GE hungary case(Tungsram)中學英語課件

GEGroupmemebers:Jo,vivian,christy,peterGEhungarycase(Tungsram)Q1.Definenationalandcorporatecultures.howdidGE’sandTungsram’sculturesdiffer?HowdidGEattempttouseitscultureasacontrolmechanisminHungaryandelsewhere.

------------Vivian

Q2.WhatweretheprosandconsofchangingGE’sEuropeanoperationsfrommultidomestictoregionalorglobal?WouldthischangeworkthesameforallofGE’sproductdivisions?

--------------Jo

Q3.WhatfactorsmightaccountforGE’sinitialacquisitionandsubsequentexpansionoflight-sourcemanufacturingandR&DinHungary?AndGE’sestablishingnewtypesofbusinessesindivisions?

--------------Christy

Q4.InwhatwaysdoesGEattempttogainsynergyamongitsoperationsindifferentcountriesandamongitsdifferentbusinesses?

--------------PeterGEhungarycase(Tungsram)●

GeneralElectriccompany

istheworld’slargestcompanyintermsofmarketcapitalization.●100countriesandpossess315,000staffGEhungarycase(Tungsram)Tungsram

foundin1896,itisoneoftheworld’soldestlightingcompanies.1989~2002,GEinvested$1billioninTungsram,gained100percentofitsshares.1995~2001,GEexpandeditsHungarianoperationsinotherbusinessesaswell.GEhungarycase(Tungsram)Lighting(11,000employees)Powercontrols(1,000employees)FivecombinedbusinessesEngineservices(100employees)Medicalsystems(300employees)Powersystems(500employees).corporatereorganizationrestructuringofoperationsGE

relyoninfusionofitscorporateculturetheimplementationofstandardizedreportingsystem.GEhungarycase(Tungsram)DefinitionOfCulturesNationalCulture:

(Tungsram)

Isthevaluesystemandprideassociatedwithanation.CorporateCulture:

(GE)

Itcanbedefinedasthesharedvaluesandbeliefsthatenablememberstounderstandtheirrolesandthenormsoftheorganization.GEhungarycase(Tungsram)HowdidGE’sandTungsram’sculturesdiffer.GE(USA)Tungsram(Hungary)NormInner-directedOuter-directedEmploymentUselayoffsandselloffstoimproveperformanceInternalrecommendationStructuresCutoutredundantdepartment,sothatmakeemployeescancommunicatetotheirmanagersdirectly.ToptobottomapproachemployeewaitsfortheorderfromthetopmanagementGEhungarycase(Tungsram)HowdidGEattempttouseitscultureasacontrolmechanisminHungaryandelsewhereEachcompanywhoincorporatedintoGEmustbemoreclosertoGE'svalueandculture,Particularly,itwasacquiredcompaniesmustfollowGEstrictmanagementsystem.FairnessMorepowerandresponsibilityforthefront-lineworkersGEhungarycase(Tungsram)ProsandConsofChangingGEL’sEuropeanoperationsfrommultidomestictoregionalandglobal.GEhungarycase(Tungsram)MultidomesticStrategyCompaniestrytoachievemaximumlocalresponsivenessbycustomizingboththeirproductofferingandmarketingstrategytomatchdifferentnationalconditions.Aglobalstrategychampionsworldwideconsistencyandstandardization.GlobalStrategyGEhungarycase(Tungsram)MultidomesticOperation

Advantages:minimizedpoliticalriskandexchangerateriskeachcountry'soperationsdifferedsignificantlyflexible,catertolocalconditionshigherpotentialforinnovativeproduct

Disadvantages:highcostsmaylosscontrolofsubsidiariesGEhungarycase(Tungsram)GlobalOperation

Advantages:facilitatethetransferofexperiencegainacommonimageofeachitemdecisionmakingmoreefficientgainthemostcontrolpoweroversubsidiaries

Disadvantages:neglectlocalconditionssubsidiarieslostmuchoftheautonomydifferentculturesindifferentcountriesGEhungarycase(Tungsram)ChangeEuropeanoperationsfrommultidomestictoGlobalPROS

subsidiariesgainmorecommunicationfromthecentralizedcontrolandGELcangaingreatercontroloversubsidiaries●

CONS

GELhavetofacehigherexchangerateriskincentralizedcontrolandneglectlocalconditionsGEhungarycase(Tungsram)WouldthischangeworkthesameforallofGE’sproductdivisions?GEhungarycase(Tungsram)MultidomesticOperations

Low-techmanufacturing:

electricalequipment,insurance,lightingandPlasticGlobalOperations

High-techindustry:

aerospace,serviceandmedicalequipment

GEhungarycase(Tungsram)GEchangeoperationsfrommultidomestictoGlobalLessimpactonlow-techmanufacturing-lighting&plasticGreatimpactonhigh-techindustry(favorable)-aerospaceGEhungarycase(Tungsram)ReasonsInteriorExternalwhatfactorsmightaccountforGE'seuropeaninitialacquistionandsubsequentexpansionoflight-sourcemanufacturingandR&DinHungary?andGE'sestablishingnewtypesofbusinessinHungary?

GEhungarycase(Tungsram)MainFactorsInternal----Strategicinvestment----CompanyfinancialconditionExternal----PolicyadvantageGEhungarycase(Tungsram)StrategicInvestmentMarketinglocation,downsideAdversemarketpositionOverstaffing,FacilitescouldnotreachqualitystandardsetcStrengthWeaknessGEhungarycase(Tungsram)Firm'sFinances1998,annualincomehadmadeanewrecord,＄271.64billionToppedtheworld'slargestcompaniesGEhungarycase(Tungsram)PolicyAdvantage1993,EU(EuropeanUnion)Freetrade;defenseforcesandstrategicintegrationMemberstate,Hungary,2004GEhungarycase(Tungsram)

InwhatwaysdoesGEattempttogainsynergyitsoperationsindifferentcountriesandamongitsdifferentbusiness?GEhungarycase(Tungsram)CorporateReorganization

Autonomy(early1990s)TermsofR&DProductioncapabilityProductstructureMarketfeature

CentralizedControl(1992)MoreeffectivelyintoforeignmarketsGEhungarycase(Tungsram)TungsramRestructuringReducelaborforcefromnearly20,000toabout9,500.UpgradeequipmentDecisionsTeam

GEhungarycase(Tungsram)GivetherewardtoencouragememberwhoisinitiativeSuchasmarketingandaccountingpeople,scientistsandengineersGEhungarycase(Tungsram)Tomaintaintheglobalcompetitiveposition,GEisalliancewithlocalpartnertogainacompetitiveadvantage.GEhungarycase(Tungsram)ChinaGreenEnergyMarketWiththeglobalclimatechange,renewableenergymoreandmoregettheattentionofpeople.And

amongofthem,thewindpowergenerationbecomesoneofthefastest-growingindustries.GEhungarycase(Tungsram)In2010,GEandHarbinElectricannouncedformationanewjointventure.GEWindturbineisdevelopedmainlyfortheChinesemarket,tohelpbothsidestowin$13billionworthofwindpowerinChinamarketmorecompetitiveadvantage.GEhungarycase(Tungsram)CONCLUSION1.ShowsdefinitonofculturesandexplainsGE'sand

Tungsram'sculturesdiffer