Siemens Strategic Management Case Study: Strategy Evaluation

This assignment presents a strategic management case study of Siemens, a multinational electrical engineering company. It evaluates the impact of Siemens' strategies on its decisions and activities, analyzing internal and external factors using PESTLE and SWOT analyses. The study examines how the company responds to political, economic, social, technological, legal, and environmental factors, as well as its strengths, weaknesses, opportunities, and threats. Furthermore, the report reflects on the organizational strategy, competitive benefits, and tactic purpose. The analysis highlights Siemens' approach to identifying growth opportunities by considering key trends and its efforts to adapt to changing business environments. The assignment concludes with a personal reflection on the module experience.

STRATEGIC MANAGEMENT CASE
OF STUDY SIEMENS

Table of Contents.
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Evaluating how strategy adopted by Siemens impact its decision and activities........................3
Analysing internal and external factors of company and how it responses to them....................4
PART 2............................................................................................................................................8
PART 3..........................................................................................................................................12
Reflective view essay and outlining the organizational strategy...............................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Strategic management refer to procedure of setting aims, objectives, mission and
processes that enable companies to gain competitive advantages in bulk. This process provides a
lot of benefits to a company, whether it is public or private, big or small. It encompasses five
different types of stages such as aim setting, analysis, tactic formulation, implementation and
monitoring. The current assignment will be based on strategic management case of Siemens,
which falls under the list of top 10 multinational electrical engineering organizations in the
Germany. The study will explain how tactic adopted by chosen firm impact venture decisions
and key activities. It will also define internal & external factors and how organization responses
to them. Furthermore, the report will also specify how firm strategy help in its tactic evaluation,
it is based on competitive benefit and fulfilling tactic purpose. Lastly the study will clarify
personal reflection of my experience on module.
PART 1
Evaluating how strategy adopted by Siemens impact its decision and activities
In the world of business, there are different types of companies existed and runs their
ventures in effective manner. They may take approach to develop key strategies that play vital
role in success and growth of businesses. Strategy development provide a lot of benefits to firms
in term of dealing major and critical challenges. In case of Siemens, CEO consider two types of
issues that put negative impact on organizational performance and progress. They may take
strategic action in the context of each challenge in form of strategy adoption, that provide a lot of
benefits to company. Siemens in order to gain competitive advantages, may formulate tactic to
determine growth opportunities as key trends. This strategy may put positive impact on
organization decision, in term of driving management attention toward collecting information
about current trend that they consider, to venture grow rapidly and in profitable manner.
According to current strategy, firm take approach to identify further trends that individual person
prefer to follow and then take action to purchase products and use services that provide them
benefits in satisfactory way. All the 57 further trends are categorized in five categorize such as
climate, demographic, urbanization, digitalization, mega, and globalization trends.
Furthermore, the strategy that chosen company adopt also put impact on its business
activities in form of driving management concentration and efforts toward considering and
collecting information about each trend. They may also take pleasure of gaining competitive

benefits by conducting venture activities, from production to marketing according to trends. It
may enable administration to focus on those factors that affect profitability, performance and
productivity of firm positively. By implementing adopted strategy, organization may take
pleasure of generating more revenue and improving venture performance in productive manner
that is quite essential and beneficial for continuous growth of Siemens. It can be said that trends
identification in turn provide company chance to grow and sustain business in any market, at
each level, whether it is international or national. The current strategy enable firm to set strategic
goals and objectives, which it plans to achieve by conducting beneficial practices and activities
such as utilization of advanced technologies that help individual to communicate with each other.
Analysing internal and external factors of company and how it responses to them.
The best way to conduct external or internal environmental analysis is implication of
strategic and specific model, such as PESTLE and SWOT. In case of Siemens, both models
applied that help to analyse macro and micro forces, regarding which company response
strategically and appropriately.
PESTLE analysis-
Political factor-
Political stability, instability, trade policies, tax rules and other terms are included in list
of this category of factors. Any form of change related to these concepts may put direct impact
on a company (PESTEL Analysis, 2020). In case of Siemens, fluctuation related to tax and trade
policy put negative impact on venture, as firm have diverse business field and according to that it
may have to follow new policy that lead to increase work pressure and decrease operational
effectiveness or efficiency. It may also lead to maximize cost of production in regard to turbines,
solar plants, power equipment and other division products. Political forces drive the attention of
company toward taking strategic action and decision in rapid manner, which enable it to prevent
venture from falls and further losses, that is essential for company to do so in systematic and
appropriate way.
Economic factor-
This factor put positive impact on Siemens in term of providing growth chances in
developing economies where firm may take approach to provide transportation systems for
individual person and products. Economic growth factor play vital role in success and progress
of company in term of providing chance to fulfil customer needs in unique way that help to

