Right from the get-go, Jeff Immelt had an uphill battle taking over as CEO of GE. Several factors caused this to be a more difficult time than might otherwise have been. First, he assumed the role on September 7th, and of course a few days later, the United State was attacked. Immediately, he had to deal with GE casualties and donate cash and equipment towards the efforts at the World Trade Center. Second, Immelt came in on the heels of an economy that was cooling from the internet bubble a few years earlier. In September of 2000, the S&P 500 was over 1500, and a year later it was just above 1000. The attack on 9/11 further destabilized the weakened economy and sent investors scurrying for cover. According to the article by Christopher …show more content…
Well, from 2001 to 2005, revenues grew by 39%, and in 2004 and 2005 GE had double digit revenue growth. Earnings grew by 41% from 2001 – 2005 and also had double digit growth for 2004 and 2005. Immelt was also able to increase organic growth from 5% to 8%. The numbers for the revenues and earnings clearly indicate that Immelt was successful in achieving his objectives and it seems that his strategy was well implemented. While he achieved certain success with growing his revenues and earnings, the market failed to recognize this and the stock closed 2005 at $35.05, down 12.5% from 2001. If I were Immelt, I wouldn’t worry too much about the stock price. The S&P has had a similar experience declining 12.1% from the end of 2001 to 2005. It is likely that GE’s stagnate stock price may be a symptom of the overall economy and not an indication of unique problems within GE.
Certainly, Immelt’s success in growing revenues and earnings is a great achievement, especially given the fact that he didn’t have the looser accounting standards that Jack Welch enjoyed. But I also think that Immelt introducing the “imagination breakthroughs” and “dreaming sessions” with other CEOs is a big achievement. Those are two things that will likely have huge impacts for years to
In Tim Seibles' poem, The Case, he reviews the problematic situations of how white people are naturally born with an unfair privilege. Throughout the poem, he goes into detail about how colored people become uncomfortable when they realize that their skin color is different. Not only does it affect them in an everyday aspect, but also in emotional ways as well. He starts off with stating how white people are beautiful and continues on with how people enjoy their presence. Then he transitions into how people of color actually feel when they encounter a white person. After, he ends with the accusation of the white people in today's world that are still racist and hateful towards people of color.
From a psychological standpoint, Dellen Millard’s actions and personality are clearly not typical of the average human. Millard was extremely affluent, yet committed murder in order to steal a car he could have easily bought. ‘Why?’ is the question which psychologists would ask. Millard was raised wealthy, educated, and privileged; he was not abused as a child, nor was he denied affection or care. Unlike many psychopaths, sociopaths, and murderers, Millard did not seem to have a troubled or traumatic life at all. What experiences in Millard’s life could have given rise to his manipulative, thrill-seeking and criminal behaviour- as well as his apparent lack of conscience- in spite of his indulgent and ordinary upbringing? Psychology studies- and attempts to comprehend- human behaviour: the human mind, personality, and thinking. As such, psychologists would find interest in understanding the thoughts and motivation behind Millard’s cold-blooded actions. They might look towards his childhood for answers, and endeavour to discover the events in his past that shaped him to be the person he
When hard-nosed Harold Geneen drove the growth of ITT during its heyday in the 1960s and '70s, he had a blunt management philosophy: "In business, words are words, explanations are explanations, promises are promises, but only performance is reality." In 2001, when Jim Kilts arrived at Gillette as the first outsider to run the Boston-based company in over 70 years, he found a business with great brands that were losing market share. The company's acquisitions of Duracell and Braun were not delivering, sales and earnings were flat, and the company had missed its earnings estimates for 15 straight quarters. The stock had plummeted, and Wall Street had lost patience. Yet, two-thirds of the top managers were receiving top ratings.
On September 24, 2016, “Charlotte Shooting; police release video and photo evidence,” an article developed by Nick Valencia, a writer for CNN, describes the events leading to the death of Keith Scott. According to the Charlotte Police department, officers were going to an apartment complex for an unrelated incident when officers notice Keith Scott in his car with a firearm visibly in his hand. Officers instructed Keith to drop the firearm. Instead of letting go of the firearm, Keith decided to exit the vehicle when he was told not to. This lead to officers firing upon 43 year old Keith Scott, as they felt he was a danger to everyone who was in the surrounding area.
Throughout this book, author Robert Welch demonstrates values of compassion, caution, and knowledge. These values interweave in Welch’s explanations of how the healthcare system of this country has so much money invested in it, and yet, manage patients receive so little care. This country has a healthcare system that is currently operating out of a broken model that does not place value on individual health, but on profit incentive.
