ABSTRACT
This case initially presents the key socio-economic characteristics of the Hungarian economy and labor market, and it then reviews the place and role of FDI (foreign direct investment) in the Hungarian economy. Next, it provides information about the first acquisition of General Electric's (GE) in Europe – Tungsram in Hungary in 1990. This acquisition proved to be a challenge for Tungsram's production and stock capacity; as a result, its portfolio had to be coordinated with the interests of the company. The case presents a review of the four development stages of GE's Hungarian subsidiary, i.e., 1990–2003; 2004–2017; and 2017 until the present. It also reveals the most significant development tasks and HRM tasks related to the four mentioned periods. Lastly, the case briefly presents how during the second and third waves of Covid-19, GE in Hungary pursued healthcare-related developments. After reading the case, the students will be able to understand the business challenges faced by an American multinational in establishing a subsidiary in Eastern Europe, learn about how HRM issues during three decades of the subsidiary's operations (1990–2003; 2004–2017; and 2017 until the present) have been dealt with, and understand the similarities and differences in the ways that the four CEOs managed the subsidiary.
