Deal Leaves Conglomerate Almost Entirely Focused on Finance and Industrial Equipmen
Those who took our Kellogg Organic Growth through Innovation executive education class remembers that leaders must define the growth domain/targets for the business/company. The following was the vision by Jack Welsh: Services, High Technology, and Core:
Clearly, Immelt is driving the business to just the Service and High Technology sector
The sale will leave the U.S. conglomerate almost entirely focused on finance and big-ticket industrial equipment like power turbines and aircraft engines.
The shift is the work of Chief Executive Jeff Immelt, who in his 14th year as CEO is adjusting to competitive pressures and trying to boost a long-sluggish stock price by focusing on the question: What is GE?
The answer isn't insurance, plastics, media, consumer finance or appliances—businesses Mr. Immelt has been shedding. Increasingly, the company founded by Thomas Edison is again an energy company.
Mr. Immelt has spent around $14 billion buying oil-and-gas service companies over the past several years. Energy and related activities last year accounted for about one-third of the company's revenue and more than 40% of operating profit.The company also remains a big bank, with GE Capital accounting for about one-third of its revenue and around half its profit. It is also a leading maker of aircraft engines and medical devices like CT scanners.