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Creating strategy for company
Pages 4 (1004 words)
Creating strategy for company: ABB case study Introduction Engineering conglomerate ABB, from its name itself is just among of the diverse and complex organizations that need to be managed the right way. In this paper, the proponent tries to identify the key strategic issues that ABB is facing…
Acquisition-led growth strategy This is one of the major strategic issues stated in the case which was said to be suited in a widely globalizing market. Prior to digging on this issue further, let us examine first other important strategic issues. ABB tried to adapt certain capacity to be global in coverage and this resulted to its strategic move to optimize resources in order to have competitive edge in cost leadership. For instance, the company tried to improve its economies of scale and scope by specializing in the production of major product’s components around the world. Not only that, ABB also tried to come up with feasible cost saving measures such as component outsourcing and overhead cuts. Based on the idea of Levitt (1984) on globalization, the idea of ABB to go global is therefore a matter of necessity. The very reason is the fact that in globalization, there is an attempt on the part of an organization to come up with goods of the best quality and reliability yet at the lowest price possible in order to compete. This is the very reason why ABB needs to consider two important dimensions in its structure: products and region just prior to be highly competitive in the global setting. ...
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