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 . . .
One of the ways for Hungary to evolve into a free market economy is foreign direct investment, the reasons for which can be seen below. All units are supposed to make reports covering all aspects of costs and operations. Other problems stem directly from the legacy of the communist era. Basically, GE wanted to expand in Europe, and the only plant capable of this type of modernization was Tungsram. They have invested time and money in the community through sharing its company culture and world- class management methodology with Hungary. General Electric chose, in their minds, what was best for the company. GE decided that it needed a more centralized level of decision-making. By investing in Tungsram, GE is buying options on: (a) the Western European market; (b) introducing new technologies and higher-priced products to Tungsram; and (c) a low-cost export platform (http://216. Their associates have been very active in ELFUN community projects and grants through the GE Fund. Between 1989 and 2000, GE invested more than 1. In summation, General Electric had to weigh the consequences of their choice in control. 8 billion in 2000, holds the five production divisions together. Located throughout Europe, GEs’ businesses encompass manufacturing, financial and product services, and centers of innovation.
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Acceptance Essays
