A 4 page paper. Using a case study provided by the student, this essay discusses: the differences in corporate culture between GE and Tungsram in Hungary, how GE uses culture to control business, the effects of changing from multi-domestic to regional operations, factors involved in GE's acquisition of Tungsram and how GE gains synergy among its many different facilities. Bibliography lists 1 source.
Name of Research Paper File: MM12_PGgehng.rtf
Unformatted Sample Text from the Research Paper:
corporate culture was and is built on innovation, pride, optimism, fairness and productivity. As the author of this scenario explains the culture, GEs culture is inner-directed, which means it is
up to each individual to succeed. Tungsram culture was outer-directed, meaning that success is dependent upon external factors. Further, GE will sell off a holding or lay off large numbers
of employees in order to improve the companys productivity. By contrast, paternalism was practiced at Tungsram. All of GE, regardless of location or function, is expected to abide by the
companys manual, Integrity: The Spirit and Letter of Our Commitment. Employees who violate the requirements in the manual can be dismissed. In this way, GE is able to standardize its
image across the world. One of the norms of GE is working with teams. Employees are expected to be able to work as a productive team member. This was also
a difference for Hungarian employees, who were far more accustomed to being told what to do. 2. What were the pros and cons of changing GELs European operations
from multi-domestic to regional or global? Would such a change work the same for all of GEs product divisions? There are many advantages in this move that include standardization of
operations, products, functions and corporate culture. Such a move could also lead to reduced costs with suppliers. Furthermore, when one domestic facility needed a specific skill or expertise they lacked,
the person(s) with those skills could transfer. The major disadvantage was that local facilities lost autonomy. They had to conform to GEs operational procedures. Losing autonomy also meant that
it was not as easy to develop products specifically for that domestic market. Domestic operations also allowed the plant to focus its R&D on the needs of that specific market.