Abb Case

 Essay about Abb Case

ABB Asea Brown Boveri

Case n. 4 (5-6-7)

1) Precisely what is ABB framework and environment?

A deep examine and knowledge of the environmental context where a great enterprise runs, is a important step that must precede any more analysis. Just before setting a strategy, the management of the firm has to be conscious of the internal potentiality of the company as well as from the external uncertainties (both confident and negative) it may face. The case presents a new born company that has simply handled a merger: due to great uncertainty and treat that differentiates the situation, this first step is definitely even more important. The context is surely a global 1: as a matter of fact ABB counts eight hundred fifty separate legal entities in 140 countries all over the World. ABB operates in the Electrical Tools Industry, and it is the result of a merger among two crucial European corporations (Asea and BBC). The merger had a great effects over the complete industry, since the new ABB became the world's largest competitor in transmission and distribution, as well as the leading Universe supplier of process automation systems, robotics, high speed train locomotives and environmental and pollution control products. The competitive environment was then deeply influenced by merger, because ABB competition by that moment were required to face a giant common foe: furthermore the acquisition strategy, carried out by ABB, radicalizes more and more the situation, creating a response by competitors. They will started to reorganize themselves with new fusions and joint ventures. To provide a more infiltrating view with the context we may apply the SWOT research theory to the case. SWOT analysis permits to identify Advantages, Weaknesses, Possibilities and Hazards that a business should manage during it is business activity. Referring to ABB's Strengths we now have first of all to consider that thanks to the merger the company considerably increased their market's share, gaining a leading position above the global market as well as the probability to improve economies of range and opportunity. The merger also allowed the new created enterprise to unite the two strengths of Asea and BBC: Asea brought to ABB its advanced management settings and promoting aggressiveness, while BBC helped bring a strong buy book. Therefore , thanks to the fusion the new company became wealthier both in real and intangible resources (know-how, distinctive internal capabilities, relationship and networks). About weaknesses it is important to point out that the integration between two companies is by the way high-risk. Reshaping the organizational framework, as well as the tasks and the competences of the employees of two former archenemies, isn't anything simple, and may even bring a whole lot of questions that are definitely expensive (in terms of moneys and top management's attention) to deal with. After the study of internal Abilities and failings, we can start considering external Options and Threats. The combination and the next acquisition's approach permit to ABB to catch the opportunities that a global industry may present, especially the opportunities of expansion in new countries. Actually, entering new local market segments " because an insider and not an invader", which can be one of the main goals ABB wants to reach, can give to the organization the opportunity of winning fresh orders and electrical generation contracts. Finally, the main Hazards for ABB are their competitors and their reactions: since already mentioned, the new born big scared a lot the other companies, that began to make connections against a brand new dangerous common enemy. We can also suppose the main position with the company might generate new threats brought by the antitrust and in general legal regulators all over the World, with connected costs of paperwork, compliance towards the laws, and so forth

2) Precisely what is the ABB strategy?

When we talk about technique we have to consider a double level: the corporate as well as the business one. Even though the...


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