Erik Peterson faced a number of challenging situations with Jeff Hardy, a high level employee with CelluComm, the parent company of GMCT. At first we see an awkward relationship with Jeff Hardy whom Peterson had been assigned to work under by Ric Jenkins, partly due to the lack of concrete relationship guidelines between the two (Sami, 2013). Hardy had very little operational experience, and Peterson felt that he was unable to receive constructive guidance from Hardy. As a subordinate to Hardy, Peterson should have instead attempted to resolve this problem early on as it was a critical relationship within the GMCT Company. Consulting Hardy by letting him know of his concerns would have been a more efficient and respectful manner in handling the situation. This relationship building would also have been integral in facing the Peterson-Hardy communication issues with respect to the local municipalities and fire department. Operant Learning Theory (Johns & Saks, 2014, p.54) suggests that as a result of this negative consequence Peterson should be able to improve his interpersonal skills specifically with superiors within the organization moving forward. As a subordinate to Hardy, Peterson should have instead attempted to resolve this problem early on as it was a critical relationship within the GMCT Company.
Durk I. Jager was named CEO in January 1999 but tried to accomplish too much too fast. Jager entered into this position at a very difficult time in P&G's history and tried everything he knew to keep the company going. He introduced new high end products, which did not fit within P&G's culture. His solution to keep P&G going was to cut costs, however this was not a long term solution. He alienated the employee population in 17 short months. Acknowledging Jager's failure, P&G's board forced him to submit his resignation.
However, during the 1990s, Philips and Matsushita both faced major challenges to sustain their position in the market. Changing profile of the industry and globalization forces made Philips and Matsushita’s organizational models and competitive advantages obsolete, and brought up the need for drastic actions. At the brink of a new century, the battle of two giants unraveled with CEOs from both sides implementing another round of strategic initiatives and restructurings. The pressure put on new CEOs was enormous – wrong st...
What is the possible meaning of the change in stock prices for Berkshire Hathaway and Scottish Power plc on the day of acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp?
Custom Chip, Inc case describes the situation of a company where lack of coordination and cooperation among different departments is hindering them to achieve their common or ultimate goal as a single business entity. Applications engineering, product engineering and manufacturing are all inclined towards achieving their individual objectives and timelines rather than collaborating and synergizing their efforts in order to attain a common goal of effective production with improved cost reduction. Few of the primary reasons are insufficient and unorganized company policies for coordination and cooperation, poor networking with in the organization especially on management level, lack of communication and influence among managers and VPs, insufficient human resource, and measuring a department's effectiveness solely on its performance based on individual objectives, rather than checking its effects on over all company's performance.
Their chapter 11 petition was filed in the federal court in Manhattan, New York and “according to GM 's bankruptcy filing, the company has assets of $82.3 billion, and liabilities of $172.81 billion. That would make GM the fourth largest U.S. bankruptcy on record, according to Bankruptcydata.com” (CNN Money). Just to put into prospective how gargantuan this company was at the time, “until 2008, when it was overtaken by Toyota, GM was the world 's biggest carmaker, producing well over 9m cars and trucks a year in 34 different countries. It has 463 subsidiaries and employs 234,500 people, 91,000 of them in America, where it also provides health-care and pension benefits for 493,000 retired workers. In America alone, it spends $50 billion a year buying parts and services from a network of 11,500 vendors and pays $476m in salaries each month”(The Economist), so it is easy to understand by looking at that data that the fallout of this company failing would have been astronomical on the already depressed economy.
SEC was mainly focused in manufacturing; therefore, it’s no surprise that the executives themselves were also focused on their manufacturing plants. Profits that SEC received were soon reinvested into Research & Development, manufacturing, and supply chain activities. Unexpectedly, in 1997, a financial crisis hit the Asian market. Even though SEC’s sales were $16 billion, they still had a negative net profit. SEC executives exercised major restructuring efforts that resulted in the dismissal of 29,000 workers and the sale of billions in corporate assets. SEC was able to ride the Asian Financial Crisis and was able to reduce its debt dramatically to $4.6 billion, from $15 billion, over a 5 year period. Furthermore, SEC was able to increase its net margins from -3% to 13% (Quelch & Harrington, 2008).
In 1984, Michael Dell invested $1,000 in start-up capital to register his business as Dell Computer Corporation, which was known as PC's Limited. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industries first on site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering.
Peter Löscher, the former CEO of Siemens Corporation, helped the company get out of a precarious predicament. Using his transformational leadership, his unique qualities of intelligence, knowledge, expertise, self-confidence, integrity, and maturity and his legitimate and expert power he helped dig Siemens out from a deep hole of legal problems that it could not have survived without his help. With his cross-cultural leadership style, Löscher was able to motivate and influence the variety of employees that worked for him to move Siemens to a better place in the business world. Even with this help and the great qualities he possesses, Löscher was only CEO of Siemens for 6 years.
After graduating from college, Welch found himself working as a chemical engineer at GE in 1960. In 1981, he became the company’s youngest CEO. His approach to his position as a CEO was about creating personal and meaningful relationship. He met with the employees and the customers, talking with them to create a positive atmosphere.