...Entrepreneurial School of Thought This school sees strategy formation as a visionary process and is fell under the descriptive school of strategic management. The chief architect of the strategy is the CEO of a company. This school took formal leadership seriously and CEO is responsible for strategy formulation. It stressed on mental state and processes such as instinctive knowledge, belief, wisdom, experience and insight of a single leader. The leader should be visionary in formulating strategy. The entrepreneurial school promotes strategy as a process which has a clear image and sense of direction which can be termed as a vision. Entrepreneurial strategy often occurs in startup companies and organizations in trouble and needing a turnaround. For any organization to sustain success it must engage in some form of entrepreneurial activity in order to effectively compete in the marketplace and continue to increase stakeholder value. In this school the organization becomes responsive to only one person, the CEO and vision is the central concept of this school. Vision is the mental representation of a leader and it outlines what the organization wants to be or how it wants the world in which it operates to be. It is a long term view and concentrates on the future. It can be emotive and source of inspiration. It serves as a guiding idea and often tends to be a kind of image than a fully clear plan. Visions are often flexible so that the leaders can change them as they like. Visionary...
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...............................
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 Phil Parkinson _ Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...........
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...GE’s Two-Decade Transformation Case Analysis March 17, 2005 For: Anne Becker From: Scott Ashby 999004953 _ Phil Parkinson Judy Lee 04003094 Gianni Liburdi 049003649 Executive Summary This report’s objective is to provide analysis of the leadership challenge that General Electric (GE) is currently facing, and to recommend solutions. The primary problem is determining what kind of candidate is required to replace retiring CEO Jack Welch. This has left GE to question how much does the company want to change policy over the previous era, and where does the company want to be in future? Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a successful transition from a corporate model that was highly centralized and bureaucratic to one that is dynamic, flexible, and many times more profitable. If GE wishes to sustain and build upon the progress of the Welch era, it would do well to nominate a new CEO from within the organization who is familiar with his brand of leadership, and who can continue to provide it for many years to come. 2 Table of Contents Executive Summary................................................................................................................... 2 Table of Contents ....................................................................................................................... 3 Statement of Problem ...............................
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances, and lighting...
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...9-399-150 REV: MAY 3, 2005 CHRISTOPHER A. BARTLETT MEG WOZNY GE's Two-Decade Transformation: Jack Welch's Leadership On September 7, 2001, Jack Welch stepped down as CEO of General Electric. The sense of pride he felt about the company's performance during the previous two decades seemed justified judging by the many accolades GE was receiving. For the third consecutive year, it had not only been named Fortune's "Most Admired Company in the United States," but also Financial Times' "Most Admired Company in the World." And, on the eve of his retirement, Fortune had named Welch "Manager of the Century" in recognition of his personal contribution to GE's outstanding 20 year record. Yet while the mood at GE's 2001 annual meeting had clearly been upbeat, some shareholders wondered whether anyone could sustain the blistering pace of change and growth characteristic of the Welch era. And specifically, many worried if any successor could generate the 23% per annum total shareholder return Welch had delivered in his two decades leading GE. It would be a tough act to follow. (See Exhibit 1 for financial summary of Welch’s era at GE.) The GE Heritage Founded in 1878 by Thomas Edison, General Electric grew from its early focus on the generation, distribution, and use of electric power to become, a hundred years later, one of the world’s leading diversified industrial companies. A century later, in addition to its core businesses in power generation, household appliances...
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...Copyright © Oxford Management Publishing 2009 Corporate Strategy Analysis: General Electric Co. (1981–2008) – A Case Study Stanislav Bucifal Introduction The General Electric Company (GE) is widely regarded as one of the world’s most successful corporations of the 20th century. This paper aims to analyse critically the corporate strategy of GE during the period from 1981 to 2008 under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The paper is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to 2008 with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. Keywords: General Electric, Corporate strategy, Leadership, CEOs. 1. The Jack Welch Period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s...
