•Foundedin1878byThomasAlvaEdison•Mergerin1892-TheEdisonGeneralElectricCompany-TheThomson-HoustonCompany•Oneofthe12stocksthatmadeupthefirstDJIAindexin1896.Inthelistcontinuouslysince1907TheHeritage(GE)’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$244BBusinesses4313Employees404,000310,000://www.cnshu.cn拥有庞大的管理资料库Long-CycleBusinessesLong-CycleBusinessesAircraftEnginesPowerSystemsMedicalSystemsTransportationSystems://www.cnshu.cn拥有庞大的管理资料库FinancialServicesFinancialServicesCommercialFinanceConsumerFinanceEquipmentManagementInsuranceBusiness%oftotalGECapital58.445PowerSystems20.216Transportation&Industrial11.69AircraftEngines11.49Medical&Technical9.07PlasticsandSpecialtyMaterials7.16ConsumerProducts5.84NBC5.84Adjustments-3.6Total125.7100…GEBusinessesRevenueShare45%16%9%9%7%6%4%4%GECapitalPowerSystemsTransportation&IndustrialAircraftEnginesMedical&TechnicalPlasticsandSpecialtyMaterialsConsumerProductsNBC…40%20%40%Long-CycleBusinessesShort-CycleBusinessesFinancialServices:HowtheMarketValuedit&ContrastwithPre-WelchEra……ToSettingthePace?:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchange’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchange:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalization4blocksSixSigmaInertiaBestpracticesStrategicModelFront-endFocusDigitizationBPOandchange,employeeorbusinessBusinessesasIslandsuntothemselvesOpportunitiesEmergingmarketsChangingbusinessmodelsThreatsTheJapanesechallengeRecessionaryUSeconomywithhighinterestratesandastrongdollarSWOTanalysisin1981’svisionBenumber1or2(Fix,sellorclose)Welchsetthestandardforeachbusinesstobecomethe#1or#2competitorinitsindustry“Adecadefromnow,IwouldlikeGeneralElectrictobeperceivedasaunique,high-spirited,entrepreneurialenterprise...themostprofitable,highlydiversifiedcompanyonearth,withworldqualityleadershipineveryoneofitsproductlines”:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarketExpan