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Compact case
Supplement
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Reference no. 9-192-142
Published by: Harvard Business Publishing
Originally published in: 1992
Version: 11 January 2000

Abstract

Describes internal allocation conflicts in a complex global company structured as a matrix organization. ABB Switzerland has secured and will build an important power station project; however, internal market allocation policies dictate that this work be handled by ABB Sweden. Transfer pricing issues are described. The president of ABB Switzerland must decide whether or not to escalate the conflict up to superiors for resolution.
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Abstract

Describes internal allocation conflicts in a complex global company structured as a matrix organization. ABB Switzerland has secured and will build an important power station project; however, internal market allocation policies dictate that this work be handled by ABB Sweden. Transfer pricing issues are described. The president of ABB Switzerland must decide whether or not to escalate the conflict up to superiors for resolution.

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