GE's Two Decade Transformation Case Study Example | Topics and Well Written Essays - 250 words

GE's Two Decade Transformation - Case Study Example 2. What is Welch’s purpose in the series of initiatives he launched in the late 1980s and early 1990s? What is he trying to achieve in the round of changes he put in motion in that period? Is there a logic or rationale supporting the change process? Welch’s main purpose in the series of initiatives he launched was to ensure that in the next decade, GE would be a number one or number two competitor in the industry (Bartlett 1). This would make GE a unique, highly spirited, and an entrepreneurial enterprise in addition to being profitable, diverse, and with quality leadership and products of their own kind in the world. In the round of changes he puts in motion in that period, he wanted to achieve a productive business with individuals who were focused in implementing change for the success in the business. Ideally, making such a change is logical considering the situation in which the business environment was in. Welch realized that the business had so many who never added value to the business and therefore, went for the restructuring process have a lean and efficient workforce. In order to grow profitably, it is essential that one reduce the expenses or production costs. It is by the same perspective that Welch uses to grow GE profitably despite the critics. He did this through downsizing, destaffing, and delayering to have a lean and effective employee base (Bartlett 3). Indeed the initiatives employed by Welch added substantive value to the business as the business was able to grow its operation profits from $1.6 billion to $2.4 billion and revenues from $27.1 billion to $29.2 billion within four years (1981-1985) (Bartlett 3). Considering Welch’s approach to leading change, I believe it is one of the most efficient approaches as he is able to reduce costs of production and increasing the revenue and profit