Electrolux: The Acquisition of GE Electrolux: The Acquisition of GE Michael White Strategic Management 520-01 Dr. Ugboro September 13,2014 Electrolux: The Acquisition of GE According to Fortune magazine, “GE is one the worlds most respected companies” (http://www.GE.com). Taking cues from the technology firms of silicon line its operations, and Sweden’s Electrolux is buying GE’s appliance business for $2.2 billion in cash in one of the largest acquisition’s ever. The transaction significantly advances GE’s industrial strategy and Electrolux will be a good fit for its customers and employees. GE’s industrial strategy is to be a more consistent infrastructure and invest more heavily in technology. GE is creating a new type of industrial company, one with a balanced, competitively positioned portfolio of business with strong technology advantages, growth markets and a more simplified culture.
Case Problem/Opportunity The Amber Inn & Suites, Inc. has been generating negative profits. The company must find a business method and strategy that will increase EBIDTA to grow 7% in 2 years. In trying to develop the most beneficial business strategy, Amber Inn has to allocate their marketing and advertising budget more efficiently. Their marketing costs rose from $1.14 million to $12.5 million. Now they must align their marketing strategy to cohesively coincide that of their business plan to bring in the clientele that will make them the most profitable.
I will be focusing on just a few key areas that have been struck due to the recession for President Obama and the Great Depression for President Roosevelt and how each man either fixed the problem or is attempting to. Here is just a short list of issues: unemployment rate, financial institutions and the stock market. Just like President Roosevelt, President Obama hit the ground running with his uncanny ability to act upon the economic crisis that was yet again effecting the American people. Obama scored major points with the people since within his first hundred days in office he was able to get congress a much needed stimulus package for their approval that would take care of the financial crisis the American people were facing with major businesses and financial institutions declining at a very fast pace. However, Roosevelt was facing a much worse scenario with an unemployment rate of nearly 25% after the stock market crash of 1929.
Organizational Power There is a tricky balance of power at Corporation A. It is obviously working, at least on some levels, because keeping a company alive for more than twenty years in today’s challenging economy is a great accomplishment. The problem states the company wishes to foster a team environment throughout the organization while helping clients improve their real estate sales. How do power and dependence have an impact on this type of environment? Each of the five bases of power, first introduced by noted social psychologists John French & Bertram Raven (French & Raven, 1959) are demonstrated in the scenario given.
Article Analysis- “Revitalizing the American Dream” “Revitalizing the American Dream”, by Adam Bluestein and Amy Barrett is an article from “Inc.” magazine that gives some ideas for boosting the amount of small businesses formed in America each year. In this analysis I will cover the three ideas that I think are the best, and give reasons why I like them. With unemployment being such a major concern in America, and small business being the source of most job creation, entrepreneurs are vital to the health of our economy. The three ideas from the article that I like the most are: “Our education system should foster entrepreneurship among the young”, “Reward innovation through business-plan competitions”, and “Take entrepreneurship out of the business schools.” The first of my favorite ideas mentioned in the article is about fostering entrepreneurship in our young through the educational system. As long as I can remember I have wanted to be my own boss.
The Implications of NUMMI’s Downfall Today’s globalized economy and corporate culture has given rise to companies who are hungry for hyper-expansion and power. With trade agreements bridging the gap between international governments, companies have been expanding their production across continents with the mentality of maximizing profits and emerging as a corporate leader. However, one company deterred off this path of avariciousness: Toyota’s NUMMI plant thrived not on profit but on helping surrounding communities and upholding an image of mutual trust and respect between the company and its workers. With California already having the second highest rate of unemployment in the United States, currently at 12.3%, the closing of NUMMI in the midst of these troubling times brought 4,700 employees out of work and threatened more than 25,000 jobs statewide. This unfortunate choice of Toyota’s incurred a huge cost among taxpayers, whose tax dollars would be utilized to provide $2.3 billion to replace the thousands of lost jobs.
The survey, conducted by the American Management Association and called the AMA Critical Skills Survey 2010, involved 2,115 managers and executives around the world. It found that critical thinking was regarded as the most important skill employees could contribute in helping their companies to grow. It ranked higher than innovation or mastery of information technology. Globalisation, the increased flow and complexity of information and constant changes in the business environment all demand that employees have excellent critical-thinking skills so they are able to adapt to new roles, understand issues quickly and solve problems gracefully, the firm said. http://www.nationmultimedia.com/2011/05/04/business/Importance-of-critical-thinking-30154554.html The Importance of Critical Thinking Written on January 3, 2009 by Sandy in Great Self-Care http://sandykumskov.com/importance-critical-thinking/ Critical thinking is an incredibly important skill.
The company change how to managed the business by conservative engineers in a low risk environment to an entrepreneurial, innovative corporate culture where people were creating new products, opening new markets, and reinventing a new whole business model, but the story of this big and innovative company turn for the worst Enron filed bankruptcy in December 2001. Enron leadership Despite of the size of any company they will not stand without efficient management and sincere leaders. “Leadership occurs only when people are influenced to do what is ethical and beneficial for the organization and themselves” (Yukl, 2006, p. 5). Enron leaders, such as Kenneth Lay, and Jeffrey Skilling managed the company among cults and charismatic leadership that they use to influence employees. Cults is defined as “A group or movement exhibiting great or excessive devotion to some person, an idea or a thing, and employing unethical manipulative or coercive techniques of persuasion and control… designed to advance the goals of the group’s leaders, to the actual or possible detriment of members, their families or the community” (AFF, 1986, p.119 -
He expected the best from each one of his employees. This is clearly evident because of the changes he made once he became CEO. In 1981, the economy was in the middle of a recession. Jack Welch realized the importance of improving productivity and challenged the organization to be “better than the best” by setting in motion a series of changes that would take place over the next several years. Welch used his transformational leadership skills and started to transform GE by creating competitive strategies that would help rebuild GE’s
Also to demonstrate what makes a successful leader, manager and entrepreneur in any situation. 1. Introduction The art of leadership in the business world of recent times (1980 – 2014) can be exemplified through the contributions of two legendary “celebrities” of global corporate. Their personality, behaviour, style and traits may be individual and even contrary, yet their motivation, drive and importantly their impact, effectiveness and performance have shown their profound legacy and imprint in the business community. Jack Welch of General Electric and Richard Branson of Virgin have impressed and left a lasting impression on business and leadership.