Business Report: Siemens AG's Environment and Strategies Analysis

This report provides a comprehensive analysis of Siemens AG's business environment, encompassing micro and macro environmental factors. It examines the company's mission, stakeholder objectives, and responsibilities towards employees. The report delves into economic systems, fiscal and monetary policies, and their impact on Siemens AG's operations. It further evaluates competition policy, market structures, pricing, and output decisions. The analysis also explores the significance of international trade, global factors, and the impact of European Union policies on the company. The report highlights Siemens AG's strategies for employee management, market responses, and adaptation to cultural and business environments. The report uses various academic sources to support its findings and analysis of the company's performance and strategic decisions. Overall, the report provides a detailed overview of Siemens AG's business environment and its strategies for success.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The purposes of different types of organization...................................................................1
1.2 The extent to which an organization meets the objectives of different stakeholders............2
1.3 The responsibilities of a Siemens AG and strategies for employees....................................3
TASK 2............................................................................................................................................3
2.1 How economic systems attempt to allocate resources effectively........................................3
2.2 Impact of fiscal and monetary policy on business organization and their activities.............4
2.3 Evaluate the impact of competition policy and other regulatory mechanism.......................4
TASK 3............................................................................................................................................5
3.1 How market structure determine pricing and output decision in business............................5
3.2 The market forces shape organization responses..................................................................5
3.3 Business and culture environment shape the behaviour of the organization........................6
TASK 4............................................................................................................................................6
4.1 Discuss the significance of international trade to UK based engineering companies...........6
4.2 The impact of global factors on UK business organizations.................................................7
4.3 Evaluate the impact of policies of the European Union on UK business organizations.......8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment plays an important role because it provides an information of
internal and external environment of business. This information is important in decision making
process. Usually business environment divided into two parts, first one is based on micro
environment which gives the information of company internal environment (Chavis, Klapper and
Love, 2011). It includes organization strength, weakness, opportunities and threats. In other
hand, second part is based on macro environment it gives the information of political, social,
economical and technological condition of firm. Moreover, it also includes shareholder of
organization, customers and suppliers (Commander and Svejnar, 2011). The present report is
based on Siemens AG ,it is an engineering company and it deals in health care products and
medial diagnostics equipment etc. Main mission of this organization is to provide best and fast
services to their customers and it is famous for their employees and customers satisfaction. For
the better development, this firm time to time update their management strategies and launch
new and innovative products in competitive market. This report also includes the role and
responsibility of mangers toward their employees and how company maintain their business
environment. Further, policies impact on organization and culture of firm have been covered in
this report.
TASK 1
1.1 The purposes of different types of organization
According to Faria and Wellington, 2014 the main objective of organization is based on
customer satisfaction and the reason behind this is they are the back bone of company (Faria and
Wellington, 2014). Further, as per Gold, 2014, there are also some basic concepts which are
based on firm. Organization is a group of different type people who share their views and ideas
and raise the current image of company (Gold, 2014). The purpose of organization is basically
divided into three parts and they are like; public sector, private sector and the last one is based on
organization nature. These all factors describe the mission and vision of company. For example,
Siemens AG main mission is to provide the best and fast services to their customers. In other
hand, it is managers responsibility to provides a proper working environment to their employees
and time to time take a feedback from them (Kindsfaterienė and Lukaševičius, 2015). So
according to their reviews company can easily find out their positive and negative points. The
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vision statement is based on to achieve a long term goal and objectives of company. For this
work, firm guide and motivate their employees and divide the whole work according to
employees skills (Brinkman, Navarro and Harper, 2014). Moreover,. There are some private
companies in competitive market and their main purpose is based on how they earn more profit
in short time period. In other hand public companies also want to earn profit but they put their
focus on customers' satisfaction .
1.2 The extent to which an organization meets the objectives of different stakeholders
Stakeholder is a person, group or organization who plays an important role in company.
Most of times company set their polices according to their stakeholder preferences. The main
reason behind this is, these persons are the back bone of company and it is firm responsibility to
fulfill their need and desire. It is firm duty to managing the necessity of different stakeholders
(Brinkman, Navarro and Harper, 2014). For example, in Siemens AG managers allot one team
leader in each department who find out the requirement of their stakeholders and according to
their demand company plan their future products. Moreover, it is also organization duty to
provides a high dividend to their preference share holder and divide their firm bonus among their
all staff members (Wetherly and Otter, 2014). For better planning, this company draw their
structure where top level department give an instruction to their mangers and leader guide and
motivate their whole team. Siemens AG company set their objective in different ways which are
explains as follows:
 Objective which are based on market share where firm identify their competitive
environment.
 Objective which are based on customers' satisfaction , for this company time to time take
a feedback from their employees and according to their reviews firm plan their strategies
(Khalifa, 2012).
 Organization planning is based on how managers use their waste material and use it in
their production process.
