ASEA BROWN BOVERI LTD.

The behavior of managers: Asea Brown Boveri Ltd.

The behavior of managers: Asea Brown Boveri Ltd.

Introduction

The Swiss-Swedish ABB Asea Brown Boveri Ltd. emerged in 1988 from a merger of the Swedish Asea and the Swiss Brown Boveri (BBC) and had their traditional areas in the field of power generation, transmission and distribution, and transportation systems. In recent years, ABB has diversified heavily in the areas of environmental engineering, automation systems and financial services. Annual 2001 with ca.157.000 employees achieved sales of 23.8 billion U.S. dollars (26.6 billion Euros). ABB is a company whose activities are tailored to the world market. The global nature of the company can be illustrated by reference to the dimensions of strategy, structure and control subsystem (About ABB, 2012).

Discussion

The focus here is on the acquisition strategy of diversification in markets of the future, where, in the early years especially environmental related activities between air, water and waste and emission. Forms of energy have been used, while in recent years, the focus in the field of automation and IT-based technologies were. The growth strategy ABB will be accompanied by an effort to clean up the power program, with unprofitable or weak synergy effect in the course of an outsourcing business repelled be. By adjusting the power program is to ensure that the Companies can focus on those areas where it has the greatest expertise.

Internationalization strategy

The internationalization strategy and strategic orientation of ABB is characterized by the effort to achieve a beneficial compromise between the economically justified requirement for global Standardization of corporate activities and the basis of industry-specific features be-standing need for local adaptation of the power program. Pursued is therefore an interaction strategy ("blocked-global strategy"), the usual ABB counter Parlance is called a "multi dome table" and by and slogans such as "think globally act locally "is communicated. In this way, the benefits of economies of large scale company with the benefits of locally based, mobile small businesses are paired. The interaction strategy is a worldwide spread of the service processes. The consistent international orientation is reflected by the early involvement on the markets of the former Soviet bloc. So the ABB AG Germany shortly after the taken turning the East German companies Bergmann-Borsig, Energiebau Dresden and Cottbus automation systems (Annual Report, 2011, pp. pp. 15-19). In the same way, ABB is also in emerging markets and Third World countries involved, where too many branches to be entertained.

Organizational structure

The organizational structure of the ABB in connection with the merger of the two predecessors in force entered. It can be compared in the first phase of a product derived from the matrix concept network, in which a close cooperation between the Regional and factual Areas responsible decision takes. The responsibility for setting strategic decisions lay with over 65 business units whose leaders are active in different countries. Each of the business managers had a high degree of autonomy and decision was globally responsible for the use of its ...