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Corporate Strategy Presentation Group 1 An Interview with Jeff Immelt

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Corporate Strategy Presentation Group 1 An Interview with Jeff Immelt
Corporate Strategy

Growth as a process: An interview with Jeffrey R. Immelt

May 21st, 2015

Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz

1

Agenda

1

2

3

4

Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them

New set of management tools to pursue ambitious organic growth goals

Key lessons and managerial implications

Q&A

May 21st, 2015

Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz

2

Agenda

1

2

3

4

Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them

New set of management tools to pursue ambitious organic growth goals

Key lessons and managerial implications

Q&A

May 21st, 2015

Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz

3

Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Factors for GE’s change:
• Terrorist attacks
• Corporate scandals
• Slower growth in the world economy



more global due to market shift



lower admin. expense (from 11% to 8% is the goal)



fewer divisions and backroom outsourcing



higher marketing expense and more R&D (p.e. $1 billion when he became CEO)

 Higher revenue and higher margins due to better flow of products and services


Some acquisitions to strengthen core for innovation (homeland security, biotech, water) •

Commercial Council: marketing and sales people to share best practices to develop growth as a process

Focus on organic growth (8%, or 2-3x world GDP) and building growth platforms

May 21st, 2015

Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz

4

Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Comparison of Jack Welch’s and Jeff Immelt’s strategies:

Jack Welch

Jeff Immelt

Methodology:





Leadership efficiency
Strong business and down sizing
Cost cutting





More people oriented
Focus on effectiveness
Marketing and innovation growth

Target Market:



EU and USA



Global

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