Siemens Business Organization and Globalization

This assignment provides a comprehensive overview of Siemens' business operations and strategy. It discusses the company's aim to be a profitable global leader in electronics, its involvement in industrial sectors, and its efforts to acquire new businesses. The analysis also touches on the importance of human resource management, marketing strategies, and operational efficiency in achieving success. The assignment references various academic sources and provides a detailed understanding of Siemens' business model and approach.

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Management and business context

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There are numerous challenges that business faces while competing with others companies for
growing in the same field. The organizational structure of Siemens will be described in this
essay. There are major two factors that can influence the business widely such as internal and
external factors; the discussion about them will be discussed to describe the impact of them on
Siemens. Siemens is a global powerhouse focusing on the different areas of digitalization,
electrification and automation. It is the leading supplier company of systems for generation of
power and transmission along with medical diagnosis. Globalization is considered as the trend
where specific countries become less significant in term of cross relational bodies (Dunning,
2014). The role of the company is major in context of infrastructure and industry solution. The
business practice decisions will be elaborated in order to enhance the organizational
performance. Along with that the most vital functions within the business organization will be
defined to attain its strategy.

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Siemens is an international company that run its business in over 190 regions. The income of
Siemens is 1.859 billion euro from systematic operations in 2008. The employee of Siemens is
more than 450,000 people and it is based in Germany (Tortara, 2009). The organizational
structure of Siemens is effective and there are various departments that operate by Siemens such
as Power, Information and communication, medical, lighting, transportation and finance and real
estate The organizational structure of Siemens is mentioned below. The industry sector of this
company is designed for the purpose of handling the transportation, building systems and
production. The energy sector of the company is more focused towards electrical energy. The
healthcare sector of the organization is provides solutions, products and services to the health
care industry; the sector of IT is specializing in corporate financing. The services and financial
service sector is specialized in the management of office and commercial property. The sector of
equity investment specialized in household appliances and various networks of communication.
Figure 1: Organizational structure of Siemens

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Source: (Sydney Morales, n.d.).
Internal and external factors can influence the activities of the organization which can reduce or
increase the growth of the business appropriately. Internal factors involve human resource,
corporate management and internal pressure which may influence the growth of Siemens. It has
been found that in UK, Siemens give preference to the new global strategy where it works under
'Siemens One'. In its entire activities, consumers can call upon the potential of other group of
Siemens. If one has not skill to handle, another will. The products and services of the company
are supplied to another department in case of requirements. There is core competition between
countries for investment within every global business. In such case, Siemens has created the
global centres of excellence that can provide the expert requirements of the entire group which
make internal strong to the organization.
Along with that there are some external forces such as political, economic, social and
technological factors. Siemens is adversely affected due to impose penalty by government in
2002 on LDO which is the fuel utilized by power plants. In the context of economic force like
other countries, Germany faces the issues as well caused by meltdown of financial. That is why
the economic growth rate reduced from 3.2% in 2006 to 1.3% in 2008. The slowing global
economy affected in a decline in investments which has influenced to the Germany, the HQ of
Siemens. The rate of inflation moved in line with energy prices. The demand of the customer for
a firm’s commodity can be influenced due to changes in social trends and amplifying the
urbanization changes (De Kluyer, 2010). Siemens provide the support to the various charity
activities in the entire world. In the context of technology force, it has been analyzed that new
technology enables to generate new products and services which can reduce the unnecessary
costs in order to improve the quality of the products and services (Bloom, Garicano, Sadun &

