The paper "The Problems in the Macro-Environment General Electric " is a perfect example of a case study on management. 1. The situation when Welch took the responsibility and became CEO of GE, the competition was taking place at an upward slope as many of the Japanese firms were entering into the market. At this point of time, Welch was not left with many choices, to keep the business consistency, Welch provided few concepts that were either to be number one or number two in the business as a pioneer company or the toughest competitor, the purpose behind stating any such thing was to make the employees think that they all have to work as a team in making the organization adjust at only mentioned top two positions, also he asked the members of the company to believe that it is possible to achieve the target by moving the company and meeting three important phases that are to be core provider (basic product facilities with quality), high technology (searching for latest technology and implementing it in the products) and services or augmented product. Moving further, a major initiative that Welch took was to downsize the organization, the reason according to Welch was that this way the employees would have a greater concentration on work and also the company would now be in direct contact with the goal as he mentioned that they would be in direct contact with the business.
These initiatives were certainly the most effective for the organization keeping its position, which was under great threat, it was certainly a good strategy to reduce the number of employees as the company was in no good position to retain the employees whose work was even possible with few committed people, so the company made a lot of profitability by eliminating numbers of people and focusing on the core goal of profitability with consistency in the market share through their position. 2.
The time when Welch took the seat of CEO, the entire company was facing the problems in the macro environment as the interest rates were high, the currency was devaluating and many other related issues, if under such circumstances a person takes the seat of CEO then naturally the time is required to get settled and yet if a person like Welch sooner recovers and starts seeing things positively, creating ideas in the favor of companies and employees, simultaneously and starts implementing those plans for the benefit of the company then that person is liable to be known as a good leader.