Yesterday, I read an article that appeared in mid July 2008 at the deal book of New York Times about GE planning to divest some of its businesses like appliances, lighting etc., There was some mention about even divesting of NBC. It is a GE management decision as to what business to be in and what businesses to exit. What attracted my attention was the innumerable postings at the site. The postings were from GE employees and other stakeholders. I went through all the postings and it is obvious all is not well with GE.
The first and major problem is Mr. Jeffrey Immelt is being compared with his predecessor Dr. Jack Welch all the time, though the times are different. He is getting pulled in different directions. Mr. Immelt has to bulldoze his way through. He has no choice.
The second major problem is GE like all major corporations plays with the Dow Jones or Nasdaq figures in sight. It is a very typical capitalist approach. But the stock market sucks. What is good for the company is not necessarily good for the stock market. The same stock market which is berating him will swoon, lick his boots and kiss his backside with change of results. The shareholders are just one of the stakeholders.
The third and most serious problem is that the employees are not happy. The morale is very low. The employees at grass root level do not have trust in the TMT. The employees feel that TMT are batting for themselves. People are talking of employees being bought and sold like slaves. Key and good people are leaving in droves. This is the most crucial danger sign of a company going down. This will be perceived by the company's customers and they will not take chances.
GE originally stood for General Electric. Now its focus is financial services and products. So should we call it General Electric Financial Services Inc., ? It sure sounds a funny name for a corporation. What does electricity and financial services have in common ? What is its core competence ? Is it an engineering company or does it want to be a financial services company ? Now you all know why we at MMG do not rate it anymore in the top 10 global brands, though it is a great company.
© Copyright, Aug 14-08 . Without prejudice. All rights reserved
What is the problem at GE ? - To learn more about this author, visit Madhavan T Gopalachary's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
 THE WAY WE SEE THE PROBLEM IS THE PROBLEM
|
| |
Some successful people do not worry about the ‘why’ it is happening and ‘how’ it is happening questions, their distinctiveness lies in putting why-s and how-s together. They do not get burned out by the concept of ‘...
|
|
Stuck for an idea?
|
| |
Truly creative ideas often seem very simple - once somebody has thought of them. But how do you get a truly creative idea? Here are some ways to generate your creativity.
|
|
How to Become a Better Salesperson
|
| |
Most novice or untrained salespeople make the same three basic mistakes. This short article explains those mistakes and how to fix them.
|
|
How 2 Beliefs Increase Sales
|
| |
While the way you think and what you believe is important when it comes to your sales success the beliefs of your prospects matter too. There are two beliefs your prospect must have, or you’ll never increase your s...
|
|
Tips For Brainstorming
|
| |
Brainstorming is one of many creative problem solving techniques. While you can use any size group, we believe it works best when done in a facilitated group of 5-10 people. The more diverse the group the more diver...
|
 |
Related Businesses - Evan Elite Authors |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
Madhavan T Gopalachary
(Visit Madhavan's Website)
Madhavan Gopalachary, nick name "madgopes"
(g pronounced as in go) given by IIT
classmates, is a Mechanical Engineer and
an alumnus of Indian Institute of
Technology, Madras having passed out
specializing in IC Engines &
Thermodynamics.
He has nearly 35 years of experience in
the Corporate World. He started off as a
trainee and handled sales, marketing,
manufacturing, product management, profit
center management, strategic planning and
corporate development including R & D in
various organizations and at various
levels before becoming a CEO. His last two
professional assignments were at CEO level
before embarking to start management
consultancy business on January 01, 1998.
He has worked for British, Swedish MNCs as
well as very large Indian business houses.
He has spent a large portion of his time
from June 1998 till date in East African
Countries practicing as an independent
Management Consultant.
More details can be obtained at the
following web sites:
mmg.name
/mtg.html;
mmgconsu
lting.biz/
Madhavan's articles can be accessed at www.madgopes.com
.
|
|
 |
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
