‘Ge’s Growth Strategy: the Immelt Initiative’
Case summary: ‘GE’s Growth Strategy: The Immelt Initiative’
The General Electric Company (GE) is an American multinational conglomerate corporation incorporated in New York. The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, Capital Finance and Consumer & Industrial. The company has 287,000 employees around the world.
Products are Appliances, Aviation, Consumer, Electrical, Energy, Entertainment, Finance, Gas, Healthcare, Lighting, Locomotives, Oil, Software, Water, Weapons and Wind turbines. In 2010 company’s Revenue was US$ 104.635 billion, Operating income was US$ 15.166 billion, Net income was US$ 12.163 billion, Total assets was US$ 751.216 billion Total equity was US$ 124.198. GE’s Subsidiaries are GE Energy, GE Technology Infrastructure, GE Capital, NBC Universal, GE Home and Business Solutions.
On September 7, 2001, Immelt took over the charge of GE from Jack Welch, the almost legendary previous CEO. In his 20 years as CEO, Welch had built GE into a highly disciplined, extremely efficient machine that delivered consistent growth in sales and earnings through effective operations and though continuous stream of timely acquisitions and clever deal making. This joint approach had resulted in double-digit profit increase through 1990s.
However, Four days after joining of Immelt, the world was thrown into turmoil by 9/11 that triggered a downturn in an overheated economy, leading to a fall in economies worldwide. So his task was very challenging.
Immelt recognized the need for change the basic business model. He bristled at the characterization of GE as a conglomerate, preferring to see it as a well-integrated, diversified company. He wanted to take the company into “big, fundamental high-technology infrastructure industries,” to have competitive advantage.
He elaborated this into a vision of a global, technology-based, service-intensive company by defining a growth strategy based on five key elements:
The General Electric Company (GE) is an American multinational conglomerate corporation incorporated in New York. The Company operates through five segments: Energy Infrastructure, Technology Infrastructure, Capital Finance and Consumer & Industrial. The company has 287,000 employees around the world.
Products are Appliances, Aviation, Consumer, Electrical, Energy, Entertainment, Finance, Gas, Healthcare, Lighting, Locomotives, Oil, Software, Water, Weapons and Wind turbines. In 2010 company’s Revenue was US$ 104.635 billion, Operating income was US$ 15.166 billion, Net income was US$ 12.163 billion, Total assets was US$ 751.216 billion Total equity was US$ 124.198. GE’s Subsidiaries are GE Energy, GE Technology Infrastructure, GE Capital, NBC Universal, GE Home and Business Solutions.
On September 7, 2001, Immelt took over the charge of GE from Jack Welch, the almost legendary previous CEO. In his 20 years as CEO, Welch had built GE into a highly disciplined, extremely efficient machine that delivered consistent growth in sales and earnings through effective operations and though continuous stream of timely acquisitions and clever deal making. This joint approach had resulted in double-digit profit increase through 1990s.
However, Four days after joining of Immelt, the world was thrown into turmoil by 9/11 that triggered a downturn in an overheated economy, leading to a fall in economies worldwide. So his task was very challenging.
Immelt recognized the need for change the basic business model. He bristled at the characterization of GE as a conglomerate, preferring to see it as a well-integrated, diversified company. He wanted to take the company into “big, fundamental high-technology infrastructure industries,” to have competitive advantage.
He elaborated this into a vision of a global, technology-based, service-intensive company by defining a growth strategy based on five key elements: