The company was formed in 1892; a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company currently listed in the Dow Jones Industrial Index today that was a part of the original index in 1896. For the past 20 yrs, GE has consistently outperformed the market measured by total shareholder return. Time magazine named GE “company of the century”, in 2000. Fortune magazine named GE three times,” World’s Most Respected Company”, Americas Greatest Wealth Creator and “Americas Most admired Company”. InternetWeek named GE as e-Business of the Year in 2000. GE superior performance can also be meas

Jack Welch initially focused on GE products striving for market leadership and higher ROE. He believed that being No. 1 or No. 2 would give them “ a set of businesses which will be unique in the world business equation at the end of this decade”(1981) and would also provide them with an unmatched competitive advantage. Jack’s three-circle approach was very simple, business had to fit into core, technology or services; any business that did not fit had to be fixed, sold or closed. He was able to globalize business through acquisitions, joint ventures and global pooling. Revenue outside of the US grew from 10% in 1986 to 25% in 1996.

Jack Welch’s organization simplicity improved efficiency measured by improved operating margins and value per employees. Between 1980-84 “destaffing” reduced work force from 402K to 330K including reduced layers of reporting. He also reduced the number of distribution warehouses from 34 to 9, and customer service centers from 26 to 1. Outdated equipment and plants were replaced. He i

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