Jack Welch created wealth while managing GE, in the 1980s he started to notice the necessities of the company. I do not believe this job could have been done any better, Mr. Welch noticed that competition was on the rise as well as outsourcing. The wages in America started to rise and he predicted that GE would not be able to keep growing and continue making profit how he envisioned it would so he started to implement his plan. He started buying well developed business and sold off the parts of those business that would not make huge profit or were not number one or two in their specific market.
2.) GE while under Welch achieved one of its primary goals, to make profit. During the time Welch was CEO for GE, shareholders were satisfied by the performance and profit produced from GE. Welch’s
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As a result board members and executives make tons of money at a fast rate. A con is that shareholders will put pressure on the companies to meet their goals, resulting in a “winning at all costs” attitude. Which could mean contaminating ground waters, causing massive unregulated amounts of pollution, and loses of many workers. Another con is workers will not care for their company, they will be overworked and lower level management will have little say in anything, because only shareholders make decisions and higher executives give all orders. Yes I believe it is wrong, even though it's true to this day, employees should have been paid living wages, and should have been treated right for generating so much for the people at the top of the company. I believe they should have rebalanced their priorities, by helping their workers more, and getting them involved in decision making. Although, at the same time, looking at it from an executive position, or shareholders position, they wouldn’t have made the money they