Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
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Abstract
The case discusses the organisational problems faced by ABB India, a subsidiary of ABB Group, the Swiss-Swedish electrical engineering conglomerate, in the late 1990s, which significantly affected its financial performance. It examines the restructuring exercise initiated by Ravi Uppal, the new Managing Director of the company. The restructuring mainly focused on changing the work culture, overcoming beauracracy, introducing performance-based compensation system, increasing the number of channel partners, cost-cutting and thrust on exports and services. The case then describes the benefits of the restructuring exercise and the challenges for ABB India in the near future.
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Abstract
The case discusses the organisational problems faced by ABB India, a subsidiary of ABB Group, the Swiss-Swedish electrical engineering conglomerate, in the late 1990s, which significantly affected its financial performance. It examines the restructuring exercise initiated by Ravi Uppal, the new Managing Director of the company. The restructuring mainly focused on changing the work culture, overcoming beauracracy, introducing performance-based compensation system, increasing the number of channel partners, cost-cutting and thrust on exports and services. The case then describes the benefits of the restructuring exercise and the challenges for ABB India in the near future.