Bosch Group in India: Transition to the interpersonal organization Harvard Case Solution & Analysis

Bosch Group in India: Transition to the interpersonal organization Case Solution

Introduction:

Bosch group was one of the leading suppliers of technology, services, IT, and business services. The founder Robert Bosch spent 10 years working around the world. Initial capital was exhausted and he had to take more loan from banks, since the company was earning very little to sustain the business. However, he repaid all his debt after nine years after, which the business started improving.

 After some years, he decided to expand their business in international markets; in 1906, he established Bosch’s first foreign sales office in London and United states. In 1922, Bosch sales started in South Africa, South America and Australia. Bosch spent more than 4 billion Euros in Research & development. The success of these approaches can be examined by success of Bosch in each year. Robert Bosch Chassis system India ltd. (RBIC) was the 100% own subsidiary of the Bosch group, which was established in India in 1982.

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:

  1. 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

  1. 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..............

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