GE战略管理模式

Founded in 1878 by Thomas Alva Edison,Merger in 1892,The Edison General Electric Company,The Thomson-Houston Company,One of the 12 stocks that made up the first DJIA index in 1896. In the list continuously since 1907,The Heritage,美国通用电气公司的战略管理模式（,GE）,Todays Basics,Revenue: $125.7 B,Domestic: Foreign 2:1,Net Income $13.7 B,Market Capitalization: $244B,Employees: 310,000,13 major businesses,More than 100 countries,Compare and Contrast,The Three Families,Long-Cycle Businesses,GE,Short-Cycle Businesses,Financial Services,Long-Cycle Businesses,Long-Cycle Businesses,Aircraft Engines,Power Systems,Medical Systems,Transportation Systems,Short-Cycle Businesses,Short-Cycle Businesses,Consumer Appliances,Industrial Systems,Specialty Materials,NBC,Plastics,Financial Services,Financial Services,Commercial Finance,Consumer Finance,Equipment Management,Insurance Business,A Summary of Business Finances,The Share of the Pie,The Share of the Pie,The Era: How the Market Valued it,Compare & Contrast with Pre-Welch Era,From Following the Economy,To Setting the Pace,The Turnaround,How did they do it?,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Jack Welchs vision,Be number 1 or 2 (Fix, sell or close),Welch set the standard for each business to become,the #1 or #2 competitor in its industry,“A decade from now, I would like General Electric,to be perceived as a unique, high-spirited,entrepreneurial enterprise . . . the most profitable,highly diversified company on earth, with world,quality leadership in every one of its product lines”,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Strengths,Size,Diversified portfolio,Relations with the government,Financial strength,Weaknesses,Bureaucratic mechanistic organization,Many layers from top to bottom,Doing it by the book instead of doing it right for the customer, employee or business,Businesses as Islands unto themselves,Opportunities,Emerging markets,Changing business models,Threats,The Japanese challenge,Recessionary US economy with high,interest rates and a strong dollar,SWOT analysis in 1981,Jack Welchs vision,Be number 1 or 2 (Fix, sell or close),Welch set the standard for each business to become,the #1 or #2 competitor in its industry,“A decade from now, I would like General Electric,to be perceived as a unique, high-spirited,entrepreneurial enterprise . . . the most profitable,highly diversified company on earth, with world,quality leadership in every one of its product lines”,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Business RestructuringGE-McKinsey Matrix,Question mark,Appliances Specialty Materials,Winner,Aircraft Engines,Power Systems,Winner,Medical Systems,Capital,Loser,Consumer Electronics,Average,Business,Plastics,Industrial Systems,Winner,Transportation,Loser,Central A/C,House wares,Coal mining,Loser,Profit Producer,Lighting,High,Medium,Low,Low,Medium,High,Market Attractiveness,Competitive Position,Reorganization of businesses,Changing composition of businesses,Business Restructuring. contd,To,From,Four,Nine,De-layering of hierarchical levels,Evaluated against external competition,Internal comparisons with past performance,Focus of Budgeting process,Real time planning,Strategic Planning process,Planning process,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Scientific Management,Vs,Transformational leadership,Writing,Speaker,Cautious Aggressive,Harmony,Confrontational,System,oriented,Individual,oriented,Integration thru committees,Thru Processes,Relies onReports On employee feedback,Avoided uncertainty Accepted it,Controlled change,Reveled in change,Reginald Jones Jack Welch,Path-breaking Leadership of GE,Grooming a generation of leaders,Type III,Got rid off quickly,Type I,Star,Type II,Given another chance,Type IV,Asked to leave,Low,High,High,Low,Team Values,Performance,Leaders of the future,The 4 Es,Energy -,excited by ideas because of the opportunity brings,Energize -,infecting everyone with the same enthusiasm for an idea,Edge -,the ability to make tough decisions,Execute -,the ability to turn vision into results,“,Work-out” was a process initiated by Jack Welch and James Baughman to address the issue of increasing productivity by changing the in-house culture to reflect that of an small firm, characterized by,Speed,Simplicity,Self Confidence,“,Work-out”,Self-Confidence,Simplicity,Speed,Organizational Restructuring - “Work-out”,Culture in 1980s,Fine tuned Financial Analysis,Long