GE Performed Exceptionally Well Under Jack Welch, the Former CEO

question 106

Multiple Choice

GE performed exceptionally well under Jack Welch, the former CEO of GE. Jeffery Immelt, the current CEO, has made changes to the firm's corporate-level strategy and structure. These changes were necessary because the competitive landscape had shifted significantly. Immelt's actions resulted in

• A) a smooth transition to the new organizational strategy because of the organizational slack generated by Jack Welch.
• B) replacement of the entire top management team because once individuals commit to a core ideology and an envisioned future, they are unlikely to change.
• C) some resistance by organizational stakeholders who are accustomed to Jack Welch and the high performance which he brought to GE.
• D) acceptance by GE's stakeholders as Immelt inherited the "iconic aura" surrounding Jack Welch.

---

Definitions:

Technological Advance

Refers to the development and application of innovative techniques, equipment, and processes that improve productivity, efficiency, and outcomes in various fields.

New Monopolies

Emerging dominant players in a market that manage to obtain exclusive control over a product or service, often through innovation or consolidation.

Existing Monopolies

Firms that have exclusive control over a market or product, allowing them to set prices higher than in competitive markets due to a lack of alternatives.

Interest-Rate Cost

The expense associated with borrowing funds, expressed as a percentage of the total borrowed amount.