Assignment 5 DUE Thhurs 10/7 Noon
- Read the attached article recently published by Charles Gasparino (2/21/2021) covering the pitfalls of General Electric due to the Leadership of Jeff Immelt.
Provide a summary (2 paragraphs) defining what happened to G.E. and what failures in Strategy were attributed to the then CEO Jeff Immelt.
AlsoFrom their Income Statement (use S&P Net Advantage) indicate their Total Revenue and Net Income for the Years: 2016 to 2020You may use an Xcel Chart to indicate your findings
- Read the attached article from Business Week (March 2, 2015) regarding ACE Hardware.
At that time ACE developed a very unique Business ModelIna a one paragraph summary indicate their Business Model and why has ACE experienced great success !
GE'S IMMELTDOWN Post, Sunday, February 21, 2021 Harsh light on in-the-dark CEO's failure Dimmer switch CHARLES GASPARINO nypost.com N March of 2017. Jeff Immelt was in his loth year as CEO of General Flectric and at least in his head he was remaking he iconic conglomerate into the very model of the modern indus- tial company. Ile was expanding he old-GES historic footprint in power and aviation --- while et pracing a new world of clean Energy and software analytics, That's why I am told he was shocked when he read a beadline Tom a story in Fox Business stat ng he was on the verge of being Jeffrey immet served 16 usted by a friend, the activist in years as chief executive of restor Nelson Peltz, because General Electric - and was Immelt's grand remake of Ge was shocked to read in a 2017 mostly a mirage Fox Business story that he Just a few months later. Immelt was on his way out due to was indeed out as CEO. The fact major corporate missteps hat Immelt never saw either his or he company's demise coming speaks volumes about why the GE verge of modernizing a staid.con-responsible for it. In March 2017 dollars in insurance liabilities sud- today is a shell of its former sell glomerate in a way that fit with the when that Fox Business story denly appeared out of nowhere. and a classic example of bow times by expanding into tech and broke, shares spiked on the news We shall see CEOs can destroy even the great green energy and devoting less that Immelt was on the way out But if Immelt's tenure at GE tells est companies by failing to do the time to the risky GE Capital Immelt has a book coming out us anything, it's that any CEO's job asic things right Peltz was OK with Immelt's this month on his controversial is about knowing what you're Peltz. I should point out, initially vision if it produced results. But career at GE appropriately titled good at and knowing what you seemed like be was on Team not long after Pelta's engagement "Hot Seat Fall disclosure 1 should stay away from-tetry mmelt when, in 2015, his Trian with GE, their relationship soured haven't read it yet other than re- ing to be the next Microsoft with und took a sizable stock position Peltzben to observe what hebe viewing the pape where Immelt an ill-conceived venture into soft- GE. Nearly two years earlier, lieved was Immelt's uneen man confirms his surprise at reading wate analytics mmelt had invited Teltz. to speak appement style, and it was hurting the Fox story and rela's displeas Take Corporate America's cur GE management about how to GEs bottom line. ure. He candidly recounts that rent move toward stakeholder end of activists that would tapet Immelt's defense was that the after seeing the piece, be imew his capitalism. This concept forces he company and force massive billions he spent on far-flung in "head was on the chopping block" CEOs to place amorphous pouls of changes vestments in technology, renew Today GE is run by a guy named helping society ahead of share GES stock price under Immelt ble energy and French energy Tatry Calp, who is skilled at corpo holders first, and it has Immelt- consistently hovered not much company Alstom would ultimately rate tumounds Gone are the level disaster written all over it Tigher than 530 with a few crisis pay off. But GR wasn't on the vere sions of remaking GE into the con Immelt, of course, was always evel exceptions and never of great things. The Alstom deal somente version of Microsott. Also going to face difficulties in meas- reached its highs under theme sink billions into a flailing busi- ne: Immelt's habit of using two urin ap to Welch, who is not Acceeded in 2001, the legendary ness. GE's growth stallet, profits corporate jets, one on which herg lameless in GES collapse Welch ack Welch Rut Immelt was given waned and expenses piled up. Its ularly files, and the other just hang had a stried career transforming redil, deservedly sex for leading accounting was in shambles in around for security purposes GE into a corporate behemoth. He E out of the Wil terrorist attacks Talk to people who know Inuelt, Calp may or may not be able to also handed Immelt a stock that ind later the 2008 financial crisis. and they'll tell you he's a smart seGE. Many investors are wait- was bloated from dot-com cup Less deservedly, he was given a thoughtful man. His commitment ing for the next surprise loss to ria and a company in far too many Sreak by many investors on bot to resulting GE was real. We want send the company into bank- businesses om-line failures to grow earnings our CEOs to embrace the future ruptcy. A company spokeswoman But Immelt through his relent ind cut costs and for making some with technology and green energ y GE has remained its footing less focus on a randiose vision of ad acquisitions. Many on Wall But while femelt chased new and is poised for growth. It has the future failed to see the many street. I suspect wanted to believe ideas, his core business was straga controls to prevent what happened warings. And he failed to mmelt's story that he was on the ling--and now he was being held a few years ago when billions of take care of the simple stuff AR FORRES 3/2/15 R.yo STRATEGIES RETAIL ACE HARD Wire Safety in Numbers and model of bathroom facut installed in every condo complex and spartment building within a short drive of the Chicago store -aboo in attracting fellow small business we