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...AM FL Y TE Team-Fly® 29 Leadership Secrets from Jack Welch Abridged from Get Better or Get Beaten, SECOND EDITION Robert Slater McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-141684-6 The material in this eBook also appears in the print version of this title: 0-07-140937-8 All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights...
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...yTHE IMPORTANCE OF PAY IN EMPLOYEE MOTIVATION: DISCREPANCIES BETWEEN WHAT PEOPLE SAY AND WHAT THEY DO Sara L. Rynes, Barry Gerhart, and Kathleen A. Minette A majority of human resources professionals appear to believe that employees are likely to overreport the importance of pay in employee surveys. However, research suggests the opposite is actually true. We review evidence showing the discrepancies between what people say and do with respect to pay. We then discuss why pay is likely to be such an important general motivator, as well as a variety of reasons why managers might underestimate its importance. We note that pay is not equally important in all situations or to all individuals, and identify circumstances under which pay is likely to be more (or less) important to employees. We close with recommendations for implementing research findings with respect to pay and suggestions for evaluating pay systems. © 2004 Wiley Periodicals, Inc. It is easy to overestimate the frequency with which adults actually go to the opera and underestimate the frequency with which they watch TV cartoons on Saturday mornings, based on their self-reports. (Nunnally & Bernstein, 1994, p. 383) Rynes, Colbert, and Brown (2002) presented the following statement to 959 members of the Society for Human Resource Management (SHRM): “Surveys that directly ask employees how important pay is to them are likely to overestimate pay’s true importance in actual decisions” (p. 158). If our interpretation...
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...Building a Visionary Company James C. Collins Jerry I. Porras Above all, there was the ability to build and build and build—never stopping, never looking back, never finishing—the institution.... In the last analysis, Walt Disney's greatest aeation was Walt Disney [the company]. —Richard Schickel, The Disney Version' I have concentrated all along on building the finest retailing company that we possibly could. Period. Creating a huge personal fortune was never particularly a goal of mine. —Sam Walton, Founder, Wal-Mart^ magine you met a remarkable person who could look at the sun or stars at any time of day or night and state the exact time and date: "It's April 23, 1401, 2:36 A.M., and 12 seconds." This person would be an amazing time teller, and we'd probably revere that person for the ability to tell time. But wouldn't that person be even more amazing if, instead of telling the time, he or she built a clock that could tell the time forever, even after he or she was dead and gone?' Having a great idea or being a charismatic visionary leader is "time telling"; building a company that can prosper far beyond the presence of any single leader and through multiple product life cycles is "clock building." The builders of visionary companies tend to be clock builders, not time tellers. They concentrate primarily on building an organization—building a ticking clock— From 6u/;t to Last by James C. Collins and Jerry I. Porras. Copyright © 1994 by James C. Collins and Jerry...
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...with former Philips top managers. Findings – The paper shows that Philips’ leaders used different styles of leadership to create a deliberate atmosphere and willingness to change. The final emergent transformation, however, could only sufficiently materialise while it rejuvenated existing management concepts like Quality Management. The success was partly based on the fact that these concepts played a historical role in the Philips organisation. Originality/value – The paper adds the historical style approach to leadership research and pays attention to the important role of the organization’s history during processes of organizational change. Keywords Change management, Business history, Leadership styles, Organizational change Paper type Case study Introduction On October 25th 1990 the president of Philips Jan Timmer announced a reorganisation operation, called Centurion, which included a lay-off of 45.000 jobs. The Netherlands was shocked. Philips ushered a reduction of personnel at...
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...with former Philips top managers. Findings – The paper shows that Philips’ leaders used different styles of leadership to create a deliberate atmosphere and willingness to change. The final emergent transformation, however, could only sufficiently materialise while it rejuvenated existing management concepts like Quality Management. The success was partly based on the fact that these concepts played a historical role in the Philips organisation. Originality/value – The paper adds the historical style approach to leadership research and pays attention to the important role of the organization’s history during processes of organizational change. Keywords Change management, Business history, Leadership styles, Organizational change Paper type Case study Introduction On October 25th 1990 the president of Philips Jan Timmer announced a reorganisation operation, called Centurion, which included a lay-off of 45.000 jobs. The Netherlands was shocked. Philips ushered a reduction of personnel at an unheard scale in...
