56964915-GE-and-Jack-Welch

Even though he decentralized management he retained

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Unformatted text preview: ls. Even though he decentralized management, he retained predecessor Reginald Jones's system of classifying divisions according to their performance. His goal was to make GE number one or two in every field of its operations. Welch was a PHD in chemical engineering from the university of Illinois and had joined GE Plastics in 1960. A surprising fact about Welch¶s start in GE is when he opted to leave the company after the first year of employment as he did not get a big enough raise as he thought he deserved. Realizing their mistake, GE management convinced Welch to come back and after his rejoining his raises were far better than his colleagues. He eventually became the youngest General manager in 1968 at the age of 33 years. Welch had proven his marketing skills at GE Plastics by overtaking Dupont in the same market. Dupont was the market leader at that time and Jack Welch challenged all existing paradigms in the industry to overtake the big giant. Under Welch, GR plastics grew at a compounded rate of 34 percent, and by the age of 37 he was given the additional responsibility of managing GE¶s medical s...
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