Saptarshi Dutta (11DM-140)
The General Electric Turnaround (1981-2000)
Ranked for number 6th in the lot of money 500 list, GE may be the world's most valuable and adored company. This status is attributed to all of the changes made by the business in the 20 years from 1981 to 2000 under the management of CEO Jack Welch. In the two decades that Jack port led GE's, revenues flower from $30 to $130 billion and company value went by $14 to $410 billion. Jack Welch's entire approach took place in 3 waves-
First Wave (1981) -- Create a single vision and strategy for the entire company. Almost all GE business had to fit within 3 categories (three circle concept)- 1 . Core business with moderate earnings (cash cows)
2 . High tech business with excessive growth, unfavorable cash flow and high purchases 3. Solutions with large returns, excessive growth, cash generation and low investments After evaluation of each organization, those that had been first or perhaps second in their industry were placed inside one of the 3 circles. Others were given couple of years to become first or second. If not really achieved these people were either marketed or closed Second Say (1985) вЂ“Revolutionize GE to achieve the talents of a big organization with the leanness and agility of a business Third Say (1996) вЂ“ Develop a built-in, boundary-less, total quality business with A-players. These alterations led to an amazing growth and are also recorded among the most powerful turnaround strategies of all time.
The final survey would cover the following aspects-
* The whole strategy device involving GENERAL ELECTRIC in the 20 years * The different models integrated by GE to achieve this turn-around * The drastic restructuring of the internal business of GE 5. The competitive strategy implemented
* Parallel between French Revolution as well as the GE Wave * Hard effects in GE employees (strategy, structure, employment, rewards) * Soft effects relating to culture, work climate, indoctrination * Engagement of Jack port Welch
5. Criticism of...