GE战略管理模式课件.ppt

1、Founded in 1878 by Thomas Alva EdisonMerger in 1892-The Edison General Electric Company-The Thomson-Houston CompanyOne of the 12 stocks that made up the first DJIA index in 1896.In the list continuously since 1907The Heritage美国通用电气公司的战略管理模式（GE）Todays Basics Revenue:$125.7 BDomestic:Foreign 2:1Net In

2、come$13.7 BMarket Capitalization:$244BEmployees:310,00013 major businessesMore than 100 countriesCompare and Contrast 81TodayRevenue$27.2 B$125.7 BEarnings$1.7 B$13.7 BMarket Value$13 B$244 BBusinesses4313Employees404,000310,000The Three Families Long-Cycle BusinessesGEShort-Cycle BusinessesFinancia

3、l ServicesLong-Cycle BusinessesLong-Cycle BusinessesAircraft EnginesPower SystemsMedical SystemsTransportation SystemsShort-Cycle BusinessesShort-Cycle BusinessesConsumer AppliancesIndustrial SystemsSpecialty MaterialsNBCPlasticsFinancial ServicesFinancial ServicesCommercial FinanceConsumer FinanceE

4、quipment ManagementInsurance BusinessA Summary of Business FinancesBusinessesRevenue%of totalGE Capital58.445Power Systems20.216Transportation&Industrial11.69Aircraft Engines 11.49Medical&Technical9.07Plastics and Specialty Materials7.16Consumer Products5.84NBC5.84Adjustments-3.6Total125.7100The Sha

5、re of the PieThe Share of the PieThe Era:How the Market Valued itCompare&Contrast with Pre-Welch EraFrom Following the EconomyTo Setting the PaceThe TurnaroundHow did they do it?SWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNe

6、wPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest p

7、racticesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeJack Welchs visionBe number 1 or 2(Fix,sell or close)Welch set the standard for each business to become the#1 or#2 competitor in its industry“A decade from now,I would like General Electricto be perceived

8、 as a unique,high-spirited,entrepreneurial enterprise.the most profitable,highly diversified company on earth,with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPre

9、sentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest pract

10、icesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPre

11、sentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPO

12、and changeStrengths SizeDiversified portfolioRelations with the governmentFinancial strengthWeaknesses Bureaucratic mechanistic organization Many layers from top to bottomDoing it by the book instead of doing it right for the customer,employee or business Businesses as Islands unto themselvesOpportu

13、nitiesEmerging marketsChanging business modelsThreats The Japanese challenge Recessionary US economy with high interest rates and a strong dollarSWOT analysis in 1981Jack Welchs visionBe number 1 or 2(Fix,sell or close)Welch set the standard for each business to become the#1 or#2 competitor in its i

14、ndustry“A decade from now,I would like General Electricto be perceived as a unique,high-spirited,entrepreneurial enterprise.the most profitable,highly diversified company on earth,with world quality leadership in every one of its product lines”SWOTVisionRestructuringGrowth EngineSustaining Competiti

15、ve advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresent

16、NewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeBusiness RestructuringGE-McKinsey MatrixQuestion mark Appliances Specialty MaterialsWinner Aircraft Engines Power SystemsWinner Medical Sy

17、stemsCapital Loser Consumer ElectronicsAverage Business PlasticsIndustrial SystemsWinnerTransportationLoser Central A/CHouse waresCoal miningLoserProfit Producer LightingHighMediumLowLowMediumHighMarket AttractivenessCompetitive PositionReorganization of businessesChanging composition of businesses5

18、1%30%19%26%39%35%0%10%20%30%40%50%60%Core businessesTechnology businessesService businesses19811991Business Restructuring.contdToFromFourNineDe-layering of hierarchical levelsEvaluated against external competitionInternal comparisons with past performance Focus of Budgeting processReal time planning

19、Strategic Planning processPlanning processSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewP

20、resentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand change Scientific ManagementVs Transformationa

