...Case of ABB: Strategic Rise, Decline, and Renewal Carina Gruber(S124586@student.hb.se) Yin Wang(S125066@student.hb.se) Silvia Abendaño Delgado(S124778@student.hb.se ) Introduction In this paper, we research the five solutions to the case of ABB: strategic rise, decline, and renewal. We conduct our solutions by analysis of the kinds of CEOs’ strategies and structures from 1988 to 2008. We completed our solutions by identifying the ideas and factors, which cued key areas to go awry and affect the performance of the business; discussing the key strategic initiatives implemented by the various CEOs appointed; analysis of the pros and cons of matrix structures and compare and contrast with the structures; assessing ABB’s current corporate culture; commenting on some strategic options. Our solutions were based on the book called International Management Managing Across Border and Cultures. 1. Identify Percy Barnevik´s ideals and discuss the factors which caused key areas to go awry and effect the performance of the business. Percy Barnevik´s management had a goal, the goal was to build a company that could lead business in each of the major areas of the world, for this he was focused on the next seven points: * The development of a group-wide umbrella culture: ABB established a common set of values, policies and operational guidelines. * The development of core technologies and core competencies: being a technology leader and market share leader. * The development...
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...Case 1 ABB Electric Segmentation Group 7C Context ¡ ABB is a producer of electrical equipment. ¡ ABB established a new marketing strategy based on analytical techniques (MKIS)to improve its results. ¡ ABB management segmented its marketing into 4 categories using Choice Modeling : Loyal, Competitive, Switchable and Lost. ¡ ABB has been given a budget for a supplementary direct marketing campaign aimed at 20% of the companies in the region composed of 3 districts. Outline 1. Customer targeting with limited data 2. Choice-based model 3. Limits of the model and suggestions I. Customer targeting with limited data • Introduction to the market • Limited data targeting : no geographical distinction • Limited data targeting : customers targeted The Market ¡ Market size : $ 102 759 ¡ ABB’s share : $ 21 524 ¡ 4 mains actors in the market : ¡ ¡ ¡ ¡ ABB GE Westinghouse Edison Edison# 26%# Market'distribu-on' ABB# 21%# ¡ 88 companies ¡ Goal : Attract 20% of the customers (i.e. 18 companies) Wes-ngho use# 29%# GE# 24%# Limited data targeting – No geographical distinction ¡ The best targets seem to be district 2 (customers of Westinghouse and Edison) and district 3 (customers of GE) as they represent the biggest market share when combined. ¡ However, all districts present a high heterogeneity of their clients (from $226 to $10997 for the district 2). ¡ Objective : increase market share by targeting “big whales” i...
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...MARKETING ENGINEERING FOR EXCEL • CASE • VERSION 2.0.3 Case ABB Electric Segmentation By Gary L. Lilien & Arvind Rangaswamy 1. Before beginning any case, students should familiarize themselves with the model being used. Marketing Engineering for Excel comes with tutorials that demonstrate the capability of each model. The tutorial can be found under each model within the ME►XL menu after starting Excel. These tutorials are designed to work with our OfficeStar examples which are located in the My Marketing Engineering directory, usually installed in My Documents during software installation. The data required for this case is located in the My Marketing Engineering directory (usually located within My Documents): ABB Electric Data (Customer Choice).xls 2. ABB Electric History In March 1970, ABB Electric was incorporated as a Wisconsin-chartered corporation with initial capital provided by ASEA-ABB Sweden and RTE Corporation. The new firm’s management was to operate independently of the parent company. The company mission was to design and manufacture a line of medium-sized power transformers to market in North America. The firm produced such electrical equipment as transformers, breakers, switchgears and relays used in distributing and transmitting electrical energy. Four main types of customers buy this electrical equipment: (1) investor-owner electrical utilities (IOUs), the largest segment; (2) rural electrification cooperatives (RECs); (3) municipalities;...
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...MBA ICCI – Estrategia Corporativa Profesor: Ismael Oliva Junio 2014 Caso: “ABB IN THE NEW MILLENNIUM” Integrantes: Franco Gandolfo C. Francisco Gonzalez R. Pablo Osses G. Juan Marcos Mancilla M. Pág. 1 MBA ICCI – Estrategia Corporativa Profesor: Ismael Oliva Junio 2014 Contexto y Desafío ABB, Asea Brown Boveri, una de las empresas de ingeniería eléctrica más grandes del mundo se encuentra enfrentada a la necesidad de reevaluar su estrategia de desarrollo e incluso obligada a analizar la conveniencia de mantener algunos negocios y/o actitudes de trabajo que no contribuyan a mejorar el clima y los resultados de la organización. Hacia el año 1996, ABB había más que duplicado sus ingresos a través de más de 160 adquisiciones en todo el mundo, y mediante la implementación de una organización matricial con 4 segmentos de negocio a nivel mundial y más de 5.000 centros de beneficio en 140 países. Las áreas de negocio en que se encontraba ABB correspondían a equipamiento y servicios para la generación eléctrica; en el negocio de servicios de calefacción, en los procesos de automatización industrial y en el negocio de fabricación de material ferroviario. Hacia inicios de 1997 se integra como CEO a la compañía Göran Lindahl quien ingresa con la idea de impulsar un fuerte crecimiento en algunos mercados como el asiático, y con la idea de continuar con la estrategia de diversificación de la compañía, sin embargo, se ve enfrentado a una serie de aspectos como la convulsión...
