Mini Case
After reading the GE Mini-case, please post your thoughts below on the following questions:
- What kind of diversification is GE pursuing? What are the sources of value creation with this type of diversification?
- After leaving GE, Jeffrey Immelt stated in 2018: “The notion of plugging financial services and industrial companies together, maybe it was a good idea at a point in time, but it is a uniquely bad idea now.” To what is Immelt referring? Why does he think this is a bad idea? Do you agree? Why or why not?
- In the bestseller Good to Great, Jim Collins advances the hypothesis that the greatness of a leader is known only after the leader has departed. The business press has celebrated Jack Welch as the greatest CEO of the last century. After reading this MiniCase, do you agree with Collins’ strategic leadership hypothesis? Why or why not? Note: When interviewed in 2018 about the GE situation, Jack Welch had this to say: “I give myself an A for the operation of GE, but an F for my choice of successor.”
- Apply the concepts in Chapters 8 & 9 to GE’s strategy and the company’s growth for the future.

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