Bosch
The Bosch Group
The Bosch Group is a leading global supplier of technology and services. It is focused on several business areas, including mobility solutions (including vehicle components); industrial technology; consumer goods; and energy and building technology.
China is a key manufacturing and applications engineering location where the company employs in excess of 55,000 staff — the largest Bosch workforce outside of Germany.
Changes to the global business environment, particularly in the areas of clean energy and the shift to electric vehicles, present a number of strategic challenges and opportunities for the company. And China, as a key member of the business’s supply chain, plays an important part in the way that the global organisation responds.
The International strategic problems:
The company faced many problems regarding the performance of their North America regional office, the company faced following problems:
- Region became weak
- The international issue was North America performance was not good.
- Previously, Bosch Group in India was the only one country head, which resolved the problems efficiently. Which led to the conflicts and long delay in the simple issues
- Multiple reporting within India and outside
The director said that the poor performance of North America is because of no support from the business division, which was the headquarters in Europe. Business divisions are supposed to support the units when needed. Through the analysis of the situation, Bosch decided to make a Global Business unit, which will be responsible for all its businesses that operate across the world.
The International Strategy Archetypes:
The changes in the global organization have implications for their Indian operation. The director of Bosch has a responsibility to run the business in India, indentify the growth of global business units and make strategies to achieve business growth.
The director identified that the performance of Indian operation was quite good. There was no need of changes. However, whenever changes are made on a global level, they will have an effect on them. Since the performance of the North America was poor, the management implemented a verticalization processes which provide several opportunities so that the company can perform better, this was also implemented in India. Verticalization process in India started in 2007.
The effects of verticalization structure change in North America’s depended on the economy of the region.
Following are some conditions that led to improvement in the performance after implementation of verticalization process in India. CEO believed that it would be also an effective process to implement in North America:
Greater visibility for smaller division:
Before the verticalization process, smaller divisions were neglected. However, after the verticalization; smaller divisions are getting more attention of the manger, as these small divisions have more customers and employees
New career opportunities:
The new organizational structure creates new career opportunities for people who live in India. Previously there were limited career opportunities, but after verticalization process new career opportunities will indirectly effect the economy of the country…………..
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution
The International Strategy Archetypes:
The changes in the global organization have implications for their Indian operation. The director of Bosch has a responsibility to run the business in India, indentify the growth of global business units and make strategies to achieve business growth.
The director identified that the performance of Indian operation was quite good. There was no need of changes. However, whenever changes are made on a global level, they will have an effect on them. Since the performance of the North America was poor, the management implemented a verticalization processes which provide several opportunities so that the company can perform better, this was also implemented in India. Verticalization process in India started in 2007.
The effects of verticalization structure change in North America’s depended on the economy of the region.
Following are some conditions that led to improvement in the performance after implementation of verticalization process in India. CEO believed that it would be also an effective process to implement in North America:
Greater visibility for smaller division:
Before the verticalization process, smaller divisions were neglected. However, after the verticalization; smaller divisions are getting more attention of the manger, as these small divisions have more customers and employees
New career opportunities:
The new organizational structure creates new career opportunities for people who live in India. Previously there were limited career opportunities, but after verticalization process new career opportunities will indirectly effect the economy of the country…………..
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution
Insights we gained from the program
Our observations and insights from developing and running the program included:
- The need to structure online programs differently to those that are run face-to-face. Rather than accept a lower level of engagement from staff because of the virtual (online) format, we were able to design a program with increased flexibility, variety and engagement from participants
- A recognition that the “parenting”stye of headquarters in global businesses is critical. Instead of seeking to continuously align and control the activities of divisions in different markets, it is significantly more productive to focus on the benefits of the diversity in thinking between the operating units — and then to share the key learnings across the whole business
- Some of the legacy practices embedded into the operating philosophy of large global businesses are often based on previous “best practice” approaches. These are sometimes out of sync with the non-linear way in which fast-paced markets develop. As we observed, it makes little sense to apply linear thinking in a world that is changing at a logarithmic rate
- By using scenario thinking, teams are often confronted with a particularly unattractive future scenario. By applying their minds to these unattractive (and undesirable) scenarios, some of the most innovative and breakthrough solutions can emerge..
Collaborative Solutions
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Robin
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Bosch
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