Improving the company's profitability.

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• Investing in innovation: GE invested in new technologies and products to improve its competitiveness.

The turnaround plan was successful. GE's financial performance improved, and the company returned to profitability. In 2017, GE was ranked as the most valuable company in the United States.

Here are some specific steps that GE took to ensure a successful turnaround:

• Refocusing the business: GE sold off its non-core businesses, such as plastics and insurance. This allowed GE to focus on its core strengths and reduce complexity.
• Reducing costs: GE cut costs by streamlining its operations and reducing its workforce. This helped GE to improve its margins and free up cash for investment.
• Investing in innovation: GE invested in new technologies and products, such as the GE9X jet engine and the Predix industrial software platform. This helped GE to improve its products and services and stay ahead of the competition.

The turnaround has been effective in improving GE's profitability. In 2009, GE's earnings per share (EPS) was $0.19. By 2017, EPS had increased to $2.34. This represents a compound annual growth rate (CAGR) of 18%.

GE's turnaround is a success story that shows how a company can overcome challenges and return to profitability. The company's turnaround plan was based on three key pillars: refocusing the business, reducing costs, and investing in innovation. These steps helped GE to improve its financial performance and return to its position as one of the most successful companies in the world.

In addition to the financial metrics, GE's turnaround has also been evident in its customer satisfaction ratings. In 2009, GE's customer satisfaction rating was 72 out of 100. By 2017, the rating had increased to 80 out of 100. This shows that GE's customers are more satisfied with the company's products and services.

The turnaround at GE is a testament to the hard work and dedication of the company's employees. It is also a reminder that even the most successful companies can face challenges. However, with the right plan and execution, any company can overcome challenges and achieve success.

Sample Answer

General Electric (GE)

GE was once one of the most successful companies in the world. It was a diversified conglomerate with operations in a wide range of industries, including aviation, healthcare, and energy. However, the company began to struggle in the early 2000s. It faced increasing competition, and its financial performance declined.

In 2009, GE hired Jeff Immelt as CEO. Immelt began a turnaround plan that focused on three key areas:

• Refocusing the business: GE sold off many of its non-core businesses and focused on its core strengths in aviation, healthcare, and energy.
• Reducing costs: GE cut costs by streamlining its operations and reducing its workforce.