Business
This report describes how multinationals acquire companies in order to minimize risk, expand sales, and acquire resources. In particular, it discusses the General Electric Tungsram acquisition, which is a Hungarian based company, the strategies and policies they followed and problems they faced during the acquisition. The major emphasis is on the issue of "control". GE's choice of control mechanisms resulted in problems involving culture, reports, and performance evaluations. General Electric worked through all its adversities and became a significant presence in Hungary and its community. In the late 1980's many centrally planned economies changed from communism to democratic market mechanisms (Bangert, 1994). In the last ten years, the transition of the economic policy and society had already changed the domain of global enterprise. The situations that would affect the global scenario are a newly developing market in east Europe, Asia, and Latin America, which will have a 75% growth in the next 20 years, Hong Kong and Macao recovery to China would lead to Asian's control in their market again, the establishment of the European Union, and the changing of traditional infrastructure of J
In our opinion, a transnational strategy would have been more beneficial to the employees of Tungsram to lessen the culture clash during the acquisition. Transnational is ideal for companies that need global integration and local responsiveness (Daniels, Radebauge, 2001). In conclusion, GE is a company of diversified services, technology and manufacturing that has been active in Europe for over 100 years. Located throughout Europe, GEs' businesses encompass manufacturing, financial and product services, and centers of innovation. These operations represent a major part of GEs' overall business activities and growth strategy. In 2000, GEs' European businesses generated 24.1 billion dollars in revenues employing 70,000 people of GEs' overall 300,000 employees. * Restructuring As with most acquisitions, sometimes the acquired company does not make a complete fit at first. Some problems might include overlapping geographic responsibilities, different evaluating performances, and human resources problems; especially if the acquired firm is used to autonomy like Tungsram.
Some common words found in the essay are:
Daniels Radebauge, GEL London, GE Tungsram, Unions Tungsram, European Union, Eastern Europe, Sweden GE, GE Hungary, Electric Tungsram, Hungary Rt, ge hungary, ge hungary rt, hungary rt, bangert 1994, gel london, free market, hungary 1989, choice control, market economy, ge lighting, foreign direct investment, european market, free market economy, control costs improve, business scientific communities,
Approximate Word count = 3811
Approximate Pages = 15 (250 words per page double spaced)
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