Tungsram's leading light
Article Abstract:
General Electric Co (GE) entered the European lighting market by acquiring light-bulb manufacturer Tungsram of Hungary. GE bought the 49.6%-share of the Austrian bank Girocentrale plus enough to gain 50% plus 1 share ownership. The restructuring of Tungstram was assigned to Hungarian expatriate George Varga. Under his leadership, the company underwent major changes, particularly in areas concerning corporate culture, internal communication, wage system and management. Recognizing the economic impact of downsizing, Varga devised ways to ease dismissal of employees by helping them get jobs in other companies and accepting applications for early retirement and disability benefits. As a result, the Tungstram workforce has been reduced from 17,600 in 1990 to 14,300 in 1991 and will be cut further to 11,100 by 1992. Finally, the 'Workout' program was implemented to remove repetitive and worthless processes and to simplify work procedures.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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The wizard of Ozd
Article Abstract:
Hungarian steel-mill owner Janos Petrenko showed his managerial expertise when he bought loss-making Ozd Metallurgical Works and transformed it into the profitable Peko Steel Industrial Works. The company was able to report a profit of Ft120 million in 1990, after losing Ft475 million the year before. The success of Peko Steel was achieved through Petrenko's introduction of Western-style management practices that included the firing of incompetent managers, the adoption of a policy of market-driven production and the motivation of the workforce through wage increases. Also included in Petrenko's plans are the improvement of working conditions and the modernization of the mill's machinery.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1991
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Sandvik shows its metal
Article Abstract:
Although the Swedish company Sandvik is a multinational business with 30,000 employees and 200 subsidiary companies worldwide, it is not well known by the general public. During the 1980s as profits fell, Sandvik, which makes cemented-carbide products, went through a period of reorganisation which separated the main business units to act independently. This strategy has been successful as shown by results from the 11 companies within the United Kingdom which have increased sales by 29% compared to 1994.
Publication Name: The Director
Subject: Business, international
ISSN: 0012-3242
Year: 1996
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