general electric's evolving strategy case study.

Application of Chapter Content 1. Explain how GE is creating a "fit" among its activities at its factory in India. 2. Using the steps in Figure 6.2, describe how GE should be transforming the way it does business. 3. Develop a SWOT analysis for GE. 4. Is CEO Flannery employing a growth, stability, or defensive strategy? Is this different than Immelt's strategy! Explain. 5. Which of Michael Porter's four competitive strategies is GE trying to follow? Explain. JA General Electric's Evolving Strategy General Electric (GE) is one of the largest companies in the world. It has almost 300,000 employees and operates in 98 more than 170 countries. The multinational conglomerate traces its roots to the 19th century and is responsible for technology that has revolutionized daily life, GE has invented or commercialized a wide variety of products, starting with light bulbs in 1892 and transitioning to radio, television, and even jet engines. The organization also ventured into financial services and oil and gas. GE was led by CEO Jack Welch from 1981 to 2001. The company's market value increased by 4.000 percent during Welch's tenure. 99 It had a value of over $396 billion in 2002 when Welch retired and Jeffrey Immelt took over as CEO.100 Sadly, the financially successful firm Immelt inherited did not last. GE's market value dropped to $261 billion by 2015.101 The organization lost another 46 percent of its value between 2017 and 2018. This $120 billion loss occurred while the stock market was up 41 percent. Poor financial performance caused the company to cut its dividend in half in late 2017, which led analysts to lower their estimates of GE's earnings. 102 An analyst at Deutsche Bank told CNBC he believed GE could be removed from the Dow Jones Industrial average, even though it was an original member of the 30-company index over 120 years ago. examine the corporate strategies underlying GE's decline 103 Let's