Strategic Management for ABB Ltd.

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STRATEGIC MANAGEMENT
Strategic Management Department: Leadership and Management
ABB Ltd.

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STRATEGIC MANAGEMENT
Table of Contents
Introduction.................................................................................................................................................4
About ABB..............................................................................................................................................4
Purpose of the work.....................................................................................................................................4
Strategic challenge......................................................................................................................................5
Mission, goals and objectives statements....................................................................................................5
Mission....................................................................................................................................................5
New mission statement............................................................................................................................6
Vision..........................................................................................................................................................6
Objectives....................................................................................................................................................6
PESTLE.......................................................................................................................................................7
P- POLITICAL FACTOR.......................................................................................................................7
E- ECONOMIC FACTOR......................................................................................................................7
S- SOCIAL FACTOR.............................................................................................................................8
T- TECHNOLOGICAL FACTOR..........................................................................................................8
E- ENVIRONMENTAL FACTOR.........................................................................................................8
L- LEGAL FACTORS............................................................................................................................9
FIVE FORCES MODEL.............................................................................................................................9
THREATS OF NEW ENTRANTS.........................................................................................................9
BARGAINING POWER OF SUPPLIERS..............................................................................................9
BARGAINING POWER OF BUYERS................................................................................................10
THREATS OF SUBSTITUTE PRODUCTS AND SERVICES............................................................10
RIVALRY AMONG THE EXISTING COMPETITORS.....................................................................10
CAPABILITIES THAT LINK TO CRITICAL SUCCESS FACTORS IN THE INDUSTRY..................10
VRIO ANALYSIS....................................................................................................................................12
V- VALUE............................................................................................................................................12
R- RARITY...........................................................................................................................................13
I-IMITABILITY....................................................................................................................................13

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STRATEGIC MANAGEMENT
O- ORGANIZATION............................................................................................................................14
SWOT ANALYSIS FOR ABB LTD...................................................................................................................15
Strengths...............................................................................................................................................15
Weakness..............................................................................................................................................15
Opportunities........................................................................................................................................15
Threats...................................................................................................................................................15
TOWS ANALYSIS FOR ABB LTD.........................................................................................................16
S-O STRATEGIES;...................................................................................................................................17
S-T STRATEGIES;...................................................................................................................................17
SAF STRATEGY EVALUATION...........................................................................................................17
S- SUITABILITY..................................................................................................................................17
A-ACCEPTABILITY............................................................................................................................18
F- FEASIBILITY..................................................................................................................................18
REFERENCES..........................................................................................................................................19

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Introduction
About ABB
ABB is a public traded limited company which deals in heavy electrical equipment,
robotics, and automation technology and power areas. The company was formed by the merger
of ASEA (which is Swedish company) and Brown, Boveri & Cie (which is a Swiss company) in
the year 1988. Headquarter of the company is located in Zürich, Switzerland. It is the largest
builder of electricity grids in the world (Birkinshaw, et. al., 2007). The matrix structure is
followed by ABB. The company is having four production divisions i.e. electrification products,
robotics and motion, industrial automation and power grids and one corporate division. The
company has the history of innovation of more than 130 years; it is currently focusing on the
future of industrial digitalization. There exist two main objectives of the company, the first is to
transfer the electricity from any power plant to any plug, and the second one is to bring the
automation in the industries from the natural resources to the final products. The company is
providing their services in more than 100 countries in the world. They are the world leader in the
digital technologies. The company has installed more than 70,000 controlling systems that are
connecting more than 70 million devices. The company believes in bringing the continuous
innovation in their products, services, and systems so that they increase the efficiency,
productivity, and reliability for their customers.
Purpose of the work
The purpose of this work is to understand the nature of strategic management and its
competitive and institutional context. To understand that how the strategic analysis and the
formulation contribute to the performance of the organizations. The main purpose of this report