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...Introduction ABB is a multinational corporation headquartered in Zurich, Switzerland, operating in robotics and mainly in the power and automation technology areas. It ranked 143rd in Forbes Ranking (2010). ABB is one of the largest engineering companies as well as one of the largest conglomerates in the world. ABB has operations in around 100 countries, with approximately 145,000 employees in June 2012. At a glance Company name : ABB (Asea Brown Boveri Ltd ) Type : publicly- traded limited company Traded as : SIX: ABBN, NYSE: ABB, OMX: ABB, NSE: ABB, BSE: 500002 Industry : Electrical Equipment Founded : 1988 through merger of ASEA (1883) of Sweden and Brown, Boveri & Cie (1891) Headquarters : Zürich, Switzerland Area served : Worldwide Key people : Joe Hogan (CEO), Hubertus von Grünberg (Chairman) Products : Power technology, Industrial automation In the introductory part, here we explain some words about the ABB Company on that time. In 1997 Goran Lindahl took over from Barnevik as CEO of the technology giant and is feeling the demanding market and shareholder pressures. After joining he declared ‘I want to make ABB a company that encourages and demands innovation from all of its employees, and a company that creates the environment in which teamwork and innovation flourish,’ ABB has different priorities...
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...Immediately, we would go to through the ABB descriptor data and note the companies with the highest annual spend at ABB. We assume that these companies are existing ABB customers and are already using ABB as main provider of goods. We would then try to note any correlations with annual spend and the district in which the customer is located. The data shows that of 88 responses provided by customers in ABB’s area, 18 of these responders are already working with ABB. 11 of the 8 existing customers are spending over $500,000 per year on ABB goods which indicates loyalty. To increase market share, ABB would benefit mostly from capitalizing on its “competitive segment’s” by taking customers from competitors. Of ABB’s existing customers we would shift out attention to the customers who are spending the least amount and direct the new marketing program to not only keep them as loyal customers but to increase their annual spending volume with ABB. Next, we would shift our attention to winning over non-existing customers. In deciding on which non-customers we would direct the new marketing program to, we would take note of which districts ABB is already enjoying the most success in and focus marketing efforts in these districts as ABB’s brand has clearly been established here. ABB would want to use the same marketing strategy that it is now using because it has already experienced success when the attempt to get new business. As per the data, ABB has its highest volume of customers in...
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...Strengthening the foundations for growth ABB Limited, India - Annual Report 2010 Contents 01 Board of directors and other information 02 5 year highlights 04 This is ABB 05 Corporate Management Committee 08 Notice to the members 13 Directors’ Report 27 Management’s discussion and analysis 31 CEO / CFO certification 32 Auditors’ report 36 Balance sheet, profit & loss account and schedules 47 Notes to the accounts 65 Cash flow statement 67 Balance sheet abstract and company's general business profile ABB Limited Board of Directors Gary Steel, Chairman Bazmi R. Husain, Managing Director (w.e.f. 01.01.2011) Biplab Majumder, Vice Chairman & Managing Director (upto 31.12.2010) and Director (w.e.f. 01.01.2011) N.S. Raghavan Nasser Munjee D.E. Udwadia Arun Kanti Dasgupta Peter Leupp Francis Duggan Bankers AXIS Bank Ltd Canara Bank Citibank N.A. DBS Bank Ltd. Deutsche Bank AG HDFC Bank Limited ICICI Bank Limited IDBI Bank Limited State Bank of India Standard Chartered Bank The Hongkong & Shanghai Banking Corporation Limited The Royal Bank of Scotland N.V. Company Secretary B. Gururaj Corporate Management Committee Bazmi R. Husain Amlan Datta Majumdar B. Gururaj GNV Subba Rao Juliane Lenzner Madhav Vemuri N. Venu Pitamber Shivnani Prakash Nayak R. Narayanan Raja Radhakrishnan Ranjan De S. Karun Tommy Andreasson Union Bank of India YES BANK Ltd. Auditors M/s. S.R. BATLIBOI & CO. Chartered Accountants Registered Office 2nd Floor, East Wing, Khanija Bhavan...
