What kind of diversification is GE pursing? What are the sources of value creation with this type of diversification?How did GE lose $507 billion (more than 85 percent) of its market valuation since its peak? What went wrong?After leaving GE, Jeffery Immelt stated in 2018: “The notion of plugging financial services and industrial companies together, maybe it was a good idea at the point in time, but it is a uniquely bad idea now.” To what is Immelt referring? Why does he think 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.” I'm unable to transcribe the image directly, but I can give you a summary of the educational content typically found on such pages.**Summary:**The page appears to be a case study from an educational text, focusing on General Electric (GE). It discusses GE's financial losses, strategic missteps, and changes in leadership, particularly referencing the tenure of CEO Jeffrey Immelt. The text also mentions market valuation issues and GE's attempt to navigate financial challenges.**Discussion Questions:**1. The rationale behind GE's diversification strategy.2. Financial implications of GE losing significant market value.3. Leadership and strategic alterations following Jeffrey Immelt's departure.4. Lessons from literature, such as "Good to Great" by Jim Collins, regarding GE's business practices and insights for improvement.**Endnotes:**References to articles and reports for further reading on GE’s business strategies and market performance.No graphs or diagrams are present in the image. For exact transcription or to view specific sections in detail, please provide clearer image portions or key segments. **Exhibit MC8.3: GE's Changing Geographic Scope, 2001 and 2019**The image consists of two pie charts comparing GE's geographical scope in 2001 and 2019.**GE Geographic Scope 2001**- **US & Canada:** 62% ($62.8B)- **Europe:** 21% ($21.7B)- **Asia:** 4% ($3.4B)- **Middle East & Africa:** 3% ($2.6B)- **Latin America:** 10% ($10.5B)**GE Geographic Scope 2019**- **US & Canada:** 28% ($40.1B)- **Europe:** 27% ($38.7B)- **Asia:** 19% ($28.1B)- **Middle East & Africa:** 11% ($15.4B)- **Latin America:** 15% ($20.9B)**Text Summary:**The text discusses GE's strategy of globalization and expansion from a focus within the United States to a more global perspective. Initially, GE was predominantly US-centered but progressively increased its global footprint. Emphasis is placed on the development of global financial services and the leveraging of cross-border opportunities. GE Infrastructure and GE Capital played essential roles in aligning global growth initiatives. Notable transformations include GE's ventures into international markets and diversifying beyond domestic boundaries to mitigate risks and harness growth. The geographic diversification has allowed GE to tap into new markets and achieve a more balanced revenue distribution.This strategy underscores the importance of globalization in GE's business development, highlighting a shift from a primarily US-centric approach to a broader international presence that reflects changes in the global economy and business strategies.

Diversification is an executives strategy that mixes a wide assortment of a combination of the different endeavour of the organization's portfolio. It contains a blend of the particular resource type and venture vehicles with sights set on restricting various resources. The rationale for this is generated through various long term returns and lower risk holding individuals.The various types of diversification are: Horizontal Diversification: It is done for acquiring or developing new products. It considers various offerings for the various company groups. As the various companies are relying on their product line and adding something to the existing product line. Vertical Diversification: It occurs when the organization is at the production stage and is moving forward towards the distribution of the final product. This diversification ensures the delivery of goods with appropriate quality and price. Concentric Diversification: It is done for enhancing the product portfolio of the organization by utilizing various existing technologies and marketing techniques. This type of diversifications mostly used by the small producers of the consumed goods. Heterogeneous Diversification: It is for moving new products and services for gaining high returns on the investment. It is done for developing the main company business while accessing the new technologies and providing opportunities for strategic partnershipsThrough various diversification, various mangers and investors diversify their investments and decide the percentage of what amount is to be allocated to each. It also helps to limit portfolio risk and mitigate the performance within a short span of time.