What is the fundamental problem of GE?

GE lacks the courage to take risks.
GE could be great again. It has cash, borrowing power and large numbers of highly skilled people. It knows how to run massive manufacturing empires. GE simply lost the ability to take responsible risks that create opportunities potentially large enough to grow profits in the size necessary to be meaningful for a large company.
Rather than make this a large answer, I’ll describe two different but similar examples that show opportunities exist for a bolder GE.
TESLA
Tesla wants to manufacture electric vehicles in the millions. It’s having a very difficult time ramping up production. GE could partner with Tesla and fix the production issue.
GE could buy Chrysler Fiat (“FCAU”) for $20 to $25 billion. An army of GE Finance, HR and other disciplines could takeover FCAU and convert part and later all of the company to Tesla manufacture. GE also has a near hundred year history of working with unions and a far longer history in managing governments. Tesla lacks this army and the finances to buy FCAU and run the company. Tesla is losing control of it’s labor force and its problems with state franchise laws prove it hasn’t mastered government relations. GE once had the ability to swallow large complex enterprises and change them to improve efficiency and to improve products (see RCA acquisition in mid 1980s).
GE could get Tesla to the 5 million annual vehicle production. And I suspect Tesla would understand this value. No huge invention needed by GE just an ability to think out of the box.
The reward for GE would be measured in the tens of billions.
GOOGLE
Same story with Google and fully automated Self Drive Vehicles (“faSDVs”). Google is ready to get faSDVs built but its plan is difficult because manufacture AND relations with vehicle manufacturers is a different skill set from what Google does today.
Again, GE could acquire FCAU and make it happen. GE could manufacture the cars as well as providing the industrial sales and engineering forces necessary to sell faSDV licensing packages to other manufacturers.
Sure Google could do these things but working with a GE would save years and costly missteps. And again, the reward for GE could be tens of billions.
There are many business opportunities like the ones above that GE could take. A piece of a great idea is much better than 100% of something that has a utility priced reward or something tied to a mature market.
GE has great strengths. All it has to do is take some measured risks … finding ways to boldly help some of the new leaders in new industries fulfill their dreams.

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This post originally appeared on Quora.com on August 20,2017 (https://www.quora.com/What-is-a-fundamental-problem-of-GE/answer/Bob-Reisner)

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