Starbucks Leadership

Analysis of Famous Leaders:

The Rise of Jack Welch & the GE way

Submitted by: Mohammad Al Marzooqi

17th April 2011

Table of Contents

Introduction 4

Early Life: Leadership Traits 6

Resistance to Change & Conflict Resolution 9

The Work Out concept 12

Jack Welch’s Leadership Style 14

Candor and Differentiation 15

Six Sigma 17

Critics: Neutron Jack 18

Conclusion 19

References 21

Appendix 22

GE’s Performance graphs through the 1980’s 22

The Human Story – in numbers 23

Abstract

When Jack Welch took to the helm as Chairman and CEO of General Electric Corporation (GE) in 1981, the company underwent a period of radical change. He streamlined operations, acquired new businesses and divested from those that GE could not dominate. His vision was to have each unit under the GE umbrella become the best in class, and he was successful. In fact, so successful that by the time he retired in 2001, GE’s market capitalization rose from $13 Billion to over $400 Billion and Fortune Magazine dubbed him the “Manager of the Century”.

He was able to do all this through the use of goal setting, empowerment and communication - taking a sleeping giant and transforming it into a global powerhouse with a reputation synonymous with efficiency, innovation and leadership.

The purpose of this report is to use concepts and theories learned from the textbook and class discussions to analyze the leadership style of a well-known business leader. This report will guide you through the rise of Jack Welch, his leadership, his critics and the legacy of “the GE way” that has made the General Electric Corporation (GE) one of the world’s most successful companies of our time.

Introduction

“This is the culture we’re going to have and these are the behaviors we’re going to reward”

- Jack Welch

Organizational change is the movement from a current state, usually brought about by external (social, political, economical or technological)...