ABSTRACT
GE is a highly diversied company. Its various businesses-medical systems, major appliances, aircraft engine, plastics, nancial services, NBC, etc.—have very little in common. While highly diversied, its CEOs have sought to maximize the value of the portfolio by leveraging one business to help another and by exploiting common systems and shared values. They have insisted upon an active role in
1. Allocating nancial, technical, and human resources 2. Helping shape business strategy 3. Prodding businesses to remain competitive and adaptive
One of the key reasons for the company’s astonishing long-term achievements has been its ability to recognize when even seemingly successful strategies need to be adapted and changed. GE’s management has anticipated and responded successfully to major market shifts. Drawing on its inherent strengths and resources, the company transformed from being a leading electrical systems and products company to being a highly diversied, multi-industry global corporation, and it instituted unique management systems and human resource programs to make it work.
