Siemens Case Study Report: PESTLE, Mega Trends, and Analysis

This report provides a comprehensive analysis of Siemens, a global company focused on electrification, digitalization, and automation. The report begins with an executive summary highlighting Siemens' key strategies and its identification of future trends. It then delves into a PESTLE analysis to assess the impact of political, economic, social, technological, legal, and environmental factors on the company's business. The report further examines key drivers of change for Siemens, including technology development, globalization, and innovation. It also explores mega trends such as digital transformation, demographic changes, and climate change, discussing their implications for Siemens' business operations. The analysis emphasizes the importance of effective strategy implementation and the role of a strategist in driving growth and productivity. Finally, the report provides recommendations based on the analysis, offering insights for the company's future development.

Individual Report style Case Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1...............................................................................................................................1
Question 2...............................................................................................................................4
Question 3...............................................................................................................................6
Question 4...............................................................................................................................8
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX 1.................................................................................................................................12
APPENDIX 2.................................................................................................................................13
APPENDIX 3.................................................................................................................................14
.......................................................................................................................................................14

Executive Summary
Siemens is a global powerhouse company and its main focus is on the field of
electrification, digitalization and also automation. It is the largest energy producer. In order to
make improvement in the performance, this company takes some of some appropriate steps. It
plays a necessary role in giving shape to the evolution of technology in all over world. This
company identified the 57 future trends which can impact on business of Siemens. There is
PESTLE analysis related to the Siemens case study A for reducing its impact from the business
environment (Alshahateet, 2011). On the other hand, in Siemens B, there is a key role for
Torsten Ende in Department of Executive Strategy which will be helpful in execution of strategy
of Siemens in order to increase the growth as well as productivity of an organisation. For
improving the key performance area, Siemens made cultural changes for making the workplace
better. For making the business successful, this company is making new corporate strategies for
bringing positive change in the business.
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INTRODUCTION
Siemens is a big company and it performs the business operations at a large scale. There
are many factors which affect the performance as well as business operations. These factorials
can be internal as well as external. There is a macro environment which impacts on the business
from outside the organisation. In this macro environment includes PESTLE Analysis. It is a tool
as well as framework which is used by the marketers in order to determine and monitor all macro
factors. The company analyse market research to reduce an impact on the business operations
along with an environment.
Question 1.
The PESTLE Analysis means P for Political, E for Environmental, S for Social, T for
Technological, L for Legal and E for Economic factors (Barba and et. al., 2016). There is the
PEST analysis of Siemens which is given as below:
Political factors- Siemens business organisation is based out to the Germany and this
country has strong relations with many other countries. Instability in government impacts more
on the business operations and issues. This company deals in many fields like for an instance
digitalisation, electrification and many other. An instability in government makes the change in
governmental policies. So, in this context, people or firms will get confused which policy they
need to apply at the workplace in an effective or proper manner. But in context to this, there is an
advantage to the Siemens that Germany has a good relationship with the other country so this
company need not to be suffer more problems while conducting business in other countries.
Economic factors- An economic conditions in the destination countries develops an
affect related to the fluctuation in the currency on the exchange rates, structure of the local
market, development of the local market etc. From slowing an economy there is a decline in an
Investments which can develop an impact on the Germany which is Siemens headquarters
(Chalmers, Bustin and Power, 2012). In year 2008, a GDP rate (gross domestic product) was up
1.3%. in context to the economic factors, development in the smart city related projects have the
big potential for the Siemens company on order to expertise across the world.
Social factors- These factors develop a big impact on the business activities along with
operations. In context to reduce an impact of this factor, it is essential for the organisation to
provide the better quality of goods and services to the customers. So that the perception of
company in the mind of consumer will be good. Siemens conduct business related activities for
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the students of Europe so that they can give their participation in work study related programmes
for enchaining their knowledge. For increasing the working efficiency, this company provides
training to them in an effective manner.
Technological factors- This type of elements of macro factors is helpful in increasing
the efficiency and effectiveness of business operations and also its activities. This Siemens
company do its business operation at large scale. For this, it uses the new and updated
technology in its operations. With the help of this, time and cost of production will be reduced.
New technologies are helpful in developing the new process along with an innovative goods.
Siemens has a strong leadership in an automation with the help of combining services, software
and also platforms (Demirkiran and et. al., 2011). This business firm does many innovation
activities for attracting a large number of people and making the business successful in an
effective and appropriate manner.
