In what ways has Jeff Immelt redirected the strategy of GE?
1. In what ways has Jeff Immelt redirected the strategy of GE?
2. To what extent is the strategy aligned with
a. The requirements of the 21st century business environment?
b. GE’s resources & capabilities?
3. What organisational changes has the new strategy necessitated? Will GE be able to successfully execute the new strategy?
4. What alternative strategies should GE consider?
There two sample papers that answer the above questions: Here is the first sample paper:
The Strategy of General Electric Under the Leadership of Jeff Immelt
Strategy, according to Chandler (1963), relates to the determination of long term business objectives and goals and the adoption of actions and allocation of resources that are necessary if these objectives and goals have to be achieved. Johnson and Scholes (2011) define the term as the long-term direction taken by an organisation. Strategy has been linked to the pattern of decisions made by an organisation. The strategy that a firm assumes and applies is meant to help it gain competitive advantage in the market in which it operates. This paper focuses on the strategy that Jeff Immelt applied during his time as CEO of General Electric. Among other issues, the paper discusses how Jeff Immelt redirected the strategy of GE.
How Jeff Immelt Redirected the Strategy of GE
Jeff Immelt greatly changed the strategic direction of General Electric during his time at the helm of the company. Soon after assuming the role of CEO of GE, the business environment experienced shocks as a result of major events including a financial crisis, 9/11, and the collapse of energy giant, Enron. Even though the company’s performance under the leadership of Jack Welch was commendable, changes in the business environment necessitated changes in the company’s strategies if its performance as a top performer had to be maintained. In appreciation of this fact, Immelt made a number of strategic changes to the company and how it operated.
One of the strategic changes that Immelt made to GE related to its shift in focus from the maximisation of shareholder value to growth in long-term earnings. Before Immelt, the company put a lot of focus on short term earnings and in maximising shareholder value such as through ensuring the company had high stock prices. Immelt, however, emphasized that the way to go was to manage the company properly which would ultimately drive the company’s stock prices (Grant 20151). This move by Immelt was driven by the realisation that traditional sources of value such as the elimination of under-performing assets and cost reduction had been exhausted. Continue reading … 29-45
Alternative link … (code 29-45).
Here is the second sample paper:
General Electric Case Study
The term “strategy” comes from the Greek word “Strategos” which means “generalship” (Nickols 2016). Strategy is a common term or concept in the business field today, having been borrowed from the military. The term has been defined in different ways by scholars and experts. Johnson and Scholes (2011) define the concept as the long-term direction that a firm assumes. On the other hand, Chandler (1963) defines it as the determination of long-term objectives and goals of an organisation and relates it to the actions and allocation of resources needed for the achievement of the organisation’s goals and objectives. On his part, Steiner (2008) associates strategy with the actions that one takes to counter the predicted or actual moves of an opponent. According to Mintzber (1994), strategy is commonly applied in four different ways; as a position, as a pattern, as a plan, and finally as a perspective. Business organisations develop and apply different strategies to achieve their objectives and goals, respond to changes in the business environment, and to counter the moves taken by their competitors. This paper will focus on the strategy of General Electric (GE) under the direction of Jeff Immelt. The paper will begin by providing a background to General electric and its strategy under the leadership of Jeff Immelt before discussing the how the company’s Strategy was aligned with the 21st century business environment. The paper will then discuss GE’s strategy alignment with the company’s resources and capabilities and organisational changes in the company concluding with a brief discussion of alternative strategies that General Electric could have adopted. Continue reading: 30-64.
Alternative link … (code 30-64).