General Electric used to be the model for conglomerates that could do no wrong. Those days are gone. Matt Egan on what went wrong during CEO Jack Welch’s era:
Welch, the CEO from 1981 to 2001, built GE into a super-conglomerate that owned a major bank and NBC. But that business model has since been cast aside as overly complex, and in retrospect, it’s clear that Welch’s shopping spree masked problems.
What about successor Jeff Imelt?
Those poor decisions about mergers and acquisitions have contributed to the cash crunch: This giant company no longer generates enough money to pay for investments in the business and dividends for shareholders. The crunch has been years in the making, but only recently has Wall Street come to grips with how bad it is.
It’s getting worse. Blame it on Excel and PowerPoint both of which can used to generate
fake news pie in the sky numbers and plans.