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...Answer to the question number one: Competitive strength is defined as the strategic strength that one business entity has over its rival entities within its competitive industry. The main reason behind ABB’s culturally diverse management team is a source of competitive strength is explained below. 1.ABB’s Cultural diverse management team bring new ideas, creative input and innovative thinking that are very useful for a cross- border organization like ABB in the age of globalization. 2. Diverse management has the ability and the expertise to improve the quality of decision making. 3. Diverse management team brings their national perspectives to bear on tough problem and help to understand how things are done in different countries and culture. 4. Finally for doing business in different country it is better to have a management team who has the better knowledge over the respective country’s language, culture, people and politics. As for an example if ABB want to do business in Bangladesh their management, marketing team should be Bangladeshi because they will understand the consumer attitude better than anybody. Thus we can say ABB’s culturally diverse management team is their true source of competitive strength. Answer to the question number two: “Percy Barnevik” has to overcome some barriers to make culturally diverse management team as their competitive strength. Those are explained below. 1. Communication: perceptual, cultural...
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.... The inadequate amount of payment evaluations in the country in addition to corporate organisation has effected a state of affairs where there have been tenacious expressions of dissatisfaction amid employees By implication, this means that factors which govern motivation, job satisfaction, workers productivity and attitude to work differ from one society to another. However, the entire issue of the implication of adequate motivation on workers productivity is embedded in the various theories of motivation. People are motivated by various factors at different times, according to Wilkinson et al, the first factor is the combination of the individual perceptions of the expectations other people have of them, and their own expectations of themselves. This happens because people come into work situations with various expectations. When they arrive at the work place, they meet other people who also have expectations of them; positive individual and group expectations serve as positive motivational factors for the worker. This is why a balance must be struck as much as possible between organizational objectives and individual aspirations. The essence of this is to ensure a situation where the individual is motivated while the organization is achieving established objectives. The second factor deals with the issue of self-images and concepts as well as life experiences and personality. These factors have to be positively motivated in the worker to yield proactive behaviour...
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...Asea and Brown, Boveri (also known as ABB, Inc.) is one of the world’s leading multinational corporations operating in robotics and in the power and automation technology areas. They provide solutions for secure, energy-efficient generation, transmission and distribution of electricity and for increasing productivity in industrial, commercial and utility operations (ABB Group Annual Report 2011). Their collection of products ranges from light switches to robots, and from large electrical transformers to control systems that manage entire power networks and factories. ABB is a global company that currently has 135,000 employees and operates in around 100 countries. Their assignment is to help their customers meet their challenges with minimal environmental impact. Globalization consists of knowing how to compete globally, how to address new players and regional training blocks and how to develop new products for emerging regions. Michel Demare, CEO and CFO of ABB, states “ABB supporting globalization with a balanced, non-colonial approach.” A global company must find enough raw materials and learn how to use existing ones more efficiently. ABB is looking at ways to make its participation in the global economy more resource-efficient. The environment involves addressing climate changes, developing protocols and doing it before the 2016 threshold which is when some estimates project these changes will become irreversible. In 2008, ABB looked at ways internally and externally...
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...ASEA BROWN BOVERI ABB (ASEA Brown Boveri) is a multinational corporation headquartered in Zurich, Switzerland, operating mainly in robotics and the power and automation technology areas. It ranked 158th in the Forbes Ranking (2013). ABB is one of the largest engineering companies as well as one of the largest conglomerates in the world. ABB has operations in around 100 countries, with approximately 140,000 employees in October 2015,[3] and reported global revenue of $39.8 billion for 2014.[1] ABB is traded on the SIX Swiss Exchange in Zürich, Nasdaq Stockholm and the New York Stock Exchange in the United States.[4] ABB's Indian unit, ABB India Limited, is traded on the National Stock Exchange of India and on the Bombay Stock Exchange. The Indian subsidiary of ABB has a market capitalization of over $4 billion.[5] HISTORY ABB resulted from the 1988 merger of the Swedish corporation Allmänna Svenska Elektriska Aktiebolaget (ASEA) and the Swiss company Brown, Boveri & Cie (BBC); the latter had absorbed the Maschinenfabrik Oerlikon in 1967. CEO at the time of the merger was the former CEO of ASEA, Percy Barnevik, who ran the company until 1996. ABB's history goes back to the late 19th century. The company was incorporated by Ludwig Fredholm in 1883 and Brown, Boveri & Cie (BBC) was formed in 1891 in Baden, Switzerland, by Charles Eugene Lancelot Brown and Walter Boveri as a Swiss group of electrical companies producing AC and DC motors, generators, steam...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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