Business

Executive Summary 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 …

…most companies use a transnational strategy, which allows each country to contribute ideas, resources, and direction so that the company’s global operations are maximized. General Electric chose, in their minds, what was best for the company. Their choice of control fit with their company goals. As with any major company decision, one must weigh the pros and cons of each and live with the consequences. In this case, things worked out for the best.