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Supplement

Reference no. 9-393-131

Subject category: Strategy and General Management

Authors: Hugo ER Uyterhoeven (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1993

Version: 25 September 1996

Length: 8 pages

Data source: Field research

Topics: Business policies; Multinational corporations; Subsidiaries; Leadership styles; International business; Organizational restructuring; Decision making; Sales and marketing; Risk management

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Abstract

Focuses in detail on implementing a corporate restructuring program in ABB's German subsidiary. Special attention is given to Germany's unique form of industrial governance. Two major problem areas - power plants and power transformers - are described in detail, as is a decentralization proposal for the German sales operation. How should the head of ABB Germany proceed? Why did he take this job? What choices did he make? What challenges does he face, particularly as a newcomer? Why are power plants and power transformers in deep trouble and what action can be taken? Does decentralization of the sales force make sense? What are the challenges, opportunities, and risks facing ABB's Germany country head? Will the new international matrix be a help or a hindrance?

Location:

Germany

Industries:

Electronics manufacturing; Energy and natural resources sector

Size:

Large, 36,000 employees, USD3.5 billion revenues

Other setting(s):

1988