Case Analysis of Siemens: A Strategic Profile and Analysis

This case analysis explores the strategic profile and analysis of Siemens, a conglomerate company. It covers the company's history, headquarters, and major acquisitions. The situational analysis includes an examination of technological, demographic, economic, political/legal, sociocultural, global, and physical environmental trends. The SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. The strategic alternatives and implementation plan are also discussed.

Running head: CASE ANALYSIS OF A COMPANY SIEMENS
Case analysis of a company Siemens, US
Name of the Student
Name of the University
Author’s Note

1CASE ANALYSIS OF A COMPANY SIEMENS
Table of Contents
1.1. Strategic Profile and Case Analysis Purpose............................................................................2
2.1. Situational Analysis..................................................................................................................2
A. General Environmental Analysis............................................................................................2
1- Technological Trends..........................................................................................................2
2- Demographic Trends...........................................................................................................3
3- Economic Trends.................................................................................................................4
4- Political/Legal Trends.........................................................................................................4
5- Sociocultural Trends............................................................................................................4
6- Global Trends......................................................................................................................5
7- Physical Environmental Trends...........................................................................................5
B. Industrial Analysis..................................................................................................................5
C. Competitor Analysis...............................................................................................................5
D. Internal Analysis.....................................................................................................................6
3.1. Firm’s SWOT analysis.............................................................................................................6
A. Strategy Formulation..............................................................................................................7
B. Strategic Alternatives..............................................................................................................8
C. Alternative Evaluation............................................................................................................8
D. Alternative Choice..................................................................................................................9
4.1. Strategic Alternative Implementation.......................................................................................9

2CASE ANALYSIS OF A COMPANY SIEMENS
A. Action Items............................................................................................................................9
B. Action Plan..............................................................................................................................9
References......................................................................................................................................11

3CASE ANALYSIS OF A COMPANY SIEMENS
1.1. Strategic Profile and Case Analysis Purpose
According to the official website of the Siemens company (Siemens USA., 2019), it is a
conglomerate company, which came into existence in 1847. Its founder is Werner von Siemens,
and the company is named after him. It’s headquarter is located in Germany, Munich and Berlin.
It was in 1848 that the company successfully built its first telegraph line in the region of Europe
which was of a length 500KM ranging from Berlin to Frankfurt am Main. In 2007 Siemens
possessed Vai Ingdesi Automation. It was in July 2008; Siemens AG declared a joint venture of
the Enterprise Communication business about the Gores group. In April 2009, the company
Fujitsu Siemens Computers changed to Fujitsu Technology Solutions, as Fujitsu brought out
Siemens' share of the company. Siemens purchased the gas turbine and compressor energy
business from Rolls-Royce for 1Billion worth of money in 2014. In 2015, Siemens purchased the
U.S oilfield equipment maker. In 2016, Siemens purchase the EDA Company. In the era of 2017,
Siemens purchase the Fast Track Diagnostics. In the previous year 2018, Siemens declared
possession of IT Company addressed as Mendix (Kovanović et al., 2015).
2.1. Situational Analysis
A. General Environmental Analysis
1- Technological Trends
The company has evolved from pointing telegraph to smart IT-based data centres. Under
the supervision and leadership guide of chief technology officer and with the collaboration with
the operating unit, CT develops Siemens technology and innovation strategy (Bye et al., 2014).
Their technological background comprises of 1,600 researchers based in Asia, Europe and in
North – America working hard to contribute towards the innovation of the company. About

4CASE ANALYSIS OF A COMPANY SIEMENS
4,800 software developer and engineers are spread across in Asia, Europe and in North –
America. These engineers help in reaching the technological goals of the organization.
Figure 1: Worldwide locations of CT technology
(Source: New.siemens.com, 2019)
2- Demographic Trends
According, to the UN nation in the era of 1950, the minimum life expectancy was about
45 years whereas. As of in the year of 2050, the company is planning for a life expectancy to
increase. The company claims that about one senior in every ten is of 60 years today and by
2050, there will be two senior out of every ten seniors. Atrial Fibrillation which results in about
60 per cent of arrhythmias is one of the major cause of stroke and heart failure in every people