generate revenue and in turn cater opportunity to increase profitability. It is fact that growing
economies means great income level, which drive the attention of customers toward purchasing
electronic products and utilizing services of Siemens that in return lead to generate profits more
than last few years or months. It is fact that progress in smart cities projects at international level
become huge potential for company as it may expertise beyond domains, and utilize the
experience for purpose of grabbing competitive benefits in bulk.
Social factor-
Current market trends affect organization in positive manner as it may consider further
trend that individuals follow and consider before taking any decision to purchase a product or not
(PESTLE Analysis, 2022). According to case study, Siemens ventures and management already
taken initiative to focus on identifying further trends that put positive impact on its venture
success in the future. It may lead to increase profits, revenue and customer base of chosen brand,
more than the rivals that are accessible in the world of business and conducting efforts to manage
their businesses successfully. This factor may lead to increase profits margin and sales level of
company even better than previous eras. It may also provide chance to improve organizational
performance that become one of the biggest challenges that management and other stakeholders
are facing.
Technology factor-
Technology advancement is one of those forces that enable Siemens to grow rapidly,
productively and profitably, which is quite essential and beneficial for company to do progress in
such manner. It may enable firm to manage their diverse unit of ventures successfully and in
appropriate manner. It may give organization opportunity to gain the attention of potential
consumers toward purchasing quality products such as pacemaker, etc. that help to save human
life. Furthermore, due to this factor it may also produce and provide the best electronic systems
and other products that help to gain competitive advantages in bulk. It can be said that by using
advanced technologies firm may take pleasure of improving performance and increasing
productivity of venture. It may utilize technologies in each division, whether it is digital factory,
process industries, financial services, or mobility in appropriate manner.
Legal factor-
This factor also affect Siemens success and growth in the industry, where it has
established strong and excellent brand image via division of venture in several manners. It can be

aid that any form of change related to regulatory frameworks, policies, and rules related to varied
concepts such as data privacy, workplace safety, etc. put negative impact on company in term of
increasing work pressure on management to make possible modification in the context of current
practices. It may lead to increase stress level which put negative impact on organizational
success and productivity level, that is not suitable for brand image of chosen company. Along
with all these things, it is essential for management to consider current and further modifications
in regard to legal factors that play vital role in ventures progress and sustainability. Due to these
things, firm may sustain and run ventures successfully, after appropriate considerations of
governmental rules and policies.
Environmental factor-
In the recent time consumers, industries and governmental bodies may focus on
environment sustainability, which drive the attention of companies toward considering CSR and
conducting ethical as well as sustainable practices. In case of Siemens, this factor put positive
impact on business in term of making firm sustainable and providing chance to conduct similar
activities by following corporate social responsibility term. It already conducts sustainable
practices in term of producing and offering environmental-friendly solutions as well as resources
that save generation of power successfully from fossil fuels and also offer key approaches in the
context of production as well as transportation of gas and oil. It may focus on adding value in
each division in term of stretching portfolio from steam and gas turbines, that design & deliver
overall turnkey, integrated key power plants.
Illustration 1: PESTLE Analysis
(Source: Introduction to PESTLE Analysis, 2022)

