ABB PBS Value Chain Analysis and Recommendations

This assignment examines the value chain processes of ABB PBS, focusing on the difficulties they face in a global market due to insufficient internal resources and management issues. The report identifies flaws within their existing value chain and proposes solutions, including enhancing their information system, providing training for business experts, establishing a refurbishment department for customer feedback analysis and product repair, and emphasizing positive customer interaction.

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student
Name of the University
Author’s Note

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Executive Summary
Maintaining the quality of products is one of the most significant objective of every business
organization. At the same time, in order to maintain organizational image and reputation the
business experts have to focus on effective value chain procedure as well so that the products can
be delivered to the proper destination systematically. This specific study has focused to evaluate
the joint venture of ABB PBS which has established their journey in 1993. The necessary
strengths and weakness within the value chain process of ABB PBS has been evaluated in this
very specific study.

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Table of Contents
1. Introduction:................................................................................................................................3
2. Value Chain Analysis of ABB PBS.............................................................................................4
Primary activities.............................................................................................................................4
2.1 Inbound logistics........................................................................................................................4
2.2 Operations..................................................................................................................................5
2.3 Outbound logistics.....................................................................................................................5
2.4 Marketing and sales...................................................................................................................6
2.5 Service.......................................................................................................................................6
Support activities.............................................................................................................................6
2.6 Procurement...............................................................................................................................6
2.7 Technology development...........................................................................................................7
2.8 Human resource management....................................................................................................7
2.9 Firm infrastructure.....................................................................................................................7
3. Recommendation:........................................................................................................................8
4. Conclusion:..................................................................................................................................8
Reference List:...............................................................................................................................10

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1. Introduction:
ABB PBS entered in the market as a joint venture from 1993 of 15th April. ABB as a joint
venture has 67% of stake and PBS is having 33%. At the very first two years of their journey as a
joint venture ABB PBS has made a good start by providing effective services. The primary
product lines with which ABB PBS is surrounded include power plants, boilers, turbines and
other external services. However, while maintaining the entire business process systematically
ABB PBS has faced some of the major challenges for maintaining business sustainability. This
specific study focuses to make an in-depth overview on how ABB PBS had to face difficulties
for controlling the entire management process as well as their entire value chain system after the
joint venture.
2. Value Chain Analysis of ABB PBS
Value chain is the systematic process of evaluating the primary activities that ABB PBS
should consider in order to reach the competitive advantages (Myerson, 2012). As per the case
scenario, it has been observed that ABB PBS has faced numerous management issues while
running the entire process of business. This specific part has provided detailed overview about
the primary as well as support activities of ABB PBS while maintaining value chain system.
Primary activities
2.1 Inbound logistics
Inbound logistics is the systematic procedure of receiving, storing and distributing the
inputs internally. The products lines that this particular organization tends to store and receive

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include power plants, different boilers such as coal, gas and fluidized beds and so on. In addition,
the organization tends to restore thermal power plants, flue glass cleaning ash and so on. The
department of quality assurance of ABB PBS controls the entire inbound system. One of the
most significant strength that ABB PBS is having within the logistic control system includes the
presence of quality assurance department before dispatching a particular product to the proper
destination (Prajogo & Olhager, 2012). On the other hand, case scenario depicts that ABB PBS
has not recruited sufficient number of employees within information system so that the entire
process of strong and distributing can be handled systematically.
2.2 Operations
Operation is the entire transformation activities that a particular business organization has
to follow from manufacturing the products to its ultimate delivery. Supple management
department, quality assurance and information system are primarily involved for keeping a
constant control over entire operation process of ABB PBS. At the same time, it has been
observed that ABB PBS has faced two major management issues on two primary areas including
human capital transformation and maintaining relationship with other ABB companies. Due to
the lack of sufficient internal resources the parent organization failed to supply sufficient
resource to the sister companies (Govindan, Soleimani & Kannan, 2015). As a result, the entire
process of business felt innumerable difficulties in maintaining business sustainability.
2.3 Outbound logistics
The primary responsibility of supply chain management is to deliver the product to
proper destination. The implementation of technological development within the business
process of ABB PBS has not been conducted properly. As a result, the customers had to wait for

