Robert who was a pioneer a German industrialist, engineer and inventor

founded “Robert Bosch GmbH” in Stuttgart in 1886, this was the birth of today’s
globally operating company. Right from the start, it was characterized by
innovative strength and social commitment. Robert Bosch GmbH, more
popularly known as Bosch is a multinational electronics and engineering
company that is based out of Germany. The headquarters of the company are in
Gerlingen, Stuttgart. In terms of revenue as of 2011, Bosch is the largest
supplier of automotive components in the world.

Most of Bosch’s locations are ISO 14001 (environmental protection) and ISO 9001
certified (quality). Besides these two certifications, the management of Bosch is also
OHSAS 18001 compliant.
Operations

First office was outside Germany in 1898, in London

• United States in 1906; South Africa, South America and Australia in 1922
• 75% of its revenues generated outside Germany
• Products are sold in around 150 countries
• Leading multinational technology and services company

The products manufactured by Bosch are made available world over. Bosch has well
over 350 subsidiary companies. These subsidiary companies account for 60% of
Bosch’s revenues. Some of the products the company offers include po and tools,
automotive parts, home appliances, hand tools, security systems and industrial
machinery tools.
Most of the company’s manufacturing units are in Germany. However, the subsidiary
companies are in numerous companies including India, Czech Republic, Switzerlan d,
Belgium, South Africa and several others. Bosch has over 112,000 employees.
Core products:
Automotive components : brakes, electrical drives, motors, etc. Bosch presented
the low voltage magneto gas motors in the year 1887. 2 decades later, Bosch
presented the first magneto for automobiles.

Industrial products : drives, packaging technology, etc. By the year 1913 Bosch had
begun producing headlights. Bosch was made into a corporation by the year 1917.
Over the next decade the company further diversified and started producing injection
pumps for diesel and windscreen wipers.

Consumer goods and building products : household appliances, etc. By the year
1932, Bosch had presented its first ever car radio and had also created its first power
drill. 5 years later in the year 1937, the company was transformed into a limited
liability company. Post-World War 2 Bosch went into a partnership with Denso, a
Japanese company -Telenor was acquired in the year 1987 by Bosch and was renamed
to Bosch Telecom GmbH. Bosch created extremely important inventions, included
electric hydraulic break, digital car radio with a disk drive, lithium ion battery and
several others.

Social Work
Since the time of the company’s inception, Bosch has been working towards social
improvement. Bosch has made a social commitment to its employees as well as to the
sections of society that are underprivileged. Some of the social projects that Bosch i s
actively involved in include the Child Health Development Project and the Senior
Citizen Health Development Project.
 Success in innovation and creativity
• More than 4 billion euros for research and development in 2011
• Over 4,800 patents applications worldwide in 2012
• International research and technology structure
• 1,300 employees pave the way for the technologies of tomorrow.

Verticalization
Top management had reviewed the process of “Verticalization” that was being
implemented in the Indian operations as the changes suggested that relative to the
past there would be a greater role for product divisions. The top management was
very keen that the new structure was fully implemented and understood in India so
that they could support the company strategy in India. But it has challenges and
opportunities. Basically, the philosophy verticalization is to have product strategy for
the world. It has resulted in an international production network with all plant within
the family of product being connected each other. Is allows best practices to be
shared, ensures consistencies in manufacturing processes, facilitates balancing of
production capacities to deal with surges in some regions and maintain quality
standard across the world.

BEFORE AFTER
Greater visibility for smaller Some of the smallest divisions were These smaller divisions have now
neglected the attention of the top managers
divisions

New Career Limited carrer Employees can pursue careers in

the global divisions
opportunities opportunities

New opprtunities to contribute The interaction betwee sectors Indian operations have now the
globaly was limited opportunity to participate

Development of a Global The opportunity to understand the Indian bases are now able to
Dynamics of global industry was develop a global perspective
perpective unknown
Challenges
a. The fragmentation of organization
Previously, Bosch Group in India is one. Now, we are multiple organizations within the
single organization and give several impacts such as;
– Multiple reporting within India and outside leads to conflict and often long delays in
resolving simple issues;
– Loose identity of organization and identification of employees with the organization
– Conflict between units that were supposed to work together
– Affecting employees mobility across divisions

b. Confusion and Conflict

In addition to fragmentation of organization, the changes led to multiple reporting
lines which were sources of confusion and conflict. When the confusion and conflict
could not be resolved easily, and despite very good structure and well laid -out
processes, it allowed for personality clashes.

c. Voice of the region may be lost

Since the new norms explicitly stated that in case of the conflict across the three types
of reporting, the target responsibility would have the final authority, it was normal for
the global product division to overrule inputs from Indians operations.

d. Resentment across different Bosch Companies in India

The new reporting relationship treated all Bosch operations in India there could be
target, functional and administrative. It affected the target responsibility i n
organizations that operated as independent firms.

Conclusion
Bosch is a trustworthy company that provides good and products of excellent quality
to its customers. Most appliances produced by Bosch have a rating that is above 7/10.
The working atmosphere of the organization is also an extremely healthy one.