There is an aspect of the business which can impact on a change on any other aspect of
business. Key driver is a common factor which gives its contribution in the development as well
as growth of a specific business. There are some key factors for change of Siemens business firm
given below as above:
Technology development- Development in the technology is helpful in increasing
knowledge with the help of engineering, linguistic and also scientific in context to achieving the
organisation goals in an effective manner. With the help of technology, Siemens uses new
technology in improving the business operations and also activities. Technology is helpful in
making change in a proper manner in an organisation (Dias and et. al., 2014). With the help of
new technology, operations along with the activities, company can enhance defectiveness and
also efficiency of business. Technology development is helpful for the business. This key driver
is beneficial for the organisation because it is increasing growth and profitability of a business
firm in an effective manner.
Globalization- It refers to a trend where all the individuals countries become less
influential in relation to cross national bodies. Siemens is a multinational business firm and this
company perform its business operations in almost 190 countries. It is a procedure through
which a business firm or any other companies create an international impact on at the
international level. It refers to an economic process related to an integration related to the
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cultural and also social aspects. In this includes products, services and also the economic
resources like for an instance data, capital and technology.
Change in government politics- Then different government has the different policies. If
the government and its policies quill be change regularly then in this case it will develop the
m,ore impact on business. From this people will get confused that they will not decided which
policy is good and it should be adopt in conducting its business activities along with the
operations. It is necessary that government should make only those policies which can develop
the positive impact on the business.
Innovation of new products or services- With the help of using the new technology
firm can make the innovation and produce the good and services to attract the large number of
consumers for increasing the sales and profit level of an organisation. Innovation helps in
making the product attractive and also unique (Elias, 2013). It is essential that company should
provide the good to consumers at the reasonable cost so that they will purchase more. The tastes
and preferences of consumers changes day by day. So firm should make change in its existing
products and also introduce new goods at the short period of time. It is an effective key driver for
the change in Siemens.
Decreasing discrimination- It refers to the unjust treatment of various categories or
components of people on the basis of gender, race, religion, nationality, age etc. It refers to
treating the people in a unfavourable manner or badly. Discrimination impacts on the business in
a negative manner. In a business firm, it is necessary for the business firm to treat ll the staff
members equally and do not discriminate among them (Flick and Fliegel, 2013). It will be
helpful in developing the positive impacts on the business operations and also its productivity.
Regarding this it is necessary for the manager to make some of the appropriate and effective
strategies for making the workplace positive.
Question 2.
Mega trends are the global, retained and also some of the macro economic factors related
to the development of business, cultural, economy and also the society which can make the
change in future. It is a trend which is concerned with the movement. There are some of the
mega trends given below which are useful for Siemens company:
Digital transformation- It refers to the field which is taking the virtually command in
each and every aspect of the life. Digitalization is helpful in increasing the business. It is helpful
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in connecting the people from one country to the another. In context to operating the system as
well as data in an effective manner then it will be help in connecting the people with the help of
new tools and technologies. Digital transformation is helpful in making the performance of
business better and it will be helpful in satisfying the needs and wants of people in an effective or
proper manner (Garetti and Taisch, 2012). In this present time period, Siemens company
installed the more than 280,000 devices in all over the world and their base are connects via
platform of secure communication by internet.
Demographic change- IN this included the growth are of population, ageing societies,
income level of people etc. If the population and income level of people will be enhanced then in
this case the demand and wants of people will also be enhanced. There are many age group
people butt their demand and needs are not same, so it is necessary for business firm to prepare
the good on the basis of income level of people, age and many other factors in an effective
manner. In this present time period, people re connected with the mobile communication and
also internet and they need high speed connectivity. It is necessary for an organisation to provide
the effective goods and services to people which can meet with the expectation and needs of
people, in a proper manner.
Climate change- In this includes whether, environmental conditions and many other
factors. The natural disasters impacts on the business operations along with the activities in a
bad manner. In context to this, it is necessary for the business firm that at the time of delivering
the goods and services, its should determine the conditions of whether and then take a step
forward other wise it will develop an bad impact on the business. It is the responsibility of the
manager of Siemens company to determine or evaluate the alternative sources of energy which
this company can use in its business operations (Hordeski, 2011).
Globalization- It is an effective mega trend which is necessary to use by Siemens
business firm. It impact on the business in a positive and also negative manner. It is helpful in
developing the many economic growth and development areas in an effective manner. From the
globalisation there is a more competition arise in all over the world. With the help of
globalisation private sector developed more quickly but on the other hand the public sector
affected more from this.
