Unformatted text preview: the people disappeared. In his defense, Welch
claimed the actions were better for GE as a whole. Despite his eventual successes, the strain on
employees at times took its toll, as they were not used to such a harsh working environment.
In Welch¶s first two years he had sold 71 businesses and acquired 188. By 1984, GE from being
a toaster and light-bulb company became a major player in many high growth areas. Citing
earlier growth rates that moved in parallel to US GNP, Welch said, ³GE is no longer a highly
cyclical GNP-type company. It is now a diversified technology driven organization.
In the 1990 s Welch and his vice chairman defined the new vision for the decade. Both wished GE to
become a boundryless organization which considered suppliers its partners and customer needs as
the focus of all employees. Internally, functional departments were broken down into cross-functional teams and Welch would also
go on to claim that boundryless would not have been possible without trimming the workforce.
Welch found changing the culture at GE more difficult than chang...
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- Winter '11
- Jack Welch