1. What kind of diversification was GE pursuing? What are the sources of value creation with this type of diversification?

2. Discuss changes in GE’s product and geographic scope. Describe the most important trends. What stands out to you?

3. Why has GE lost a whopping $530 billion or almost 90% of its valuation since its peak? What went wrong?

4. Looking at the diversification-performance relationship, why was GE able to buck this trend for a long time before economic realities caught up with it?

5. After leaving GE, Jeffrey Immelt stated (in 2018): “The notion of plugging financial services and industrial companies together, maybe it was a good idea at a point in 

time, but it is a uniquely bad idea now.” To what is Immelt referring? Why does he think this is a bad idea? Do you agree? Whyor why not?

6. In the bestseller Good to Great, Jim Collins advances the hypothesis that the greatness of a leader is known only after the leader has departed. The business press has celebrated Jack Welch as the greatest CEO of the last century. After reading this MiniCase, do you agree with Collins’ strategic leadership hypothesis? Why or why not? Note: When interviewed in 2018 about the GE situation, Jack Welch had this to say: “I give myself an A for the operation of GE, but an F for my choice of successor.”