On 28 January 2002, the European Policy Centre held a policy briefing on the changing face of the global economy. Keynote speaker was Jeffrey R. Immelt, CEO of General Electric since 7 September 2001, who spoke about his company's expansion strategy, especially in Europe.
Jeffrey Immelt began by saying that he had come to deliver a simple message: Europe had been very important to GE's past, and it was even more important to its future. GE is a European company, he said, with one-quarter of its worldwide assets, here. Since 1990 it had invested Euro 5 billion in Europe while employment had grown by 85 percent. But Mr. Immelt rcs data conceded that there was a strong need for better communication in Europe.
Pivotal Time
"This is a time of great change in our company," Mr. Immelt said. He is the ninth chairman in GE's 120-year history, replacing Jack Welch who led the company for 20 years. He credited Mr. Welch with building GE into a much admired and valuable company. Mr. Immelt sees his job not as replacing Mr. Welch but as leading GE in a different area.
Flat Economy
The outlook was bleak for an economic recovery, Mr. Immelt said. There are some positive signs, such as low interest rates, low inventory levels and continued consumer activity. But these are offset by the global war against terrorism, lack of investment, high unemployment, consumer debt and general industry stress. "Given these mixed signals," he said, "we are doing our business planning assuming a flat economy."
Nevertheless, GE believed that the time was right to expand globally. "GE can compete and thrive in this global environment," Mr. Immelt said.
Strength in Diversity
Looking to the future, Mr. Immelt said that GE's strategy involved establishing a diverse portfolio of leading businesses; initiatives that improved cost and drove growth; creating a strong balance sheet through effective financial discipline and investment in employees.
Top Priorities
Although GE was doing well, there was much work to be done. "We think GE works, but we are not standing still," Mr. Immelt said, going on to highlight two key goals at present:
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Mr. Immelt holds a B.S. degree in Applied Mathematics from Dartmouth College (1978) and an MBA from Harvard University (1982).