ABB

Case Study Of Asea Brown Boveri (ABB)



Case Study Of Asea Brown Boveri (ABB)

Introduction

The Asea Brown Boveri Company usually known as ABB is a giant organization that is operating worldwide. The company provides electrical engineering products and services to its clients. ABB is basically a Swedish organization whose head quarter is located in Zurich, Switzerland. ABB organization is one of the major and giant engineering organizations as well as one of the largest multinational organizations in the world.

ABB organization was formed as result of the amalgamation between Asea AB of Sweden and BBC Brown Boveri Ltd. of Baden, Switzerland in 1988. After the merging, the collaboration has made the organization the world's leading electrical power supplier. It is supplying approximately $50 billion electrical power service worldwide. The organization is currently enjoying good enough revenue. In the year 2011, the organization has been reported to have the revenue of $40 billion of the world's revenue. But the organizational strategic shift has lowered the organization's revenue. This is discussed below in the section of case study analysis.

ABB covers the revenue of approximately one third of the European market and approximately more than 20% of the world's market. ABB is a publicly listed organization that is enjoying good market share. The organization is currently employing approximately 20 million people that are operating in around 140 countries. The organizational business consists of five divisions: power products, power systems, discrete automation and motion, low voltage products, and process automation. The company operates and provides services in various areas of the divisions that include and also in the robotics area where the organization offers the robotic products for automated electrical operations in manufacturing businesses. The highly revenue generating and most significant areas of the organization are robotics, power and most importantly the automation technological area. The organization has been ranked 143rd among the giant organizations around the globe in Forbes Ranking in the year 2010.

Discussion

ABB's actual problems

The case study of ABB has highlighted the organizational structure issues that the organization has confronter since after in mergence. In 2005, when the Fred Kindle became the CEO of the ABB organization, he had to make critical decisions looking at the going down situation of the business. There were certain issues due to which the organizational productivity began to lower down.

The changes in the business cycles and business structures prior to the year 2005 were made in order to have the higher revenues and market shares in the business industry. This strategy of ABB had created the giant competitors against it in the market and this strategy, instead of assisting the organization to grow further, has leaded the ABB organization down. The organization like all the other organization had certain priorities like cutting costs, getting better profit margins and the aim to grow fast in more efficient manner. To attain this positive change, the structure of the organization was dramatically changed that lead to the deregulation and privatization of its major potential ...