ABB is a multinational corporation headquartered in Zurich, Switzerland, operating in robotics and mainly in the power and automation technology areas. It ranked 143rd in Forbes Ranking (2010).
ABB is one of the largest engineering companies as well as one of the largest conglomerates in the world. ABB has operations in around 100 countries, with approximately 145,000 employees in June 2012.
At a glance
Company name : ABB (Asea Brown Boveri Ltd )
Type : publicly- traded limited company
Traded as : SIX: ABBN, NYSE: ABB, OMX: ABB, NSE: ABB, BSE: 500002
Industry : ...view middle of the document...
During 1998, it was shown that---
• The industrial production in OECD countries, in which ABB performs about 75 per cent of its total business, continues to grow, although at a slower pace than the strong growth rates of the previous year.
• Industrial production and Economic activity in Europe, Latin America, Indian, Southeast Asia is lower than the year before, but still high compared with historical levels.
The company recognizes that the world is rapidly changing and increasingly unpredictable. As a result of the ongoing economic uncertainty, overall global demand is forecast to remain soft in the near future. ABB expects to benefit with its well established local presence around the world from higher demand in various industries and world markets.
Company also recognized that- Efforts have paid off and the group has taken its opportunities in Asia and positioned itself for future growth in what is seen to be ‘the world’s most dynamic market over a long term – China’.
The interest in China is growing steadily, and companies in Japan, the Western European countries, the United States and elsewhere today view the Chinese market as having enormous potential. With a population of a billion and a growing economy, it seems to be worthwhile to gain a foothold in the market.
On the other hand, China’s new firms are proving to be very competitive, and China’s culture is quite different from that of the West. However, the Chinese market growth remains relatively good for enterprises such as Procter & Gamble, Motorola, Nestlé and ABB. This market acts as a lifeboat to many worldwide companies suffering from the financial crisis in the rest of Southeast Asia.
Chinese Culture and its influence
• Five thousand years old culture with a unique cultural heritage of philosophy, science and technology, societal structures and traditional administrative bureaucracy.
• The Chinese people aren’t respondent to other culture, values and norms.
• China is much more advance in technology than western countries like home electronics but far lag behind in social and cultural factors.
• China is a perfect zone for doing business in basic industries, specially for the companies operating business in the field of construction.
• China has to give 15 millions of new employment to her increasing population.
• The country has begun to enjoy unprecedented strategic latitude for the first time in 200 years
• China is expected to evolve into a hybrid system of authoritarianism, democracy, socialism and capitalism.
• China is indeed the largest market in the world and enjoy the highest foreign direct investment and foreign aid of any developing country.
• Long term market strategy is a must for doing business in china.
• The family is viewed as an essential social unit and there is a strong tendency to promote the collective or the group.
• Locating staff, undertaking practical market research and awareness about changes...