Corporate Strategy Presentation Group 1 An Interview with Jeff Immelt 
Corporate Strategy
Growth as a process: An interview with Jeffrey R. Immelt
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
1
Agenda
1
2
3
4
Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them
New set of management tools to pursue ambitious organic growth goals
Key lessons and managerial implications
Q&A
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
2
Agenda
1
2
3
4
Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them
New set of management tools to pursue ambitious organic growth goals
Key lessons and managerial implications
Q&A
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
3
Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Factors for GE’s change:
• Terrorist attacks
• Corporate scandals
• Slower growth in the world economy
•
more global due to market shift
•
lower admin. expense (from 11% to 8% is the goal)
•
fewer divisions and backroom outsourcing
•
higher marketing expense and more R&D (p.e. $1 billion when he became CEO)
Higher revenue and higher margins due to better flow of products and services
•
Some acquisitions to strengthen core for innovation (homeland security, biotech, water) •
Commercial Council: marketing and sales people to share best practices to develop growth as a process
Focus on organic growth (8%, or 2-3x world GDP) and building growth platforms
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
4
Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Comparison of Jack Welch’s and Jeff Immelt’s strategies:
Jack Welch
Jeff Immelt
Methodology:
•
•
•
Leadership efficiency
Strong business and down sizing
Cost cutting
•
•
•
More people oriented
Focus on effectiveness
Marketing and innovation growth
Target Market:
•
EU and USA
•
Global
Growth as a process: An interview with Jeffrey R. Immelt
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
1
Agenda
1
2
3
4
Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them
New set of management tools to pursue ambitious organic growth goals
Key lessons and managerial implications
Q&A
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
2
Agenda
1
2
3
4
Changes in GE’s corporate strategy brought by Jeffrey Immelt and the reasons behind them
New set of management tools to pursue ambitious organic growth goals
Key lessons and managerial implications
Q&A
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
3
Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Factors for GE’s change:
• Terrorist attacks
• Corporate scandals
• Slower growth in the world economy
•
more global due to market shift
•
lower admin. expense (from 11% to 8% is the goal)
•
fewer divisions and backroom outsourcing
•
higher marketing expense and more R&D (p.e. $1 billion when he became CEO)
Higher revenue and higher margins due to better flow of products and services
•
Some acquisitions to strengthen core for innovation (homeland security, biotech, water) •
Commercial Council: marketing and sales people to share best practices to develop growth as a process
Focus on organic growth (8%, or 2-3x world GDP) and building growth platforms
May 21st, 2015
Henry Bösken-Diebels, Veronika Larina & Philipp Vinzenz
4
Changes in GE’s corporate strategy brought by
Jeffrey Immelt and the reasons behind them
Comparison of Jack Welch’s and Jeff Immelt’s strategies:
Jack Welch
Jeff Immelt
Methodology:
•
•
•
Leadership efficiency
Strong business and down sizing
Cost cutting
•
•
•
More people oriented
Focus on effectiveness
Marketing and innovation growth
Target Market:
•
EU and USA
•
Global