ABB Restructuring

             1.Why is ABB restructuring again, so soon after its last restructuring?
             According to the article, the restructuring is occurring to make ABB more cost efficient and faster. In addition, the company wants to confront the changes caused by globalization by abandoning the regional structure and concentrate more on specific countries. Prior to the restructuring the company was made up of a matrix of 36 business areas (BA) and each of the BA reflected an international product line. In addition, to the BA part of the matrix, there also existed country management, which was the prevalent form of management in the country (Lubatkin & Uhlen). However, after the restructuring BA's were made responsible for businesses on an international basis. This aspect of the restructuring took place so that there were no longer be any confusion concerning the objectives established by the BA and those established by country management (Lubatkin & Uhlen). In addition to this aspect of the restructuring, ABB wanted to make its segments (composed of various BA's) to be more manageable and as such they have been divided (Lubatkin & Uhlen). Overall it seems that ABB has restructured so soon after the last restructuring so that the company can meet the challenges created by the rapid rate of change that exist in the market, to meet the demands created by globalization and to position ABB for future growth (Lubatkin & Uhlen).
             According to the article ABB is very well positioned in China. The article reports that ABB has been doing business in China since 1919, establishing its first office there in 1979. In addition, ABB as good positioning in China as it relates to delivery, performance, brand name recognition and performance (Lubatkin & Uhlen). The company has nine offices in China and is involved in 15 joint ventures. It also experienced tremendous growth in only a four year period of time the comp
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ABB Restructuring. (1969, December 31). In MegaEssays.com. Retrieved 08:45, November 16, 2024, from https://www.megaessays.com/viewpaper/202152.html