Blue W.

GE - Bad Management Strategy or Bad Luck?

As a long term GE watcher, like the commenters above, I am diappointed in the performance under Immelt. However, I believe that he is not as bad as charactrized above. Jack followed a sinple strategy of sell the low performers and invest in the high performers. Also he revved up the existing training system and the management performance evaluation -. vitality curve. He cut back on R&D. He expanded sevices. He concentrated. on biggness to obtain monopoly profits. It was a very successful strategy, but one approach does not last forever. He squeezed out all the fat, but in my opinion went too far. He left a company that was narrow in technology and in old markets and very exposed to the business cycle.. Also, the high stress of the evaluation system has impacted cooperation among management personnel.

From the outside, it appears that Immelt is not as hardnosed as Jack, nor as dramatic. He appears to be attempting to move GE into 21st century problems - environment, energy, and international infrastructure. He has increased investment in research and engineering. It appears that he is moving out of the heavy reliance on financial services for profits. Of course changing the direction of a company as large as GE takes time. I am hopeful; I hold GE stock.

Options Trader: Thursday Outlook

My Irish grandparents had 12 children. My father had 3. I have 4. The change in our respective family size is I believe attributable to the expectations of the mothers of the family. My grandmother was a full time wife and mother, and was expected to produce children. My mother was a successful professional, as has been both of my wifes. Another aspect is to the value of children to the parents. In rural societies, children contribute to net revenues; in urban societies, they contribute to net expenses of their families.