Abstract

The case discusses the organizational 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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Restructuring exercise implemented by ABB India to resolve organizational problems.

Keywords

Case, ABB India, Restructuring Plan, Organizational Problems, Cost Cutting, Channel Partners, Work Culture, Performance based Compensation System, Growth Strategy and Corporate Revivals