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Management and Business context -assignment

   

Added on  2021-04-17

7 Pages2026 Words178 Views
RUNNING Head: Management and Business ContextManagement and Business Context

Management and Business Context 1Organizational structure means hierarchical arrangement of lines of communications, authority, rights and duties of an organization. Organizational structure is responsible for determining the manner in which power, roles and responsibilities are controlled, assigned and coordinated alongdetermining the flow of information between the various levels of management (Mills, Bratton, Mills & Forshaw, 2006). The organizational structure is dependent on the objectives and strategies of the organization (Baligh, 2006). The focus of this essay is on the company Siemens. This essay explores the organizational structure of Siemens, the external and internal environmental forces and risk that impact its business along with suggestions regarding important business functions and business practices decisions for the enhancement of organizational performance and achievement of strategy. Siemens follows the organizational structure of a company where the operations are organized inthree sectors with 15 divisions. The structure is managed by the managing board of the organization. The key divisions of Siemens include infrastructure, industry, energy and healthcare. Their positioning along the electrification value chain is maintained by the key drivers of the business of Siemens which include electrical energy, electrification and automation. Moreover, risk mitigation activities are always taken into consideration by way of adopting a risk based approach (Siemens, 2018). The business of Siemen is impacted by various external and internal environmental forces. The external environmental factor includes the economy, competition, politics and customers and suppliers. On the other hand, the internal environmental factors include employees, company culture, finance, etc. (Sherman, 2018). Since Siemens is involved in the business of power generation and transmission, it is significantly affected by the market trends of undertaking sustainable business practices by way of shrinking their carbon footprint and making the use of more renewable energy resources. The business of Siemens is affected by a variety of threats relation to competitors, global environment, political factors, new technology, etc. (Pride, Hughes & Kapoor, 2009). Market conditions such as changes in the interest rates and market rates affects Siemens. While performing business in other countries, the profitability of Siemens is severely impacted due to variations in the foreign exchange rates. Moreover, when new technologies are introduced in the market or innovations take place, the complete scenario of the market is changed due to which Siemens faces significant variations in the demand of its

Management and Business Context 2products. The external environmental forces require Siemens to take into consideration the strategies of the competitors for capturing the market and taking necessary steps for formulating own strategies. Skills are required by Siemens to take necessary decisions and for performing theday to day operations of business. For this purpose, Siemens requires to make the employment ofcompetent individuals who meet the eligibility criteria for employment. Proper consumer, marketand industry analysis is required to be performed from time to time in order to take into account the changes taking place on constant basis. Therefore, the environmental forces severely impact the business of Siemens. Various risks are confronted by Siemens such as the volatile nature of the energy prices which has the direct impact on the profit. Moreover, various financial risks relating to interest rates, exchange rates and credit risk impacts its profitability from time to time (Hill, 2008). Since Siemens have spread its operations in the global market, it experiences the risk of competition from the major companies of this sector across the world. The competition risk, if not met effectively, has the capability of leading Siemens towards the closure of its business and loss of reputation. Societal risks are also experienced by Siemens during the expansion of their business in the various parts of the world. The difference in the culture of the foreign markets leads to difference in their needs and requirements (Hamilton & Webster, 2015). In case, Siemens do not address and understand the culture of the place of its expansion, then it may face a risk of alienating customers and losing its profitability position (Ferraro & Briody, 2017). When the social structure of the place of business is not a good fit then the business faces a risk in survival.Global economic risk are faced by Siemens due to weaknesses in certain economies, industries and markets which leads to a unexpected fall in demand for its products and cannot be controlledby Siemens. Furthermore, changes in the laws, rules and regulation presents legal risks for Siemens. If proper attention is not paid towards the compliance of these laws, rules and regulations then strict penal actions may apply on Siemens. For the enhancement of the organizational performance of Siemens, certain business practice decisions should be made regarding high performance work practices, benchmarking, employee engagement, etc. Since it is the employees who work for the success of the organization, Siemens should take steps for the purpose of empowering the employees to take better control over the decision making related to operations and work (Macky & Boxall, 2007). This will

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