The factors that affect strategy implementations are classified as leadership style,
information unavailability and accuracy, uncertainty, conflict with the organisational structure
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and culture, less involvement of humans resource and outdated technology. These factors made
impact at different level and carries a different force. The manager of company should rely on
planning and organizing activities when implementing strategies and the biggest obstacles or
barriers to strategy implementations is poor leadership which direct the members to adopt
strategies effective and efficient manner. It is essential for an organisation to motivate members
in execution of strategies through providing rewards system.
Role of strategist:
A powerful strategist plays an important role in execution of strategies in effective and efficient
manner (von Groddeck and Schwarz, 2013).
As a manager:
 Information source: Managers should have potential source of information about changes
in the strategic position of the organisation.
 Sense making: The manager need to explain set strategy to the members involves in the
execution of strategy through which the members clearly understand about their roles and
responsibilities.
As a consultant:
 Consultants may bring fresh external perspective in order to prioritize the key issues
which may damage the strategic activities.
 Consultant are the carriers of knowledge between the clients through which one strategy
ideas of client can be transferred to another client (Williams and Figueiredo, 2011).
Challenges of Strategist:
Engagement: A key challenge that strategist face is engaging the right people in the
planning process. The company should allocate work on the basis of their experience and
knowledge in order to get positive result.
Consensus: It is one of the challenge for strategist to get large number of people with
different backgrounds, interests and perspectives and direct them to achieve desired targets.
Achieving consensus can be challenging but there are number of business tools which can be
used from brainstorming, to mind mapping to nominal ranking.
Execution: The strategist need to put maximum efforts and attention to develop plan so
that once its developed the planning team feels that work is through.
Corporate strategy of a major multi-business firm:
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The corporate strategy of diversified companies involves two major task:
 Selection of the mix of businesses i.e. the decision on the diversification strategy
 The value enhancing management of this mix of businesses depend on the appropriate
structures, systems and resources policies.
In a multiple business firm corporate strategy takes a broad overview role which is more
encompassing than crafting strategy for a single business. Major task include devising actions
which helps in enhancing performance of company for long term, capturing strategic fit benefits
existing within and between business units (Zhiru, Xibin and Xiaoqiang, 2010).
Question 3
It was responsible for the development and execution of strategic choices. This involves
guidance to the business on projects for the development, implementation and communication of
strategy. There were also strategists at divisional and business unit levels. They should focus on
how to compete with their competitors and therefore need to identify market opportunities and
direction to achieve competitive advantage. The company need to focus on achieving
profitability and attaining market share in competitive environment.
There is a scenario related to the digitalisation for the Siemens company for 5 or 10.
digitalization is helpful in making the business operations successful and in a proper manner.
This company uses the latest technology and digitalisation in its business. This company install
more than 280,000 total devices which are connected to the internet. With the help of this, firm
generate more amount of increasing the performance level of an organisation. It is also helpful in
generating the more electricity which are beneficial for the business. The people of today's time
period want the high speed data and it increase the effectiveness ans efficiency of the business.
There are three opportunities which this company can be generate with the help of digitalization:
 It will be helpful in increasing the automation along with the electrification of the
business. In this the firm provide the training to staff members so that they can utilize or
use their skills in business in a proper manner (Keszthelyi, Kovács and Donkó, 2016). In
this trains will be employees the more number of sensors, advance automation software
and also IP communication in an effective or proper manner.
 In this second opportunity, this firm should provide the strong level of services to
attracting the more people. It will be helpful in enhancing the development and
productivity of an organisation. There is an ability of this firm to leverage all the
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information and also data from the 280,000 connected devices in over the world. It will
be helpful in increasing the business by providing the offers related to the digital services.
 In this third opportunity, firm should have the ability and capability to optimally leverage
the leading integrate vertical software related portfolio (Lin, 2014). It is necessary that
company should use the effective or necessary software in an organisation.
With the help of these effective opportunities, firm can increase its business in 5 to 10
years. Opportunities is helpful in expending the business at the large scale.
Mega trends is helpful in increasing the business operations and also activities in an
effective manner. It can develop an impact on the business. An affect can be negative and also
can be positive. There are different types of mega trends such as digital transformation,
urbanisation, globalisation, demographic change, climate change. It is necessary that firm should
use all these mega trends for increasing the business in an effective or manner. Digital
transformation is helpful in enhancing the business related activities and also process effectively.
If firm will use the digital technology then the business will be advanced. On the other hand in
case if this business firm will not use this mega trends then it will develop the negative impact on
the business. With the help of digitalization many people will get connected with each other in
all over the world. It will develop the positive impact on the business.