Strategic Deliberations,Centralized Controls,Multilevel Approvals,Culture in late 1980s 1990s,Speed,Simplicity,Self Confidence,Work-out Process,Transformation of culture at GE to sustain growth & productivity,Organizational Restructure “Work-out”,Implementation of a typical in-house “workout”,Consultant assigned to each GE business to facilitate 3-day off-sites,Groups of 40 100 employees invited to share views about their business and how it might be improved.,Unit Boss presents challenge/problem and leaves facilitators with employees to list problems, debate solutions, and prepare presentations.,Results (analysis and recommendations) were presented to the Unit Boss on the final day.,Immediate decisions “yes/no” taken on the proposals by the Unit Boss.,Deadlines fixed to review additional information,Prompt action and follow-up on proposals,Organizational Restructure “Work-out”,Implementation of a typical in-house “workout”,Work-out Organization,Participation,Problem Presentation,Evaluation,Result Presentation,Decision,Action /Follow up,Results of “Work-out” :,1981,1988,1992,2%,productivity annually,4%,productivity annually,“,Work-out” Process,Salient Features of “Work-out”,Culture characterized by speed, simplicity and self-confidence.,Ideas solicited from everyone, everywhere,No boundaries created by organizational hierarchy.,No documentation,Focus on turning talk into action.,Focus on addressing real problems and solutions,No functional specialization and hierarchical power differences inhibiting flows and implementation of action.,Prompt action information regardless of the source.,Closing the loop - Following up on decisions and learning by doing,Organizational Restructure “Work-out”,Domestic Operation,Foreign Operation,GE: Boundryless Organization,Engineering,Manufacturing,Marketing,Sales,Customer Service,Traditional Structure,Geographically Segmented,Bound by Functional barriers,No idea sharing,Label dependent,Boundryless Structure,GE: A Seamless Organization,Integrated Approach No Functional Barriers,Bonus and options linked to idea generation & sharing,No Label dependence,Organizational Restructure - Boundryless Behavior,WorkoutsBoundryless Behavior,Organizational Change leading to Superior Customer Responsiveness,Differentiating Factor,Value Creation,Competitive Advantage,Organizational change,competitive advantage,Organizational,Restructure,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Markets,Growth Engine,Present,New,Present,New,Market,Penetration,Product / service,Extension,Diversification,Market Expansion,Present,New,Products,Acquisition,Globalization,Markets,Growth Engine,Present,New,Present,New,Market,Penetration,Product / service,Extension,Diversification,Market Expansion,Present,New,Products,Acquisition,Globalization,Markets,Growth Engine,Present,New,Present,New,Four Pillars,Product / service,Extension,Diversification,Market Expansion,Present,New,Products,Acquisition,Globalization,Focus on building blocks of competitive advantage,Quality,Innovation,Customer,Responsiveness,Efficiency,Market,Penetration,Market Penetration,Market Penetration,Core Business,High,Technology,Services,Invest in improving,Quality & Efficiency,stay on the leading edge by investing in R&D,Achieve superior,customer responsiveness,Three Circle Concept: three parallel approaches,GEs foray into the Services Industry was 2-pronged,To offset the dependence of GE on its industrial products within its existing market and help its businesses reach the #1 position.,To counter the slump in the demand for existing products by providing value-added services,Benefits:,Huge growth potential for GE and,Result in increased revenue through value-added services.,e.g.:,Service based technologies such as real time monitoring capabilities developed by GEs Medical Systems to be transferred to the real time monitoring of Aircraft Engines and Power Business Units.,Product/ Service Extensions,Service Extensions in existing markets were realized by acquisitions such as,$1.5 billion jet engine service business,$600 million purchase of a global power generation equipment service company,Service Extensions : Revenue Growth,Market Expansion (Globalization),Why ?,- 6 % Vs 12 %,- Cost & Quality Advantage,- Intellectual Capital,Diversification,Creating value by,Decreasing overall portfolio risk. long cycle & short cycle businesses,Superior Internal Governance via Macro-management,Transferring