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Abstract

This case discusses the strategic development of ABB from its inception in 1988 to the start of 2008. It illustrates how the company eventually achieved a global profitable presence in the vision of its first CEO, Percy Barnevik, but only after considerable strategic and operational misjudgements were corrected by several other CEOs. The case highlights the dangers of: (1) a central power culture in strategic determination; (2) the importance of organisational structure and its development to build effective communication; (3) the need to build a global presence around a narrower product / service focus; (4) the need to focus on and build a more diverse customer base and how well-meaning strategic vision; and (5) development can be affected by environmental change. The case also illustrates the importance of the emergent nature of strategic determination.
Location:
Size:
Approximately USD30 billion
Other setting(s):
1998-2008

About

Abstract

This case discusses the strategic development of ABB from its inception in 1988 to the start of 2008. It illustrates how the company eventually achieved a global profitable presence in the vision of its first CEO, Percy Barnevik, but only after considerable strategic and operational misjudgements were corrected by several other CEOs. The case highlights the dangers of: (1) a central power culture in strategic determination; (2) the importance of organisational structure and its development to build effective communication; (3) the need to build a global presence around a narrower product / service focus; (4) the need to focus on and build a more diverse customer base and how well-meaning strategic vision; and (5) development can be affected by environmental change. The case also illustrates the importance of the emergent nature of strategic determination.

Settings

Location:
Size:
Approximately USD30 billion
Other setting(s):
1998-2008

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