1. Jeffrey
Immelt
The growth story of the GE empire under
the two emperors
---Presented by GROUP 1 :
Seunghyuk Choi
Cesar Bravo De Rueda Sandoval
Tanay Agarwal
Narisa Luanporn
Anudeep Paduru
Paloma Aguirre munoz
2. Junior engineer in Pittsfiel, Mass
Reason
Bureaucracy,
1961: About to quit
Felt underappreciated
Dinner with Reuben Gutoff
Decides to continue
at GE
Later he became Vice President of
GE in 1972 Senior Vice 1981: Became CEO
President in 1977 Vice
Chairman in 1979
3. M.B.A. from Harvard Business
School
1982: Joined GE
His father managed
General Electric
Aircraft Engines
Vice president of GE home Division
appliance
VP of GE international marketing and
manufacturing
President of GE medicals 2001: Became CEO
4. JACK WELCH JEFFREY IMMELT
Imposing leadership
More people-oriented
Efficiency:
paternal-like personality
- Strong business and
PARADIGM Effectiveness-oriented:
down-sizing
- Growth engines for the
- Top 2 positions or “fix,
future
sell or close”
Risk-taking , sophisticated
marketing and innovation
Cost cutting, efficiency and Growth:
dealmaking -external growth
Six Sigma: - marketing
-quality and cost -Commercial council- 12
METHODOLOGY
- Session C- management member board(from
appraisal, development, different departments) in
planning reviews marketing- ideas discussed
-Wanted generalists -Removing the rotation and
made specialists
-More openness and trust
European Union
TARGET MARKET Developing countries
USA
5. JACK WELCH JEFFREY IMMELT
“real time planning” Long-term strategy
Cash generator: Growth engine:
PORTFOLIO
- Finance -Infrastructure(focus on
- Services green energy)
RESPONSIBILITY Within the law Social responsability
- Domestic competition - Economic global
- Recession and High slowdown
interest rates, strong - Recent terrorist attacks
EXTERNAL CONDITIONS
dollar (September 11, 2001)
- High unemployment - Increased to global
competition
ORGANIZATIONAL He removed the “sectors” He made the 11 business
STRUCTURE layer units into 6 in 2005.
6. Under his tenure, GE’s market cap grew $18 billion
to $500 billion
Shareholders received 23% per annum return during
his tenure.
Promote-from-within strategy
Work-Out Boundarylessness Best Practices
Stretch
Last strategic initiative: E-business
7. "Imagination Breakthrough" proposals per year
receive billions in funding.
each one has to give GE incremental growth of at least $100
million.
Welcoming outsiders into the highest ranks
More investment in R & D.
Tying executives' compensation to their ability
to come up with ideas
show improved customer service
generate cash growth
boost sales instead of simply meeting bottom-line targets.
8. Welch made the brand
stronger in the United
states.
Entry into Europe, Asia
in difficult conditions
Immelt- : Revenues from
emerging markets like
China, India, Turkey, East
ern Europe, Russia and
south America
Create or expand
research centers in New
York, China, Germany, In
dia, Brazil
9. The success of
both the CEOs
are different-
Expansion
wise
Stock price
wise
@Paloma: And while Immelt hasn't exactly repudiated Welch's insistence that managers remove the bottom 10% of their staff, there's more flexibility, more subjectivity to the process. Risking failure is a badge of honor at GE these days.
This has to be done byCesar.
Immelt wants his managers to lead industries rather than merely follow demand.A key strategy -- and one that amounts to a gut punch to the culture -- involves bringing in more outsiders.
Globalizing research has allowed GE to get closer to overseas customers. The simple fact is that most of GE's growth will come from outside the U.S. Immelt predicts that developing countries will account for 60% of the company's growth in the next 10 years, vs. about 20% for the past decade. But he is also spreading new practices to lethargic economies such as Germany. After a 2002 meeting with German Chancellor Gerhard Schröder reinforced his notion that GE could be doing more in that country, Immelt decided to open the Munich center. As Immelt explains, "there's no place in GE where you feel more like a loser than in Germany. You have Siemens (SI ) and Philips (PHG ), and we haven't been that good." By July, 2004, a new center was up, and the results were immediate. According to NaniBeccalli-Falco, CEO of GE International, the company saw a 21.5% growth in German-speaking markets last year from 2003.VIEWS ABOUT GLOBALIZATIONGrowth: Made the brand stronger in the United statesHe invested into new markets and acquisitions in EU taking advantage of the European crisisGrowth: Revenues from emerging markets like China, India, Turkey, Eastern Europe, Russia and south America Create or expand research centers in New York, China, Germany, India, Brazil
