International Business Strategy

Running head: INTERNATIONAL BUSINESS STRATEGY
International business strategy
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INTERNATIONAL BUSINESS STRATEGY
Considering the business environment nowadays, international business strategy
refers to the various plans that are managed to ensure proper commercial transactions
between two nations, furthermore develop a set of appropriate action plan to increase the
revenue generation capability and attain competitive advantage in business. The objective of
the essay is to evaluate the various mega trends that have created an impact on the Business
portfolio for Siemens, furthermore improve the strategic management approaches to remain
competitive within the marketplace (Siemens.co.uk 2019).
As stated by Watanabe et al. (2016), there are various global mega trends that are
associated with the potential impact created on the Business portfolio of Siemens and this can
often create scopes and opportunities for the organisation to sustain in terms of international
marketing and global business management. The company consists of various divisions
including the power and gas division, wind power and renewable division, power generation
division, energy management, building technologies and mobility divisions, which has helped
in improving the effectiveness of mega trends associated with the creation of scopes and
opportunities (Verbeke 2013). According to Buckley and Ghauri (2015), the global mega
trends should assist in creating a positive impact on the Business portfolio and improve the
efficiency of these divisions. Considering the vision of Siemens focusing on recognition of
relevant and long term changes, there is need to implement effective strategies for the
achievement of sustainable corporate outcomes though with the environmental scanning
(Matt, Hess and Benlian 2015).
From the assessment of the case study, it has been found that the global mega trends
have impacted the business functioning by creating influence on the Business Portfolio
aspects, which could be beneficial for exploiting the scopes and opportunities effectively too.
The global mega trends have been identified with the help of environmental scanning that has
created major scopes for implementing long term changes and at the same time, facilitated

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growth and development of business all throughout. As stated by Retief et al. (2016), the
global mega trends include the digital transformation, demographic changes, climate changes,
globalisation and urbanisation. All these mega trends are related to the trends, which enabled
creating scopes and opportunities to manage changes and increased the likelihood for
impacting the business performance on a positive note.
One of the major mega trend is the digital transformation, which has brought huge
improvements in the management of business functioning and this also facilitated the
production within quick time. The advancement of technologies has resulted in digital
transformation, which also led to the growth of connected devices and management of digital
data and information that are critical to the success of the business (Hamel and Prahalad
2017). With the help of this mega trend, Siemens has managed to accumulate data and
information to assess the market conditions and at the same time, streamlined the
manufacturing, production and installation processes in the Wind Power and renewable
division by meeting the criteria and requirements for entire energy conversion chain from
water to electricity with the delivery of effective products, services and solutions. For
example, the opening of financial services and healthcare division also boosted the business
performance through integration of diagnostics and therapy for better planning of health care
services. The digital transformation has also allowed the company to become expert in the
field of automated technologies and to manage digital data and information and ensured
digital integration within the business and also across the business boundaries (Forsgren and
Johanson 2014). The information about customers are acquired, which enabled strengthening
the business relationship with the customers, furthermore facilitated strategic partnership and
growth of business. Not only does the communication is facilitated, but also more than
280,000 devices are installed that are connected via a secure communication platform, which
improved the efficiency of electric grids and ensured better functioning. Other examples

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include cloud computing and also the development of a driverless metro system that could
manage IP communication, automation software and sensors for improving the business
processes though taking less time and without compromising on the quality too (Twarowska
and Kąkol 2013).
According to Shim (2013), the demographic changes have resulted in
industrialisation and the increased population has also created opportunities for Siemens to
focus on connectivity and create an extended talent pool for improving the efficiency of
workforce. The population growth has also increased the scopes for creating employment
opportunities for the people with lower level of income, thus improved the ability of people
and also the workforce efficiency. Many new candidates were appointed as part of the
workforce in various divisions, which further helped in meeting the demands and
expectations of people all over, thus, enhanced the brand image and reputation too. With the
increase in ageing population, the company has aimed at delivering health care services with
the use of new technologies for the purpose of medical imaging and to manage laboratory
diagnostics, which further helped in integrating the diagnostics and healthcare options to the
strategic planning and various treatment options within the healthcare too. The Healthcare
Division further helped in delivering solutions to enable growth of interconnected devices
and thereby facilitated transportation of medical equipment with ease (Sánchez-Riofrío et al.
2015). The solutions within the healthcare are more localised and have been made available
at lower cost for providing convenience to the ageing population, furthermore ensured
consultation by medical specialists too.
Gerasymenko, De Clercq and Sapienza (2015) argued that the changes in climatic
conditions often has resulted in scarcity of resources and also lack of availability of sufficient
amount of water, which affected the business functioning as well. This mega trend has been
considered to deal with the climatic changes and to ensure that proper transmission and