If you are interested in globalisation, you can hardly ignore the experiences of General Electric. Claudia Deutsch has written a fascinating article about the giant company’s journey from scepticism, to facing up to globalisation’s challenges, and now to become a truly global business in all facets.
“They are managing their worldwide organization as a network, not a centralized hub with foreign appendages,” said Christopher Bartlett, a professor at the Harvard Business School who has written several case studies on GE.
“Everyone talks about outsourcing manufacturing, but it is the high-level R&D jobs that are the great marketing tools, and I’m a salesman, remember. I know that you don’t get to sell things for long unless you are part of the culture into which you are selling.” Immelt said.
For example, GE Healthcare unit has already moved its headquarters to the London area, and another may follow soon. London, it turns out, is a better hub for global operations than Connecticut. If the whole company eventually follows, it won’t be the first time a Fortune 500 company has left the United States – and it certainly won’t be the last.
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