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Van Reenen, 2014). Siemens faces the number of challenges while developing the technology
within the business. It is required for the company to develop the highly innovative and cost
sensitive at the time of competing in the distinguished global market (Bennett, Segerberg &
Knüpfer, 2017). The Siemens is considered as the most forward thinking company that has
created the Global Innovation Networks that assist them to get better constantly.
Siemens is multinational company and executives of it are in Germany as well as across the
world that must take decisions in the best interest of Siemens' shareholders. It has been analyzed
that multinational companies have number of capabilities and they should make resolution about
where they think that their specific activities should be (Scarborough, 2015). In the context of
Siemens, it is not possible to create all products at same rate for all countries where its branch is
situated; it is more capable to focus manufacturing to keep economic of scale by area. The
products of the company can be shipped from anywhere.
The major risk that currently confronts the business organization is currency fluctuations. It has
been found that the range of products of the different sector of this company is varied due to
currency changes of different country. The value of Euro can increase against the US dollar
where the rate of one product or services will be different from other one. In Europe, Siemens
become more expensive for the customers in comparison of US competition. Globalization
presents the number of challenges and risk for the business (Stiglitz, 2017). It is considered as an
internal risk management function to check the threat, it is vital for the company to take initiate
steps for avoiding the damaging effects (Dalkir, 2017).
The organizational performance of Siemens is effective as it using its widespread existence, the
main aim of it is to meet the needs of a range of global markets. To secure the businesses in

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different countries, Siemens provide the excellent services to that add value to the work of
customers. Due to this service, the customer of the company can buy the raw materials from any
suppliers. The business practice of this company is efficient as it offers highly technical products
which add service advantages in. It is a deliberate strategy which is accepted by company to
enhance the organization performance (Wheelen, Hunger, Hoffman & Bamford, 2017). High
performance work practice can be able to increase the productivity of the employee and enlarge
the positive beliefs that linked with employee engagement. The term of employee engagement is
vital factor to get success and it comprised three essential aspects such as behavioural, cognitive
and emotional aspects (Albrecht, Bakker, Gruman, Macey & Saks, 2015). The cognitive aspects
refer the belief of the employee on the company and the trust of the leader on the organization.
The emotional aspects define the attitude and the feeling of the employees towards the working
environment. The aspect of behavioural is known as value added component of the organization.
The belief of employee on organization is comprised under cognitive aspect (Helfat & Peteraf,
2015). At attitude towards working and feelings are comprised under emotional aspect.
Human resource, marketing, finance and operation are the major four functions within the
business organization that assist in the growth of the business (Bratton & Gold, 2017). The
operation function is important for the business organization as it includes the goods and services
(Slack, 2015). Siemens should do focus on the operation department to enhance the productivity
of the employee in manufacturing the products; it will assist to attain the goal of the company.
The finance function of the business organization is more concerned upon making safe the
financial resources (Van Dooren, W., Bouckaert & Halligan, 2015). There are so many segments
of this business that is why it should appoint employee for different department with latest
technology. The human resource function is important as it has the responsibility to manage the

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entire company by following the policies (Price, 2007). In the context of raising the standards of
services, Siemens employ the on-site managers for observing the activity and look after customer
relationship and technology. In the context of marketing, Siemens should adopt various strategies
to explore the market so that the products can be manufactured as per the latest trend.
In the limelight of above discussion, it can be concluded that the aim of Siemens is to be
profitable organization. It wants to be a global leader in electronics due to its involvement in
industrial sectors. It has been found that it operates its business in all over the world to increase
the globalization but price inflation is the biggest risk in the growth of the business. Siemens
continuously put efforts to acquire new businesses and it has dynamic and responsive nature.

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References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Bennett, W. L., Segerberg, A., & Knüpfer, C. B. (2017). The democratic interface: technology,
political organization, and diverging patterns of electoral representation. Information,
Communication & Society, 1-26.
Bloom, N., Garicano, L., Sadun, R., & Van Reenen, J. (2014). The distinct effects of information
technology and communication technology on firm organization. Management
Science, 60(12), 2859-2885.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Dalkir, K. (2017). Knowledge management in theory and practice. MIT press.
De Kluyer, C. (2010). Fundamentals of Global Strategy: A Business Model Approach, Business
Expert Press, Sterling Forest, U.S.
Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the
microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831-
850.

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Scarborough, N.M. (2015). Entrepreneurship and effective small business management.Pearson
Higher Ed.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Stiglitz, J. E. (2017). The overselling of globalization. Business Economics, 52(3), 129-137.
Sydney Morales, (n.d.). Siemens Power Generation – Phil Scotson. Retrieved from:
http://slideplayer.com/slide/776990/.
Tortara, (2009). Organizational Structure of Siemens. Retrieved from:
https://tortora.wordpress.com/2009/11/17/organizational-structure-of-siemens.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the public
sector. Routledge.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management
and business policy. pearson.