Prepared with perspective of Government Business and Society

1. GENERAL
ELECTRICS
By :
Ishit Bhatt
Kapil Rajput
Prayag Chauhan
Ronak Thacker

2. History of
• Established in 1879 by Thomas Alva Edison, backing of
banker J.P.Morgan as Electric Light Company.
• Started manufacturing light bulbs & ele. equipment.
• Edison was great inventor but not far-sighted manager.
• Later Morgan took over charge and named it as General
Electric Co.

3. Business engaged in …

4. Life cycle of Jack Welch
• Born - 19th November 1935 at Massachusetts
• Father was of passive conductor in train
• Mother was dominating women and a housewife
• He was a brilliant student at the University of
Massachusetts
• He did doctorate in Chemical Engineering from University
of Illinois
• He joined GE plastic factory in 1960
• In 1981 he became CEO of GE
• He retired from GE in September 2001
• Became national hero

5. Traits of Jack Welch
• Blunt – Speaks their own mind
• Self motivated
• Impatient with subordinates
• Emotionally volatile – Unpredictable behavior
• Fiery tempered
• Neutron Jack
• Charismatic leader
• Not meliable

6. Traits of Welch
• Vision: Ability to see around corners, probe consensus
thinking and swiftly make a change when the market
demands it.
• Leadership: Track-record with people: How one supports
and guides people who are working with him.
• Crisis-management ability: Experience and courage to
overcome a crisis.

7. Achievements of
• Rapid growth
• If Invested $100 in 1981 value becomes $6749 in 2001 (664% )
• Monopoly in bulb market
• Acquisition of RCA
• New technology
• Boundary-less organization
• Expansion in new areas
• Improved productivity in locomotives

8. Malpractices of
• High employee turnover
• As, Bs & Cs
• 1 of every 4 employees was gone
• Not fulfilling corporate social responsibility
• Polluting Hudson river by releasing polychlorinated biphenyls
• Pension fund
• Criminal activities
• Deceptive advertising of light bulbs & unfair debt collection
• 39 law violation
• Contracting fraud

9. Activities of Jack
• Took company from $14 billion to $410 billion during his
20 years of journey in GE
• Removal of bureaucracy
• Adopted boundary less organization
• Adopted Six sigma to eliminating defects
• Selling of low profit companies
• High rate profitability

10. Activities of Jack
• Retrenchment of employees
• Breaching of civil and criminal laws
• Adoption of As, Bs, Cs session
• Globalization
• Purchasing of other units
• Practice of work-out sessions
• Enrichment of share holders

11. For society …
• Paid taxes of $5.7 billion in 2000.
• Managers became multimillionaire in GE stock.
• Made $40 million in grants to colleges, universities, &
non-profit group.
• Community projects
• Tutoring
• Playground construction
• Repairing school equipment & rec. machines for blind
• Special Olympics

12. Other side of coin
• Pressured cities, countries & states to lower taxes by
threatening to move operation elsewhere.
• This lowered budget for schools and infrastructure.
• Manipulating laws which are in favor of company.

13. Summary