SWOT analysis-
Strengths-
The key strength of Siemens is skilled and talented workforce that it may have and
utilize to reach desire outcomes, which is quite essential for rapid organizational growth. With
this strength firm may take pleasure of building wide and strong venture units that in turn
contribute to increase productivity and performance level of company (Strength, Weakness,
Opportunity, and Threat (SWOT) Analysis, 2021). Another strength, that put positive impact on
chosen company is good financial background, which enable brand to grow rapidly and take
strategic decision that provide a lot of benefits to venture stakeholders. Along with above, there
are more examples related to organizational strengths accessible that define how and in which
manner it may sustain in the market. As Siemens may have wide number of lawsuits that enable
firm to settle claims appropriately and in systematic manner, which affect current management
practices of business.
Weaknesses-
The biggest weaknesses that lead to decrease organizational performance is dependency
of Siemens on third party providers, who may take some decision to conduct specific activity
in the organization (Benzaghta and et.al., 2021). It is fact that dependency in a company at
extreme level put negative impact on success & growth of venture. As it may decrease the power
of firm to take right decision and implement the same. Another weak point of organization that
affect negatively is few allegations of venture in business world by individuals that hit
headlines in the recent time and affect brand image adversely. These two weaknesses affect
current activities and decision-making process of firm, which is not suitable for its growth in the
market or overall sector. Due to these points, organization may lose chance to reach desire
outcomes in effective manner that is essential for it to do that.
Opportunities-
Advancement of technologies provide Siemens great opportunities in bulk that
organization may grab according to the situation and need of business in successful and
competitive manner. It can be said that by using advanced technologies an organization may give
tough competition to their rivals that is important for their rapid and competitive growth.
Increasing demand for electricity and other products and services, also cater chance to
company to grow competitively and stand in the market in similar manner that is necessary. By

grabbing both opportunities and other as well, firm may take pleasure of improving brand image
and performance that provide benefits to each and every stakeholder. Technology utilization in
the workplace contribute to increase productivity level and also enable company to obtain key
advantage in term of aim achievement that is essential.
Threats-
Intense competition within global business environment and sector where Siemens has
operated its venture put negative impact on company but for short term period. It may enable
organization to make possible change within existing things whether it is policies, practices, or
activities related to several venture units. It may lead to increase work pressure on manager and
leaders within each business unit to consider the extent of competition and then take strategic
action accordingly. Another threat that negatively impact chosen company is pandemic, as it
may lead to decrease demand and supply of those products that firm tend to produce and deliver
in the market. It may affect current practice of management and drive their attention toward
focusing and implementing COVID-19 guidelines that help to sustain and gain competitive
benefits.
PART 2
COVERED IN PPT

Notes-
 The market size of Johnson control as compare to Philips is wide as firm operate its
ventures within more than 150 nations.
 In term of success as compare to other companies, organization may gain competitive
benefits and generate a lot of revenue more than last few years or months.
 It may provide a lot of benefits to company in form of increasing profitability and
productivity level, which is quite essential for venture and management to improve and
increase so.
 While the market size of Philips is not wide as compare to other chosen company, as it
may have established its ventures into 100 nations, where success and growth chances
accessible in bulk.

Notes
 It may focus on safety concern for products success that consider as strategic solution for
company, which make it productive and competitive.
 In the recent time individual customer prefer to purchase electronic product when it is
safe and appropriate for their health.
 By considering these solutions both companies may grow and succeed in the same
market as they are running and managing ventures growth in similar industry.

PART 3
Reflective view essay and outlining the organizational strategy
Organization strategy are the sum of actions that the company takes in order to achieve
the long- term goals. By having this actions it makes the strategic plan of the company and
makes the organization to achieve their goals. Top management of the company used to create
the large strategies of the organization. The middle and the lower management of the company
used to adopt the plans and strategies in order to achieve the goals of the organization (Hanelt