GE CASE STUDY

Change and Continuity in Contemporary Business - A Case Study of General Electric

Table of Contents

Introduction1

About GE and management1

Change strategies2

The restructuring strategy2

Pros3

Cons4

The software initiative4

Pros5

The third wave6

Pros7

Cons8

Raising the bar8

Pros10

Cons10

Future strategies of GE for the future10

Conclusion13

References14

Change and Continuity in Contemporary Business - A Case Study of General Electric

Introduction

General Electric is a multinational giant from the US and is headquartered in Fairfield. The company divides itself into four categories for each of the market segments that it caters. These are Consumer & Industrial, Technology Infrastructure, Energy, and Capital Finance. As per the latest Fortune 500 ranking, the company ranks 6th in the US. In terms of profitability, this multinational giant grabbed the fourteenth position for the year 2010. According to Newsweek, the company is the 82nd company in the world that is contributing towards green marketing (Burkitt 2011, p. 2). The formation on General Electric dates back to the 1890s, when the two companies Thomson-Houston Electric Company and Edison General Electric merged.

About GE and management

General Electric (GE) is a world renowned company and is best known for the various managerial initiatives that the company has pioneered. It is a much diversified company among the companies operating in the industrial sector. The early focus of the company remained electrical power generation, distribution and usage. This diversification for the company comes from its presence in sectors such as medical systems, diesel locomotives and aircraft engines. The company has been so acclaimed and admired for its management style that it would not be wrong to say that it is the bellwether of management practices in America. The management structure and style has changed numerous number of times since the inception of the company and each time the company has proved itself to be the guru of management (Welch 2007, p. 275).

The company has produced maestros such as Jack Welch and Reg Jones both of whom have a reputation for being the best managers and leaders in the world not only for the decade but also for the century. An organization that is lead by such leaders, the success of such a company is inevitable. However, this is not to say that the company never faced challenges. The company has travelled many rocky roads and has seen many ups and down.

For two decades, the growth of the company can be attributed to Jack Welch who ran the company very well. The shareholder return of 23% is the result of his vision and managerial genius (Slater 2007, p. 17). The BU culture was the brain child of Reg Jones who was Jack Welch's predecessor. During his time, the departments were divided, and the organization was divided into layers. The most significant changes that the company has taken pertain to this.

The paper discusses the change strategies adopted by GE in detail and talks about their advantages and disadvantages. In addition, it throws light in what would be the change strategies at GE, if I were to succeed Jack ...