ABB Deutschland (Abridged)

Case Solution

Christopher A. Bartlett
Harvard Business School ()

It focuses in detail on the implementation of a corporate restructuring program at ABB’s German subsidiary. Particular attention is paid to Germany’s unique form of industrial governance. Two main problem areas, power plants and power transformers, are described in detail. ABB’s new financial policies, organization, behavior and objectives are introduced. How should the director of ABB Germany proceed? Will ABB’s new policy clash with national German and BBC corporate culture? Why are power plants and power transformers having great difficulties and what measures can be taken? Does decentralization of sales make sense? What challenges, opportunities and risks does ABB’s country manager for Germany face? Will the new international matrix be a help or an obstacle?

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