 This company also provides a good working environment to their all employees so by
this, they can perform well at workplace (Squire, 2006).
1.3 The responsibilities of a Siemens AG and strategies for employees
In organization it is very important for firm to take a feedback from their employees and
stakeholder so by this company can easily find out their positive and negative points which are
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related to workplace. Moreover, for better communication it is also important to crest a friendly
structure in organization so everyone can easily share their views and ideas to each other.
Stakeholders have wide expectation from their company so it is company duty to fulfill their
need and desire and paid them good salary (Craig and Campbell, 2012). Further, Siemens AG
company time to time pay their all taxes to government and maintain their brand image at
competitive environment. Business not only face internal factors there are also some external
factor's who effect their brand image. For example, government time to time change their tax
policies so it put a negative impact on their share holders and they stop investing in organization.
Stakeholder always invest in those companies who follow all rules and ethics so company also
considered these factors while making their strategies (Groza And Ragland, 2016). Siemens AG
time to time provides an appraisal and promotions to their employees so by this, they feel
motivates. In other hand, firm also admire all different culture and according to culture they
launch their new products and services.
TASK 2
2.1 How economic systems attempt to allocate resources effectively
An economic system of Siemens AG company is not only based on their customers and
products but firm also includes some groups like; trade union, political partners etc. function of
economic system is based on how organization use their all resources and make an appropriate
solution for the problem. In other hand, according to their raw material and resources company
decide what they have to produce, what process they will follow for this and In last what process
they will follow for production. For better efficiency company used two economic system which
are based on free market system and non free market system (McGovern, 2014).
Free market system- In thus all decision are taken by the broad of director of company
and government do not put their control in it. In other way all main decision are taken by
company and for these managers follow some standard format which are provided by
government.
Non free market system- In this, all decision and all rules and regulation are decided by
government. According to government instruction company follow all things.
So for better development Siemens company apply both system and time to time
according to competitive environment they change it.
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2.2 Impact of fiscal and monetary policy on business organization and their activities
Fiscal and monetary polices are based on company current and future strategies. So for
better development of polices, company first check out their all assets and sales, then according
to report managers put their focus on business and their geographic areas (Hamilton and
Webster, 2015). In Siemens company their all competitors are based on profit oriented and try
their hard to make more profit for organization. In below lines all financial and marketing
strategies of company are explains:
International trade- It means buying and selling the goods and services across the
border. Siemens company branches are situated in all over the world so it is company
responsibility to put their concentration In all branches. So for better understanding with their
customers and for more profit, disorganization expand their business and open some retail shops
or service center in every city. The main positive point of international trade is, it reduces the
manufacturing cost (Squire, 2006). So by this, firm pay more salary to their employees and raise
their standards in internal environment.
Comparative financial analysis- In this, company analysis their financial standard with
other competitor or company. Further, company time to time analysis their financial position in
competitive market and according to their position plan their future products and services. For
this , firm use stock prices comparison because it provides an actual report of stock market and
their stakeholders.
2.3 Evaluate the impact of competition policy and other regulatory mechanism
Siemens AG company used competition policy which are based on maker liberalization,
merger control and antitrust. In antitrust organization involves the elimination of agreements
which are based on price fixing agreements. Further, company also involved some maker
liberation so with the help of this firm can easily find out their new competition. In price fix
agreement, company reduce their prices for their new products and when product well
established in market so firm raise their prices. In other hand, due to regulatory mechanism
company change their training program. For better development, firm time to time guide their
employees and update their technology. So with the help of the latest technology employees
complete their work on time. Further, there are many market forces which change the strategies
of a company like some time the demand of customers, pricing decision and market which are
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based on labor (Squire, 2006). So for this, organization make a website where customers give
their suggestion and according to their review company change their development plans.
TASK 3
3.1 How market structure determine pricing and output decision in business
Price of products and services are based on the competition and market demand. The
decision of pricing are based on perfect competition and simple monopoly. Moreover,
discriminating process started on monopoly and it decides the nature of products and the freedom
of elements. By applying profit maximization method and take suggestion from higher authority
firm can manage their production and according to supply select their pricing of products
(Miller, 2011). At the market optimum level, company expect profitable output and for product
they change the price according to customers demand . For example, if Siemens company launch
their new product and set their prices high so nobody purchase it further, for better development
of product, firm set normal price and when services get famous in market, firm raise the prices of
it . Further, for output decision managers involved all team members and according to their
suggestion company take a final decision (Otter, 2011). Sometimes government tax policies,
wages policy and prices change the operations of markets and according to all these things firm
determine their price for their new products and services. For example, oligopoly organization
follow [MR=0] principal, according to this principle company set their product on maximum
level profit.
