, Edison GE Corp and Houston Thomsen electric company merger, set up a GE Corp (GE). GE is the only company in the index chart since the Dow Jones industrial index was established in 1896.
The CEO’s speech continued and he stated that while the company had achieved high levels of success, the economy was in turmoil. As such, the future was uncertain and that the firm would therefore freeze all manager salaries and would not pay bonuses. He then concluded and looked to the leadership team for a response.
substantial change in his market in recent years and is contemplating the future of his
Jeff Immelt 's administration style is strongly not quite the same as that of his ancestor. His quality is in rousing others by empowering them and relating with them at their level, in contrast to the intimidating way of work followed by Jack Welch. Notwithstanding both men being similarly powerful, Immelt 's kin well-disposed general fellow initiative style has made an altogether different environment at GE and drew acclaim from the positions of his subordinates. In 2001, soon after Immelt took up his new challenge as the CEO of one of the most successful companies of the 20th century, an arrangement of occasions in a broader sense changed the corporate scene. Immelt 's prompt test was to deal with the effect of the aftermath of the September 11 assaults and a consequent arrangement of prominent corporate outrages like those of Worldcom, Enron and some others to name a few. These occasions made critical instability and prompted an emergency of certainty among financial specialists and fuelled disdain in the group on the loose. Notwithstanding a sliding offer value, Immelt perceived that dealing with GE 's presentation to the business cycle would be basic to the association 's long haul soundness (Grant 2008, pp. 317-318). He tried to console GE shareholders that the occupation of the CEO was not to deal with the offer value however to deal with the organization for long haul benefit development. To keep up the trust of the group and GE shareholders, Immelt
On April 1, 1993 Louis V. Gerstner took over as IBM’s chairman and CEO. Gerstner was able to recognize the flaws in IBM’s model to have the company being run as several independent parts from one another. From the beginning he was able to recognize that “IBM was greater than the sum of its parts … and the entire
GE was found by Thomas Edison in 1893. It has around 343,000 employees and operation over 100 countries. The company experienced continuous