MCR008A: Corporate Strategy Analysis of Siemens Restructuring

This presentation analyzes Siemens' corporate strategy, focusing on the company's restructuring efforts and its strategic shift towards renewable energy. The presentation begins by discussing the credibility of the news source, which reported on Siemens' decision to cut off a significant number of employees as part of its restructuring plan. The need for employee cutbacks is examined, highlighting Siemens' focus on investing in the gas and power plant sector to compete with rivals. The presentation also delves into the concept of merger and acquisition, specifically product extension mergers, as Siemens consolidates its gas and power unit. The case discussion explores the importance of this partnership for Siemens. The presentation recommends that Siemens continue its investment in renewable energy, ensuring proper support and training for employees affected by the restructuring, and maintaining transparent communication. The conclusion emphasizes the importance of managing employee concerns during organizational changes. References from various academic sources are included to support the analysis.

Running head: CORPORATE LEVEL STARETGY
Corporate Level Strategy
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
Credibility of News Source.............................................................................................................3
Need for cutting off the employees.................................................................................................4
Merger acquisition...........................................................................................................................4
The case discussion..........................................................................................................................5
Recommendation.............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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Introduction
There are several important news that is taking place in and around us every day.
Spinning off or cutting off employees from any organization is important because often the
industries have to focus over the construction of other industries. Therefore a large number of
manpower and labor will be needed for focusing over the newly set up industry. Same was the
case with the company called Siemens. The new was published in the AP website in the year
2019. This is one of the very authentic sites and gives true information about the different
incidents that are taking place around people. Thus it is really very essential for all of us to know
about the different sources that are actually publishing the news. One of the very important news
that took place was the ways in which the company was trying to cut off a large number of
employees because they had to focus over their restructuring. As per their opinion it was very
essential for them to do it so that they can actually focus over the production or the creation of
some new areas of business.
Credibility of News Source
This news article that as published in the news website that is on AP is considered to be a
very authentic article as it is one of the most credible sources of information and it is also very
popular among many people. Thus this will be very useful for the people to know about the
places or the different steps from which the news or the information is being floated down. Thus
people will natural like to get the news from different sources were they will be assured about
the credibility of the source or the information. Thus this news article is considered to be one of
the most useful and also one of the most original sources of the information

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Need for cutting off the employees
As per the opinion of Gao, Zhang and Lü (2016), there are often many doubts among
people or the employees because they do not really understand about the reasons for which they
are being cut down from their current job or employment posts. However Schuster, Vranken and
Maertens (2017) has argued in the similar context that often the managers make sure that their
employees are getting a proper employment or source of earning money even after they are being
removed from their exiting sources of employment (www.apnews.com. 2019). However in the
concerned case it has been seen that Siemens gave also decided to cut off about 10,000 jobs as
they have a different idea in their mind. In other words they want to invest more time, energy and
money in the field of gas and power plant as they have to make surd that the competitors are not
overtaking the business from their hands. Mazzeo, Seim and Varela (2018) have opined that
employees are often afraid about the different new roles and responsibilities that would come
over them in the new company and the ways in which they can actually cope up with the same.
Siemens had to carry on with this activity so that they can invest the man power and the raw
materials over the newly set up plant that is the power and energy set up. This would help them
to produce the eco friendly products
Merger acquisition
Product extension merger is used in this particular aspect because they two companies
are engrossed in selling two different kinds of items or services that are not totally same or
identical in nature but are actually related to each other. Therefore the two companies that is
Siemens and also the gas and power unit of the company are the two companies that have been

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involved in the merger and acquisition aspect. . However they have to make sure that the merger
or the unity among themselves are taking place in a proper way so that the employees in both the
companies are being able to understand each other and also get rid of the differences that might
arise between them. However the case study is dealing within the company Siemens that have
taken this major decision in order to make sure that they are being able to put forward a very
tough competition to the other competitors like the Boston-headquartered General Electric and
Japan’s Mitsubishi have also faced a huge amount of competition in the field of generating eco
friendly cars or vehicles (Doi and Ohashi 2017).
Thus it is really very essential to make sure that the employees are being reallocated so
that they can be put in newer positions in the gas and power plant. This will be helping them to
make sure that the work in the new field that is the gas and the power plant is being carried on in
a proper way. Siemens CEO Joe Kaeser called “a powerful pure play in the energy and
electricity sector” to describe this aspect. As per his opinion this sun off of the employees is
needed so that they can actually raise the cost or the amount of money for using it over the
The case discussion
The partnership or the merger and the acquisition is very important for Siemens company in the
current scenario as they want to invest their money and their power in their newly set up and
spun off company that is the renewable energies company.
Recommendation
 It is recommended that Siemens’ sticks to the new plan of investing in the renewable
source of energy. This will be very helpful for them in the long run. They will be able to

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make sure that their CSR is being conducted in a proper way and they are producing only
those vehicles that will be helping them to contribute positively towards the environment.
 Proper salaries and trainings must be given to the employees who are being cut down
from their existing job posts and are being put up in the other job posts in the . Often
during this time of shifting the employees are not able to put up with this kind of changes
or transformation. Therefore they might suffer from the lack of enough support and skill
development training. They might often suffer from the fear of losing their job
 As promised by the CEO Kaiser that they will be cutting off 10000 jobs but at the same
time they will also be compensating for the same by opening up new opportunities of
work for their employees. He must also ensure that he is staying true to whatever he
promised. Therefore this will surely help him to stay honest towards his employees and at
the same time make sure that he is being able to provide proper job opportunities to all
his employees and also taking regular feedbacks from them., this will help him to try
directly connected with all the employees and get to know about all their grievances very
easily. Thus creating a smoothly flowing communication system is always much essential
for the proper operation of any kind of mergers and
Conclusion
Thus it can be concluded that the organizations at times have to take these decisions like
cutting off the existing employees from employment like Siemens. However it is the duty of the
managers to know that this might cause many doubts and fears among their employees. Thus
they have to take care of employees in a proper way and also help them getting new job
positions. Thus spinning off or cutting of the employees at certain point of time is really much
need. However at the same time, it must be kept in mind that the employees might as well suffer

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from doubts and fears. Therefore it is the duty of the managers to ensure that the employee are
getting proper training and counseling sessions for coping up with the changing scenarios or the
changing conditions.

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References
Doi, N. and Ohashi, H., 2017. Market structure and product quality: A study of the 2002
Japanese airline merger. International Journal of Industrial Organization.
Gao, H., Zhang, B. and Lü, H.J., 2016. Constraints on binary neutron star merger product from
short GRB observations. Physical Review D, 93(4), p.044065.
Mazzeo, M.J., Seim, K. and Varela, M., 2018. The welfare consequences of mergers with
endogenous product choice. The Journal of Industrial Economics, 66(4), pp.980-1016.
Schuster, M., Vranken, L. and Maertens, M., 2017. You can ('t) always get the job you want:
stated versus revealed employment preferences in the Peruvian agro-industry.
www.apnews.com. 2019. www.apnews.com. [online] Available at:
https://www.apnews.com/6d9a4706b84644d1b9bb675b457abdce [Accessed 23 Jul. 2019].