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Abb Relay Business: Building and Managing Global Matrix

Decent Essays

n the case study titled “ABB’s Relay Business: Building and Managing a Global Matrix”, the author attempted an examination of the success and challenges that occurred as a result of the decision to merge two medium scale telecommunications companies - Asea and Brown Boveri. The merger was necessitated by the depression in the utility equipment market. As a result of this, the chairmen of both companies met and decided it was in the best interest of the two companies to come together in forming an allegiance that will place them in a position where they can operate on a global scale. The merger was completed in 1987 when Asea Brown Boveri was birthed and the former chairman of Asea chosen to be the leader of the transition process.

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Also, there was the problem of meeting set deadlines and participating in the company’s amalgamation processes that appears to be time consuming.

In solving these problems, my recommendations are as follows; that role of the central management body should be totally separated from that of the national management body. This can be done by clearly stating the extent of power and responsibility of the two positions. Also, companies that are involved in the same kind of production should ensure that they exchange ideas and technologies in order to maximize output. In this sort of situation, there should be a system that encourages the proper relations between companies that are involved in the same kind of production. Staffs may be occasionally transferred from one company to the other to help buffer the expertise that is lacking in the other company. Finally, the role of the central body should be reduced to a supervisory role in order to ensure faster decision making. Managers of companies should be left with the sole responsibility of making decisions. They should also be given the power to take matters in their hands if they perceive that the BA is taking more time than

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