GE & Strategy "Indeed, Diversification And Decentralization Essay

Length: 2 pages Sources: 2 Subject: Business Type: Essay Paper: #6114251 Related Topics: Six Sigma, Corporate Strategy, Corporate Level Strategies, Harvard Business School
Excerpt from Essay :

GE & Strategy

"Indeed, diversification and decentralization had been the major strategic thrusts of GEs two prior CEOs…" (Walker, General Electric Strategic Position-1981, 1993). Under decentralization, GE's departments were building blocks with their own product market, market strategies, finance, engineering, manufacturing, and employee relation functions. With expansion came problems of permissiveness and lack of proportion. Employees lacked experience. GE had profitless growth, massive investments with long payback periods, poor planning, and poor understanding of the businesses.

In the 1970s, GE was restructured with corporate staff in two parts to implement a hierarchical structure. There was shift in the business mix. But, this structure created major communication problems. GE moved into the sector structure. This developed the problems of discontinuities of strategic plans and unnecessary costs from duplication and uncoordinated actions. GE was moving in all directions with no focus to where it was going.

In 1981, when Jack Welch became CEO, he started...

...

He implemented a three circle concept of core, services, and technology. The priorities for the core businesses became reinvesting in productivity and quality. Services had the responsibility to add outstanding people and make contiguous acquisitions. Technology businesses had the focus of staying on the leading edge by investing in research and development.

Welch's vision for GE was to become the company perceived as unique, high spirited, and entrepreneurial with being the most profitable, highly diversified, and with high quality leadership within a decade. He did a de-staffing process to eliminate bureaucracy and eliminate the sector structure, reducing the number of hierarchical levels from nine to four. Managers were required to have a strong commitment to new values, a willingness to change corporate culture, and ability to…

Sources Used in Documents:

Bibliography

Bartlett, C.A. (2005, May 03). GE's Two-Decade Transformation: Jack Welch's Leadership. In G. Walker, Modern Competitive Strategy. Retrieved from Harvard Business School.

(1993, Mar 24). General Electric Strategic Position-1981. In G. Walker, Modern Competitive Strategy. Retrieved from Harvard Business School.

Walker, G. (n.d.). Managing the Multibusiness Firm. In G. Walker, Modern Competitive Strategy (pp. Chapter 11, pages 309-331).


Cite this Document:

"GE & Strategy Indeed Diversification And Decentralization" (2012, July 21) Retrieved April 12, 2021, from
https://www.paperdue.com/essay/ge-amp-strategy-indeed-diversification-81242

"GE & Strategy Indeed Diversification And Decentralization" 21 July 2012. Web.12 April. 2021. <
https://www.paperdue.com/essay/ge-amp-strategy-indeed-diversification-81242>

"GE & Strategy Indeed Diversification And Decentralization", 21 July 2012, Accessed.12 April. 2021,
https://www.paperdue.com/essay/ge-amp-strategy-indeed-diversification-81242

Related Documents
GE Healthcare A : Innovating Emerging Markets Read
Words: 1241 Length: 4 Pages Topic: History - Asian Paper #: 25596632

GE Healthcare (A): Innovating Emerging Markets Read case study titled "GE Healthcare (A): Innovating Emerging Markets" Write a page paper: Determine (2) emerging trends external environment prompted General Electric (GE) Healthcare develop a strategy production marketing a low cost Electroencephalography (EEG) machine bottom pyramid markets (BOP). GE Healthcare (A): Innovating for emerging markets India's population of patients with serious heart-related conditions is rapidly expanding: as unfortunate as the statistic that over 80%

GE Aviation Division, Aircraft Engines This Paper
Words: 3192 Length: 10 Pages Topic: Transportation Paper #: 31123777

GE Aviation Division, Aircraft Engines This paper discusses General Electric Corporation (GE), specifically the arm which focuses on the production of aircraft engines. Until 2005, the GE Aviation division (GEA) operated under the designation of General Electric Aircraft Engines (GEAE). We will analyze GEA from a product standpoint, as well as from a business operations standpoint. We will firstly discuss the beginnings of GE as a maker of aircraft engines. We

Lesson Plan Amp; Reflection I Didn't Know
Words: 857 Length: 3 Pages Topic: Teaching Paper #: 69943856

Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop

Branding New Service Dominant Logic
Words: 12522 Length: 50 Pages Topic: Business - Advertising Paper #: 77038722

Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands

Strategy Implementation at Kraft Foods Strategy Implementation
Words: 1518 Length: 5 Pages Topic: Business - Management Paper #: 91422716

Strategy Implementation at Kraft Foods Strategy Implementation at Krafts Foods This paper presents an analysis of the strategy implementation at Kraft Foods by analyzing different internal processes and systems which can impact the strategy implementation process in a positive or negative way. It includes an analysis of the people, processes, systems, and culture at Kraft Foods and evaluates their contributions, impacts, and strategic fit with its mission, strategy, and corporate principles. This paper

Strategy Under Uncertainty Business Environments
Words: 1755 Length: 5 Pages Topic: Business Paper #: 6349833

That can get them into a lot of trouble. In short, uncertainty is always going to be there in the business world. Nothing is one hundred percent certain when a person is owning and operating a business. During a time when economic uncertainty is higher than normal, there is even more uncertainty that has to be addressed. Overall, though, most uncertainty falls into levels one and two. By the time