Jeff Immelt's Assumption Of Whole Foods By Peter Cohan

According to the article by Peter Cohan, he pointed out that there was a sufficient data show that GE's operating profits decrease, and therefore GE tossed Jeff Immelt out. Also, he also stated that Amazon bought the Whole Foods as a new business strategy as beat revenue growth.

First of all, the first underlying assumption is Jeff Immelt should take the responsibility of the business strategy consistent. I believe it is a reality assumption. From the article, Jeff Immelt is a CEO, whose critical role is to help a company to boost its profits. However, Peter Cohan mentioned that he did not accept the practices as Amazon did. As a CEO, he seems did not see the big picture and make proper decisions for his company so that causing GE's stock price drop, profits decreases and lower their Competitiveness. As a result, it shows that large size frim can success in different industries. Therefore, Jeff Immelt is not a competent CEO.

"Peter mentioned that "owning Amazon stock looks like the safer bet" (Peter Cohan 2017). It represented that being an Amazon shareholder is safe as Amazon can reduce their risks and increase market share. Amazon's action is sensible because they spread the risks, which can help them to lower their production costs, and therefore they can obtain more incomes not only on their online selling but from different industries. Otherwise, GE is unable to keep their return growth. According to the article by Peter Cohan, showing that GE's revenue and profit declined by 16 present and 32 percent respectively (Peter Cohan 2017). Also, the return on equity dropped dramatically from 19.5 percent to 9.4 percent. It identifies that GE cannot remain their profits to grow, and therefore I believe this assumption that different business ought to switch their strategy to minimise their