DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment
advertisement

 

advertisement

 

Business Affairs Homepage

Veritas Capital, Evergreen Coast Capital to take athenahealth for $5.7 billion Gives athenahealth stock holders $135 in cash per share

A look into the medical device design process Go behind the scenes to see what factors contribute to the design of new medical devices

How hassle maps can improve radiology department operations Tips for finding and addressing friction points and improving overall patient care in radiology

When radiologists speak up, follow-up imaging improves Study supports better communication between radiologists and referring clinicians

Dr. Jonathan Luchs Premier Radiology Services appoints chief medical officer

Deborah Conrad Grand Rounds hires former Intel CMO as chief marketing officer

Siemens Healthineers' imaging business 'super-strong' says Montag Atellica lab diagnostic solutions sales also performed well

Philips to open new center of excellence in Cleveland Bringing CT, molecular imaging R&D in its latest investment in the city

Manchester United puts Canon imaging solutions into team health center The club's Aon medical center gets CT, MR and ultrasound systems

Radiology Partners scales reach with close to 30 additional sites Servicing 750 clients across 17 states

GE's wild ride: key takeaways from Harvard Business Review report

by Thomas Dworetzky , Contributing Reporter
The turbulence continues for General Electric, as the initial member of the Dow Industrial Average was recently cut from the index.

And the Harvard Business Review thinks it knows why – “clueless, but deep-pocketed, activist investors and mergers and acquisitions folks masquerading as strategists,” said writer Roger L. Martin, director of the Martin Prosperity Institute and a former dean of the Rotman School of Management at the University of Toronto.

Story Continues Below Advertisement

RaySafe helps you avoid unnecessary radiation

RaySafe solutions are designed to minimize the need for user interaction, bringing unprecedented simplicity & usability to the X-ray room. We're committed to establishing a radiation safety culture wherever technicians & medical staff encounter radiation.



Here are his article's main takeaways:

An activist hedge fund named Trian put $2.5 billion into the company in 2015, and its co-founder, Ed Garten, wanted on to the board. In the midst of threats of a proxy fight and shareholder pressure CEO Jeff Immelt resigned, and shortly after present CEO John Flannery took over the Trian founder was on the board.

During Immelt's years and, it would seem, under Flannery as well, “the dominant mode had been of strategy by way of mergers, acquisitions, and divestitures (MA&D), including most recently the disastrous merger of the GE oil and gas business with Baker Hughes in 2016. In the fall of 2017 under Flannery, MA&D unsurprisingly became GE’s turnaround strategy tool,” said Martin.

The problem with juggling assets as a strategy, according to the Review, is that it is too easy to wind up making deals that assume the issue is performance. Sell underperforming assets and buy performing ones.

What Martin suggested, not just concerning GE but corporations in general, is that this deal-making mindset doesn't consider that “perhaps the problem is an uncompetitive value equation with customers.”

It also means that you sell your troubled assets cheap to others who fix them up and then sell them, maybe even back to you, at a fat profit – because they fix that value equation.

Martin doesn't think that past deals have helped GE fix its value equation so far – or that more divestitures will help, either.

But some will be glad to see GE take this approach, he noted. “The happiest folks out there are probably GE Healthcare’s two big global competitors, Philips and Siemens Healthineers,” he concluded, noting that, “while GE Healthcare’s executives spend the next two years on carve-out audits, creating services and systems to replace the GE shared services, negotiating new stock-based compensation, and doing road shows for investors, Philips and Siemens (which completed its 18-month health care spinoff/IPO exercise in March) executives will be focused on building their businesses at GE’s expense – an awesome window of opportunity for them.”

GE's strategy made news in late June, when it announced that it will spin off its healthcare division as a separate enterprise in an effort to focus its attention on its power, aviation and renewable energy businesses.

“Today marks an important milestone in GE’s history,” CEO John Flannery said in a statement. “We are aggressively driving forward as an aviation, power and renewable energy company – three highly complementary businesses poised for future growth. We will continue to improve our operations and balance sheet as we make GE simpler and stronger.”

Business Affairs Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2018 DOTmed.com, Inc.
ALL RIGHTS RESERVED