Chapter 5 - The Jack Welch Era at General Electric
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merian mortera
Oct 1, 2011, 2:55:26 AM10/1/11
to BUS 0682-02 SEM-ENVIRONMENT-BUSINESS
Hey Guys! I'm such a doof. I don't know how to upload my Word document
to Google groups so I'll just cut and paste for now until someone
explains to me how to do it haha. I know, I know, bear with me because
I've never used google groups before.
Please let me know if some of my answers are wrong. I tried my best at
all the answers so be honest because I don't want anyone to get
anything wrong. Thanks!
Chapter 5 Exam Case Questions
1. Identify several specific stakeholder groups in each case study and
discuss their relevance. According to the stakeholder model, which of
these stakeholder groups in each case study would be considered
primary stakeholders? Use facts from the case study to support your
argument.
The founding stakeholders are Thomas Alva Edison wih J.P. Morgan from
1947 to 1931. Edison started the Edison Electric Light Company to make
light bulbs and electrical equipment. Although he was a brilliant
inventor, Edison failed as a manager. J.P. Morgan took over and
organized the now named General Electric business. The company
expanded by introducing new electrical appliances, jet planes, silly
putty, and more.
Jack Welch took over in 1981 and changed the General Electric system
by closing or selling business sections that were failing and laying
off thousands of workers to make sure they are either the number one
or two business ranked in their industry. Welch made drastic changes
that influenced the company’s profitability.
2. What facts specific to each case study are consistent with the
market capitalism model of competitive markets?
General Electric was consistent in remaining profitable and
contributing to society by paying taxes, employing themselves in
philanthropic and community activities. Welch promoted pensions for
stakeholders and employees which met the standard requirements by
law.
3. What facts specific to each case study are not consistent with the
market capitalism model of competitive markets?
General Electric changed drastically when Welch laid off tens of
thousands of employees because they were the bottom 10% employees that
did not fit within the company.
GE’s manufacturing plant in New York was releasing a cancer causing
chemical called PCB into the Hudson River. After years of battling
with the government’s Environmental Protection Agency, General
Electric became liable for the pollution and was forced to pay the
costs of the cleanup.
4. What facts specific to each case study are consistent with the
stakeholder model of competitive markets?
During Welch’s time, GE’s pension fund was distributed for
stakeholders, employees, and even retired workers.
General Electric contributed in philanthropic and community activities
while creating foundations for nonprofit organizations and college
grants.
5. What facts specific to each case study are not consistent with the
stakeholder model of competitive markets?
Although GE’s pension plans covered existing stakeholders, employees,
and retired workers, GE would not budge into increasing benefits for
retirees. Welch turned the surplus of the pension fund into profit for
the benefit of the company. Only after being pressured by unions and
pensioners, GE finally increased pensions from 15 to 35 percent.
6. Which one of the fourteen different theories of ethical behavior
detailed in chapter 8 could best describe the firm's actual behavior?
Is this theory consistent with the market capitalism's model of
competitive markets? Explain your answer.
Proportionality Ethic – Welch made decisions that were for the good
of the company for profit and for himself (higher pension plan and
benefits for himself). Every decision Welch made came with
consequences including increasing pension benefits and paying for
pollution cleanup. Another example would be increasing the
unemployment population at GE because he thought it would be good for
the company but he did not think about the good of the laid off
employees.
7. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
market capitalism model? Explain your answer.
Yes, General Electric remained one of the top ranked companies
because of its consistent market in profitability and loyalty to its
stakeholders. General Electric remained competitive with its
businesses in their industry and sought out to keep increasing profit
and marketability.
8. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
stakeholder model? Explain your answer.
Yes and no because General Electric, under the influence of Welch,
did “good” in terms of engaging in philanthropy, funding nonprofit
organization and the like, they still managed to remain greedy by
distributing no more than the law requires for pensions and battling
liability over their manufacturing plant’s pollution.
9. What specific role, if any, did the government play in each case
study? Was the government's actions influenced in any way by the
firm?
A specific role that the government played was claiming GE’s
manufacturing plants liable for polluting the Hudson River. GE refused
to pay the costs of removing the toxic chemicals and created a
campaign to show the public that the chemicals are harmless. This
battle influenced the company because it divided the public into
taking sides. People only shopped at places where the store owner’s
shared the same support position.
10. Were there any specific business practices in each case study that
stood out as either tremendously innovative or remarkably flawed?
Explain your answer.
Even though it was depressing to layoff so many employees, GE’s
efficiency increased. Decisions were made faster because they were no
longer passed down by layers of presidents to make a final decision.
GE’s locomotive plant decreased a little over 50 percent but increase
inventory about 3 times more.
to Google groups so I'll just cut and paste for now until someone
explains to me how to do it haha. I know, I know, bear with me because
I've never used google groups before.
Please let me know if some of my answers are wrong. I tried my best at
all the answers so be honest because I don't want anyone to get
anything wrong. Thanks!
