scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,863
On August 10 1987 the largest cross-border merger in Europe made history when the two giants of European electrical equipment industry--- Asea AB of Sweden and BBC Brown Boveri Ltd Of Switzerland--- merged to create Asea Brown Boveri ABB The two men at helm are Percy Barnevik and Thomas Gasser These men faced the challenge of building a new company on the foundation of two companies that had spent almost a century facing each others as arch rivals With its goal to be global with technology and local in its customer orientation ABB desires to be the most competitive competent technologically advanced and quality-minded electrical engineering company in its fields of activity With the above in mind ABB has to resolve three internal contradictions That is to be global and local big and small and decentralized yet centralized In order to resolve these contradictions so as to create real organizational advantage it adopted several strategies To optimize the advantage of being a global company ABB specialized in the production of components of major products around the world This enables them to increase economies of scale and scope In addition efforts are put into coming up with cost savings measures like component outsourcing and overhead cuts whenever feasible This will give ABB the competitive edge in cost Also managers and technologists are rotated among the companies of ABB around the world to share their expertise and solve problems However ABB aimed to be local as well With the belief that new orders are mostly awarded to companies with strong local presence ABB began an expansion strategy which found Barneviks embarkation on an acquisition program around the world In a bid to be local ABB builds products in the countries they sell them recruits the best talents from local universities and cooperates with the local government to increase exports ABB desired to be big and small simultaneously This gives rise to the rationale of dividing the entire
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA