Agreed that Jeff took over a troubled titan but compared to Welch-era summit (when GE shares traded at $60), today having fallen by more than 33%, at just $40.7 (as on July 25, 2007), they represent a sad song for the investors as Jeff confesses, “It’s disappointing to all of us – ‘frustrated is the word I’d use. But I feel like we have control over 
our own destiny for the first time in the last few years!”
But as Welch displayed confidence in his competence as, “My anticipation when I recommended Jeff for the job was that it would be 20 years & I see nothing that would be able to change it…,” the truth remains – while on one hand, Jeff has handled well the total $75 billion worth of acquisitions making GE a superpower; on the other, he has also managed write-off s worth $4 billion & a sell off of GE’s Plastic business for $11.6 billion in May 2007. Jeff ’s move to walk away from his dream of bolstering GE’s healthcare division through the purchase of Abbott Labs’ diagnostics unit for a highly overvalued $8 billion on July 12, 2007 also goes to prove that despite the slumbering stock (which has remained stagnant since he took over six years back), he still knows the first people to please – his shareholders. And for his critics, Welch nearly fired him while at GE Plastics for delivering just 7% growth instead of the planned 15% growth, but he didn’t… surely for reasons mighty!
our own destiny for the first time in the last few years!”But as Welch displayed confidence in his competence as, “My anticipation when I recommended Jeff for the job was that it would be 20 years & I see nothing that would be able to change it…,” the truth remains – while on one hand, Jeff has handled well the total $75 billion worth of acquisitions making GE a superpower; on the other, he has also managed write-off s worth $4 billion & a sell off of GE’s Plastic business for $11.6 billion in May 2007. Jeff ’s move to walk away from his dream of bolstering GE’s healthcare division through the purchase of Abbott Labs’ diagnostics unit for a highly overvalued $8 billion on July 12, 2007 also goes to prove that despite the slumbering stock (which has remained stagnant since he took over six years back), he still knows the first people to please – his shareholders. And for his critics, Welch nearly fired him while at GE Plastics for delivering just 7% growth instead of the planned 15% growth, but he didn’t… surely for reasons mighty!
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Source: IIPM Editorial, 2008
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