This document analyzes General Electric (GE). It identifies GE's key resources as human resources, financial strength from GE Capital, brand reputation, global presence, technology and innovation capabilities, and customer service/integrated solutions. The document examines GE's organizational structure and strategic changes under Welch and Immelt. It determines GE's core competencies that provide competitive advantages are its human resources, financial strength, brand, global presence, technology and innovation capabilities, and customer service/integrated solutions.
12.
11 General Electric analysis
3. III Question
3.1.Welch VS Immelt
Immelt’s and Welch’s strategies are different in several aspects and most of them have already been
explained in the previous paragraphs, therefore now it is enough to recapitalised them.
Welch Immelt
Guidance Immediate profit Long term growth
Business of interest Finance Infrastructure
Markets US, EU Emerging countries
Focus Performance & efficiency
(insight)
Innovation
(outsight)
CSR ‐ Part of DNA
Management style Pushing to limits Friendly
Structure Delayering, more units Cross‐sections, less units
Aim of acquisitions Diversification
(being 1 or 2 in every business)
Consistency
(tech and innovation)
Stakeholders of interest Shareholders Customers
Main risks Scandals, too much pressure on
employees
Missing opportunities
Contagion
Coordination problems
General source of
advantage
Cost leadership Differentiation
Immelt’s vision is based on Welch’s work and the direction is always the growth of the company, obviously
with different strategies because of the changing environment. It is possible to unite the two kind of
leadership in the same Four Actions Framework, while Welch seems to be more focusses on Reducing and
Eliminating; Immelt, because of the good implementation in these ambits by his predecessor, shifted the
efforts in Creating and Raising (Pryce, 2015). This give continuity to the path of GE and, therefore, more
consistency to Immelt’s strategy which seems to be perfectly settled between GE’s past and the future
aimed.
3.2.VUCA’s best manager
Immelt’s leadership had reoriented the focus from shareholder to stakeholder, with a long term vision and
sustainability. The focus on innovation and the ability to understand global trends bring new opportunities.
He is trying to simplify the structure and raise the internal collaboration and coordination. His leadership
reflect the Grant’s New Model of Leadership, thanks to ability in build confidence, enthusiasm, cooperation,
form networks, use information. All these are reason for Immelt to be considered a very suitable manager
in the VUCA world (Pryce, 2015).