Regardless of the manner in which this growth was generated

Since Warren Buffett nearly sovereign Fund decided to fly to the rescue of General Electric in the turmoil of the credit markets, is again the target of all eyes. "success story" the long time, GE is now its global strategy and its business model in question.

If you were asked to describe an industrial conglomerate containing almost all types of activities, television cards credit through mortgage loans, industrial equipment and appliances, the name of GE certainly would come you to mind.

However this venerable icon of the American business world of today supports more comparison with another symbol of the US company of yesterday, ITT. This company, leader in all its markets in the 1970s, was also eventually realize that its strategy of mégaconglomérat worked more and the need to put the trap.

For the leadership and the unconditional GE into the world of consultants, such a comparison is not justified! Instead of collecting company assets to artificially inflate its size, GE is working to manage its portfolio of businesses, they say. Thus, the group does not hesitate to shed if required for certain activities as was recently the case of the plastics industry. This is what happens whenever in the opinion of management, the group can no longer occupy a dominant position in a particular industry by being the best. However, despite the attention of all the moments, GE is confronted with the harsh reality: the course of the title remains mercilessly oriented downward. What are the measures taken by Jeffrey Immelt, CEO of the Group since 2001, and the speed with which it implements its decisions, this development seems inexorable.

To give satisfaction to the markets, GE did not hesitate to liquidate many of its units, plastics in appliances and credit cards. Market in tire unfortunately as a conclusion: GE now resembles a mégaconglomérat adrift. A sense certainly unfair, if not wrong, but the fact is that it continues to strengthen become reality.

Looking for explanations, some believe that it has to be more critical of Jack Welch, the predecessor of Jeffrey Immelt. Was he also great that you claimed Or has it simply had the chance to access the Chair of President of the Group at the right time In its hard to beat records and to systematically please the financial markets, not signed not already the final evolution of GE The image of a giant hedge fund, GE has always sought to operate its digits maximum. Under the age of Jack Welch, GE had only a single word in order: an annual growth of 15 of the assets and profits. Regardless of the manner in which this growth was generated.

The obligation of recipient growth forced number of divisions to sell each year assets that were appreciated to keep the pace. But in the absence of sufficient growth of assets, these sales made with a view to identify high yield were other that affirmative action, which could not last.

All directors who tried to convince the management that GE could grow at a rate of 15 per year while the growth of base did not exceed 2 in the United States and not stood anywhere in the world 15 were thanked.

What was the hypothesis of Jack Welch For a conglomerate resting on a base of assets also phenomenal, it was simply unable to identify a strong growth in a world with low growth, so that the bet became more difficult annually.

The success of Jack Welch was not resident in the implementation of a strategy of strong growth in the manner in which it has excelled to sell this proposition and to convince administrators and investors of the credibility of its underlying although fundamentally false assumptions.

With his departure, GE has lost one of the most ardent advocates of this position. Jeffrey Immelt then had to be cleaned, a more difficult task as he took office on September 12, 2001.