Following my previous post on GE and its slugging share performance. Last Friday, GE announced a major restructuring of its global business operations.
In an attempt to revamp its organisational and corresponding stock performance, General Electric will reorganise its operations by folding its six business segments into four.
A background article on organisational and financial performance can be found here: The link between profits and organizational performance. Additionally, a backgrounder on strategy in relation to organisational design can be found here: Better strategy through organizational design.
The new GE units now comprise technology infrastructure, energy infrastructure, capital and NBC Universal. The move continues a trend over the years of consolidating the sprawling company’s multiple divisions.
Sphere: Related Content“We have been upgrading our portfolio of businesses and simplifying our organizations for market focus, efficiency and execution,” Immelt said. “We have higher-growth, higher-margin businesses and organizationally have simplified the company from 11 business segments in 2001 to four segments today.”
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