Issues in Global Business and Strategic

Running head: ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
Issues in Global Business and Strategic Concepts
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1ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
1.0 Executive Summary
The study is intended to highlight the strategic alliance and entry strategy of Siemens in the
Wind Power Division. The different types of the considerations made for the company has been
further seen to be based on International, Transnational, Localisation and Standardisation
techniques. It has further revealed the country wise implementation model in U.K. and U.S.A.
Some of the other aspects of the strategy of Siemens have been further depicted with BCG
Model on Siemens Wind Power. The important consideration of the report has further included
Porter’s 5 Forces strategy with Siemens. The report has also included some recommendations for
approval of the strategy. The main recommendation for Siemens has been made with entering the
market of U.S. Based on the existing operations in U.S., Siemens is discerned to be having an
immense amount of potential for construction of wind based turbines. The construction of Wind
Turbine (R&D Centre) in the Colorado region will provide a competitive edge over other
companies in the next few decades. Moreover, the operation in U.S. the company has various
scope of improvement as per the U.S. DOE’s National Renewable Energy Laboratory situated in
Boulder, CO.

2ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
2.0 Table of Contents
3.0 Introduction................................................................................................................................3
4.0 Political Economy Views on Siemens.......................................................................................4
5.0 Strategy for Siemens Wind Power Division..........................................................................5
5.1 International...........................................................................................................................5
5.2 Transnational.........................................................................................................................6
5.3 Localisation............................................................................................................................6
5.4 Standardisation......................................................................................................................7
6.0 Country Attractiveness Model...................................................................................................7
6.1 United Kingdom (UK)...........................................................................................................7
6.2 USA.......................................................................................................................................8
7.0 BCG Model on Siemens Wind Power.....................................................................................10
8.0 Porter’s 5 Forces......................................................................................................................13
9.0 Recommendations....................................................................................................................15
10.0 Conclusion.............................................................................................................................17
11.0 References..............................................................................................................................19

3ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
3.0 Introduction
The demand for the global energy requirements has been discerned to increase at a rate of
21% until 2021. The main quest for the search of the renewable energy has been depicted with
rapid development of the offshore wind power which has been acknowledged with the future
needs. In the recent times, there is a significant source of sustainable source of energy observed
with the increasing global issues. Based on the historic evolution of previous few decade it has
been seen that the various types of the requirements for the global demand for the sustainable
energy source is associated to the reliance of the energy sector on the wind power to be the most
favoured solution. The same has been developed as a valuable source of renewable energy all
over the world. The average offshore of the wind project capacity has been depicted to be 6 MW
in 1990 which has increased to 350 MW at present. It has been further depicted that there been
enormous potential of the offshore wind energy. This particular consideration can be met with
more than seven times of the Europe’s energy demand. The United States energy demand has
been further identified as more than four times, with the present energy demand.
The report is intended to highlight the strategic alliance and entry strategy of Siemens in
the Wind Power Division. The different types of the considerations made for the company has
been further seen to be based on International, Transnational, Localisation and Standardisation
techniques. The study has further revealed the country wise implementation model in U.K. and
U.S.A. Some of the other aspects of the strategy of Siemens have been further depicted with
BCG Model of Siemens Wind Power. The important consideration of the report has further
included Porter’s 5 Forces strategy with Siemens. The report has also included some
recommendations for approval of the strategy.

4ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
4.0 Political Economy Views on Siemens
The increased political risk in Europe is negatively affecting the companies’ investment
plans and escalating the concerns on slowdown in the economy globally. This situation of
dampening investment with the political risk has been already warned by Siemens’ Joe Kaeser.
According to his views investment is about related events in the future. The biggest economic
damage is due to the inflationary pressures in the economy. The net effect of this has been seen
with a negative effect on the Group’s business and decreasing amount of the consumer
confidence. According to his views the responsibility and the duty of the various types of the
political issues need to be taken care of with a strong support of the chief of Siemens’ UK
operations, Juergen Maier. He has suggested that public should openly discuss on Britain leaving
the EU, which is directly related to the referendum on the issue (Ft.com, 2017).
Political risk is considered to be different in various regions across the globe, with
significant observations showing low economic growth in the investment. The stable nature of
the Germany based industrial conglomerate Siemens AG has shown political views with S&P
Global Ratings. The main expectation of the group has been shown with relatively steady and
economic and the political risk mainly in the operating environment. As per the various aspects
of the political views the group needs to maintain the S&P Global Ratings-adjusted ratio from
funds from operations (FFO). The debt has been further discerned to be on the higher side with
45%-60% in the next few years. The main impact on Siemens has been further depicted with
slow global economic growth aspect particularly in Asia. The continuous improvement of the
company has been further seen to be based on the consideration of slow global economic Growth
and the low investment made by the commodity driven market.

5ISSUES IN GLOBAL BUSINESS AND STRATEGIC CONCEPTS
It has been further depicted that the various types of uncertain levels of the investment
has been based on the global general industrial markets which has been seen in the light of the
expected low growth and the political risk. In addition to this, the potential for the renewable
energy remains a high concern. It has been agreed by many observers that the German
stakeholder system for the corporate governance is under considerable amount of pressure. The
convergence theory has been seen to be inconsistent in nature and this is further seen to be based
on the globalised financial and products market. The important aspects of the companies needs to
be updated with the behaviour pattern focused towards Anglo-Saxon corporate governance
approach. The various approaches of the articles have been approached on tackling these claims.
The convergence theory has been further seen to be based on the international economy and the
variety in the capitalism. This approach has been able to examine the various types of the nature
of the incentive structure in the national institutions (Devine-Wright, 2014).
The various types of the other considerations of the Political Economy Views on Siemens
need to be considered with the change in the law and order in U.S. It has been discerned that in
general U.S. is susceptible to the changes in the Federal system and this has been further seen to
be having a direct impact on the overall contribution towards the growth of the business. The
company policies and the tax systems are seen to be having a direct impact on the adoption of the
wind power initiatives.
5.0 Strategy for Siemens Wind Power Division
5.1 International
Siemens is responsible for delivering highly cost efficient and reliable wind turbine
system to meet the various types of environmental and business needs. It has been further