Abb: the Company That Grew Too Big, Too Fast and the Organizational Structure and Strategy Changes to Address the Issues

2. Evaluate Gordon Biersch's organizational alternatives to realize its growth ambitions. Recommend a course to follow?

Strategy & Key Success Factors: Birch Paper (BP) company is structured in such a way that it is decentralized, and each division acts as a profit centre. Furthermore, it uses vertical integration with examples such as Timberland division supplying pulp, and the Thompson Division (TD) providing printing and colouring. This strategy, which composes of decentralization along with the design of profit centres indicates a profit maximization strategy, which involves keeping costs low through obtaining multiple bids. This strategy is reliant on several key success factors: goal congruence among all divisions. Although managers from each division have the right to choose

The BCG Matrix composes organizations along two measurements—business development rate and market share. Business development rate relates to how quickly the whole business is expanding. Market share characterizes whether a specialty unit has a bigger or littler share than competitors.The question mark exists in another, quickly developing industry, however has just a little market share. The question mark status in the BCG matrix is dangerous: It could turn into a star, or it could come up short. ConocoPhillips has needed to carve its capital venture through the downturn, going from $17 billion in 2014, to $10 billion in 2015, at last arriving at $5 billion this year. “That’s the amount of transformation you had to make in this

Analysis: When it comes to the tech industry, international boarders have a huge impact on the growth of technology and the firms that develop and produce it. Technology’s rapid growth is all thanks to companies being wide spread internationally and

This academic paper will be exploring the key term, joint ventures. This concept is of interest because in today’s business environment due to the economy downfall, many organizations recourse to this strategy in order to easily infiltrate in a foreign market. Companies are seeking more opportunities to expand their market share and a joint venture is an attractive option to do so. Getting involved with a foreign market come with several obstacles and challenges. It is for the same reason that organizations engage in a joint venture whit a partner that knows and understand the culture and preferences of that specific nation.

However, ‘In today’s global market, if global and local organizations cannot collaborate, they will not succeed’. (Tasoluk, Yaprak, Calantone, 2006). This was precisely the problem that plagued BRL Hardy and why they had difficulties in implementing their global strategy.

Because this is a complex organization with sophisticated management practices, in MBA classrooms it may be necessary to spend some time in the early discussion ensuring that there is a clear understanding of the ABB’s matrix structure and the management roles and relationships in the relays business. In executive education programs, participants are more likely to have had experience in such subtle organization processes, and the instructor can move more quickly from the basic diagnosis to the more evaluative and reflective discussion. Executives will be interested to discuss issues like what makes this global matrix work when so many others have failed, and what value is being created in return for the substantial operating cost such

The Boston Consulting Group (BCG) Matrix is a planning tool used by senior management or corporate level members of the company to determine what priorities should be given to the product portfolios of the company’s profit centers or strategic business units. The findings of the growth share matrix thus helps a company to decide which product offerings to invest in, keep or sell as well as assisting companies to determine the best strategies to use to achieve its goals.

The basic advantage of the matrix structure is that it facilitates to the changing market and technical requirements. “The matrix combines a vertical structure with an equally strong horizontal overlay.” (N Anand & Richard L Daft 2007) The horizontal structure provides coordination while the vertical structure operating as silos provides traditional control within functional departments. The shifting emphasis from flat organisation to matrix organisation has reshaped the roles of Thinc directors. The biggest difference has been having direct control over resource utilisation and profit margin to achieve the target. An employment survey done in 2015 which showed 52% of employees didn’t know how individual roles fit into organisation goals. (Refer Table 2 Turner & Townsend Thinc Employment Survey Result 2015, point

When you think of Harley-Davidson, you think of an all-American male riding on the open roads of the United States. It is an iconic American brand and well known to exude confidence and “cool”. However, with a vibrant history in the American culture, Harley-Davidson soon reached a point where they needed to expand their company. They needed to globalize their version of “American adventure” and sell that to the rest of the world, and they were able to do so by insourcing, outsourcing, exporting, and global sourcing. “International business is done by global sourcing, import/export, licensing, and franchising” (Schemerhorn). By encompassing all of these details into their financial plans, Harley-Davidson was able to encompass globalization.

For example, a matrix structure works well when there are numerous customers with unique needs and demands, as well as serious requirements for technical expertise. Second, a matrix structure is fitting when the organization must process a large amount of information. This is specifically true for those organizations that produce a wide range of products or services, or offer those outputs to a substantial number of markets. It is also true for organizations that operate in a fast paced, constantly changing, unpredictable environment. Finally, there must be demands for shared resources. When customer needs differ greatly and technological requirements are stringent, precious human and physical resources are likely to be limited. The matrix structure works well under these conditions because it assists in the sharing of scarce resources. If any one of the abovementioned conditions is not met, a matrix organization will probably fail.

The core values included quality not only in products but also in the organizational processes and relationships. The management emphasized on dedication to productivity and performance at all levels of the organization. The structure implemented was well in line with the overall strategy of the organization. With rapid acquisitions after the merger ABB grew bigger, spreading its operations throughout the world. The matrix structure, therefore, provided a platform for ABB to absorb the acquired companies and made implementation of its strategies in them easier.

Relatively, Global product (divisional) structure is a selective structure based on product lines. The company with this structure use diversifying technology to supply different product lines and services. With this kind of distribution, single product lines will be displayed by separate divisions. A single general manager who have the responsibility for their own production and sales functions. Every division is called ““a Strategic Business

Structure defines the formal relationship and usage of people to accomplish all of an organization’s activities (5). Mercedes Benz is well-organized when it comes down to making sure all organizational activities and jobs are accomplished. It follows a matrix structure, which is a connection of one type of organization to another so that two chains of command are directing individual employees. Figure 1.1.shows the main operating companies and how their structure works. The reason why they follow this structure is because they require large numbers of technical people with different skills to work in projects as a team. Mercedes works as a pyramid with top managers on top, middle managers, human resources, finances, marketing, sales etc. Every department has specific jobs and task to follow, Corporate Communications/Public Relations job is to manage public relations and internal communications to retailers, to foster a positive news-media environment for MBUSA, Mercedes Benz, smart USA and Sprinter products, and smart USA and Sprinter retailers, by cultivating relationships with key stakeholders and maintaining a positive media image. In the customer service department Whenever Mercedes Benz owners are in need, customer service is there, 24 hours a day and seven days a week, to answer their questions, provide solutions to problems, and offer technical and roadside assistance. Their employees are trained professionals who also support the dealer network by helping them

 Rapid growth: From a small company To a group of 6 companies in Sweden, Latvia and Brazil.