21、l leadershipWriting Speaker Cautious Aggressive Harmony Confrontational System oriented Individual orientedIntegration thru committees Thru Processes Relies onReports On employee feedbackAvoided uncertainty Accepted itControlled change Reveled in changeReginald Jones Jack WelchPath-breaking Leadersh

22、ip of GEGrooming a generation of leadersType IIIGot rid off quicklyType IStarType IIGiven another chanceType IVAsked to leaveLowHighHighLowTeam ValuesPerformanceLeaders of the future The 4 EsEnergy-excited by ideas because of the opportunity bringsEnergize-infecting everyone with the same enthusiasm

23、 for an idea Edge-the ability to make tough decisionsExecute-the ability to turn vision into results“Work-out”was a process initiated by Jack Welch and James Baughman to address the issue of increasing productivity by changing the in-house culture to reflect that of an small firm,characterized by Sp

24、eed Simplicity Self Confidence“Work-out”Self-ConfidenceSimplicitySpeedOrganizational Restructuring-“Work-out”Culture in 1980s Fine tuned Financial Analysis Long Strategic Deliberations Centralized Controls Multilevel ApprovalsCulture in late 1980s 1990sSpeed Simplicity Self ConfidenceWork-out Proces

25、sTransformation of culture at GE to sustain growth&productivityOrganizational Restructure “Work-out”Implementation of a typical in-house“workout”Consultant assigned to each GE business to facilitate 3-day off-sites Groups of 40 100 employees invited to share views about their business and how it mig

26、ht be improved.Unit Boss presents challenge/problem and leaves facilitators with employees to list problems,debate solutions,and prepare presentations.Results(analysis and recommendations)were presented to the Unit Boss on the final day.Immediate decisions“yes/no”taken on the proposals by the Unit B

27、oss.Deadlines fixed to review additional information Prompt action and follow-up on proposalsOrganizational Restructure “Work-out”Implementation of a typical in-house“workout”Work-out OrganizationParticipationProblem PresentationEvaluationResult PresentationDecisionAction/Follow upResults of“Work-ou

28、t”:1981198819922%productivity annually4%productivity annually“Work-out”ProcessSalient Features of“Work-out”Culture characterized by speed,simplicity and self-confidence.Ideas solicited from everyone,everywhere No boundaries created by organizational hierarchy.No documentation Focus on turning talk i

29、nto action.Focus on addressing real problems and solutions No functional specialization and hierarchical power differences inhibiting flows and implementation of action.Prompt action information regardless of the source.Closing the loop-Following up on decisions and learning by doingOrganizational R

30、estructure “Work-out”Domestic OperationForeign OperationGE:Boundryless OrganizationEngineeringManufacturingMarketingSalesCustomer ServiceTraditional Structure Geographically Segmented Bound by Functional barriers No idea sharing Label dependentBoundryless Structure GE:A Seamless Organization Integra

31、ted Approach No Functional Barriers Bonus and options linked to idea generation&sharing No Label dependenceOrganizational Restructure-Boundryless BehaviorWorkoutsBoundryless BehaviorOrganizational Change leading to Superior Customer ResponsivenessDifferentiating FactorValue CreationCompetitive Advan

32、tageOrganizational change competitive advantageOrganizational RestructureSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcqu

33、isitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitizationBPOand changeMarketsGr

34、owth EnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationMarketsGrowth EnginePresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationM

35、arketsGrowth EnginePresentNewPresentNewFour PillarsProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization Focus on building blocks of competitive advantageQualityInnovationCustomer ResponsivenessEfficiency Market PenetrationMarket PenetrationMarket Penetrat

36、ionCore BusinessHighTechnologyServicesInvest in improving Quality&Efficiencystay on the leading edge by investing in R&DAchieve superior customer responsivenessThree Circle Concept:three parallel approachesGEs foray into the Services Industry was 2-pronged To offset the dependence of GE on its indus

