1. Submitted by: Group 9 Section C
Palash Agarwal (11P095)
Manoj Kapoor (12P147)
Rohan Khandelwal(12P164)
Saket (12P165)
Mohit Ambwani(12P152)

2.  Founded in 1878 by Thomas Edison.
 Focus on Generation , Distribution, and use
of electric power to become.
 1978 – Power Generation , household
appliances, lighting + Aircraft
engines, medical systems and Diesel
Locomotives.

3. 1930
•centralized
1950
•Decentralization
1960
•strengthen its
corporate staff
and develop
sophisticated
planning systems
GE –a Bellwether of American Management Practices

4. Strategy-SBU based structure and planning
processes
• 10 groups, 46 divisions, 190 departments, and 43 strategic
business units
• Develop a constructive business-government dialogue
• Wall Street Journal proclaimed him as a “management legend”
Success
• Sales more than doubled ($10 billion to $22 billion) and earnings
grew even faster ($572 million to $1.4 billion)
• A major thrust into international markets
• Expansion of world trade and restoration of U.S. competitiveness

5.  1935: born in Salem, Massachusetts
 1957: BS in Chemical Engineering
 1960: MS and PhD in Chemical Engineering
• 1960: Joined GE as a chemical engineer
• 1972: Elected GE’s youngest VP
• 1979: Vice Chairman
• April 1, 1981: Became the 8th Chairman
and CEO of General Electric

6. Challenge form outside GE
Economic recession
High interest rates
Highest unemployment rate since the depression
◦ Challenges from GE
 Massive information and inefficient macro-business

8.  “A decade from now, I would
like General Electric to be
perceived as a Unique, high-
spirited, Entrepreneurial
enterprise…the most
profitable, highly diversified
company on the earth, with
world quality leadership in
every one of its product
lines”. -- Jack Welch
Services
GECC
Information
Construction &
Engineering
Nuclear Services
Technology
Industrial
Electronics
Medical Systems
Material
Aerospace
Aircraft Engines
Core
Lighting
Major Appliance
Motor
Transportation
Turbine
Construction
Equipment
Support
Ladd Petroleum
Semi Conductor
GE Trading Co.
Utah Mining
Ventures
Calma
Outside
Housewares
Central Air-
Conditioning
TV&Audio
Cable
Mobile
Power Delivery
Radio Stations
Three-Circle Vision for GE

9.  Challenged everyone to be “better than the best”
 Sold more than 200 businesses and made over 370
acquisitions
 Insisted GE become more “lean and agile” resulting
◦ Delayering: elimination of the “sector” level
◦ Downsizing: elimination of about 123,450 jobs
◦ Divestiture: elimination of an additional 122,700 jobs
 Replaced 12 of his 14 business heads

10. Work Out
Best
Practices
Going
Global
Developing
Leaders
Second Wave
Software
Iniatives

11. Boundaryless
Behavior
Service
Businesses
Six Sigma E-Business
Third Wave

12.  A process designed to get unnecessary
bureaucratic work out of the system while
providing a forum in which employees and
their bosses could work out new ways of
dealing with each other.

13.  How to increase Productivity ?
Michael Fraizer of GE’s Business Development
• They focused more on developing effective processes than
controlling individual activities.
• Customer satisfaction was their main gauge of performance.
• They treated their supplier as partners
• They emphasized the need for a constant stream of high
quality new products designed for efficient manufacturing

14.  1989 – appointed Paulo Fresco as head
international Operations.
 a key negotiator on the thompson swap
 Continued to broker numerous international deals
 a joint venture with German-based Robert Bosch
 a Partnership with Toshiba
 Acquisition of Sovac , the French Consumer credit Company

15. Loyal Creative Strong People
Professional
Self-
Confidence
Passion for
Excellent
Aggressive
Capacity to
develop global
brain
Change

16.  To strengthening GE’s Individual Businesses
Integrated Diversity
Boundaryless
Company
The Boundaryless
company we envision
will remove the
barriers among
engineering,
manufacturing,
marketing, sales, and
customer service; it
will recognize no
distinctions between
domestic and foreign
operation …..

17.  1990 , Welch Introduced the notion of
“stretch” to set performance targets and
described it as “using dreams to set business
targets, with no real idea of how to get there.”
 Stretch Targets did not replace traditional
forecasting and objectives-setting process.

18.  In 1994, Welch launched a new strategic
initiative designed to reinforce one of his
earliest goals: to reduce GE’s dependence on
its traditional industrial products.
1
85%
2
15%
1980
1
55%
2
45%
1990
1
45%
2
55%
1995
1
33%
2
67%
1998
Products Services

19.  Issue
◦ When a 1995 Company Survey showed that GE
employees were dissatisfied with the quality of its
products and processes.
 Six Sigma (Motorola Inc and AlliedSignal)
◦ Improve Quality
◦ Lower Cost
◦ Increase Productivity

20.  1996 – Boca Raton- Welch announced a goal
of reaching Six Sigma quality levels company
– wide by the year 2000, describing the
program as “the biggest opportunity for
growth, increased profitability , and individual
employee satisfaction in the history of our
company.”
GreenBelts
4 weeks
training
5 Months
implementation
BlackBelts
6 weeks of
instruction in
statistic , data
analysis and
other six sigma
tools
MasterBlackBelts
Full time six
sigma
instructors –
mentored the
Black Belt
candidates
through the two
–years process

21.  “A – Players”
◦ Individuals with vision , leadership, energy and
courage
 “4 E’s”
◦ Energy ,
◦ Ability to Energize others ,
◦ Edge , the ability to make tough calls
◦ Execution , the consistent ability to turn vision into
results.

23. GE’s
Restructurin
g
First
Wave
Cultural
Changes
Second
Wave
Boundaryles
sness
Third
Wave
Work Out
Best Practices
#1 or #2 –
fix, sell, or close
1981 1988 1990