This case follows the efforts of Raj Bhatt, a business development manager at GE Canada, while he attempts to create a new "Energy Management" business within the corporation. Case A is set in August 1992 and focuses on the initial decision to start a GE energy management business. Case B is set in July 1993 and focuses on a crisis that threatens to shut down the business. This case provides a fascinating illustration of the problems even highly successful firms have in starting new business ventures. Ultimately the Energy Management initiative failed, despite it being strategically aligned with GE''s longer term interests and also consistent with the entrepreneurial culture Jack Welch was attempting to create within the company. The problem Raj Bhatt faced resonate easily with both MBA and executive audiences. The GE Energy Management Initiative answer the following questions: a. Asses the attractiveness of the Energy Efficiency industry. Is this an industry that GE should be involved in? b. What are the advantages and disadvantages of GE''s organizational system for starting a new business such as energy management? c. What action should Raj Bhatt take now?