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Bosch Group in India: Transition to a Transnational Organization
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The Bosch Group is a leading global supplier of technology and services with a concentration in areas of automotive technology, industrial technology, consumer goods, and building technology. The case describes the structural changes in Bosch over its lifetime, from its founding in 1886 to the most recent changes initiated in 2007 to make it into a transnational organization. The description focuses on two types of reasons for change - one driven by the growth of the organization and the other driven by the internationalization/globalization. Until recently, Bosch's operations were structured as global geographic divisions. In 2007, the organization initiated a program to re-organize the operations as a global matrix structure. The case describes in some detail the latest changes to adopt the transnational matrix structure with emphasis on global product divisions instead of the earlier emphasis on geographic divisions outside Europe. In the second part of the case, some of the opportunities and challenges that have emerged in the India operations of Bosch as a consequence of the global changes initiated by the headquarters are described. Prior to the recent changes, the companies of the Bosch Group in India operated as would any other local Indian company, with limited interface with other group companies, and little interference from headquarters. They were also doing quite well, and the managers and employees were not expecting any re-structuring. However, as part of the changes driven by global headquarters, the India operations had to undergo tremendous structural and process changes - there would be greater integration among the group companies in India, and greater integration with global product divisions. The case examines the challenges and opportunities of implementing organizational changes in a context where there is no felt need for change.