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  • GE S Two-Decade Transformation

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    GE was founded in 1878 by Thomas Edison and grew to be one of the world's leading diversified industrial companies over 100 years. Reg Jones led GE from 1973-1981 before Jack Welch took over, aiming to restructure GE and have its businesses strive to be "better than the best". Welch generated major profits during a recession through selling over 200 businesses and acquiring over 370 others while eliminating over 123,000 jobs. He transformed GE completely in 20 years through various initiatives before retiring in 2001 as one of the most celebrated CEOs.

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    GE s Two-Decade Transformation

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    GE was founded in 1878 by Thomas Edison and grew to be one of the world's leading diversified industrial companies over 100 years. Reg Jones led GE from 1973-1981 before Jack Welch took over, aiming to restructure GE and have its businesses strive to be "better than the best". Welch generated major profits during a recession through selling over 200 businesses and acquiring over 370 others while eliminating over 123,000 jobs. He transformed GE completely in 20 years through various initiatives before retiring in 2001 as one of the most celebrated CEOs.

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    101 views10 pages

    GE S Two-Decade Transformation

    Uploaded by

    atefzouari
    GE was founded in 1878 by Thomas Edison and grew to be one of the world's leading diversified industrial companies over 100 years. Reg Jones led GE from 1973-1981 before Jack Welch took over, aiming to restructure GE and have its businesses strive to be "better than the best". Welch generated major profits during a recession through selling over 200 businesses and acquiring over 370 others while eliminating over 123,000 jobs. He transformed GE completely in 20 years through various initiatives before retiring in 2001 as one of the most celebrated CEOs.

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    of 10

    1. 2. 3. 4. 5. 6.

    History of GE Reg Jones Jack Welch Restructuring of GE Internal Business Welchs Initiatives

    1878 founded by Thomas Edison


    First focus: generation, distribution and use of electric power

    100 years later one of the worlds leading

    diversified industrial companies

    1930s controlled corporate entity 1950s trend toward greater decentralization

    1973-1981 Inherited GE after major reorganization Raised strategic planning to an art form. Was the countrys leading business statesman 1970s Voted CEO of the year 3 times 1979 Dubbed CEO of the Decade 1981 Wall Street Journal said he was a management legend

    April 1981 Start of term 45 years old 1st priority restructure GE Wanted GEs businesses to strive to be Better than the Best

    Manager of the Century by Fortune Fortunes Most Admired


    Company in the United States Financial Times Most Admired Company in the World

    Start of Welchs Term

    End of Welchs Term

    Generated major profits during a recession Sold over 200 businesses/created over 370 acquisitions Replaced Reg Jones strategic planning system with real time planning Eliminated over 59,000 salaried and over 64,000 hourly positions in 1981-1988 Nickname: Neutron Jack

    1980s - Restructuring was almost complete Details, Details, Details! Everyone has a voice Developed Leaders 1994 Service based opportunities took precedence (1995 Welch had triple bypass surgery) 1996 GE built an $8 billion equipment services business

    #1 or #2: Fix, Sell or Close Work Out


    Removing unnecessary bureaucratic work out of the system

    Best Practices
    Increase Productivity

    Globalization
    1986 Paolo Fresco

    Boundaryless Behavior
    Integrated diversity, sharing of new ideas, etc.

    Stretch
    How good can you be?

    Six Sigma
    The companys largest opportunity for growth, employee satisfaction and increased profitability

    E-Business (1999)
    Jack Welchs Final Initiative

    Complete

    transformation in 20 years Believed in taking care of outstanding employees Took care of his employees Fundamentals first!

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