5CASE ANALYSIS OF A COMPANY SIEMENS
over 65 years of age. The company aims to eradicate such disease with the application of
noninvasive procedure by specialists belonging from Siemens Company (Neirotti et al., 2014).
3- Economic Trends
Siemens power technologies international (Siemens PTI), is a world leader in supply and
industry system analysis. Key services that are provided by Siemens PTI include economic
analysis regarding supply and transmission of system development, renewable and DER
integration of technology, Automation strategy and simplification of networks, Storage and the
microgrid applications, economic optimization of network traffic and energy supply using
technical equipment (Gertsik et al., 2015).
4- Political/Legal Trends
The country has voted for a new Christian – Liberal parliament. Germany’s personnel
cost is very high because of the pension scheme and the broad social system. However, the
company Siemens was caught for indulging in a criminal offence act; the company was caught in
a scandal which shocked the entire member of the company. The total cost involved in the
scandal outstands to 2.9 billion Euros worth of money. Germany is now ranked in 14th position.
5- Sociocultural Trends
The international corporate business firm who face the challenge to manage and motivate
employees with different cultural background, need to understand the importance of personal
traits, need structure, and they differentiate from one another in across the country. The median
age will rise, of the individuals that rely on the age of 43.8 years so as because 66.1% of the
German citizen is 16-64 years old and by the time they retire there will be a scarcity of young
people who will be looking after their health factor. This a one of the primary reason why the

6CASE ANALYSIS OF A COMPANY SIEMENS
growth rate in Germany is negative. This is also one of the reasons why the government of
Germany encouraged immigration.
6- Global Trends
The pattern for Global Research and Development (R&D), is changing at a very fast
pace. DR. Roland Falb, who is addressed as managing partner of Roland Berger Strategy
consultant. The company is investing huge money in their research project that makes them
capable enough to make their competitive products. One of the biggest drivers for such
innovation is country China who contributed about twenty per cent of the global R&D
investment (Lee et al., 2015).
7- Physical Environmental Trends
The requirement of the distribution grid is changing; the existing network needs to be
transformed into a more intelligent grid to achieve efficiency. To maintain the sustainability of
the project undertaken by Siemens, techno-economical assessments are the absolute key. The
cost efficiency mechanism calculates key economical aspects as Present Net Value (NPV),
Return On Investment (ROI).
B. Industrial Analysis
The company has participated in framework research programmes which are sponsored
by the European Commission. During the commercial period 1984-1987, the company was
funded with 3.3 billion Euro, the sixth programme which ranges from 2002-2006, it received
funding about 17.5 billion Euro., The seventh programme 2007-2013 receive about more than
50billion Euros (Hahn et al., 2014).

7CASE ANALYSIS OF A COMPANY SIEMENS
C. Competitor Analysis
Top competitors of the company are:-
 General Electric
 3M
 Schneider Electric
 Hitachi
 Philips B2B
D. Internal Analysis
Its services range from providing services to business firms, financing, construction and
project engineering. Its product ranges from Industrial and business automation, medical
technologies, power generation technology, water treatment system, vehicles of railway
repairment, fire alarms and PLM software. The number of employees employed by a company is
3,79,000. Its business division ranges from energy management, power and gas, power
generation, wind power generation, digital factory, and building technologies.

8CASE ANALYSIS OF A COMPANY SIEMENS
3.1. Firm’s SWOT analysis
A. Strategy Formulation
The company aims to be the leading pioneer of this era; they are implementing a strategy
with a hope to make this vision into a goal. They work to position themselves in the market to
withstand themselves in the competition and achieve sustainable profit growth and increase the
company value continuously.
The company’s strategy relies upon three different directions; they are namely:-
- The utilisation of Siemens power
- Area of concentration relies upon innovation-driven market.
- Get close to the customer.
B. Strategic Alternatives
 To capitalize on strengths
Strength
The firm has a presence of very strong brand portfolio,
successful track of new product development in terms of
innovation, the company has a very favourable good return on
capital expenditure, the customer satisfaction level is relatively
very high, flow of cash in the hand of Siemens is huge which
ensures the company to undertake new projects, the company
has a network of very strong supply chain thus eliminating any
kind of supply chain barrier.
Weakness
Forecasting demand. Moreover, the number of stocks keeps
increasing due to the absence of forecasting demand. The
company has lost small segments of the market located in
the niche section, as it fails to tackle the challenges brought
in by the new firms. Proper financial planning is absent in the
firm.
Oppurtunities
The changing taste and preferences of the existing customers
can bring about new markets for the business firm, the firm
can head for product diversification. The increase in customer
spending after years of recession and slower growth rate in
the industry is addressed as an opportunity for the business
firm to capture the new consumers and increase its market
share.
Threats
New technological advances implemented by the rivalry firms,
can be a serious threat to the company as the technology differs
from one firm to another. The company is facing a shortage of
skilled labour force because of a number of competitive firms
in the industry. Liability laws differs from one country to
another. The company is operating in numerous countries so
the fluctuation in the currency will directly impact the financial
position of the firm (Williams et al., 2014).
SWOT ANALYSIS