3.2 The market forces shape organization responses
In today world lots of company use market force which affect the internal environment of
organization. So Siemens AG company put their concentration on three common factors
which affect the current performance of business and they are; participation of customers,
information ability and the demand pressure on firm. According to Nandi, 2010, nowadays
most of company collect money from other financial company and then purchase their raw
material and another necessary items. But when it time comes to returning all the refund to
financial organization it will become a hard task for them (Nandi, 2010). In other hand,
sometimes customers delay the payment of item and cheque so it creates a negative impact
on organization performance. So head department of Siemens AG company take the right
and appropriate decision and for this they ensure from all department. According to all
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market report planning department plan a strong strategy for business and all employees
follow them.
3.3 Business and culture environment shape the behaviour of the organization
According to Siemens AG company manager, business and environment culture is very
important for the behavior of organization. The reason behind this is favorable for their all
employees so they can easily perform well at workplace and give their best potential to company
(Shaikh, 2010). Further, in decision making process company leaders used democratic leadership
style so as per this style managers take a suggestion from their whole team members and as per
their reviews organization head department take a final decision. By applying this activity,
employees feel that they all are important part of firm. Organization culture is based on beliefs,
norms and the values so for better development company follow all these things at their internal
environment (Squire, 2006). This firm culture is based on how they provide a good working
environment to their employees. So for this they time to time take a feedback from their
employees and according to their reviews organization set their management strategies.
TASK 4
4.1 Discuss the significance of international trade to UK based engineering companies
Siemens AG company time to time update their business and for profit maximization
organization open their new branches at international level. The main profit behind this is firm
raise their brand image into customers mind and also develop their market. Engineering industry
involve high capital and hold so many risks which are based on raw materials and labor. So in
this case internation trade help them by reduce dependence of other markets and also raise their
customers. Few decades ago sidemen firm faced recession. So intention market provides raw
material to Siemens AG company also pay their all taxes.
International trade not only raise the numbers of customer but also increase suppliers
base. By this company produce lots of products so the manufacturing cost goes down. So
company use this money for their employees welfare and development. In other hand some
specific countries have some specific material also with the help of international trade Siemens
company can easily get their all raw materials in low price. So international trade plays an
important role in the development of engineering organization (Squire, 2006). Moreover,
international trade also put their concentration on workers' health and development so for this,
firm create a human right community at their workplace who work for their employees and solve
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their problems. In UK most of the companies do not provide a good working environment but
Siemens company is famous for their workers satisfaction (Brinkman, Navarro and Harper,
2014).
4.2 The impact of global factors on UK business organizations
Global factors influences macro environment of company so for organization it is very
important to know their impact which are explains as follows:
Social factor impact – These factors are based on customers taste ,preferences and
changing behavior of customers . So UK organization keep these things in their mind and before
launching any new product or service they take a feedback from external market . According to
review planning manager set their product design and their market strategies (Brinkman, Navarro
and Harper, 2014). Siemens company departments are available in all over the world so their
planning department always notice culture differences country to country and give this report to
head department. According to culture report company provides their services.
Legal factor impact – UK government time to time change their tax policies. So
sometimes it creates misunderstanding. Further, for better development of organization it is
important that business considered all legal issue and ethics and before making any plan follow
the standard format which are given by government.
Economical factor impact- In this UK organization involved the changes which are
related to global economy. When economy activity rise so it put their impact on supply and
demand, so the price of products also rise. Sometime in time of recession price of product and
services goes down so in this time period, firm get some losses.
4.3 Evaluate the impact of policies of the European Union on UK business organizations
The European union located in Europe and it is based on political and economical
economy. According to Otter, 2011 this union follow one market and in this all labors, trade
business and other activities are done. In other way they do not separate their market as per labor
and cost (Otter, 2011). This union try their best to increase the size of market so by this UK
organization can easily raise their profit and sales. Further European union have two plies which
are explained as follows:
Agriculture policy- This policy describe a set of policies and laws which are based on
organization internal and external environment these mangers decide domestic agriculture and
product and services for UK business (Brinkman, Navarro and Harper, 2014). The main
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objective of this policy is to provide a better and fresh products to their UK customer and also
develop their market. This policy outcomes are based on supply level, price stability and how
organization use agriculture land.
Fisheries Policy- The common Fisheries policy (CFP) is based on European union. In
this organization put their focus on fishing market and approximately put their main money in
this market (Otter, 2011). In 2014 approximately 0.75% or budget is based on this market. The
main reason to use this policy at workplace is manger all fish stocks and supply them as per
demand of country. In other hand, by applying internation trade company can easily get all king
of fish in lower rate.
CONCLUSION
According to present report, it has been concluded that Siemens AG company can be
affected by their culture because with the help of this firm set their future products and services.
Further,it is also important for their employees behavior toward their company. By applying
international trade organization minimize their production cost so it is beneficiary thing for them
because firm can use this money in other department and raise their brand image. Through
globalization many companies gained benefit but in other hand it raises the role and
responsibility of company
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Groza, D.M. And Ragland, B.C., 2016. Developments in Marketing Science: Proceedings of the
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