Essay on General Electric’s Revolutionary
Historically, GE was one of the leading companies operating in the energy industry of the US. However, in the course of time, GE progressed and diversified its operations. By the late 1970s, the company operated in different industries, but its performance was stumbling because after the economic and energy crisis of the mid-1970s, the company confronted substantial problems in its business development. In such a situation, the new CEO of the company, Jack Welch, became a true savior for the company, who helped the company to regain its position and improve its financial and marketing performance. In fact, Jack Welch was one of the prominent CEOs that helped GE to overcome the considerable downturn in its business development and regain its position in the US as one of the largest employers and one of the most successful companies.
Jack Welch had extensive experience of work within GE, where he started to work and kept progressing till he reached the CEO position. The personal experience of work at GE was very useful for the company because Jack Welch knew perfectly all the drawbacks and weaknesses of the company that prevented its fast and successful growth. The extensive experience and the understanding of GE, its organizational structure, its strengths and weaknesses helped Jack Welch to determine accurately needs of the company and elaborate the effective strategy that helped the new CEO to make a breakthrough in the business development of GE. The extensive experience of Jack Welch of work within the company became the cornerstone for his further work as the CEO of the company.
Furthermore, Jack Welch focused on the elimination of bureaucracy within GE that contributed to the consistent improvement of the organizational performance and efficiency of internal business operations. From his past experience of work in GE, Jack Welch knew perfectly that bureaucratic barriers were unsurpassable and they prevented many perspective ideas from their successful implementation in GE. This is why he was aware of the negative impact of bureaucracy on the performance of the company. The elimination of bureaucracy within GE opened the way for the development of effective business policies and helped the company to improve its performance fast.
In fact, the development of GE under the lead of Jack Welch involved the consistent reduction of the personnel of the company accompanied by the refusal of the company from unprofitable outlets. As a result, the company sold out unprofitable businesses and reduced the staff that allowed to save costs and to optimize its financial performance. The enhancement of the business development occurred due to the focus on profitable businesses only. The company has managed to enhance its marketing performance through the increase of revenues and decrease of financial losses. Unprofitable outlets of the company were unbearable burden for the company. The sale of those outlets allowed the company to decrease its financial losses and helped to use revenues from profitable outlets to invest into new projects and improvement of their performance.
Jack Welch fired 10% of bottom managers annually to maintain the competition within the company and keep managers motivated to improve their performance constantly to stay within the company. This strategy was tough but it stimulated the growth of the company because GE managed to improve the financial performance and improve its marketing performance steadily.
In addition, Jack Welch contributed to the development informal, personal relationships within the organization that also helped to eliminate bureaucratic barriers and improve the communication within the company. The development of interpersonal relations and elimination of bureaucratic barriers within GE contributed to the improvement of the organizational culture. The improvement of the atmosphere within the company contributed to the improvement of the organizational performance. Employees worked better in the light of the shift from the organizational performance that was deteriorating because of high bureaucratic barriers to the effective organizational performance.
Furthermore, Jack Welch diversified the business development of GE by shifting toward financial services from traditional industries, where GE operated. The diversification of the company’s business performance contributed to the enhancement of the position of the company because the company could compensate financial losses in some branches of the company by revenues from others. New industries and new businesses opened wider opportunities for the business development of the company and expansion of its market share.
Thus, Jack Welch became the CEO, who has managed to reform and reconstruct GE consistently, making it one of the leaders in the US market. Jack Welch became the CEO, who has managed to introduce effective methods of the business development. In such a way, the company has managed to regain its position in the market. Moreover, Jack Welch has changed the business development of the company and the corporate philosophy. As a result, GE became the company with the effective business development, organizational structure and overall improvement of its business performance.
Do you like this essay?
Our writers can write a paper like this for you!
(No Ratings Yet)
Loading...