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?Foundedin1878byThomasAlvaEdison?Mergerin1892TheEdisonGeneralElectricCompanyTheThomsonHoustonCompany?Oneofthe12stocksthatmadeupthefirstDJIAindexin1896.Inthelistcontinuouslysince1907TheHeritage美國通用電氣公司的戰(zhàn)略管理模式( GE)Today’sBasics…?Revenue:$B–Domestic:Foreign~2:1?NetIne$B?MarketCapitalization:~$244B?Employees:~310,000?13majorbusinesses?Morethan100countries… CompareandContrast’81 TodayRevenue $B $BEarnings $B $BMarketValue $13B $244BBusinesses 43 13Employees 404,000 310,000TheThreeFamiliesLongCycleBusinessesGEShortCycleBusinessesFinancialServicesLongCycleBusinessesLongCycleBusinessesAircraftEnginesPowerSystemsMedicalSystemsTransportationSystemsShortCycleBusinessesShortCycleBusinessesConsumerAppliancesIndustrialSystemsSpecialtyMaterialsNBC PlasticsFinancialServicesFinancialServicesCommercialFinanceConsumerFinanceEquipmentManagementInsuranceBusinessASummaryofBusinessFinancesTheShareofthePie…TheShareofthePie…TheEra:HowtheMarketValueditCompareContrastwithPreWelchEraFromFollowingtheEconomy…… ToSettingthePaceTheTurnaroundHowdidtheydoit?SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT: 1981Strengths Weakness4blocks SixSigmaInertia BestpracticesLeadershipBoundary lessnessValuesStrategicModelFrontendFocusDigitizationBPOandchangeJackWelch’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobeethe1or2petitorinitsindustry“A decade from now, I would like General Electricto be perceived as a unique, highspirited, entrepreneurial enterprise . . . the most profitable, highly diversified pany on earth, with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT: 1981Strengths Weakness4blocks SixSigmaInertia BestpracticesLeadershipBoundary lessnessValuesStrategicModelFrontendFocusDigitizationBPOandchangeSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT: 1981Strengths Weakness4blocks SixSigmaInertia BestpracticesLeadershipBoundary lessnessValuesStrategicModelFrontendFocusDigitizationBPOandchangeStrengthsSizeDiversifiedportfolioRelationswiththegovernmentFinancialstrengthWeaknesses BureaucraticmechanisticanizationManylayersfromtoptobottomDoingitbythebookinsteadofdoingitrightforthecustomer,employeeorbusinessBusinessesasIslandsuntothemselvesOpportunitiesEmergingmarketsChangingbusinessmodelsThreatsTheJapanesechallengeRecessionaryUSeconomywithhighinterestratesandastrongdollarSWOTanalysisin1981JackWelch’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobeethe1or2petitorinitsindustry“A decade from now, I would like General Electricto be perceived as a unique, highspirited, entrepreneurial enterprise . . . the most profitable, highly diversified pany on earth, with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT: 1981Strengths Weakness4blocks SixSigmaInertia BestpracticesLeadershipBoundary lessnessValuesStrategicModelFrontendFocusDigitizationBPOandchangeBusinessRestructuring…GEMcKinseyMatrixQuestion markAppliances Specialty MaterialsWinner Aircraft Engines Power SystemsWinnerMedical SystemsCapitalLoser Consumer ElectronicsAverage Business PlasticsIndustrial SystemsWinnerTransportationLoser Central A/CHouse waresCoal miningLoser Profit ProducerLightingHighMediumLowLow Medium HighMarketAttractivenessCompetitivePositionReanizationofbusinessesChangingpositionofbusinessesBusinessRestructuring….cont’dToFromFourNineDelayeringofhierarchicallevelsEvaluatedagainstexternalpetitionInternalparisonswithpastperformanceFocusofBudgetingprocessRealtimeplanningStrategicPlanningprocessPlanningprocessSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT: 1981Strengths Weakness4blocks SixSigmaInertia BestpracticesLeadershipBoundary lessnessValuesStrategicModelFrontendFocusDigitizationBPOandchangeScientificManagement Vs TransformationalleadershipWriting SpeakerCautious AggressiveHarmony ConfrontationalSystemoriented IndividualorientedIntegrationthrumittees ThruProcessesReliesonReports OnemployeefeedbackAvoideduncertainty AccepteditControlledcha