Business Law and Regulatory Pressures: Doing What You Believe In

Modern business practices suggest that GE should separate all of its product lines into many small businesses. Welch refused to do so. Even while hospitalized, he remained adamant that he did not want GE’s diverse portfolio broken up. In the end, GE was successful partly due to Welch’s defiance of the status quo. Welch’s initiatives added great value to the organization. Welch has lead lots of great changes in numerous sectors; however, the quantity may have lessened the quality. Welch led a summit where he heard 108 proposals from GE’s employees. He was given very limited time to hear the proposals and deliver a verdict. Welch accepted 100 of the 108 proposals. All of these proposals lead to company-wide initiatives. This was incredibly expensive. It’s a lot to be implemented at one time, especially when the organization is already undergoing a severe cultural change. The verdict is still out on the success of these initiatives, but the sheer number has some critics skeptical.