Question: Please read the mini - case GE: Corporate Strategy Gone Bad DISCUSSION QUESTIONS 1 . What kind of diversification was GE pursuing? What are the

Please read the mini-case GE: Corporate Strategy Gone Bad
DISCUSSION QUESTIONS 1. What kind of diversification was GE pursuing? What are the sources of value creation with this type of diversification?
2. Discuss changes in GEs product and geographic scope (depicted in Exhibits MC8.2 and MC8.3). 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 (depicted in Exhibit 8.13 in Chapter 8), 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? Why or why not?

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