ABB is a multinational corporation headquartered in Zurich, Switzerland, operating in robotic and mainly in the power and automation technology areas. ABB Sea Brown Boveria was formed in 1988 from the merger of Asea AB (Sweden) and BBC Brown Boveria (Switzerland). It ranked 143rd in the 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, and reported global revenue of $40 billion for 2011 Situational factors leading the merger.
The external factor is the economic expansion in the developed industrialized countries and in some Asian country that led to a significant rise in the demand for generation, transmission and distribution of electricity to fuel the increasing demand of growing industries and domestic population particularly in the 1960s and the early 1970s. Although the demand for power generation and supply was lower because of the impact of low economic slow growth rate in the mid-1970, the development within European Community offer company the way out of this impasses Internal factor: CEO Percy Barnevik has a great understanding of the environmental forces affecting the heavy industry in Europe and beyond and his ability to communicate and influence colleagues to see his point-of-view enable the merger to be completed in January 1988. The result of merger created the extremely expansion and profit for both company. The Percy Barnevik management goal was to build a company that could conduct business in each of the major areas of the world. The Percy management focuses on: * The development of a group-wide umbrella culture
* The development of core technologies and core competencies * The development and use of multinational teams
* Application to the development of effective global manager * Building a multi-domestic or federal organization a global-local...
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