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Management and Business context- assignment

   

Added on  2021-04-17

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RUNNING HEAD: Management and Business ContextManagement and BusinessContext

Management and Business Context 1Organizational structure defines the manner in which the activities related to task allocation, supervision and coordination are directed in order to achieve the organizational objectives (Aquinas, 2009). Siemens is a conglomerate company from Germany having its headquarters situated in Munich and Berlin. It is one of the largest industrial manufacturing company in Europe with its branches situated in several companies. Siemens is often referred to as a global powerhouse that focuses on the areas of automation, electrification and digitalization. Siemens along with its subsidiaries employ nearly 377,000 employees across the globe and has announcedglobal revenue of nearly €83 billion in the year 2017 (Siemens, 2018). This essay focuses on Siemens and the contextual factor globalization, its impacts, risks and some business practices and functions for enhancing organizational performance.Siemens have an organizational structure of a company where all the members of the managing board are held responsible for managing the company. The main division of Siemens includes Energy, Industry, Infrastructure and Cities and Healthcare which represents the key activities of the organization. They are also held responsible for making decisions regarding corporate strategy and basic issues of business policy. A risk based approach is followed by Siemens whichenables them to focus on the risk mitigation activities. The key drivers of the business of Siemens include automation, electrification and electrical energy which assist in focusing on their positioning along the value chain of electrification (Siemens, 2018).Due to globalization, Siemens get affected by a variety of internal and external forces. Globalization has enabled the exposure of Siemens around the globe therefore it has to take into account the global trends for meeting the requirements of the customers. Different strategies are required to be formulated in accordance with the markets of different companies. Moreover, the expansion of operations in various parts of the globe require the employment of individuals who are able to understand the requirements of their countries and assist by providing suggestions for improving their existing operations. However, globalization presents various threats in way of success of Siemens due to the increased competition from the already established domestic companies. Therefore, the mission and objectives, value system, financial factors and internal relationship get impacted as a result of external environmental forces (RadovivMarkovic, 2012). Siemens also require new suppliers for ensuring the smooth flow of production along with new market intermediaries who will assist in the promotion, sale and distribution of Siemen’s

Management and Business Context 2products. The internal and external factors of globalization affect the various segments of business of Siemens. The internal factors of globalization include the changes made by Siemens for competing on a global scale. Siemens is required bring the relative changes in the process of production, development, marketing strategies and customer service for meeting the needs of the people all across the globe. On the other hand, Siemens is required to cope with the external factors of globalization by way of getting accustomed with the new market environments. Internally, globalization requires Siemens to develop branding strategies for the purpose of aligning its logo and external presence in a new market with its global image (Max, 2018). The viewpoint of the global customers regarding Siemens and its products constitutes a prominent factor of globalization because brand of the company is the first thing notices by the customers during their interaction with the company. Moreover, for the purpose of competing in the global market, Siemens is required to internally evaluate the capabilities, strengths and weaknesses of their employees and making consumer and market analysis (Czinkota & Ronkainen, 2005). Globalization also presents a number of common, global economic, financial and societal risks for Siemens (Schermerhorn, 2009). The most common risk is the risk of high competition from the domestic companies of the target market. The competition risk can therefore result in failure of the business of Siemens in the initial stages in the target market. New market place may not prove to be successful for Siemens which may lead to heavy financial losses. Financial risk affects Siemens by changes in currency exchange rates and flexibility of government in allowing funds outside the country. Moreover, the difference in the rule, regulations and legislations of different countries may present risks for Siemens as its non- compliance may lead to lawsuits and fines having impact on the reputation and financial position of the company (Yilmaz & Flouris, 2017). Some countries do not favor the use of products manufactured by global companies and promote reliance on the domestic goods. Therefore, any misconduct on the part of Siemens can put it in trouble and can significantly impact its reputation. Economic instabilitycan create serious risks for Siemens when the transactions takes place in the third world nations (Leitner & Meissner, 2016). The changes in the foreign- investment and domestic fiscal or monetary policies creates economic risk for Siemens. Moreover, interest rates and exchange ratesalso impact its business. Societal risk include the non- acceptance of the products from global

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