Critical Thinking: the “world’s most admired company” (100 points)
In this module, the role of the corporate headquarters in a multibusiness company—in particular, how the corporate headquarters can create value for the individual businesses. This necessitates examining the role of the corporate headquarters and its relations with individual businesses. For this week’s assignment, review CASE 13 How Do You Solve a Problem Like General Electric?, Chapter 13 (in your textbook).
Remember: A case study is a puzzle to be solved, so before reading and answering the specific case study questions, develop your proposed solution by following these five steps:
Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current course module. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in some detail the actions that would address or correct the situation.
- Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
- Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
- Case Study Questions:
- Why, during the 20th century, was GE such a successful company?
- What are the reasons for the collapse in GE’s financial performance during 2016-20?
What advice would you give to CEO Larry Culp? In particular, would you continue with the restructuring plan initiated by previous CEO John Flannery, implement a more radical unbundling of GE, or retain GE’s existing business portfolio? Clearly share your argument for the selected strategy.
How does the corporate management system being implemented by Culp differ from that established by his predecessors at GE? Is the new management system superior?