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A Case Study of Bcc

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Submitted By skyzyq1987
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The international BCC Corporation, one of the world’s largest corporations, was formed in 1987 by a merger of two national electro-technical companies, the first step in an attempt to restructure a traditionally conservative and nationally based engineering industry into a fully international industry. From this Western base, the group has grown by ‘going East’, investing in and acquiring new companies in Eastern Europe, Russia, South-east Asia and China. The group has attempted to achieve both global scale and decentralised local presence, with component businesses divided into several thousand profit centres, with remarkably few corporate managers at the top, or at Headquarters. English is the designated company language. A strategy of mergers and acquisitions in order to achieve market leadership and, in selected markets, global dominance, has since characterised the company.

BCC: The nature of the business

BCC now employs more than 200,000 people and last year total sales amounted to US $28,300 million. The group is organised in five Business Segments:

Power station design and build
Power transmission and distribution
Industry systems and building systems
Transportation
Financial services

The five Business Segments are then subdivided into about 50 international Business Areas. Within Power Transmission and Distribution, for example, there are Business Areas responsible for cables, transformers, high voltage switchgear, network control, network installation and low-voltage apparatus.

2. Structure of BCC

A simple distinction can be drawn between globalised and decentralised multi-national companies:

Globalised Multi National Corporations
Two types of globalised multi national corporations can be identified:

those that centralise policy making at the corporate head quarters, called ‘ethnocentric’ corporations those that

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