The paper "Strategic Management of Siemens" is a great example of a Management Case Study. Siemens was started in 1847 by Halske & Bauanstalt von Siemens specializing in power systems, lighting, radio, and motion pictures. The company currently develops various electrical engineering applications, coal power plants, hydroelectric plants, nuclear reactors, and alternative energies (Gatgens, 2011). Siemens is undoubtedly the leader in the energy resource. In 2008, it consolidated and specialized in energy, health care, and industry. Based on this understanding, Siemens has the necessary capital and human resources to diversify and provide green energy which is the in-thing in the current climate change discourse (Federal Ministry of Economics and Technology, 2013).
With a solid financial base, it can invest in systems that can expand its market share. The company has experienced immense growth due to acquisitions and expansion through its 150 years of existence (Arthur 2009). The major exploits have been electric power systems from coal, hydro, nuclear reactors, wind, and lately on alternative power such as photovoltaic cells. The success of Siemens has been enormous owing to an effective corporate structure and leadership.
Great managerial decisions have seen the company consolidate much of its operations to industry, healthcare, and energy with further sub-sectors. The industry involves automation, drive, and building technologies. Energy sub-sector involves exploits on power distribution, transmission, service, generation, renewable energy, oil, and gas (Davenport & Probst 2002). In the health sub-sector, the company has invested in diagnostics, imaging and IT, workflow, and solutions. The company and its subsidiaries have a workforce of over 420, 000 people in more than 190 countries (Rothaermel 2013). The company listed on the Frankfurt Stock Exchange had 76billion euros global revenue for the year 2009. PESTEL Analysis Political factors Siemens group is a subject of legislation in the German Bundestag concerning software patents.
The lead parties like CDU, FDP, and CSU are going in for a draft resolution to pass this legislation. Software patents are about to be abolished in Germany is controlled by both German and European Union laws (Federal Ministry of Economics and Technology, 2013). Software patents help Siemens to restrict competition from small companies. This can be good for Siemens but disastrous to the economy and society.
Siemens is also having the tough year 2013 where the chief executive Peter Loescher is set to be replaced but maintains that the chairman must also quit (Sueddeutsche Zietung 2013). In March 2011, the German government approved the energy package and all laws regarding energy implementation. Siemens later in the year announced the discontinuation of nuclear operations in Japan (Gatgens, 2011). The federal government of Germany the same year through Bundesrat and Bundestag approved reforms on authorization and planning procedures linked to grid construction.
Being a multinational company, Siemens must comply with various fiscal policies that varied in a number of countries. Global sale of products faces import and export challenges like payment of duty and tariffs at ports and airports before the clearance. There has been growing debate about reducing dependency on fossil fuels which has forced Siemens to enhance its Research and Development programs to include other forms of ‘ green energy’ . Government stability and likely changes, especially in the Middle East, may likely affect the operations of Siemens. Its initial investment in energy systems may not pay back well in nations experiencing civil unrest (Gatgens, 2011).
Countries in the past like China limited the role of the press and prohibited the entry of some multinationals that they felt carried political tags of capitalism. The Davos conference and Kyoto meeting could easily sway the odds of the company which has capital investments in nuclear energy. Besides, Siemens which has a long history in European operations may have to comply with many discrimination and employment laws created by many third world nations. Some countries like China have no strict copyright, intellectual property laws, and patent rights (Witcher & Chau 2010).
It will be difficult to litigate against copying and unauthorized access to Siemens' intellectual properties. It must also comply with various Health and Safety laws and host country laws regulating environmental pollution. The extraction of fossil fuels is destructive to the environment.
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