Globalization, ‘Americanization’ and the Changing Corporate Power Geometry

Empirical investigation starts with those regional actors which can be expected to be most actively involved in processes of globalization and internationalization. This chapter therefore analyzes the internationalization and recent diversification strategies of the four regional conglomerates which were found to have a crucial impact on small and medium-sized companies in the Ruhr Area: Veba AG, RWE AG, Thyssen AG and Ruhrkohle AG (see Appendix A, p. 206). At the time of writing the former three belong to the largest companies domestically and at the European level, and are typical representatives of Germany’s extremely diversified conglomerates. Veba and RWE in addition to their quasi-monopoly position in electricity generation and distribution own ventures in oil, chemicals and telecommunications, and are involved in waste management, construction and engineering (RWE) and trading and transportation (Veba), respectively. The traditional steel-maker Thyssen has diversified into automotive parts, elevators, engineering, trading and services and telecommunications. Ruhrkohle, the fourth company, plays because of its special situation as the regional monopoly supplier of coal an extremely important role for the more traditional firms within the Ruhr Area. This company is the most regionalized of the four, but this has not prevented it from venturing into new fields, such as chemicals, environmental technology and industrial services.