•Foundedin1878byThomasAlvaEdison•Mergerin1892-TheEdisonGeneralElectricCompany-TheThomson-HoustonCompany•Oneofthe12stocksthatmadeupthefirstDJIAindexin1896.Inthelistcontinuouslysince1907TheHeritage美国通用电气公司的战略管理模式(GE)Today’sBasics…•Revenue:$125.7B–Domestic:Foreign~2:1•NetIncome$13.7B•MarketCapitalization:~$244B•Employees:~310,000•13majorbusinesses•Morethan100countries…CompareandContrast’81TodayRevenue$27.2B$125.7BEarnings$1.7B$13.7BMarketValue$13B$244BBusinesses4313Employees404,000310,000TheThreeFamiliesLong-CycleBusinessesGEShort-CycleBusinessesFinancialServicesLong-CycleBusinessesLong-CycleBusinessesAircraftEnginesPowerSystemsMedicalSystemsTransportationSystemsShort-CycleBusinessesShort-CycleBusinessesConsumerAppliancesIndustrialSystemsSpecialtyMaterialsNBCPlasticsFinancialServicesFinancialServicesCommercialFinanceConsumerFinanceEquipmentManagementInsuranceBusinessASummaryofBusinessFinancesBusinessesRevenue%oftotalGECapital58.445PowerSystems20.216Transportation&Industrial11.69AircraftEngines11.49Medical&Technical9.07PlasticsandSpecialtyMaterials7.16ConsumerProducts5.84NBC5.84Adjustments-3.6Total125.7100TheShareofthePie…GEBusinessesRevenueShare45%16%9%9%7%6%4%4%GECapitalPowerSystemsTransportation&IndustrialAircraftEnginesMedical&TechnicalPlasticsandSpecialtyMaterialsConsumerProductsNBCTheShareofthePie…40%20%40%Long-CycleBusinessesShort-CycleBusinessesFinancialServicesTheEra:HowtheMarketValueditCompare&ContrastwithPre-WelchEraFromFollowingtheEconomy……ToSettingthePaceTheTurnaroundHowdidtheydoit?SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchangeJackWelch’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchangeSWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchangeStrengthsSizeDiversifiedportfolioRelationswiththegovernmentFinancialstrengthWeaknessesBureaucraticmechanisticorganizationManylayersfromtoptobottomDoingitbythebookinsteadofdoingitrightforthecustomer,employeeorbusinessBusinessesasIslandsuntothemselvesOpportunitiesEmergingmarketsChangingbusinessmodelsThreatsTheJapanesechallengeRecessionaryUSeconomywithhighinterestratesandastrongdollarSWOTanalysisin1981JackWelch’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”SWOTVisionRestructuringGrowthEngineSustainingCompetitiveadvantageDynamicPerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchangeBusinessRestructuring…GE-McKinseyMatrixQuestionmarkAppliancesSpecialtyMaterialsWinnerAircraftEnginesPowerSystemsWinnerMedicalSystemsCapitalLoserConsumerElectronicsAverageBusinessPlasticsIndustrialSystemsWinnerTransportationLoserCentralA/CHousewaresCoalminingLoserProfitProducerLightingHighMediumLowLowMarketAttractivenessCompetitivePositionReorganizationofbusinessesChangingcompositionofbusinesses51%30%19%26%39%35%0%10%20%30%40%50%60%CorebusinessesTechnologybusinessesServicebusinesses19811991BusinessRestructuring….cont’dToFromFourN