The Restructuring of ABB India
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Case Code: BSTR143 Case Length: 12 Pages Period: 1998-2004 Pub Date: 2005 Teaching Note: Not Available |
Price: Rs.400 Organization: ABB Industry: Heavy Engineering Countries: India Themes: Corporate Restructuring |
Abstract Case Intro 1 Case Intro 2 Excerpts
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.
Issues
The case is structured to achieve the following teaching objectives:
- Understand the organizational problems faced by ABB India in the late 1990s
- Examine the restructuring exercise implemented by ABB India to revive its financial performance
- Critically analyze the strategies adopted by Ravi Uppal to enable the makeover of ABB India
- Chart a growth strategy for ABB India in the near future
Contents
Keywords
ABB India, Restructuring Plan, Organizational Problems, Cost Cutting, Channel Partners, Work Culture, Performance based Compensation System, Growth Strategy and Corporate Revivals
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