OB-II Case Study Analysis

BOSCH GROUP IN INDIA:

TRANSITION TO A TRANSNATIONAL ORGANIZATION

Sec-1 Group 12
The History of Bosh
Robert Bosch GmbH was founded in Stuttgart, as the "Workshop for Precision Mechanics and Electrical
Engineering" on November 15, 1886
The initial work involved constructing and installing electrical devices, telephone systems, remote
electrical water-level indicators etc.

Path to Globalization
By 2011, Global
Bosh Sales office in Revenue of 51.5
First office in London in Sales office in United South Africa, South billion euros
1898 States in 1906 America & and a global
Australia by 1922 workforce of
303,000
The Global Approach
The Global Presence
• In 2010 had more than 300
subsidiaries and regional
companies in over 60 countries.
• 292 manufacturing location, 200
out of Germany
Global Success
• 75% of its revenues generated
outside Germany
• In 2010, shares of sale: Europe -
59%, Asia- Pacific – 23%, America
– 18%
Global Workforce
• In 2008, 41% employed in
Germany, 27% rest of Europe,
18% & 14 % in Asia- Pacific &
America respectively

Research and • Automotive

Innovation
• Spends more than 3.8 billion euros for research and development
components: brakes,
electrical drives etc.
• Industrial technology
• Applied for more than 3,800 patents worldwide each year • Consumer goods :
• 34,000 employed in research and development, 16,000 outside household appliances,
Germany etc.
• Innovation from a diverse mix of creativity and expertise.
• In 2011,Bosch spent more than 4 billion euros for research and Core Products
development and applied for over 4,100 patents worldwide and Services
 Organizational Structure at Bosch
• Bosch was a small craft business that survived at
subsistence level
Phase 1 • Interaction with all employees on a personal basis
(1886-1900) • Personalized style of management
• State of the art factory for growing workforce,
Phase 2 marked the company's transition from craft to
industrial production.
(1900-1925) • Adopted a functional structure, began to
internationalize.
• Production organized around assembly line launched in
1925 that enhanced productivity.
Phase 3 Diversification and autonomy to international operations.
• Phase 6
• Seeds of a global geographic organization structure were
(1925-1960) sown
• Far-reaching reforms to its corporate structure and
constitution
Phase 4 • Diversification based on the adoption of the product
(1960-1990) divisions
• Fast growth experienced in geographies, particularly
North America.
• Opening up of the eastern European markets, efforts
Phase 5 intensified to tap foreign markets opening up in Asia
and Eastern Europe
(1990-2007) • Country or regional organization had the final authority
to make business decisions in their context.
• Verticalization achieved : Global matrix into
Transnational structure
• Operating units : Global divisions, Corporate deptt,
(2007- Regional org. & Global sales and marketing org
Present)
IMPLICATIONS OF VERTICALIZATION FOR BOSCH GROUP IN INDIA
What is Verticalization ?