Subject category:
Economics, Politics and Business Environment
Published in:
1996
Length: 12 pages
Data source: Field research
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Abstract
In 1989 General Electric Lighting purchased a controlling interest in Tungsram, an old Hungarian and well established light-source firm. This was the first major investment by a Western multinational corporation in Central and Eastern Europe, where market reform measures were being introduced. The case covers many topics concerning the first five years of ownership by GE and its numerous restructuring initiatives to make Tungsram competitive in the global market. Of particular interest is the way corporate culture was employed by GE as a control device. The case highlights some problems as well as opportunities that some foreign investors must consider when making commitments in transition economies. This case was sponsored by the Indiana University CIBER Case Collection.
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Abstract
In 1989 General Electric Lighting purchased a controlling interest in Tungsram, an old Hungarian and well established light-source firm. This was the first major investment by a Western multinational corporation in Central and Eastern Europe, where market reform measures were being introduced. The case covers many topics concerning the first five years of ownership by GE and its numerous restructuring initiatives to make Tungsram competitive in the global market. Of particular interest is the way corporate culture was employed by GE as a control device. The case highlights some problems as well as opportunities that some foreign investors must consider when making commitments in transition economies. This case was sponsored by the Indiana University CIBER Case Collection.
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