37、trial products within its existing market and help its businesses reach the#1 position.To counter the slump in the demand for existing products by providing value-added servicesBenefits:Huge growth potential for GE and Result in increased revenue through value-added services.e.g.:Service based techn

38、ologies such as real time monitoring capabilities developed by GEs Medical Systems to be transferred to the real time monitoring of Aircraft Engines and Power Business Units.Product/Service ExtensionsService Extensions in existing markets were realized by acquisitions such as$1.5 billion jet engine

39、service business$600 million purchase of a global power generation equipment service company Service Extensions:Revenue GrowthMarket Expansion(Globalization)Why?-6%Vs 12%-Cost&Quality Advantage-Intellectual CapitalDiversification Creating value by Decreasing overall portfolio risk.long cycle&short c

40、ycle businesses Superior Internal Governance via Macro-management Transferring competencies boundaryless behavior Economies of scopeA balancing actBureau-cracyValueDestroying value by bloated bureaucracy Information overload Lack of CoordinationHow?Smart bombing:Think Global Act Local-Developed Glob

41、al Markets-Emerging Global MarketsFactor EndowmentsIntensity of RivalryLocalDemand ConditionsCompetitivenessNational CompetitiveAdvantageIssues:Porters DiamondMarket Expansion(Globalization)Globalization for Market expansion and diversificationProduct/Service Extension&Diversification:AcquisitionsWh

42、y?-Quicker way to achieve significant growth-Lesser uncertainty-High barriers to entry(mature businesses)50B24B17B21B13B6B13B4.9B0102030405060199419951996199719981999Sep-002001Industrial/NBC Financial Services a)#Deals 34525610110813495TBDa)Financial Services Data includes(cash,debt,stock)Asset Port

43、folio Dealsb)Total ConsiderationTransaction Value b)ACQUISITIONS CRITICAL TO GES GROWTH.AcquisitionsSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynamic PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket Expa

44、nsionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalization4 blocks Six SigmaInertiaBest practicesLeadershipBoundary lessnessValuesStrategic ModelFront-end FocusDigitiz

45、ationBPOand changeQualityFour PillarsContinuous ImprovementBest practicesOvercome InertiaSustaining Competitive AdvantageSix Sigma EvolutionWhat Does Do For GE?Drives Customer Centricity Improves Product/Service Capability Reduces Costs Improves Performance Reliability Foundation for e-Business/Digi

46、tization$600$500$450$380$200$2500$1200$700$170Cost Benefit1996Cost Benefit1997Cost Benefit1998Cost Benefit1999Cost Benefit20006 Sigma Cost6 Sigma ProductivityDelighting CustomersResults from 6 Sigma$2500$3.0B$0.5BHEADSPINECHESTABDOMENPELVISLIVER1 minute19 seconds9 million2 minutes 15 seconds1 millio

47、n3 minutes 17 seconds4 million20 seconds 06 seconds6 millionExam TimeBeforeExam TimeAfterProceduresper YearGEMS LightSpeed CT Scanner Abdomen:liver,spine,kidneyHead:skull,brainImage Speeds Products from 6 Sigma Benchmarking&Best Practice sharingBenchmarkingFirst carried out in 1988,against Ford,Hewl

48、ett Packard,Xerox,and Toshiba on only productivity dimensions Currently,used for target-setting for all processes and functions Conducted using PEERnext and eOPTIMIS software toolsBest Practices sharingSix Sigma tracker for each business and Six Sigma cafe across GEAdoption of Best Practices institu

49、tionalized via Copy Cat AwardAggressively driven by GE Operating systemOvercoming inertiaTransition StateCurrentStateImprovedStateMonitoring progressMaking change lastMobilizing commitmentShaping a visionCreating a shared needSWOTVisionRestructuringGrowth EngineSustaining Competitive advantageDynami

50、c PerspectiveSWOT:1981StrengthsWeaknessPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisitionGlobalizationPresentNewPresentNewPresentNewMarketPenetrationProduct/serviceExtensionDiversificationMarket ExpansionPresentNewProductsAcquisi