General Electric's Expansion in the Middle East
(11 pages of text)
In July 2012, a senior manager in the corporate strategy team of General Electric (GE) was wondering what changes he should recommend for its strategic plans in the MENAT region (the Middle East, North Africa, Turkey and Pakistan). First, the senior corporate strategist wanted to get a better understanding of how regional management had succeeded in growing its business despite the barriers it had faced, such as political instability, difficulties in dealing with family-owned firms with affiliate relationships, and institutional corruption. Second, given predictions of sluggish growth in developed markets, it was clear that GE MENAT would be an increasingly large part of GE’s revenue base. The key challenge was how to continue to sustain GE MENAT’s growth rate while maintaining the high corporate standards for which GE was known.
This case is suitable for an international business class or other class where there is a focus on governance issues. It can also be used when discussing public–private partnerships, especially in the context of illustrating how companies operate in the Middle East. There are several topics that can be discussed with this case, including corporate governance in emerging markets, public–private partnerships and balancing growth with oversight. The case will:
- Describe a successful emerging market entry strategy for multinationals looking to establish a presence in riskier markets.
Provide perspective on the value of a corporate reputation and how it should be managed when profits are at stake.
Demonstrate how market barriers to entry can be overcome by focusing on long-term results and taking into account stakeholder interests.
Finance and Insurance
Lebanon, Large, 2012
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