Supplement | HBS Case Collection | May 1992 (Revised January 2000)

ABB: Accountability Times Two (B)

by Robert L. Simons

Abstract

Describes internal allocation conflicts in a complex global company structured as a matrix organization. ABB Switzerland has secured and will build an important power station project; however, internal market allocation policies dictate that this work be handled by ABB Sweden. Transfer pricing issues are described. The president of ABB Switzerland must decide whether or not to escalate the conflict up to superiors for resolution.

Keywords: Multinational Firms and Management; Conflict Management; Complexity; Sweden; Switzerland;

Citation:

Simons, Robert L. "ABB: Accountability Times Two (B)." Harvard Business School Supplement 192-142, May 1992. (Revised January 2000.)