Globalization Challenges and Risk Management in Siemens

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author Note

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BUSINESS MANAGEMENT
Introduction
Siemens is German engineering company with its headquarter in Europe found in 1847. It
is one of the largest industrial manufacturing companies in Europe with its branch spread
worldwide. The company and its subsidiary approximately employ more than 372000 people
globally and earn global revenue of around €83 billion (in 2017). The company is listed in the
Euro stoxx 50 stock market indexes. Globalization refers to the trend in which the organizations
develop international influence and operate with the international market (Rothaermel, 2015). .
Siemens being an multinational organization operates more than 190 separate countries. The
goods are manufactured in Germany and exported through ships to all parts of the world. In the
span of time of 20 years, global volume of export has increases four times. In 2016, goods worth
US$16 trillion were exported Globalization faces many challenges in Siemens, in the discussion
the various risks opportunity and the organizational structure of Seimens have been talked about
(Vishnevskiy, et al., 2015).
Discussion
The organizational structure of the company
The Seimen is a German electronic multinational company that operates six segments of
the industry including healthcare, energy, IT solutions, financial service and investment of
equity. There are fourteen divisions of these six segments including the Drive Technologies,
Divisions Industry Automation, ,Industry Solutions and Mobility, Building Technologies,
Diagnostics, the division of Fossil Power Generation, and Power Distribution, the Divisions
Imaging & Information Technology, Renewable Energy, Oil & Gas, Power Transmission,

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BUSINESS MANAGEMENT
Workflow and Solutions. The presidents and the chief officer of executive of Siemens is Peter
Loscher who belongs from Austria. Seven members head the different sectors. For more or less
160 years, Siemens have been operating more than 190 regions all over the world. A world of
talent that is proven, delivering many innovations, giving the consumers a sound edge of
competition, helping the societies to master their most major challenges, and cration of
sustainable value. Siemens values are responsibility, committing to ethical and responsible
actions, excellence, achieving high performance and excellent results, and innovation, and being
innovative to create sustainable value.
The external and internal environmental forces that affect the business
The external factors affecting the Siemens:
Political factors: The political factors refer to the degree of government intervention in the
economy along with the business policies and procedures adopted. Siemens stands to have a
strong political strength in times of uncertainty and turmoil. The reduction of the taxes and tariffs
of the capital goods can affect the company (Kotler, 2015). The company has adapted an export
control policy in which it prohibits from participating directly and indirectly in the developments
and manufacturing.
Economic factors: The economic factors include the taxation charges, economic growth rate,
inflation and exchange rate. These factors have a huge impact on the Siemens business policy. In
2008, the decrease in inflation rate resulted in the downfall in the company’s investment.
Social factors: Social factors refer to the trends that can affect the demand for the firm’s
production and changes in the taste and preferences of the customers. Increase in the
urbanization has a great impact on the company. When people move to urban areas for better