GE’S FOCUS SHOULD ACTUALLY BE CONSOLIDATION AND CONCENTRATION AND ‘NOT’ FURTHER DIVERSIFI CATION…
September 2001 - a fateful month in the history of corporate America! Hold it! No reference is being made here to the terrorist attacks; we are referring to Jeff Immelt taking over as CEO and Chairman of General Electric (GE) – the icon for all conglomerates! And he had to follow up on one of the most iconic CEOs of all time – the inimitable Jack Welch. And at a time when America was reeling from the impact of the dotcom bust, and yes 9/11. Owing to his restructuring initiatives, GE’s revenues have increased by 50% in five years to touch $144.3 billion in 2005. But dismally, Wall Street GE’s share price is southward bound (currently at $32.88 on the NYSE)! According to Peter Dunay, Chief Strategist, Leeb Index Trader (NY), “...it’s going to get worse for GE. We don’t expect the stocks to perform any better in the near future...” A weird paradox for sure. It’s been a more or less satisfactory performance by GE in terms of revenues.
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Source:- IIPM-Business and Economy,
Initiative:- Prof. Arindam Chaudhuri