General Electric’s (GE) leaders uncompromisingly managed its workforce well organized under the direction of Jack Welch. Just in time to see the world change, corporate scandals and terrorist attacks distressed the global economy; Jeff Immelt succeeded Welch as CEO, on September 7, 2001. In this basically transformed environment, Immelt knew that GE could not simply maintain its status quo.
Immelt formed a long-term transformational strategy to fit with all changes in the internal and external environment, which was deeply focused on technological innovation, customer service and organic growth. His strategy was developed by altering innovative approaches to value creation and strengthening the business portfolio. The strategy necessitated redesigning the organizational structure and changing the management systems to create a more joint workplace and to support managing the complexity of the diversified portfolio and overall performance.
Immelt’s strategy was formed based on the GE’s dynamic capabilities and SWOT analysis which provide management with valuable information to facilitate decision making processes and enable GE to turn opportunities and weaknesses into strengths that can continually achieve a fit with the surrounding business environment, which in turn improve the competitive advantage of GE and support its long-term growth.
To continue the success of Immelt’s strategy, GE should pursue its tendency on technology, integration, growth and customer focus. GE should continue operating with the best, most beneficial market performers. It should continue penetrating new developing markets, utilizing digitalization in new industries and expanding Renewable Energy operations in the promising markets.