From a company which is one of the most admired global firms, after experiencing great frustrating and changing in both strategy and organization, ABB is an attracting case for many people to study. In this paper, it will discuss about the development of ABB and the conditions Kindle faces with as well as some recommendation for him(International Metalworkers’ Federation).
Development Cycle of ABB
To the problems in the development of ABB, especially those faced in the following years, they could be answered from the aspect of different period and different CEO, in each period it will state from the aspects of external factors, strategies and organizations. In the following parts, it will state following the year to discuss the development cycle of ABB. During the period of Barnevilk, despite the outstanding achievement on the whole, there still existed some flaws already. From the aspect of strategies:
1. Smaller acquisitions made by local managers were never properly integrated, and therefore it is hard to achieve necessary synergies. 2. It did not define the roles, responsibilities and authorities of managers at intersection points of the matrix clearly, leaving these to individual’s savvy, which brings ambiguity to their jobs and even sometimes country organization and business areas contradict with each other. 3. Although ABB tend to optimize organizational entities, due to the decentralization and front-line entrepreneurialism, it still fragmented and suboptimal. Lindahl follows to take the president charge to handle the questionable company and also faces many challenges. It will discuss these in the following three aspects. External factors:
1. ABB faced the European recession, during the time which it could own 60% business of usual so that the opportunities ABB faces with decreased dramatically. 2. The debt-heavy financials took their toll on the overall results so that it could not arrange...