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.

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Definitions:

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital during a specific time period.

Net Exports

The value of a country's total exports minus the value of its total imports.

Mutual Fund

An institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds.

Trade Deficit

A condition in which the value of a nation's imports surpasses the value of its exports, resulting in a trade deficit.