Jack Welch and General Electric
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General Electric Business Policy and Strategy
The historical success of General Electric is accounted in a very personal and real representation in Jack Welch's autobiography "Jack Straight from the Gut." The substantial nature of the exponential growth of General Electric from the time that Jack Welsh assumed the role of CEO until his retiring in 2001 is astounding. As an example, in 1980, GE Credit had 10 businesses and 11 billion in assets and was based only in North America. By 1990 GE Credit had 21 businesses 70 billion in assets and was based in three countries and by the year 2001 GE Capital as it is now known has 24 businesses 370 billion in assets and does business in 48 countries. Jack Welch gives credit to the diversity of business and a philosophy of controlled risk that provided consistent growth. (Welch 250)
The diversity with which he and his employees acquire and restructure businesses in looking back seems like a lightning speed expansion. It seems that regardless of the financial situation in the US or even global economy GE is still getting ahead either somewhere or everywhere depending on the state of the economy. General electric has its hands in so many things it is almost startling that they have enough manpower to keep it all organized and in a state of achievement. With everything from Swiss Auto Finance companies to Europe wide pet health insurance company, the amount of steady growth that has occurred since 1981 makes Jack Welch's story seem like the story of General Electric.
Some of the tenants that Jack and his team implemented were substantial improvements in the way GE did business and in the way manufacturing and service processes worked...