Case Study : Abb Deutschland

Asea of Sweden and BBC of Switzerland announced the merger in 1987 to form ABB company. all(prenominal) parent company is to hold 50 percent of the tonic company. BBC was the third largest company in Switzerland, and it has been very successful in the electric industry. Its past successes mainly owe to the focus schema and geographic organization. BBC emphasized technology and quality, which enabled it build up its free-enterprise(a) advantage and achieved long-term success. In order to meet the commercialise environment at the time, together with the deep-rooted culture, it built up the geographic organization. This organization stresses local autonomy because it is believed the local attention is the best place to negotiate with the public utilities and this grammatical construction flock meet the strictly local competition. Moreover, it resulted from the foreign exchange restrictions during the decided historical time. The strategy and the organizational structure brought about regular successes because of the booming gather up. However, it increased risks at the same time. When the economy collapsed and demand declined in the 1980s, the company faced with a stagnating situation. The organization structure made decision-making much slower than the changing market place required.

In 1987, the company once tried to shift its structure to divisional organization, but its not implemented into reality. BBCs corporate culture reflected the organizational tradition and the characteristics of the business. The culture mainly includes the interest aspects: 1. Focus on technology. This is the core competency of the company, but excited some problems at the same time. It bred certain arrogance and miss the changing market and customers. 2. Perfectionism in problem solving. This may ingest out exactness and right solutions, but the real market often requires quick action. When the perfectionism is achieved, it is often found to be also late. 3. Specialization and compartmentalization of activities. This... If you want to get a abundant essay, order it on our website: Ordercustompaper.com

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