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a long time in order to receive the products and service within stipulated time. This particular
factors leave as a major negative impact in maintaining the organizational image and reputation.
At the same time, it is undeniable that in 1995 ABB PBS has achieved 50% increase for labor
productivity (Gereffi & Fernandez-Stark, 2016). However, with the current trend of business
ABB PBS should render technological advancement for receiving the entire product within the
given deadline.
2.4 Marketing and sales
Providing quality of products and services is not the only primary mission of a particular
company. In order to introduce the brand in different multinational countries a particular
business organization with the help of marketing and sales department should make effective
promotional activities (Soosay, Fearne & Dent, 2012). As a result the international customers
would show their interest in getting an in-depth overview about the products. In this specific case
scenario it has been observed that ABB PBS has not taken effective initiatives in promoting their
products and service by utilizing the popularity of media. Therefore, ABB PBS has to face
difficulties in gaining international image and reputation.
2.5 Service
Along with maintaining the quality of products the business organizations have to
provide superior quality of service process as well for maintaining organizational image and
reputation (Rai et al., 2012). This specific study has focused to make an in-depth overview on
how ABB PBS failed to deliver the products to the destination of customers due to management
issues as well as issues associated with entire information system.

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Support activities
2.6 Procurement
Procurement is the initiative that a business organization takes to get and maintain its
organizational resources. In order to maintain the internal resources ABB PBS has focused to
create a specific hierarchy within the organization in the entire logistic department.
2.7 Technology development
As already stated ABB PBS needs to render an effective technological development for
making the entire operation process faster (Gligor & Holcomb, 2012). In addition, Richard Kuba
should take an initiative of appointing efficient trainers for developing the technological skill of
employees as well for maintaining the entire value chain process systematically.
2.8 Human resource management
The primary role of human resource managers of ABB PBS in maintaining a joint
venture is to give equal priority and response to every individual employee for appointing within
the business process (Shabani, Akhtari & Sowlati, 2013). In addition, the human resource
managers intends to measure the entire performance level of the employees as well.
2.9 Firm infrastructure
As per the infrastructure of ABB PBS has joint stake in forming the entire process of
business. PBS has afforded around 4000 employees within the chain in order to provide effective
services (Gereffi & Sturgeon, 2013). The entire organization is constituted with several
departments including quality assurance, human resources, finance and accounting, information

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system, sales and marketing supply chain management and so on. After evaluating the entire case
scenario it has been identified that ABB PBS should increase workforce strength within quality
assurance and information system department for maintaining business rhythmic flow.
3. Recommendation:
After evaluating the entire value chain procedure maintained by ABB PBS some of the
most effective recommendations can be provided in this specific study. The recommendations
are as follows:
 Rendering improvement in information system is one of the most significant initiatives that
ABB PBS should follow for improving their entire logistic procedure. On the other hand, the
organization can provide an effective training to the business experts as well in order to
develop their technological skill. Automatically the entire services will be delivered within
time
 ABB PBS can form a refurbishment department within the quality assurance system. The
primary responsibility of this particular department would be making an in-depth analysis
about the products returned or complained by the customers. The organization after receiving
the customers’ complaints should take an initiative of repairing the entire product within time
so that the customers do not show their level of dissatisfaction after receiving a defective
product. Therefore, customers’ feedback and complaints should be taken positively so that
they do not show any kind of dissatisfaction.

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4. Conclusion:
This specific study has provided a deep insight on how ABB PBS has to face
innumerable difficulties in maintaining the entire process of joint venture in the global market
due to the lack of insufficient internal resources and management issue. After evaluating the
entire case study, the report has focused to make the value chain process that ABB PBS tends to
follow for running their business. Different flaws within the value chain process have also been
highlighted in the very specific study.

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Reference List:
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: a primer.
Gereffi, G., & Sturgeon, T. (2013). Global value chain-oriented industrial policy: the role of
emerging economies. Global value chains in a changing world.
Gligor, D. M., & Holcomb, M. C. (2012). Understanding the role of logistics capabilities in
achieving supply chain agility: a systematic literature review. Supply Chain
Management: An International Journal, 17(4), 438-453.
Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply
chain: A comprehensive review to explore the future. European Journal of Operational
Research, 240(3), 603-626.
Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw-Hill.
Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration. International Journal of Production Economics, 135(1), 514-522.
Rai, A., Pavlou, P. A., Im, G., & Du, S. (2012). Interfirm IT capability profiles and
communications for cocreating relational value: evidence from the logistics industry. MIS
quarterly, 36(1), 233-262.

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Shabani, N., Akhtari, S., & Sowlati, T. (2013). Value chain optimization of forest biomass for
bioenergy production: a review. Renewable and Sustainable Energy Reviews, 23, 299-
311.
Soosay, C., Fearne, A., & Dent, B. (2012). Sustainable value chain analysis–a case study of
Oxford Landing from “vine to dine”. Supply Chain Management: An International
Journal, 17(1), 68-77.