presentation on abb_pbs joint venture
TRANSCRIPT
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Technological Environment[ABB-PBS Joint Venture Operations]
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What is Technological Environment ?
External factors in technology that impact business operations.
That part of the firm's external environment in which changes in
technology affect the firm's marketing effort
Consists of those factors related to knowledge applied and material
and machines used in the production of goods.
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Features of Technology
Its change and then more change, forces change on people whether they areprepared for it or not
Its effects are widespread, reaching far beyond the immediate point oftechnological impact.
Technology is self reinforcing, Technology feeds on itself. Technology makes more
technology possible
Technology is complete set of knowledge, ideas and methods
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Impact of Technology
Impact on Society
Impact on Economy
Impact on Firm
Technology has its impact through various dimensions;
High expectations of consumers
System Complexity
Social Change
Increase in Productivity
Increased Budget on research & development
Jobs become intellectual
Product Differentiation
Change in Organisation Structure
Risk Factor
Resistance to change
E-Commerce
Telecommunication
New Markets
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Modes of Technology Acquisition
Internal Acquisition
External Acquisition
Licensing.
Purchasing
Joint Venture
Acquisition of technology of rich firm
Combined source
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Benefits of Joint Venture
Provide the opportunity to obtain new capacity and proficiency.
Makes new geographical markets accessible to the company.
Because of its short life span, do not represent a long term commitment.
Offer a creative way to exit from non-core businesses
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Case Study: ABB-PBS Joint venture in operations
ABB-PBS Joint Venture started operations in April 15,1993
ABB had a 67% stake and PBS had a 33% stake.
Started external service business in1995 which did not meet
expectations.
Business of joint venture in its first two years was good in mostaspects
2.3% increase in return of assets and 4.5% on sales. Also showed 12%
increase in exports
Dominated the boiler business in 1995 with 70% market share.
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Case Study: ABB-PBS Joint venture in operations
Market Share was hit due to change in environmental laws.
With Joint efforts of the concern the restructuring took place in plant
logistics , information systems and other physical capital improvements.
Resulted in 50% increase in labor productivity.
The technology leadership was not realized because due to the lack of
corporate intent and loss of efficient staff.
Major achievement of the concern was development of new steam
turbine line . This technology transfer helped in establishing the
benchmark for other ABB companies on variables like
productivity, inventory and receivables
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Case Analysis
The joint venture met the needs of both the partners in:
Labor Productivity.
Profitability due to return on sales & assets
Exports
Development of new engine
The joint venture failed in:
Technology Leadership
External Service and Revenue Performance.
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The company failed in achieving technological leadership
Due to lack of Corporate intent
Due to lack of talent management
inefficient human resource management
Flourishing of domestic business
Lessons drawn from this incident
Presence of corporate intent and exceeding in it.
Case Analysis
Company should focus on knowledge management and talent retention
management.
Company should be ready to adapt to the technological change.
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