Question

What problems caused GE to change its approach to strategic planning in 1972 and again in 1977

Answer 1

Reginald Jones was the 7th man to lead GE since Edison.

• He focused on shifting the attention to transportation, services, natural resources, and, away from appliances, and, electrical equipment
• The concept of strategic planning was implemented at GE by Reginald Jones
• It created 43 SBUs to oversee the strategic planning of groups, divisions, and, departments

1977 - Using the information generated by 43 SBUs; one more layer was added, sectors above SBUs; these represented a high level of groupings; these are power systems, consumer products, and, technical products

Jones received the business person of the year award three this year

1979 - recognized as the CEO of the decade

1981- WSJ proclaimed Jones a management legend

In the 1970s, the sales doubled; and earnings grew even faster; $10 billion to $27 billion; earnings grew from $572 million to $ 1.7 billion