competencies ,boundaryless,behavior,Economies of scope,A balancing act,Bureau-,cracy,Value,Destroying value by,bloated bureaucracy,Information overload,Lack of Coordination,How?,Smart bombing : Think Global Act Local,- Developed Global Markets,- Emerging Global Markets,Factor,Endowments,Intensity,of Rivalry,Local,Demand,Conditions,Competitiveness,National,Competitive,Advantage,Issues: Porters Diamond,Market Expansion (Globalization),Globalization for Market expansion and diversification,Product / Service Extension & Diversification : Acquisitions,Why?,- Quicker way to achieve significant growth,- Lesser uncertainty,- High barriers to entry (mature businesses),Industrial/NBC Financial Services a),#,Deals34525610110813495TBD,a),Financial Services Data includes (cash, debt, stock) Asset Portfolio Deals,b),Total Consideration,Transaction Value,b),ACQUISITIONS CRITICAL TO GES GROWTH . . .,Acquisitions,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Quality,Four Pillars,Continuous,Improvement,Best practices,Overcome,Inertia,Sustaining Competitive Advantage,Six Sigma Evolution,What Does,Six Sigma,Do For GE?,1995,PRODUCTIVITY,1997,PRODUCT DESIGN,1998 ,THE CUSTOMER,1999,FULFILLMENT,2000,DIGITIZATION,Evolution,in GE,Drives Customer Centricity,Improves Product/Service Capability,Reduces Costs,Improves Performance Reliability,Foundation for e-Business/Digitization,$600,$500,$450,$380,$200,$2500,$1200,$700,$170,Cost,Benefit,1996,Cost,Benefit,1997,Cost,Benefit,1998,Cost,Benefit,1999,Cost,Benefit,2000,6,Sigma Cost,6,Sigma Productivity,Delighting Customers,Results,from 6 Sigma,$,2500,$3.0,B,$0.5,B,$2.5,B,HEAD,SPINE,CHESTABDOMENPELVIS,LIVER,1,minute,19,seconds,9,million,2,minutes,15,seconds,1,million,3,minutes,17,seconds,4,million,20,seconds,06,seconds,6,million,Exam Time,Before,Exam Time,After,Procedures,per Year,GEMS LightSpeed CT Scanner,Abdomen: liver, spine, kidney,Head: skull, brain,Image Speeds,Before,After,Products,from 6 Sigma,Benchmarking & Best Practice sharing,Benchmarking,First carried out in 1988, against Ford, Hewlett Packard, Xerox, and Toshiba on,only,productivity dimensions,Currently, used for target-setting for all processes and functions,Conducted using,PEERnext,and,eOPTIMIS,software tools,Best Practices sharing,Six Sigma tracker for each business and Six Sigma cafe across GE,Adoption of Best Practices institutionalized via,Copy Cat,Award,Aggressively driven by GE Operating system,Overcoming inertia,Transition State,Current,State,Improved,State,Monitoring progress,Making change last,Mobilizing commitment,Shaping a vision,Creating a shared need,SWOT,Vision,Restructuring,Growth Engine,Sustaining Competitive advantage,Dynamic Perspective,SWOT: 1981,Strengths,Weakness,4,blocks,Six Sigma,Inertia,Best practices,Leadership,Boundary lessness,Values,Strategic Model,Front-end Focus,Digitization,BPO,and change,Business Process Outsourcing,Benefits of Outsourcing,Provide Capacity,Create Strategic Advantage,Move to Variable Cost,Better Process Delivery,Remote processing of Back-end operations,Leverages the intellectual talent and processing cost differential of developing countries,Eg.,Underwriting process for,GE credit cards, Mortgage, SFG etc.,for any customer in USA and Europe take place in Delhi, India.,Digitization is transforming everything GE does;,Automating work flow and leveraging the internet is crucial to the future success of GE,Making GE faster, leaner and smarter even as GE become bigger.,Results:,$7 billion worth of goods and services were sold over the net in 2000.,$6 billion wasconducted on online auctions,$1.5 billion generated by GE in operating margin improvements in 2001,E-business / Digitization,This is the quote of the day. from Jeffs analyst meeting after Sep 11,th,2001,GE is built to outperform, said Immelt, who also predicted double-digit growth in 2002. I was chairman for two days, and then I had jets with my engines hit a building I insured which was covered by a network I owned, and we still grew (2001) earnings by 11 percent. I think were in pretty good shape.,Appendix,GE E-Business Internet Strategies,Strategy,Definition,What is it?,Examples,V,isual,Disintermediation,Aggregation,Community,Portal,Permeate the,Customers Space,Customer-Specified,Products and Terms,e,e,e,$,$,Dynamic Pricing,e,e,Take over or remember customers data and remember their,processes or preferences,Get between,the buyer,and seller,Create a,community of,buyers and,sellers,Take