be local planete We deal. Venhui y company veter in a differentiator. And I'll tell you is exceedingly hard Jeremy knows his store strengths. He doesn't sell lumber. For that you can go to W DAN valspa With Ace Hardware's distinctive jingle and neighborly service members of its national co-op are taking on the big boxes by sticking together. WOLAR O'CONNOR When Jeremy Melnicks prandfather opened his Help CEO John first Ace Hardware store Venha As along Chicago's ritay Gold Coast in 1950, there wasn't a whole lot of competition. Wal-Mart An Arkansas five-and-dime we's was two stores in North Carolina Home Depot was still 29 years away from opening its first loc son Amazon CEO Jeff Bezo wa 4 years shy of being born. The Melnicks-Jeremy 41 and dad les 67-own 6 of the 479 Ace Hardware stores that make up the country's largest retail cooperative outside the grocery sector. As they've expanded their family business within-a-business into a local chain, some 20 Home Depots have cropped up along greater Chicago's highways and strip malls in the past two decades, each 100,000 square feet (versus the Melnicks 8,000-square-foot con Der stores). They surround us, Jeremy says Not that he's complaining Despite the competition, his business is good. Surpris. ingly good. And so is Ace Hardware's bottom line. The Oak Brook. III. co-op expects a year. E year revenue increase of 13% to about $11.7 billion and a profit boost of 35% when itre leases in 2014 annual report in April, follow ing eight consecutive quarters of record sales The reason for success, explains Ace CEO John Venhuizen, a charismatic 4-year-old who speaks with the fervor of a preacher, is store owners like the Melnice entrepre neurs with a deep knowledge of their local market inventory fine-tuned to a neighbor hood demographie and the sort of exact ing customer service a typical big-box store with low pay and high employee turnover just can't match. Jeremy knows the make propean 01 MON TRENDING What the 65 milion Forbes.com users are talking about For a deeper divege to FORBES.COM/STRATEGIES PERSON MARY BARRA GM'S CEO faced dounting challenges her first year and won. Great of results, a recall program that's working yummy dividends for investors and even 3.000 bonuses for factory workers Helpful Pl distribution centers that Home Depot or Lowe's. He does sell what your market share, you have to go out and seems like every kind of lightbulb in pro- steal stores from someone else," says Jim duction. When a bulb blows he knows you'd Robisch, senior partner in retail at the Farns- rather grab a new one from your local Ace worth Group, a home improvement industry than navigate the labyrinthine aisles of a consultancy. And if a store is consistently big box or wait in the dark for an Amazon underperforming "Ace is really strict at delivery. "If you want to remodel your house, controlling the integrity of their brand. They you'll go to them," he says. "We're making have a crew of people who'll go round and our money $20, $25 at a time." tear those Ace signs down whether you like it The company's co-op business model or not." (A spokesperson says stores that fall means its store owners are its only share short of standards must remove Ace logos, but holders. It's the opposite of a franchise they still have access to Ace's supply chain.) system. Thousands of entrepreneurs like the The company was born in 1924 when four Melnieks band together to boost their cal- Chicago-area entrepreneurs decided they lective buying power and could get better deals on inventory by joining reduce costs. The corporate forces. Ace opened its first warehouse just structure, with Venhul- prior to the 1929 crash and subsequent co- zen at the helm since 2013, nomic devastation, its founders capitalizing exists only to do their bid on a need for hardware and tools as home- Ace, ding, overseeing 14 regional owners were forced to do their own patching up and repairing. The company briefly flirted supply cach store with the with converting from a retailer-owned co-op right mix of $800 Weber to a for-profit corporation during the most grills and $15 hammers recent recession in 2007. When an Ace store "There would have been to change in opens (or an existing shareholder ownership only structure." hardware outlet converts says Venhuizen. "With the relatively new to Ace), the owner buys U.S. dividend tax structure, there is a less $5,000 in shares. He or compelling capital argument to make such she can purchase any of a conversion now, so we have no existing the 80,000-odd products plans to do so from the co-op's ware Next up, Ace is tackling same-day delivery, houses, make use of the one of the hottest trends in retail. Tests in well-known red-and-white stores across six states started on Jan. 26. logo and branding ("The It's a pretty obvious move, says Venhuizen, helpful place," its motto since 70% of U.S. households are within a promises and receive divi. 15-minute drive of an Ace store dends based on purchases "I don't know if you can deliver a grill rather than equity. Each with a drone, but our trucks'll get it there," he store kicks in for activi. says with a grin. Besides, 60% of Ace's stores ties that benefit the whole already provide delivery to customers, albeit co-op, like advertising and in a haphazard way--more like a fuor to a marketing (ce's annual ad friend who doesn't have a car than part of a budget is $100 million) business model. Jeremy Melnick has deli In the past 18 months ered plungers. He's screwed in lightbulbs. Ace has seen some 144 "They do this already," says Venhuizen, stores jump ship from com- "Doesn't everybody?" Sie petitors, including a handful from its two fellow hard- FINAL THOUGHT ware co-ops, True Value and Do It Best. During that Cooperation, which is the thing time just 49 Ace stores have we must strive for today, begins where left the fold. competition leaves off. "In order to increase -FRANKLIN D. ROOSEVELT COMPANY WALT DISNEY The phenomenon shows no signs of letting 90. A w Star Wars stoffe Marvel is still marvelous And ESPN romana rut. 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