GE's Growth Strategies: The Immelt Initiative
- Taking Charge: Setting the Agenda
? On Friday, September 7, 2001, Jeff Immelt took over for Jack Welchc as CEO of GE. Four days later, the 9/11 attacks occurred and the world was thrown into chaos.
? By the end of Immelt's first week on the job, GE's stock had dropped 20%.
? Later that year, GE's stock dropped again on suspicions from the Enron scandal.
? After a rough start to his tenure, Immelt realized that internal growth would be the key to GE's long-term success.
- Building on the Past, Imagining the Future
? Immelt constantly went out of his way to emphasize that GE was not an over-grown, slow to move, slow to react conglomerate.
? He instead viewed the company as a collection of highly correlated businesses made up of world-class people, processes, and strategic initiatives.
? Acting on this, Immelt created a growth strategy made up of 5 key elements:
1. Technical Leadership ? A key driver of future growth
2. Services Acceleration ? GE already had a large amount of product out in the industry that would eventually need servicing as the products aged and wore down.
3. Commercial Excellence ? Shifting focus from GE's internal processes to external customer requirements.
4. Globalization ? Main focus on China and India.
5. Growth Platforms ? Build new businesses based on high-growth areas that will provide "unstoppable" opportunities.
- Investing through the Down Cycle
? Immel ...