out the,Middle Man,Let the customer,into design data,and processes,Create a Market,GE Appliances,Purchasing appliances online is available for customers along with spares and accessories,Direct Selling,Provide a broad range of product information,GE Lighting,Detailed and visual product information categorized for home, business or automotive use,GE Supply,Creates network for communication between all suppliers,Provide products and services to members,Remember the customers preferences, payment methods, recent purchases, etc.,GE Financial Network,Provides Online insurance Quotes and payment facility. Also, updates customers of new offers,Customer designs/ configures their own product,GE Lighting,There is software to download that helps decide the perfect light,Auctions,GE Xchange,Electronic Exchange that allows customers to name their own prices,Co-Marketing Relationships,Service Partnership,Extend service into the customers organization,Share customers,to create a more,compelling product,GE Medical Systems,Other consumable Diagnostic products of suppliers can be purchased along with CT scan spares,Direct Selling and Advertising,e,e,Ensuring that the customer needs are met,GE Aircraft Engines would keep an inventory of engines in stock to meet require-ments and needs.,Equity/Warrants,: GE is trying to secure either equity or warrants from all the vendors that it is working with to develop its e-business strategies,E-business Vendor Goals:,Secure valuable revenues (internet companies trade at sales multiples),Get instantaneous credibility with marketplace through GE reference/endorsement,GE Businesses Goals:,Recover consulting/license costs,Broaden partnering relationships,Secure equity upside opportunity with high growth, emerging e-business companies,GE Equity Goals:,Put money to work and maximize ROI,Support GE businesses by investing in strategic companies,Equity:,the direct ownership in a company,Mutually beneficial relationship:,Warrant:,an instrument that gives the holder the right to acquire a certain number of shares of the capital stock of a company on or before a certain date for a certain price,GE E-Business Internet Strategies,Service Extensions : Revenue Growth,Innovation,Objective approach towards the customer,Look for technology platforms,Create game changing technologies - remote diagnostics capability,Solve GEs crtical technical challenges Low Nox emmissions,Share technologies across businesses,Source technology worldwide,Develop technical human resource,For example, GE researchers developed ductile tungsten, many new types of engineering plastics, man-made diamond, and major improvements in computed tomography and magnetic resonance imaging.,GE 90 engine-the worlds most powerful, efficient and quiet engine. One of the major technology advances involved in this program is a composite fan blade made of a polymer-based material that is twice as strong as steel at half the weight.,1997,Performix,X-ray Tube,1998,LightSpeed,CTSmall Motor productsUltem 1285 Spectra,Gas Range,1999,Spectra,Electric RangeAdvantium,Speed OvenTriton DishwasherCeramic Metal Halide LampsT5 Fluorescent LampSigna OpenSpeed,MROQ 1050C for Compact DiscAC6000 Locomotive,2000,or later New Designs,5000 Projects focused onNew 6 Sigma Technology,&,New Processes to the GE,Businesses,All of GE Products Designed for Six Sigma,Products,from 6 Sigma,Customer Issue,Assembly Line Efficiency,Customer Results,Output from 450,800 Units/Day,WIP,85%,$1MM Cost Out,Floor Care Manufacturer,Plastics,Airlines,Engines,Builders,Appliances,Hospitals,Medical,Retailers,Lighting,Appliances,OEMs,Vendor,CEF,Utilities,Power Sys.,Industrial Sys,.,Six Sigma the Customer,Six Sigma Approach identifies Factors impacting Work Flow,GE Results,2MM lb. Share Shift,$1.5MM Growth Program,Efficiency,Variation from Request,2/99 10/99,Today,17,Days 4 Days 2 Days,GE Silicones,- Delivery to Request,Customer Responsiveness,Sales Double Digit Volume Growth,Internet Web Sales Booming,Sales Force More Time to Sell vs. Chasing Order Status,Op Margin Up 20+%,Customer Power Plant,Equipment availability,98,Baseline,2,Q99,3,Q99,4,Q99,2000,On-time Reliability gives Customer 45 days more Electricity Sales,GE Power Systems,- OEE,Customers,Revenue Impacted,By Variation,30,23,14,50,Days,5,Days,Quality,45,Day Variation Reduction,Size of circle corresponds to number of qualified workers available,Capabilities of workers,Foreign langu