International Business Report: Siemens AG Analysis, BMGT2004

This report provides a detailed analysis of Siemens AG's international business operations, focusing on its operational and strategic considerations. It begins with an overview of the company, its global presence, and its diverse business sectors, including healthcare, infrastructure, and energy. The report then delves into the operational and strategic aspects, examining customer service, quality management, and procurement. It analyzes Siemens' competitive environment, identifying key competitors and the challenges posed by new technologies. The report also explores the company's ethics and corporate governance, highlighting its commitment to ethical conduct and supplier relationships. A SWOT analysis is presented to assess the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for addressing operational issues, such as pricing strategies and employee satisfaction, and provides a list of references.

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Management
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Executive Summary
The following report has been prepared in order to identify the operational and strategical
perspectives of a multinational organization. The company selected for the study is Siemens
Ag which is surely a great selection given its global presence and the number of businesses it
operates. The report which starts with the introduction and overview of the company has
included the operations and strategies implemented by the management along with the
presentation of the internal and external analysis of the business operations. The internal
analysis has been presented with the SWOT while the external analysis has been presented
with the Competitive analysis of the business. The inclusion of the ethical laws and corporate
governance procedures has further intensified the information of the report. Finally the report
has been made complete with the presentation of the conclusion and the recommendations.

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Table of Contents
Introduction................................................................................................................................4
Overview of the company..........................................................................................................4
Operational and Strategic Consideration...................................................................................4
Competitive Environment..........................................................................................................5
Ethics and Corporate Governance..............................................................................................5
SWOT Analysis.........................................................................................................................6
Conclusion and Recommendation..............................................................................................6
References..................................................................................................................................7

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Introduction
The report here has presented a clear picture of the international operations and other
different perspectives of a multinational company. The multinational company elected to
make the report is Siemens AG which has its operations spread globally. The global presence
of the company along with the success of the organization.
Overview of the company
Siemens AG is a German multinational conglomerate company that is headquartered
in Munich. The company deals in various sectors of business and currently specializes in
healthcare, infrastructure, energy and industries. With a strength of close to 389,000
employees and a revenue of more than pound 90billion, the company has been one of the
major global names in the business sector (siemens.com 2020). The management of the
business organization has specialized itself in the manufacture of a number of different kinds
of the business products that includes Power generation technology, Automation, medical
technologies, software, electrical equipment, fire alarms and many more similar as such. It
has also a branch that deals in financial business services (siemens.com 2020). Apart from its
widespread European operations in countries like Germany, France, UK, Switzerland, its
operations are also spread in USA, Canada, China, India, Thailand, Singapore and in many
other countries globally.
Operational and Strategic Consideration
The name Siemens has a wide outreach as being a big company, the operations of the
company are also similarly big in nature. Some of the major services provided by the
management of the business includes the likes of the Customer Service, Quality management,
Procurement and Logistics and many more as such (Aithal 2016). The operations of the
company is based on the modern day technologies that commits to shape the future, share the

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knowledge and then finally keep on the track of development. The operational culture of the
company is based on the development of the common working culture of working together as
a team (siemens.com 2020). The management of the company has set out the strategy in such
a manner that it helps the organization to ensure a global outreach and ensure success.
The management of Siemens has been engaged in setting the course for a long term
value creation through the development of an accelerated growth and a strong profitability.
The growth and profitability of the business enterprise is ensured through the presentation of
a simplified and leaner company structure (siemens.com 2020). The company plans to use the
vision 2020 to ensure more focus on the different global markets and also invest in research
and development along with the expansion of industrial digitalization process.
Competitive Environment
The management of Siemens currently faces new challenges as many different
international companies have gone ahead in the race to acquire market share. The popularity
of the new technologies and the emergence of new energy companies have led to new
competition for Siemens (siemens.com 2020). Apart from this the abundance of low cost
technology and energy has also made it difficult for the company to gain proper development
in the business. Siemens generally competes in the market with the big market operators like
General Electric, ABB, Bombardier, Conn and many others as such.
Ethics and Corporate Governance
The company relies on a trustworthy supplier relationships with the suppliers of the
business. The maintenance of the “Code of Conduct for the Siemens Suppliers and third party
intermediaries” helps the company to ensure a transparent set up (siemens.com 2020). Apart
from this the company also entails global collaboration through the implementation of mutual
trust. Such a trust is important for the success of the relationships of the business.

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SWOT Analysis
STRENGTHS OPPORTUNITIES
 Focused on Strategies
 Decentralized features
 Thinking global but implementation
local
 Growing business market
 Changes in business technology
 Development of Information
Technology
WEAKNESSESS THREATS
 Low price for quality products is a
weakness
 Less employee satisfaction
 Slow global economy
 Less amount of market share
 Use of advanced technologies by
other companies
Conclusion and Recommendation
The report has highlighted the major operational aspects of Siemens AG. The
selection of Siemens AG as the company has been important because of the global presence
of the organization. The presentation of the ethical governance details of Siemens and the
SWOT Analysis of the organization has made the report more compact in nature.
Some of the major recommendations that can be implied for tackling the operational
issues of the business includes the likes of;
a. Change in the pricing techniques. The management must implement high prices for
high quality products
b. Implementation of the employee satisfaction policies
c. Use of advanced technologies and concentrating on specific markets

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References
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. International Journal in Management and
Social Science, 4(1).
Services, P., Solutions, M., Careers, J., us, A., events, F., Relations, I., Areas, T., Siemens, L.,
Do, W., Siemens, C., Development, R. and Marketing, S. (2020). Operations Jobs | What We
Do at Siemens. [online] siemens.com Global Website. Available at:
https://new.siemens.com/global/en/company/jobs/what-we-do/operations-jobs.html
[Accessed 11 Feb. 2020].
Services, P., Solutions, M., Careers, J., us, A., events, F., Relations, I., Areas, T., Board, S.,
Siemens, C., Portal, S., Chain, S., Conduct, C., Systeme, E., Module, D. and Minerals, R.
(2020). Code of Conduct | Sustainability in the Supply Chain | Siemens. [online]
siemens.com Global Website. Available at:
https://new.siemens.com/global/en/company/about/corporate-functions/supply-chain-
management/sustainability-in-the-supply-chain/code-of-conduct.html [Accessed 11 Feb.
2020].
Services, P., Solutions, M., Info.), N., us, A., Areas, T., Careers, J., Management, S. and
overview, S. (2020). Strategy overview. [online] Siemens Korea. Available at:
https://new.siemens.com/kr/en/company/about-us/strategy-overview.html [Accessed 11 Feb.
2020].
siemens.com Global Website. (2020). Siemens Website. [online] Available at:
https://new.siemens.com/global/en.html [Accessed 11 Feb. 2020].

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Tornjanski, V., Marinkovic, S. and Jancic, Z., 2017. Towards sustainability: Effective
operations strategies, quality management and operational excellence in banking. Amfiteatru
Economic, 19(44), p.79.