Gen Combo Looseleaf Management; Connect Access Card
9th Edition
ISBN: 9781260866605
Author: Angelo Kinicki
Publisher: McGraw-Hill Education
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Chapter 6, Problem 2FD
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: Main cause of problem of GE.
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