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...http://www.easy-strategy.com/strategy-gurus.html Home Sitemap Contact Us Articles Speaker Seminars Consulting Negotiation War Room Osama El-Kadi Easy Strategy Videos Stories Gurus 36 Strategies Art of War News Build a Site My Books History Management & Strategy Gurus and Masters The complete A to Z Guide ABCDEFGHIJKLMNOPQRSTUVWXYZ A point of clarification before you start your journey with the gurus and masters: a Guru is a person who is very knowledgeable and teaches a particular strategy. A Master is a practitioner of the art of strategy in life and in business. Management & Strategy Gurus Main Guru's Index ABCDEFGHIJKLMNOPQRSTUVWXYZ 1 of 41 9/21/2014 3:38 PM http://www.easy-strategy.com/strategy-gurus.html Military Gurus Blog Ask me! Newsletter Clients Privacy Policy Motivational [?]Subscribe To This Site A Igor Ansoff Igor Ansoff The father of Strategic management Igor Ansoff (1918-July 14, 2002) was an applied mathematician and business manager. He is known as the father of Strategic management. He was a distinguished professor at United States International University (now Alliant International University) for 17 years, where several institutes continue his work in strategic management research. Igor was recognized worldwide as the Pioneer and Father of Strategic Management. He was the first management strategy guru to recognize the need for strategic planning for firms operating in the increasingly complex and turbulent environment. ...
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...Oxford University Centre of the Study of Values in Education Volume X: The Fate of Empires: Education in a Consilient World Reprint: Chapter 6 POWER STRATEGIES FOR MIDDLE MANAGERS David P. Boyd Northeastern University & Timm L. Kainen University of Massachusetts Lowell Copyright 2005: Global Scholarly Publications. All rights reserved. POWER STRATEGIES FOR MIDDLE MANAGERS David P. Boyd & Timm L. Kainen Introduction Power is a difficult concept for many individuals in western democratic societies and free market economies. Its undertone of privilege and inequality can run counter to the core value of equal opportunity that defines those societies. Yet successful management of the social and economic order, as well as of the organizations within it, requires the use of power. Electoral processes bestow political power while educational and social processes develop access to corporate power. Though not without their failures, these processes confer a measure of political stability and economic equilibrium. However, in a globally diverse economy where organizations become more numerous, entrepreneurial and horizontal, the training time and developmental possibilities for middle managers prove less predictable. As markets and...
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...C O N C E P T U A L I Z AT I O N AND LEARNINGS Entrepreneurship and Innovation: How Leadership Style Makes the Difference ? Satyabir Bhattacharyya A n entrepreneur is often defined as one who starts his own, new, and small business. But, not every new small business is entrepreneurial or represents entrepreneurship. For instance, the husband-and-wife team which opens another Mexican restaurant in the American suburb surely takes a risk. But, are they entrepreneurs? What they do has been done many times before. They gamble on the increasing popularity of eating out in their area but create neither a new concept of customer satisfaction nor a new consumer demand. Seen under this perspective, they are surely not entrepreneurs even though theirs is a new venture. WHAT IS ENTREPRENEURSHIP? The setting up of McDonald’s, however, was entrepreneurship. McDonald’s did not invent anything new; its final product was what any decent American restaurant had produced years ago. But, by applying management concepts and techniques (for instance, by asking what is ‘value’ to the customer), standardizing the ‘product’ across all locations and countries, designing processes and tools, and streamlining training on the analysis of the work to be done and then setting the standards it required, McDonald’s both drastically upgraded the yield from resources and created a new market and a new customer base. This is entrepreneurship. Equally entrepreneurial was the growing foundry started...
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