I. Analysis Section
A. Problem Statement
Although GE company keeps a certain pace to grow after a new leader takes over, the degree and speed of growth fall behind compared with the period when Welch was in the position. So the biggest problem for GE is that how to keep strong competitiveness as before.
B. Identification of Problem Causes
The problems are such:
1. Immelt took over GE 4 days before 911 event which was a terrorist attack and 911 event lead to a big negative impact on the USA economy and stock, the price of oil. All that happened make the price of GE stock fall down seriously. Immelt need to prepare much time for the next stage development.
2. With the development of the Japanese industry and the weak yen, Japanese companies challenge GE, playing an important role in the marker which also leads the stock of GE falling down.
3. As the one of the most competitive company in this word, GE people feel confident, even over confident. Immelt abandoned the leadership approach favored by Welch, aimed to continue GE’s transition. The reformation of GE is not definitely successful. The leader of GE should be responsible for their over confidence.
4. Immelt started his tenure at the end of unprecedented bull market and in the midst of global economic slowdown. So it is difficult to maintain the price of stock and keep a high pace of developing.
C. Listing of Possible Alternatives to Solve Problem
The possible alternatives to solve the problem are:
1. GE still spends much time and money on developing their staff, concentrating on leadership-developing, offering management program for those who have the potential to be a leader. The pros of this is that it will improve the quality of staff in GE so that the staff will stay in a high level to have outstanding performance. The high-quality members are the core of keeping GE in the first place. The cons of this is that it will cost GE much money and time. GE should take much effort to do this and it will not result in good outstanding soon. It needs time.
2. Leader in GE should not too confident. They also could learn other extraordinary companies. Although GE is one of the best companies in the world, especially, the top leader in GE is regarded as the most outstanding manager. he still could learn something advanced from competitive companies. Immelt should not be too confident, keep modest attitude. He should set higher goals for GE, not satisfied with the current situation. The pros of this is that GE absorbs something new or advanced from others to improve itself. At the same time, GE could has a deep understanding of competitors. The cons is obvious. Not everything is suit for GE. GE should take risk.
3. What Immelt should not be too away from Welch. When Welch was in his position , he executed many methods to keep GE’s competitiveness. Immelt should follow some of them. Just because of this method or programs, GE keeps a high and steady pace to develop. He could use new programs which are good to GE to motivate members, keep them in high-standard working performance. Immelt abandoned leadership approach favored by Welch. This is one of the reason that GE dos not develop as fast as before.
II. Recommendation Section/Action Steps
A. Decision (stated clearly, usually from above list of alternatives) Immelt should take actions to motivate employee, concentrate on