Opening Vignette: Laying the Foundation—General Electric: Changing with the Times

MULTIPLE CHOICE

1. GE’s long-range strategy is not based on which of the following:

a.
Be global
b.
Drive innovation
c.
Build relationships
d.
Divestment of unrelated business units
e.
Leverage strengths

ANS: D PTS: 1

2. GE’s was founded by the inventor of its first product, the:

a.
Light bulb
b.
Ultrasound machine
c.
Airplane engine
d.
Radio
e.
Locomotive

ANS: A PTS: 1

3. GE’s new innovation theme, Ecomagination, is focused on:

a.
New processes in the building of airplane engines
b.
Energy innovation
c.
Development of new products in the medical industry
d.
Innovation in economic and financial institutions
e.
None of these choices

ANS: B PTS: 1

4. GE can be seen as:

a.
Being very lucky in the trends it identifies
b.
Entering trends late but taking advantage of economies of scale to be successful
c.
Making a wide range of organizational changes to acquire and develop new businesses and products
d.
Only once making a large scale strategic mistake
e.
Making strategic choices that require that the firm to lay off most of its employees at that time

ANS: C PTS: 1