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1. History of GE2. Reg Jones

3. Jack Welch

4. Restructuring of GE

5. Internal Business

6. Welchs Initiatives

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1878 founded by Thomas Edison First focus: generation, distribution and use of

electric power

100 years later one of the worlds leading

1930s controlled corporate entity

1950s trend toward greater

decentralization

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1973-1981 Inherited GE after major reorganization

Raised strategic planning to an art form.

Was the countrys leading businessstatesman

1970s Voted CEO of the year 3 times

1979 Dubbed CEO of the Decade

1981 Wall StreetJournal said he was amanagement legend

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Start of Welchs Term End of Welchs Term

April 1981 Start of term 45 years old

1st priority restructureGE

Wanted GEs businessesto strive to be Betterthan the Best

Manager of the Centuryby Fortune

FortunesMost AdmiredCompany in the UnitedStates

Financial TimesMostAdmired Company in theWorld

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Generated major profits during a recession Sold over 200 businesses/created over 370

acquisitions

Replaced Reg Jones strategic planningsystem with real time planning

Eliminated over 59,000 salaried and over64,000 hourly positions in 1981-1988

Nickname: Neutron Jack

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1980s - Restructuring was almost complete Details, Details, Details!

Everyone has a voice

Developed Leaders 1994 Service based opportunities took

precedence

(1995 Welch had triple bypass surgery)

1996 GE built an $8 billion equipmentservices business

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#1 or #2: Fix, Sell or Close Work Out

Removing unnecessary bureaucratic work out of thesystem

Best Practices Increase Productivity

Globalization 1986

Paolo Fresco

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Boundaryless Behavior Integrated diversity, sharing of new ideas, etc.

Stretch How good can you be?

Six Sigma The companys largest opportunity for growth,

employee satisfaction and increased profitability

E-Business (1999) Jack Welchs Final Initiative

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