About Welchs eight misreading.docVIP

 PAGE \* MERGEFORMAT 13 About Welch’s eight misreading Misreading One: Diversity and the Combination really like the arm? Welch’s misreading of the biggest lies in here. Welch’s office in the next, GE expanded to more than a dozen industries, and 20 years, capital appreciation several times, even became the world’s largest company by market value. This gives Chinese entrepreneurs have created the temptation: to rapidly enlarge, it should be diversified. In the process, Welch took the expansion of mergers and acquisitions as a major mode of acquisition of the company for 20 years before 1000, which in turn give rise to such temptations: to the rapid development of large-scale mergers and acquisitions must be. In the GE in all industries, the financial industry is the most striking, and also the most rapidly developing for GE to provide more than half of revenue, making it suffer from poor financing channels for Chinese entrepreneurs had this illusion: to rapidly bigger, it must have its own financial sector. Of the State Council Development Research Center expert Zhang Wenkui Enterprise Institute, believes that ‘some domestic enterprises GE one-sided understanding of an outstanding performance, the worship of its industrial capital and financial capital, combined well. Many businesses have said that you look at GE now is GE’s most profitable financial groups. I recently went to a number of companies tell me they want to buy some financial companies want to finance, they feel that industrial capital into financial capital must be accountable, we must do the Combination, they think GE is a combination of Industry and Finance a typical example. ‘ The reality is what? GE’s diversification is based on an adequate reserve of talent, excellent on the basis of management control, and through the ‘one of the best’ of the evaluation criteria; GE’s financial services industry are basically their products and services, marketing services, and can produce a good complemen