Chapter 5 Exam Case Questions
1. Identify several specific stakeholder groups in each case study and
discuss their relevance. According to the stakeholder model, which of
these stakeholder groups in each case study would be considered
primary stakeholders? Use facts from the case study to support your
argument.
The founding stakeholders are Thomas Alva Edison wih J.P. Morgan from
1947 to 1931. Edison started the Edison Electric Light Company to make
light bulbs and electrical equipment. Although he was a brilliant
inventor, Edison failed as a manager. J.P. Morgan took over and
organized the now named General Electric business. The company
expanded by introducing new electrical appliances, jet planes, silly
putty, and more.
Jack Welch took over in 1981 and changed the General Electric system
by closing or selling business sections that were failing and laying
off thousands of workers to make sure they are either the number one
or two business ranked in their industry. Welch made drastic changes
that influenced the company’s profitability.
2. What facts specific to each case study are consistent with the
market capitalism model of competitive markets?
General Electric was consistent in remaining profitable and
contributing to society by paying taxes, employing themselves in
philanthropic and community activities. Welch promoted pensions for
stakeholders and employees which met the standard requirements by
law.
3. What facts specific to each case study are not consistent with the
market capitalism model of competitive markets?
General Electric changed drastically when Welch laid off tens of
thousands of employees because they were the bottom 10% employees that
did not fit within the company.
GE’s manufacturing plant in New York was releasing a cancer causing
chemical called PCB into the Hudson River. After years of battling
with the government’s Environmental Protection Agency, General
Electric became liable for the pollution and was forced to pay the
costs of the cleanup.
4. What facts specific to each case study are consistent with the
stakeholder model of competitive markets?
During Welch’s time, GE’s pension fund was distributed for
stakeholders, employees, and even retired workers.
General Electric contributed in philanthropic and community activities
while creating foundations for nonprofit organizations and college
grants.
5. What facts specific to each case study are not consistent with the
stakeholder model of competitive markets?
Although GE’s pension plans covered existing stakeholders, employees,
and retired workers, GE would not budge into increasing benefits for
retirees. Welch turned the surplus of the pension fund into profit for
the benefit of the company. Only after being pressured by unions and
pensioners, GE finally increased pensions from 15 to 35 percent.
6. Which one of the fourteen different theories of ethical behavior
detailed in chapter 8 could best describe the firm's actual behavior?
Is this theory consistent with the market capitalism's model of
competitive markets? Explain your answer.
Proportionality Ethic – Welch made decisions that were for the good
of the company for profit and for himself (higher pension plan and
benefits for himself). Every decision Welch made came with
consequences including increasing pension benefits and paying for
pollution cleanup. Another example would be increasing the
unemployment population at GE because he thought it would be good for
the company but he did not think about the good of the laid off
employees.
7. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
market capitalism model? Explain your answer.
Yes, General Electric remained one of the top ranked companies
because of its consistent market in profitability and loyalty to its
stakeholders. General Electric remained competitive with its
businesses in their industry and sought out to keep increasing profit
and marketability.
8. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
stakeholder model? Explain your answer.
Yes and no because General Electric, under the influence of Welch,
did “good” in terms of engaging in philanthropy, funding nonprofit
organization and the like, they still managed to remain greedy by
distributing no more than the law requires for pensions and battling
liability over their manufacturing plant’s pollution.
9. What specific role, if any, did the government play in each case
study? Was the government's actions influenced in any way by the
firm?
A specific role that the government played was claiming GE’s
manufacturing plants liable for polluting the Hudson River. GE refused
to pay the costs of removing the toxic chemicals and created a
campaign to show the public that the chemicals are harmless. This
battle influenced the company because it divided the public into
taking sides. People only shopped at places where the store owner’s
shared the same support position.
10. Were there any specific business practices in each case study that
stood out as either tremendously innovative or remarkably flawed?
Explain your answer.
Even though it was depressing to layoff so many employees, GE’s
efficiency increased. Decisions were made faster because they were no
longer passed down by layers of presidents to make a final decision.
GE’s locomotive plant decreased a little over 50 percent but increase
inventory about 3 times more.
Romel White
Oct 1, 2011, 3:41:01 AM10/1/11
to BUS 0682-02 SEM-ENVIRONMENT-BUSINESS
Merian, I couldn't figure it out either. I copied your lead. :)
Thanks,
Romel
Thanks,
Romel
Casey Peacock
Oct 1, 2011, 12:47:37 PM10/1/11
to busine...@googlegroups.com
copying and pasting is fine. If you want to send the attatchment you can send it by email to the group email busine...@googlegroups.com and it will post. Remember it must be sent from the email that is a part of the group.
On Sep 30, 2011 11:55 PM, "merian mortera" <extre...@gmail.com> wrote:
Sophie Ean
Oct 2, 2011, 4:02:13 PM10/2/11
to busine...@googlegroups.com
Hey everyone,
Sorry for being a slow poke. Work has been hectic and ill get you guys the questions soon! Thanks!
Sophie
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