The Key Strategic Issues That ABB Company Is Facing Coursework

The Key Strategic Issues That ABB Company Is Facing - Coursework Example This research tells that in today’s world, global organizations and companies are changing day by day due to the ever-increasing world changes across all sectors. This has led to the emergence of different strategies of doing business by different companies. Based on researches carried out on various case studies including ABB, key strategic issues ought to be addressed in order for companies to overcome the difficulties and problems they face. According to De Wit and Meyer, the concept of mergers and acquisitions (M& A’s) has been seen as the way out to the globalization of economies. Globalization of economies is identified as a key strategic issue faced by ABB given that Companies are competing more and more in relation to costs of raw materials, operational costs, cost of labor and technological advancements. Concern on competitive advantage by ABB like other companies is used for testing better and effective strategies to counter increased competition in the market . Although it has led to improved and better performance in ABB, other companies have been faced with difficulties resulting in financial crisis hence closures. High rates of competition have presented companies to external as well as internal economic forces. Moreover, clients have experienced low-quality service and product delivery due to the use of poor management strategies. Financial crisis resulting from a competitive advantage on other hand has catapulted competition forces between market segments. All together management strategies and associates impact general economic growth and development to national economies. The aspect of inside-out strategy has enabled companies like ABB to create the organizations newly through mergers or acquisitions. Also, capability building through strategic management provides appropriate market opportunities to companies. Therefore, economic sustainable growth and development become an issue in relation to management strategies. Using the bri efings that you have prepared for the tutorials apply the key points from your briefings to the case study ABB case study presents globalization as argued by Haberberg and Rieple, referring it as whereby global economies, societies, and cultures practice economic integration id different perspectives. Companies have embarked on forming global networks in the name of attaining development goals in major sectors of transport, trade and communications. Based on the ABB case, internationalization is identified as a significant factor in the development, management and growth of the business. Globalization faces criticisms from the negative perspective of its resultant activities. it is argued that the concept has led to the increased disparity between the rich economies and the developing poor nations. According to the researches carried out, this has contributed to increased global competition between companies. The field of electrical and management within relevant organizations such as ABB are not left out in the consideration of planning strategy towards standardization. Thus, poor and developing economies continue to experience difficulties at the expense of the developed ones in the name of globalization.