Jack Welch Effective Strategies That Transformed General Electric
Jack Welch, Effective Strategies That Transformed General Electric
Jack Welch, Effective Strategies That Transformed General Electric
In 1981, Jack Welch became the eight chairman and Chief Executive Officer of General Electric, and served until his retirement in September 2001. Under his leadership, Welch “increased the value of the company from $13 billion to several hundred billion” (ge.com, n.d.) What strategies led to the success of GE under the management of Jack Welch, and what does the future hold for the company?
A Brief History of General Electric
By 1892, it was nearly impossible for the Edison General Electric Company and Thomson-Houston Company to produce electrical systems without using the other company’s patents and technologies. As a result, the companies merged to create the General Electric Company. Many of the company’s offerings are still produced today, such as lighting, transportation and medical equipment. (ge.com, n.d.)
Jack Welch, the Early Years
Jack Welch was born on November 19, 1935 in Peabody, Massachusetts. As he puts it in his autobiography, he was not “born with a silver spoon” (Welch & Byrne, 2001, p. 6), but he was raised with confidence, a work ethic, and to be “strong, tough, and independent” (p. 8). He attended the University of Massachusetts in 1953, graduating in 1957 with a degree in chemical engineering. He decided on the University of Illinois for graduate school, and eventually earned a Ph.D. In regards to his education, Welch has said that “chemical engineering was one of the best backgrounds for a business career, because both the classwork and required thesis teach you…there are no finite answers to many questions [and] what really counted was your thought process” (p. 18).
In 1960, Welch joined GE’s chemical development operations in Pittsfield, Massachusetts, in the Plastics division. During his tenure in the Plastics division, he learned a valuable lesson. To be noticed, you have to “get out
Jack Welch, Effective Strategies That Transformed General Electric
In 1981, Jack Welch became the eight chairman and Chief Executive Officer of General Electric, and served until his retirement in September 2001. Under his leadership, Welch “increased the value of the company from $13 billion to several hundred billion” (ge.com, n.d.) What strategies led to the success of GE under the management of Jack Welch, and what does the future hold for the company?
A Brief History of General Electric
By 1892, it was nearly impossible for the Edison General Electric Company and Thomson-Houston Company to produce electrical systems without using the other company’s patents and technologies. As a result, the companies merged to create the General Electric Company. Many of the company’s offerings are still produced today, such as lighting, transportation and medical equipment. (ge.com, n.d.)
Jack Welch, the Early Years
Jack Welch was born on November 19, 1935 in Peabody, Massachusetts. As he puts it in his autobiography, he was not “born with a silver spoon” (Welch & Byrne, 2001, p. 6), but he was raised with confidence, a work ethic, and to be “strong, tough, and independent” (p. 8). He attended the University of Massachusetts in 1953, graduating in 1957 with a degree in chemical engineering. He decided on the University of Illinois for graduate school, and eventually earned a Ph.D. In regards to his education, Welch has said that “chemical engineering was one of the best backgrounds for a business career, because both the classwork and required thesis teach you…there are no finite answers to many questions [and] what really counted was your thought process” (p. 18).
In 1960, Welch joined GE’s chemical development operations in Pittsfield, Massachusetts, in the Plastics division. During his tenure in the Plastics division, he learned a valuable lesson. To be noticed, you have to “get out
References: George, J. M., & Jones, G. R. (2012). Understanding and managing organizational behavior (6th ed.). Boston, MA: Prentice Hall. Slater, R. (1999). Jack Welch and the GE Way. New York, NY: McGraw-Hill. Welch, J., & Byrne, J. A. (2001). JACK: Straight from the Gut. New York, NY: Warner Books, Inc. ge.com. (n.d.). Past Leaders, John F. Welch, Jr.. Retrieved from http://http://www.ge.com/about-us/leadership/profiles/john-f-welch-jr