姜汝祥韦尔奇热中的冷思考(Jiang Ruxiang a cold reflection of Welch's enthusiasm)
Like most Chinese entrepreneurs, I also respect pliment GE and Welch. However, in the light of the enlightenment to the development strategy of Chinese enterprises, I think the western mainstream strategic thinking behind the GE strategy may not help us much.
Commercial Welch and cultural Welch
In the eyes of one thousand individuals may have one thousand Welch, then, what is the essence of corporate strategy and management represented by Welch, is also the key factors of the ess of GE, which is our entrepreneurs should learn the most; and what is something Welch outside, some fur, we know, entrepreneurs don't have no problem, don't even learn better, these are the need to first make clear.
The . economy in the 1981 was in decline, with high interest rates and high unemployment, but GE continued to grow. 20 years later, GE's profit was $12 billion 700 million, and that's what we often call the "Welch miracle."".
But this is only a phenomenon only, the key issue is to constitute the source of these profits: in 1980, 85% of GE's revenue from products, and in 2000 70% of GE's es from services. Only GE finance and NBC revenues make up half of GE's e. So in my opinion, Welch is really a great place is: first, he in 20 years ago to see this, his first or second theory is actually based on the three strategic business areas:
service, high-tech, the core enterprise (the three rings by Welch at the beginning of 1982 mark). In 1980, the core business profit accounted for 40% of the total profit, in 1984 dropped to 34%, which at the same time, services increased from 21% to 24%, rising from 25% to 31% high-tech. Second, he can through the acquisition and sale, by focusing on the advantages of business through six sigma management, through the culture and management of change, the GE from a product pany, to provide service panies.
If pare what Welch did with the evolution of mainstream thinking in th
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