Asea of ​​Sweden and BBC of Switzerland announced their merger in 1987 to form ABB. Each parent company will own 50% of the new company. The BBC was the third largest corporation in Switzerland and was very successful in the electricity sector. Its past successes are mainly due to its focus strategy and geographic organization. The BBC emphasized technology and quality, which allowed it to build its competitive advantage and achieve long-term success. To meet the market environment of the time, along with the deeply rooted culture, it built the geographic organization. This organization emphasizes local autonomy because it believes that local management is the best place to negotiate with public services and that this structure can cope with strictly local competition. Furthermore, it is the result of exchange restrictions during a certain historical period. The strategy and organizational structure have brought continuous success thanks to rapidly expanding demand. However, at the same time, it increased the risks. When the economy collapsed and demand fell in the 1980s, the company faced a stagnant situation. The organizational structure made decision making much slower than market changes required. In 1987, the company once attempted to transform its structure into a divisional organization, but this strategy was never implemented in reality. The corporate culture of the BBC reflected the organizational tradition and characteristics of the company. Culture mainly includes the following aspects: 1. Focus on technology. This is the company's core competence, but at the same time it has raised some problems. It generated a certain arrogance and neglected changes in the market and customers. 2. Perfectionism in problem solving. This can bring out precision and right solutions, but the real market often requires quick action. When you reach perfectionism, you often find that it is too late. 3. Specialization and compartmentalization of activities. This separation has led to a lack of coordination. 3. Centralization of decision making. Due to the industry characteristics and focus strategy, a centralized decision-making model was constructed. This led directly to bureaucracy in headquarters. Furthermore, the company has become political internally. 5. Putting the human dimension first. It may be employee respect, but too much of it will result in a lack of financial orientation and a strong performance orientation. The organizational structure and corporate culture have caused local duplications and protections, even serious internal conflicts, among which the relationship between Baden and Mannheim is quite evident..