9CASE ANALYSIS OF A COMPANY SIEMENS
The firm can undertake a measure to identify its strength and undertaken measures to obtain
benefit from such a measure.
 To reduce weaknesses
The firm should take preventive measure to tackle the above mentioned weakness; the firm
should improve its forecasting power and focus on the economic and political aspects.
 To take advantage of opportunities
Some opportunities exist in the present market the company should formulate a planning session
with the management teams to arrive at a solution.
 To avoid or neutralize threats
The firm should focus more on strategic moves, to overcome the internal, social, political and
economic threats.
C. Alternative Evaluation
Siemens plans to deliver innovation in his field of business to yield a customer a unique
competitive edge. Enabling change in society. Siemens is one of the first company to adopt new
guidelines of the Food and Drug Administration (FDA) body. Besides, The Company is also an
active member of the worldwide pharmaceutical company (Kawakami et l., 2014).
D. Alternative Choice
For about a period of 170 years, pioneering technology and an effective business model
has been the main aspect of Siemens business. CT contributed to the company’s IT, innovation
strategy, research and development in the field of electrification, digitalization and full
automation.

10CASE ANALYSIS OF A COMPANY SIEMENS
4.1. Strategic Alternative Implementation
A. Action Items
Figure 2: Action Items
(Source: Developed by the researcher)
Action 1
The firm should be more curious towards social
involvement as the firm’s past performance has been
indulged into the corruption act.
Action 2
The firm should understand the need for its concern
towards CSR.
Actio
n 3
The firm should hold an annual meeting with the rival
firms or should conduct a seminar for the introduction
of innovtion.

11CASE ANALYSIS OF A COMPANY SIEMENS
B. Action Plan
Figure 3: Action Plan
(Source: Developed by the researcher)
- The firm needs to acquire the trust of
the local people as well as that of new
consumers. As the company’s
reputation has hampered there is an
urgent need to build its goodwill. Not
the internal people but the people
outside the organization is to be given
much of focus to gain its trust.
- Corporate Social Responsibility,
having a concern towards the external
environment. This is a strategic plan
implemented by most of the
corporate with the objective to gain a
positive frame in the eye of the
normal public.
-The firm should communicate with
the other rival firms to conduct a
session of fair, where the individual
will contribute or represent their
talent and innovations, this will bring
about a better chance for the
newcomer to introduce themselves.
Besides, it will help in addressing the
firms in the eye of the general public.

12CASE ANALYSIS OF A COMPANY SIEMENS
References
Alles, M., Brennan, G., Kogan, A., & Vasarhelyi, M. A. (2018). Continuous monitoring of
business process controls: A pilot implementation of a continuous auditing system at
Siemens. In Continuous Auditing: Theory and Application (pp. 219-246). Emerald
Publishing Limited.
Alles, M., Brennan, G., Kogan, A., & Vasarhelyi, M. A. (2018). Continuous monitoring of
business process controls: A pilot implementation of a continuous auditing system at
Siemens. In Continuous Auditing: Theory and Application (pp. 219-246). Emerald
Publishing Limited.
Bye, G., & Ceccaroli, B. (2014). Solar grade silicon: Technology status and industrial
trends. Solar Energy Materials and Solar Cells, 130, 634-646.
Donzé, P. Y. (2014). Multinational Enterprises and the Globalization of Medicine: Siemens and
the Business of X-ray Equipment in Non-Western Markets, 1900–1939. Enterprise &
Society, 15(4), 820-848.
Gertsik, Y. G. (2015). Analysis of factors affecting the competitiveness and organizational-
economic sustainability of medical industry companies. European Social Science
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Hahn, R., & Lülfs, R. (2014). Legitimizing negative aspects in GRI-oriented sustainability
reporting: A qualitative analysis of corporate disclosure strategies. Journal of business
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13CASE ANALYSIS OF A COMPANY SIEMENS
Kawakami, S. (2014). Application of a systems-theoretic approach to risk analysis of high-speed
rail project management in the US (Doctoral dissertation, Massachusetts Institute of
Technology).
Kovanović, V., Joksimović, S., Gašević, D., Siemens, G., & Hatala, M. (2015). What public
media reveals about MOOC s: A systematic analysis of news reports. British Journal of
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Primbs, M., & Wang, C. (2016). Notable Governance Failures: Enron, Siemens and Beyond.
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