Answer for Abb Case: Strategic Rise, Decline, and Renewal Essay

2236 Words Dec 16th, 2012 9 Pages
Case of ABB: Strategic Rise, Decline, and Renewal

Carina Gruber(
Yin Wang(
Silvia Abendaño Delgado( )
In this paper, we research the five solutions to the case of ABB: strategic rise, decline, and renewal. We conduct our solutions by analysis of the kinds of CEOs’ strategies and structures from 1988 to 2008. We completed our solutions by identifying the ideas and factors, which cued key areas to go awry and affect the performance of the business; discussing the key strategic initiatives implemented by the various CEOs appointed; analysis of the pros and cons of matrix structures and compare and contrast with the structures; assessing ABB’s current
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Jürgen Dorman as CEO began a strategy that gradually returned the focus of ABB to its two core strenghts of power and automation Technologies. Its goals were to increase the competitiveness of ABB´s core business, reduce overhead cost and streamline operations.

Fred Kindle as CEO would be able to focus on competing on an even keel with Siemens, GE and Alstom in the daily battle for new business. He slimmed down Sulzer further to concentrate on four disparate core divisions.

Joseph Hogan as CEO will lead to accelerated growth for ABB in Asian markets.

In our opinion, after Barnevik, the best CEO is Fred Kindle, because in spite of his experience was limited at the begining, under Kindle ABB´s financial situation improved considerably from four years of losses, the company achieved a double-figure EBIT/sales margin which it never previously achieved and net cash from operations was higher than any other time in its history.

3. Percy Barnevik laid great store in the use of a matrix structure. Discuss the pros and cons of matrix structures and compare and contrast with those of so-called product/market structures and divisional structures. What particular structure has ABB now developed and why did it take five major restructurings from October 1997 to January 2006?
The Pros Of Matrix Structures
The matrix structure is a hybrid organization of overlapping responsibilities. The structure is developed to combine geography support for

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