Biology of Business

General Electric (Decline)

Conglomerate · Founded 1892 · Defunct 2021

By Alex Denne

GE's fall from most valuable company to split-up demonstrates how conglomerate complexity can hide rot. Jack Welch's legendary management masked GE Capital risks and industrial decline. When financial crisis exposed capital unit and successors couldn't manage complexity, $600 billion in value vanished. Like an ancient tree whose trunk was hollow, GE appeared strong until stress revealed decay.

Key Leaders at General Electric (Decline)

Jack Welch

CEO

Jeff Immelt

CEO

Key Facts

1892
Founded