MANAGEMENT LCPO
MANAGEMENT LCPO
9th Edition
ISBN: 9781264345151
Author: KINICKI
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 1FD
Summary Introduction

Case Summary:

GE started in the 19th century with more than 30,000 employees. It was led by CEO JW, under whom the market value of the company increased by 4000%. It deals with various products like radio, television and jet engines. In 2002, JF took over as CEO. Market value dropped to $261 by 2015. The major reason for the decline was the change in strategy as he was interested in acquiring high-growth businesses instead of relying on traditional businesses. He wanted to invest funds into high-growth markets such as software.

Interpretation: Problem according to CEO JF’s perspective.

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