General Electric- The New Structure
2015: Until 2014 GE was defying any theoretical tenets of organizational structures. It was a conglomerate with a huge range of businesses. Its divisions included on one side industrial fields as e.g. aviation, power and water, transportation and on the other side services, e.g. financial services, lending and leasing, media, entertainment and others – indeed very divers business fields. Since this big conglomerate company seemed to be very successful, questions were even raised on how good theory actually was.
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Allianz is realizing it has very many, too many, different products. This is true for most branches, e.g. in Legal Protection Insurance there are ca. 60 different products and even in its high revenue property-casualty portfolio are too many different products. Increasing the number of different products in an organization however are a cause for higher costs. This theoretical organizational principle is to be seen currently in Allianz in reality. Continue reading “Allianz Insurance Product Redesign”
Swiss Technology Company
January 2020: ABB is since 1988 the merged company of the former Swedish ASEA and the Swiss BBC. It was a company with a wide range of production sites and customers in countries all over the world. The first CEO was Percy Barnevik (1987 – 1996). To guarantee optimal decisions regarding production and customer usefulness Barnevik introduced the matrix organization.
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In 2013 ThyssenKrupp had introduced the matrix management system. Product line- and country-management were to decide jointly on all important manufacturing and customer issues. However it didn’t help solving the grave problems ThyssenKrupp had. A grave disadvantage in the matrix system however is the long time for decision processes. Continue reading “Thyssen-Krupp – Corporate Organization”
Siemens 2019: The recent history of the changes of the Siemens corporate structure clearly demonstrates the general problem large companies face in regard to their allover portfolio: Continue reading “Siemens Corporation”
August 2019: “Management may be overstrained by too many products in one organization”. That’s theory. The supervisory board of Volkswagen found that’s the case and decided to change the all over organization. Three divisions – or product lines – were established in car business: Continue reading “Volkswagen Change of Organization Structure”
Jan 2019: MAN and Scania are two separate subsidiaries of the VW-corporation since quite some time. When acquiring VW thought truck business is resembling car business which would be advantageous for VW as well as for MAN and Scania. However before getting the full amount of profit VW saw it had to accomplish the task of coordinating the production processes of the two truck companies – starting with research and development and procurement. VW as the holding company believed monitoring and coordinating could be done in conceivable time.
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In 2020 Continental will have three divisions:
1 – Continental Automotive, 2 – Continental Rubber, 3 – Powertrain
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The Powertrain division will be fully spinned off and become the listed stock company Vitesco Technologies in 2020.