Chapter 19, Globalization Summary and Analysis

GE has always been a global company. It comprises many smaller companies, which have proven to be the most successful partnerships. GE eventually acquires plastics ventures Jack forms in the 1960s. A small Japanese distributor, Nagase & Co., becomes GE's new partner after the Mitui Petrochemical (Japan) deal. It provides the knowledge of Japan's complex distribution market. Local plastics plants Nagase and GE invest in becoming the heart of GE's Asian plastics business. The relationships and deals last more than 25 years.

GE's only true global business in the 1980s is plastics. Paolo Fresco becomes the "father of GE global activity." He comes to GE in 1962 and dominates the old international organization. Globalization escalates in 1989. The chairman of the UK company, GEC, negotiates a series of joint ventures and acquisitions with GE to avoid threats of a hostile takeover by another...