What happened to GE?

Looking forward to the future of business

In the 90s it was the darling of other executives of corporation.  The rise (fall) of GE was authored by JackWelch.   He was a business icon.

Now we know that GEs growth was misdirected and somehowe the followers were scammed.   The industrial giant became an unfoccussed giant.   GE thus grew from $18 b when Welch took over to over $400+.  It was all over the place:    health care, consumer finance, insurance, energy, light bulb, jet engines, railroad, power gen.   etc.   

It may have sapped management energy and focus.  Worst of all, iit was disclosed that to pursue acquistion, employees were"yanked"  The money saved fro wages was used for acquistion.

Thus when Welch left, he left shell companies, devoid of human resources.  Wtih nothing to continue acquisition, GE stood still and evenually declined.

The big blow came in 2008 when there was the financial crisis and its huge consumer finance debt required a huge bail outl.   GE was forced to stop paying dividends and sell off subsidiaries.   And GE no longer was its usual self under Welch.

Yesterdays heroes can be today's villain.  And Welch no longer engyoys the adulation he used to get from his followers.

Bitcoin is a hyped up fraud - Jaime Dimon of JP Morgan

Looking forward to the future of business

Many still believe in it.  But J Dimon the world's top banker think it is a hyped up fraud.     

The interviewer should have allowed the interviewee to speak frely

Interview with Jamie Dimon of JP Morgan on bitcoin

Changing landscape in the auto industry

Looking forward to the future of business

Peter Drucker made GM as the example of corporate management in this book Effective Executive. But now GM is not even a shadow of its old self,  European and  US brand Chrysler have consolidated under the name Stellantis.   And now they are facing lay offs.  

Even VW thought to be invicible with its strong bandas like Audi and Porsche is closing down plants.

Why?

It has something to do with the search for zero emissions.    What is the next big bet   The industry is de emphasizing Interanl Combution engine.  

And thus favors:

1.  Tesla and BYD with EVs, 

2.  Toyota for the hybrid 

3.  Toyota and Hyundai for the fuel cell.

Thus in the local setting, we see more investments in dealership of BYD and Tesla.    What happens to the huge investment for dealership and sales offices of ICE?   The emphasis has shifted.    

IN the next decade or so, we see different new players for automotive industry.  There will be loser and winners.   

It does pay to ask the question :   what will be the industry  10 -20 years from now.    You better make your investment in the right direction/trend.   

Todays winners may end up tomorrow's loser.   However, we do not need a crystal ball, We can see the trends.