Transformation of GE BY

Jack Welch

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What is transformation..?

Intro…

A great company founded by a great inventor! Thomas Alva Edison founded the Edison Electric Light Company in 1878 to manufacture and sell his new invention - incandescent electric lamp. Later Edison combined all his businesses under Edison General Electric Company that merged with Thomson-Houston Electric Company in 1892 to form the General Electric Company.

Intro….

• Type Public company • Traded as NYSE GE Dow Jones Component• Industry Conglomerate• Founded Schenectady, New York, US

(1892) • Founder(s) Charles Coffin, Edwin Houston,

Elihu Thomson, Thomas Edison • Headquarters Fairfield, Connecticut, US[1] • Area served Worldwide Key people • Jeffrey Immelt (Chairman & CEO)

Intro…• Products Appliances, aviation, consumer

electronics, electrical distribution, electric motors, energy, entertainment, finance, gas, healthcare, lighting, locomotives,

oil, software, water, weapons, wind turbines• Revenue US$ 150.211 billion (2010) • Operating income US$ 15.166 billion (2010)• Net income US$ 12.163 billion (2010)• Total assets US$ 751.216 billion (2010)• Total equity US$ 124.198 billion (2010)• Employees 287,000 (2010)• Subsidiaries GE Capital, GE Energy,

GE Home & Business Solutions,GE Technology Infrastructure,NBCUniversal (49%)GE Aviation

Journey of GE

Who is Jack Welch ?

John Francis "Jack" Welch, Jr. (born November 19, 1935) is an American chemical engineer, business executive, and author. He was Chairman and CEO of General Electric between 1981 and 2001. In 2006 Welch's net worth was estimated at $720 million.

Jack Welch

• Jack Welch was born in Salem, Massachusetts to John, a Boston & Maine Railroad conductor, and Grace, a homemaker.

• Welch attended Salem High School and later the University of Massachusetts Amherst, graduating in 1957 with a Bachelor of Science degree in chemical engineering. While at UMass he was a member of the Alpha chapter of the Phi Sigma Kappa fraternity.

• Welch went on to receive his M.S. and Ph.D at the University of Illinois at Urbana-Champaign in 1960.

Journey Of Jack At GE

• Welch joined General Electric in 1960. He worked as a junior chemical engineer in Pittsfield, Massachusetts, at a salary of $10,500 annually. While at GE, he blew off the roof of the factory, and was almost fired for doing so. Welch was displeased with the $1,000 raise he was offered after his first year, as well as the strict bureaucracy within GE. He planned to leave the company to work with International Minerals & Chemicals in Skokie, Illinois.

Journey Of Jack At GE• Welch was named a

vice president of GE in 1972.• He moved up the ranks to

become senior vice president in 1977 and vice chairman in 1979.

• Welch became GE's youngest chairman and CEO in 1981, succeeding Reginald H. Jones.

• By 1982, Welch had disassembled much of the earlier management put together by Jones.

• During the early 1980s he was dubbed "Neutron Jack" (in reference to the neutron bomb) for eliminating employees while leaving buildings intact.

How Jack Transformed GE

The Welch Era at GE: 1981-2001During the first five years as CEO, Jack Welch emphasized that GE should be No.1 or No.2 in all businesses or get out of them.

Conclusion

• Jack Welch was the greatest influence on GE and the business around the world in his time the transformation brought by him in GE was the most innovative, breakthrough in leadership style as a CEO