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Strategic Management, How difficult a challenge did Welch face in 1981. How effectively did he take charge

Question Preview:

Class Title: Strategic Management

Individual Case Assignment

Submitted Case Analysis Papers should be approximately 8-10 pages in length. It generally takes about two pages to answer each case question. Think hard about the key points you want to make and avoid generalities.  You should not quote extensively from the case itself, except to cite specific data or information. We are interesting in “your” critical thinking about the case.

“GE's Two Decade Transformation Case Analysis” View complete question »

Question Preview:

Class Title: Strategic Management

Individual Case Assignment

Submitted Case Analysis Papers should be approximately 8-10 pages in length. It generally takes about two pages to answer each case question. Think hard about the key points you want to make and avoid generalities.  You should not quote extensively from the case itself, except to cite specific data or information. We are interesting in “your” critical thinking about the case.

“GE's Two Decade Transformation Case Analysis”

Analyze the case study based on the questions given below. This case study assignment is tightly integrated with the readings for this and previous weeks. You will need to acquire a good understanding of key ideas from the readings before starting to analyze the case study.

Case Analysis Questions:

·How difficult a challenge did Welch face in 1981. How effectively did he take charge?

·What was Welch’s objective in the series of initiative he launched in the late 1980?s and early 1990’s.? What was he trying to achieve in the round of changes he put in motion in that period? Is there a logic or rational supporting the change process?

·How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welch's various initiatives added value? If so, how?

·What is your evaluation of Welch's approach to leading change? How important was he to GE's success? What are the implications for his replacement?

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Solution preview

How difficult a challenge did Welch face in 1981. How effectively did he take charge?

Answer – When Welch joined as a CEO of General Electric in the year 1981, there existed a recession in the United states Economy. The problem of recession led to the strong rate of dollar and high interest rates. This also led to the ultimate and severe problem of recession. But Welch took up this challenge in a very organized manner. He wanted that even in the difficult time, they should keep their moral spirits high and result in the progress of the company. He introduced a series of changes for the next five years:

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