ArticleFile02 - Chapter 4 clearly resonates with all of...

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Article File 2 Chapter 4: Building Competitive Advantage through Functional-Level Strategy Choose a company that is widely regarded as excellent. Identify the source of its excellence, and relate it to the material discussed in this chapter. Pay particular attention to the role played by the various functions in building excellence. General Electric (GE) grew in terms of market capitalization from $13 billion in 1981 to $500 billion in 2000. This growth arose thanks to Chief Executive Officer (CEO) Jack Welch who reigned over GE during this time frame. Welch introduced radical changes to GE in accordance with his seven points of leadership: 1) Develop a vision for the business; 2) Change the culture to achieve the vision; 3) Flatten the organization; 4) Eliminate bureaucracy; 5) Empower individuals; 6) Raise quality and efficiency; 7) Eliminate boundaries.
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Unformatted text preview: Chapter 4 clearly resonates with all of these points. Obviously the business needs a clear vision for what it wants to become and then needs to evolve to achieve that vision. Flattening the organization tends to eliminate bureaucracy and empower individuals who can then raise quality and efficiency. Eliminating boundaries enhances communication so that all parties have the same grasp of the overall unifying vision. Page 123 of the class textbook shows that GE used the human resources function to create self-managing teams that increased plant productivity by 250%. Page 128 of the class textbook shows that GE used the quality engineering function to implement Six Sigma to great effect. Reference: http://www.1000ventures.com/business_guide/cs_inex_ge.html (see attached) OEM 2009 MAN 6721 Luther Setzer page 1 of 1...
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This note was uploaded on 05/12/2010 for the course MAN 6721 taught by Professor Kraft during the Spring '10 term at University of Florida.

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