Changes at GE

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GE was led for two decades by Jack Welch, the chief executive both feared and revered for his management discipline. In a surprise move and after only a year in the job of CEO, John Flannery was let go on Oct. 8 amid GE’s long period of stagnation.

Questions:
1. In addition to firing the CEO, what happened regarding GE’s financial statements?
2. What is the underlying reason for GE’s problems?
3. What happened to GE’s position in the Dow?
4. What are the 2018 financial expectations for GE?

Source:
Heath, T. and J. McGregor (2018). General Electric, fallen icon of corporate stability, names first outsider as CEO. The Washington Post, Oct. 1 (Retrievable online at https://www.washingtonpost.com/business/2018/10/01/general-electric-replaces-new-chief-executive-announces-massive-billion-charge-amid-struggles/)