SIEMENS Corporation is the biggest and one of the largest technology and digital corporations throughout the world. The company was founded in 1847, to be able to efficiently and quickly offer digital products. SIEMENS has combined the technology platform in its R&D department and central corporate technology. The name of the corporation stands for engineering distinction, innovation, in-depth excellence for quality and reliability, for creativity and human drive and for financial solidarity and stability, also for good corporate citizenship. The company has been leveraging the strength of 350,000 employees in more than 150 countries. The digitalization and extensive technology development has contributed in the progress of company. The rate of data transmission and internet storage capacity would increase over the period of time, not only everyday lives would be transformed due to the development but the overall economy globally. Furthermore,the company is also contemplating to source its technology to overseas companies and to develop extensive experience in field on automation, innovation, electrification and intelligent infrastructure. Furthermore, the company is intended to offshore its operations and technology development in overseas.
Take Home Paper Harvard Case Solution & Analysis
Answer Question # 01:
Situational Analysis:
The situational analysis is a comprehensive analysis of external and internal environmental factors or elements which highly affect a corporation. A wide and broad range ofinfluences surrounding SIEMENSCorporationcan last influence on strategies, decision making power and performance as well.
Political Factors:
The political factors are the government policiessuch as extent of intervention in the certain economy. As the political decisions are a highly influential factor effect on major areas of business.
- SIEMENSCorporation stands out to be a beacon of political strength even in era of turmoil and uncertainty.
- SIEMENS corporation is highly affected by the rules and policies imposed by overseas governmentson offshoring.
- In the information technology battleground, offshoring tends to be the focus of radio commercial and political televisions(Mankiw, 2006).
Economic Factors:
The economic factors which are responsible to last positive and negative impact on the organization include taxation charges, interest rates, exchange and inflation rates andeconomic growth. All these factors have a major impact on the behavior of company.
- As SIEMENSCorporationis headquarteredin Germany, the slowing globaleconomy has drastically resulted in declining the proportion of investment.
- The rate of inflation has aligned with that prices of energy, in addition to this, in 2008, the gross domestic product was up 1.5%.
- The third quarter of the calendar year 2010, SIEMENS corporation has strongly ordered a backlog which has highly softened the impact of recession on profit and revenues of company. SIEMENSCorporation hascontinually expectedTotal Sector profits in order to exceed the year level of €6.9 billion in 2010.
- The company has successfully cut roughly 6% of its workforce as part of an overhaul resulting from economic woes.Due to these planned cuts, the company hasachievedsavings of 1.1 billion euros.
- The strong currency of the market, where SIEMENSCorporation would most likely offshore its operations might create difficulty for the company due to the rise in prices.
- Additionally, if the inflation rates go higher in the overseas market, it might provoke higher demands in wages from workforce and it would ultimately raise cost as well...................
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