Introduction
Siemens is a German conglomerate that specialise in electronics and electrical engineering. They currently operate in four different sectors, these being Healthcare, Industry, energy and Infrastructure & Cities sector (Siemans a). They are represented in 190 countries (Siemens b), employ around 362,000 employees (Siemens c) and in 2013 achieved a revenue of €75,882 million and a net income of €4,409 million (Siemens d). This essay will focus on Siemen’s energy sector.
Using Porter’s generic strategies framework (See appendix 1) it can be identified that Siemens is using a differentiation strategy. Siemens promotes and utilises diversity in every level of the organisation and is vital in their corporate level strategy. As Siemens seek to hire highly qualified employees and due to demographic changes in the global market place, diversity is vital for Siemen’s long-term success. In 2010, Denice Kronau was given the title of Chief Diversity Officer to “foster diversity in every corner of Siemens” (Siemens). The most important aspect of Siemen’s strategy is innovation, this allows them to enhance their core competences and ensure their products are of the highest quality.
Porter’s 5 Forces analysis
Degree of Rivalry
In the energy industry, Siemens competes with big players such as General Electric (GE) of Fairfield, Conn., and ABB (ABB) of Switzerland (The Street, 2009). This shows that there are a number of large successful companies competing in this marketplace and so the degree of competition is high. However, as the energy sector is so vast and Siemens compete globally, there is enough demand for Siemens and each of their competitors to succeed.
Bargaining power of customers
The products and services that Sie...
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...ch allow them to continually innovate and create revenue in existing and new markets their stakeholders are highly likely to accept their strategy. Siemens also put a heavy focus on their CSR, for example in 2013 Dow Jones named Siemens as the world’s most sustainable company for the second time running (Siemens csr), so this strategy and continuation of the sustainable beliefs ensures that they keep their environmental stakeholders satisfied as well as stakeholders who want Siemens to profit.
Feasibility
Siemens have the resources and capabilities required to carry out this strategy. They have significant profits that they are able to feed back into the company, a highly capable workforce that have the necessary core competencies to continually innovate and grow the company and they have the experience and knowledge to compete in every sector that they engage in.
There were several trade-offs for GE to implement the shift in strategic focuses. To achieve organic growth, GE needed to increase output and sales based on customer needs, which was unlikely for GE to achieve in a short time. GE’s profit inflow would slow down in early years as a trade-off for sustainable profit in the future. Previously GE had many projects induced by merger and acquisition activities. They needed to decrease projects and more focus on long-term investment in order to achieve organic growth.
The industry environment has a more significant effect on the firm’s strategic actions. By five forces analysis including threat of entry, the power of suppliers, the power of buyers, product substitutes and the intensity of rivalry among competitors, AT&T is to find its position in the industry. Mentioned before the company acts as the first mover in lots of segments of the industry environment it is competing in. Having an intensive rivalry because of the speedly developing high tech requirements of the environment and the R&D forces of the leader companies, new entrants are discouraged. Late movers have commonly less chance to be able to compete and gain advantage over to companies such as AT&T and its competitors.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
BBC was the third largest company in Switzerland, and it has been very successful in the electric industry. Its past successes mainly owe to the focus strategy and geographic organization. BBC emphasized technology and quality, which enabled it build up its competitive advantage and achieved long-term success. In order to meet the market environment at the time, together with the deep-rooted culture, it built up the geographic organization. This organization stresses local autonomy because it is believed the local management is the best place to negotiate with the public utilities and this structure can meet the strictly local competition. Moreover, it resulted from the foreign exchange restrictions during the definite historical time. The strategy and the organizational structure brought about continuous successes because of the booming demand. However, it increased risks at the same time. When the economy collapsed and demand declined in the 1980s, the company faced with a stagnating situation. The organization structure made decision-making much slower than the changing market required. In 1987, the company once tried to shift its structure to divisional organization, but it’s not implemented into reality.
SUN Microsystems Case Analysis Sun Microsystems had an extremely tough decision to make in regards to its procurement strategy. They had to decide if they were going to take on an “E-sourcing” or “dynamic bidding” auction-type strategy with making purchases from their suppliers. Taking on this type of procurement strategy would benefit Sun with cost-savings on procurements, but may jeopardize their supplier relationships and quality of inputs for Sun products. After reviewing the enclosed financial data for Sun from 1996-1999, it is apparent that some trends are consistent. Sun’s cost of goods sold has consistently been around half of their revenue for prior fiscal years, resulting in an approximate gross margin of 50%.
Over the last 50 years The Boeing Company has shown itself to be an industry leader in the fields of technology and putting their vast physical assets to use. Boeing has been on the forefront in innovation in both commercial aviation, and airplanes used for defense purposes. Whether it was the introduction of the first modern airplane with dual engines when the Boeing 247 was unveiled or introducing new standards of efficiency into their business model Boeing seems to have always been one step above the competitors. So while Boeing was hurting their competitors on one end they decided to go and become more efficient on the other end. So not only were they the leader in technological innovation they improved the productivity of their largest business unit all while decreasing the amount of space they used. When a company is hitting on all cylinders like Boeing seems to be it becomes hard to compete, and their competitors are likely finding that out first hand.
They show these values through global involvement in education, community, and philanthropic efforts. Cisco, 2004 Cisco Systems has been at the forefront of social responsibility or what they describe as Corporate Social Responsibility or CSR. Cisco has an impressive CSR past and an extensive CSR plan for the future. Cisco takes the surveys and feedback and tries to make meaningful and useful changes the employees are looking for.
Renewable energy and business are closely related. There are many countries in the world producing electricity from renewable energy sources and using it in the intermediary way. This intermediary chain is private business. Everyone knows the fact that business works better when it belongs to private sector and not to the government. In this section, we focus on renewable energy and business. We analyze several renewable energy companies and research how business can influence the renewable energy market.
Today business enterprisers are creating new products due to becoming different than rivals. After that as a result it could be observed that technology is growing rapidly. Some companies will be attractive by people. More attractive means ore customers. Every company has different strategy.this assignment will explain about Samsung innovations.
...tner of this electricity plant. That will definitely decrease our profits and control but it will assure the constant power demand by these industries. Thus we can reduce our external threats through this step. These industrialists will also help financially in our expansion plan and give us better goodwill in the market.
Samsung’s corporate social responsibility (CSR) vision is to build a society where people, society and the environment coexist in harmony. As a part of Samsung CSR efforts, Samsung is committed to transparency and delivering important information to our shareholders to continuously build confidence and trust in us (Samsung, 2016).
In the present paper, the company Robert Bosch GmbH will be presented. The target of this paper is to give a broad overview of the company’s structure and to analyse its current situation and strategy.
At the time of the case, why has SAP America grown so rapidly? What challenges have been created by the company’s explosive growth?
Siemens is also involved with building facilities for offshore wind turbines on the east coast of England, since Britain is quickly expanding into wind power. Siemens is investing about $264 million in the production and installation facilities because of the promising prospects for the offshore energy market in Britain, supported by the government. The company again is headed in the right direction.
middle of paper ... ... g the Energy Revolution." Foreign Affairs. Nov/Dec 2010: 111. SIRS Issues Researcher.