Case: Visiting General Electric
Break up into groups of three to five and using either your own laptops, or following the instructor on the classroom PC, explore GE's Web site (www.ge.com) to answer the questions following. Then appoint one member of the group as spokesperson who will communicate the group's findings to the class.
1. Review GE's portfolio of major businesses. What multibusiness model is this portfolio of business based on? How profitable has that model been in past?
2. Has GE's multibusiness model been changing? Has its CEO, Jeffrey Immelt, announced any new strategic initiatives?
3. What kinds of changes would you make to its multibusiness model to boost its profi tability?
Article File 10
Find an example of a diversified company that made an acquisition that apparently failed to create any value. Identify and critically evaluate the rationale that top management used to justify the acquisition when it was made. Explain why the acquisition subsequently failed.
Strategic Management Project: Module 10
This module requires you to assess your company's use of acquisitions, internal new ventures, and joint ventures as ways to enter a new business or restructure its portfolio of businesses.
A. Your Company Has Entered a New Industry During the Past Decade
1. Pick one new industry that your company has entered during the past 10 years.
2. Identify the rationale for entering this industry.
3. Identify the strategy used to enter this industry.
4. Evaluate the rationale for using this particular entry strategy. Do you think that this was the best entry strategy to use? Why?
5. Do you think that the addition of this business unit to the company increased or reduced profitability? Why?
B. Your Company Has Restructured its Corporate Portfolio During the Past Decade
1. Identify the rationale for pursuing a restructuring strategy.
2. Pick one industry that your company has exited from during the past 10 years.
3. Identify the strategy used to exit from this particular industry. Do you think that this was the best exit strategy to use? Why?
4. In general, do you think that exiting from this industry has been in the company's best interest?