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ABB Is a Swiss-Based Manufacturer of Industrial Equipment with Annual

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Essay

ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, its salesforce was organized by product: generators, boilers, transformers, and so forth. Each salesperson was an expert on the product line he or she sold. Then it adopted a customer organizational structure. Why might ABB have made this change?


Definitions:

Selling Expenses

Expenses incurred directly or indirectly in making a sale, such as commissions, advertising costs, and shipping expenses.

Disallowed Loss

A loss that cannot be claimed for tax deduction purposes because it does not meet certain IRS criteria.

Capital Gains

The profit from the sale of assets or investments when the selling price exceeds the original purchase price.

Adjusted Gross Income

An individual's total gross income minus specific deductions. It's used as the basis for calculating taxable income.

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