If firm will conduct its business in more than one countries then there is a chance to
expand its business and also get many chances to increasing the effectiveness and efficiency of
the business. It will develop the positive affect on business firm (Metzger, 2014). With the help
of this, the development and profit level of business firm will be increased in a short period of
time. Demographic change is also develop an impact on the business. Demographic is based on
the age, gender, income level, occupation etc. If the population will be more then the sales of the
firm will be increased. On the other hand, large number of people are connected through the
internet in this present time period. There is a requirement to an organisation to produce those
goods and services which can meet with the needs along with the expectations of the consumers.
It will be helpful in increasing the profit level and the sales of a business firm. Before doing any
business related activities and also works it is necessary for an organisation to do the
environmental analyse so that firm can apply all policies and do its business in an effective or
proper manner. There are many environmental forces which are beneficial for the business. In
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order to increasing the business in an effective manner it is necessary to as business firm to adopt
the effective opportunities to the business.
Question 4
No, there is no need to suggest any other approach to Simon's, but there is a need to
analyse the macro environment of business so that firm can adopt the effective opportunities.
It is done through PESTLE which is used to identify possible opportunities and threats that will
affect the business operation (Someren and Someren-Wang, 2012). It is necessary for the
business firm or management to analyse the macro factors so that manager can execute the
business strategy at the workplace in an effective and proper manner.
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CONCLUSION
It has been concluded from the above assignment that Siemens is a big business firm
which conduct its business firm at the large scale. In this given business assignment studied
about the PEST analysis for the Siemens business firm so that it can implement its business
strategy and also policies in an effective and systematic manner. The policies are beneficial for
the business operations. Under this mention business report discussed about the many mega
trends which are necessary or important for the business. Siemens business organisation also
implement the use of various key drivers for making some changes on the business of this
organisation. In order to increase or expand the business, this cited company adopt the effective
opportunities. There are some challenges which are faced by the strategist or an organisation for
executing the business related strategy for making some change at the workplace.
RECOMMENDATIONS
From the above report it can be recommend that in managers and also employees should
give their effective participation at the time of implementing the effective strategies in an
organisation. It is necessary that top management should develop the good and beneficial
policies which can develop the positive impact on the business operations and also business
activities. At the time of implementation of new business policies, managers should include all
the staff members. It has been recommend that the Human Resource Manager should be monitor
and also control all they activities at the workplace in a effective as well as in a proper manner. It
is the duty of manager to provide the training to its staff members so that their skills will be
Increased and their potentiality of working ill also be enhanced. It will be beneficial for the
business in order to maximising the growth along with the profit level of Siemens business
organisation. In context to increasing the efficiency as well as effectiveness of an organisation,
firm should use the new and also advanced technology and should also provide the high speed
internet services to people. So with the help of this large number of people will avail the services
of this company and from this productivity of this company will be enhanced at large scale.
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REFERENCES
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Hematological, Biochemical, and Histological Analyses.Journal of Toxicology and
Environmental Health, Part A.77(14-16). pp.849-855.
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gelatin, leather, meat, plastics, resists, rubber,... and cabbages and kings. Springer
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challenges. Production Planning & Control. 23(2-3). pp.83-104.
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Macmillan, London.
Singh, S., 2012. New mega trends: Implications for our future lives. Springer.
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Singh, S., 2012. Urbanisation: From Mega-Cities, Mega-Regions, Mega-Corridors and Mega-
Slums to Mega Opportunities. In New Mega Trends (pp. 61-80). Palgrave Macmillan
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Online
Siemens SWOT & PESTLE Analysis, 2017. [Online]. Available through:
<https://www.swotandpestle.com/siemens/>
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APPENDIX 1
Illustration1 1: Mega trends
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Interpretation- From this above mentioned diagram it is concluded that these are the 5 main
mega trends which can be helpful in giving the best shape to the world. In these 5 mega trends
includes demographic change, digital transformation, climate changes, globalisation and also
urbanisation. These all trends are necessary in making the business successful. With the help of
arising these mega trends, the changes themes will be measured and derived in context to
livelihood and current affect on Siemens business and its operations.
APPENDIX 2
Interpretation- This diagrams shows the global presence of Siemens in the Germany, Europe,
Australia, Asia and the Middle East countries. Among all the countries, this company is more
presence in Germany. This company has total 115,000 customers in Germany as comparison to
the other countries.
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Illustration 1: Siemens Global Presence

APPENDIX 3
Illustration 3: Financial Performance of Siemens
Interpretation- This diagram shows the financial performance of Siemens company of year
2010- 2015. the net income of this firm in year 2015 is more as comparison to the 2010 year.
This business firm growing day by day.
Research material
The research material which is used in doing the analysis of this report is taken from the
secondary sources. In this research report the data is taken through the books, internet help and
also journals.
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