joint venture between 2 company

1. THE ABB-PBS JOINT
VENTURE IN OPERATION
By group no 1

2. CASE SUMMARY:-
2
 History
 ABB Prvni Brnenska Strojirna Brno, ltd (ABB-PBS), Czechoslovakia
was a joint venture in which ABB has a 67% stake and PBS has a
33% stake.
 The new company started operations in April 15,1993.
 Business for joint venture in its first two full years was good in most
aspects.
 1994- higher in the history.
 1995- two and a half times higher order.
 Exports should account for half of total order by 1999.
 1995- Export became 28 percent from 16 percent the year before.
 The retrofitting business, major part of service business was
disappointing-new small companies had entered- even their old
employees . Managers hoped that with application of new
IBM- case analysis Friday, May 22, 2009
technologies, they would loose their ability.

3. Summary …..
3
 ABB PBS dominated the Czech boiler business-came down- new
domestic and foreign competitors-environmental laws.
 Restructuring(1995):-
 Renovating and reconstructing workshops and engineering
facilities.
 Achieving ISO9001 for all 4 divisions( awarded in 1995).
 Transfer of technology from ABB
 Installation of I.S & implementing project management approach.
Technological role for ABB PBS
PBS had engineering capability in coal fired steam boilers -useful
as more countries became concerned about air quality.
Stabilize engineering workforce-better equipment, safe &clean work
place.
ABB-PBS benefited technologically from its joint venture with ABB.
e.g.. Development of a new IBM- caseturbine line- aMay 22, 2009
steam analysis Friday, cooperative
effort between ABB-PBS and two other ABB companies in Sweden