Please read the mini-case 8 GE: Corporate Strategy Gone Bad (found in the back of the textbook) and answer the below case questions:
YOU HAVE TO USE THE BOOK!!!
What kind of diversification is GE pursuing? What are the sources of value creation with this type of diversification?
Why has GE lost a whopping $530 billion or almost 90% of its valuation since its peak? What went wrong?
After leaving GE, Jeffrey Immelt stated (in 2018): “The notion of plugging financial services and industrial companies together, maybe it was a good idea at a point in time, but it is a uniquely bad idea now.” To what is Immelt referring? Why does he think this is a bad idea? Do you agree? Why or why not?
In the bestseller Good to Great, Jim Collins advances the hypothesis that the greatness of a leader is known only after the leader has departed. The business press has celebrated Jack Welch as the greatest CEO of the last century. After reading this MiniCase, do you agree with Collins’ strategic leadership hypothesis? Why or why not? Note: When interviewed in 2018 about the GE situation, Jack Welch had this to say: “I give myself an A for the operation of GE, but an F for my choice of successor.”
Case analysis format:
– This is not a group assignment but an individual assignment,
– Please see the syllabus regarding the Academic Honesty Statement (Cheating and Plagiarism). If your similarity score is higher than 30%, your assignment will not be accepted.
– On 8.5 by 11-inch paper with one-inch margins and font size twelve. No restriction on line spacing.
– Do not retype the case questions. However, please specify the question numbers for your answers.
– Each case analysis must be no more than five pages. The limit does not include the cover page, figures, graphs, references, and other supplementary materials.
– Appropriate references must be included.