The Ballad of the Global Conglomerate: A Balanced Scorecard Analysis of the Corporate Culture, Structure and Strategies Between General Electric and Abb Group

The Ballad of the Global Conglomerate: A Balanced Scorecard Analysis of the Corporate Culture, Structure and Strategies between General Electric and ABB Group

Matthew Claro

Empire State College

MGT-650614

Dr. Sylwia Starnawska

April 5th, 2015

Introduction

Globalization has led the world to accentuate certain industries over traditional, geographically-oriented markets. No industry is more prevalent with this concept than general technologies. The reason for this is the new and faster methods of communication between peoples of different nationalities, cultures and market demands. Thus, companies with the capital necessary to facilitate these new methods of communication will inevitably be witness to the best competitive outlook. What we have seen with technology companies in this endeavor is the pooling of capital resources to form large conglomerates that engage in several differentiated responsibilities. This has been achieved through various alliances and global partnerships that have essentially placed such responsibilities and divisions within corporate infrastructures on a market for themselves to be purchased by firms looking to invest in new operations.

To prove this end, this paper will analyze the General Electric Corporation (GE) and Asea Brown Boveri (ABB) Group. This will be achieved by comparing and contrasting each corporation’s operational strategy. Using the balanced scorecard (BSC) method; the financial, customer, internal business and innovation and learning perspectives of GE and ABB will be highlighted. The results of this analytical method will allow the reader to understand the differences of culture between each company and how it relates to their strategies in facilitating technological improvements in a rapidly globalizing market. In turn, one will be able to comprehend the relevance of corporate culture in shaping strategic goals.

Corporate Culture and Background

General Electric

Following the invention and public installation of electrical currents for public and commercial use, The Edison General Electric Company and The Thomson-Houston Electric Company merged to form The General Electric Company. GE set out to make enhancements in electrical utility through a series of mergers, acquisitions and reorganizations of different firms specializing in various uses of electricity. As a result, GE became known as the first corporate conglomerate in history, dividing its operations amongst a network of subsidiaries and investing in what the executives perceive to be the agents of future