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Case Study

ABB (A): The Barnevik era (1988-2001)

By Paul Strebel and Nanci Govinder

15 pages

October 2003

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Reference: IMD-3-1241

This is the first case of a 4-part case series which examines the evolution of ABB under its four leaders, from the merger to 2002. The A-case describes the history of both companies–Asea AB and Brown Boveri et Cie–, the rationale for the merger, the merger process and the integration and restructuring of the company under Percy Barnevik, the first CEO of ABB. Why was the merger so successful? What were the advantages and disadvantages of Barnevik’s management system, especially the highly decentralized matrix structure? How did this structure serve ABB? At the end of 1996, Barnevik decided to step down as CEO. Who would succeed him? What were the challenges that the new CEO would face?

Keywords

Engineering

Settings

Switzerland
1988-1996

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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