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 Japan, Europe, and many other markets.
             General Electric's lighting venture can explain the change in the global market competition in the last quarter century. GE is a multiple management company and one of the big global market values in the world. It has many branches such as Power Systems, Medical Systems, Aircraft Engines, Consumer Finance, Transportation Systems, NBC, Industrial Systems, and so on. From 1887, GE Lighting became the number one company in the American light-bulb market.
             General Electrics' Venture in Hungary
             In 1989 General Electric acquired the Hungarian lighting company Tungsram, which started GE's attack on Europe. Since then, GE has had at least 50 acquisitions and has sp...