For several years, GE has been held up as the exception to two arguments: (1) that connected diversification strategies outperform unrelated diversification strategies, and (2) that conglomerates are no longer a feasible organizational type in an era of outsourcing, focus, and shareholder value maximization.
Whereas many formerly diversified firms have become narrow and more concentrated with their corporate strategies, GE continues to purchase and sell businesses and operates an extremely complex set of businesses. This case supplies a vehicle for examining the strategic reasoning behind GE's corporate strategy and complex diversification. The core arguments for and against unrelated diversification may be linked to the GE strategy.
PUBLICATION DATE: November 10, 2014 PRODUCT #: TB0383-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE