Buisness case study on


Submitted to: Submitted by: Rashid Ali Umer Ejaz Farman Siddique Hafiz Iqbal Zohaib Asghar

Sir Hafiz Ghufran Ali Reg no 4244 4264 4293 4259 4252

by turning a humble little workshop into one of the world's largest enterprises. Siemens is responsible for building much of the modern world's infrastructure. He was the man behind one of the most fascinating success stories of all time .the pioneer in energy efficiency industrial productivity affordable and personalized healthcare intelligent infrastructure solutions . Chemistry and ballistics at the artillery and engineering academy in Berlin. industry communications. information. employing some 440. healthcare. Siemens is today a technology giant in more than 190 countries. Physics. Siemens and halske presents the worlds 1st electrical railway with external power supply. components and lighting has become essential parts of everyday life. inventions that helped put the spin in the industrial revolution. He was born in 1816 in Germany. mechanical engineer and entrepreneur. He joined the Prussian army in 1835.000 people worldwide. In following Months Company start drawing attention over and over again with ground breaking product developments. where he spent three years studying Mathematics. transportation. as an extraordinary inventor. Its work in the fields of energy. he made the world's first pointer telegraph and electric dynamo. Vision and Mission statement: Vision: y y y y Siemens . the company he started grew from strength to strength in every field of electrical engineering. As Werner had envisioned.160 years of Siemens Introduction: History Werner von Siemens lays the foundation of today s Siemens AG 12 October 1847.

Corporate Governance is the basis for all our decision-making and control processes and comprises: y y y y y responsible. value-based management and monitoring focused on long-term success goal-oriented and efficient cooperation between the Managing and Supervisory Boards respect for the interests of our shareholders and employees and other stakeholders transparency and responsibility in all our entrepreneurial decisions and An appropriate risk management system. . Corporate governance A clearly structured and fully implemented corporate governance system is our highest priority. is committed to serving the interests of the Company and achieving sustainable growth in Company value. as the Company s top management body. the Company has a two-tier management and oversight structure consisting of a Managing Board and a Supervisory Board (two-tier board structure). Our wide range of products and solutions are designed with the environment in mind and engage with the subject of climate change. Consequently. The German Codetermination Act requires that the Company s shareholders and its employees each select one-half of the Supervisory Board s members. we re creating lasting value for our shareholders and customers while providing answers to the toughest questions of our time. Siemens is subject to German corporate law. Management & Control Structure As a German stock corporation with registered offices in Berlin and Munich.Mission: On the basis of our forward-looking technology and solutions we respond to the most challenging questions of our time in the Industry. The Managing Board: The Managing Board. The Supervisory Board The Supervisory Board oversees and advises the Managing Board in its management of the Company s business. Energy and Healthcare sectors. With our corporate governance system. with support from IT Solutions and Services.

Canada Siemens SD-160 Edmonton Transit System and Calgary Transit Alberta. the TSP 7000 Hicom Trading E Hicom 300 HiPath HiQ 8000 Softswitch HiE 9200 Softswitch EWSD telephone exchanges Transportation y y y y y Combino. Siemens AG reports to its shareholders regarding its business development. Electric motors. Canada ER20 diesel locomotive MTR. Industrial Instrumentation (Sensors and communication). SIMATIC Programmable Logic Controller (PLC) Telecommunications y y y y y y y y y y OpenScape Voice (HiPath 8000) OpenScape Contact Center (formerly HiPath ProCenter) OpenStage IP and TDM phones Telecommunication Service Platform. SENTRON Low voltage switchgear. and Avanto trams Siemens-Duwag U2 LRV Edmonton Transit System and Calgary Transit Alberta.Shareholder relations Four times a year. An ordinary Annual Shareholders Meeting normally takes place within the first four months of each fiscal year. Hong Kong LHB/Siemens M1/M2/M3 Metro (Pair) Prague Metro Czech Republic Control Systems y SIMATIC PCS 7 Process Automation System for Process and Hybrid industries . ULF. Product line of Siemens: Some of the major products of different sectors of Siemens are listed here: Industrial In industrial sector it produces. SIRIUS Controls. financial position and earnings. SINAMICS & Perfect Harmony drives.

onshore and offshore Power Transmission y y y y y Transformers HVDC Circuit Breaker Disconnector Instrument Transform Other y y y y y y SiPass Security SiVeillance Command & Control DESIGO Building Automation APOGEE Building Automation active FRIEND Advia(R) hematology systems[ . Denmark) : Wind turbines.y y Siemens SPPA-T2000 Control System (formerly Teleperm XP) Siemens SPPA-T3000 Control System (For Electrical Power Generation Control) Healthcare y y y y y y y y y y y Acuson Antares Ultrasound Acuson Cypress Ultrasound Acuson S2000 Ultrasound ARTISTE Linear Accelerator AXIOM Aristos AXIOM Artis AXIOM Iconos Mobilett ONCOR Linear Accelerator syngo Imaging syngo Workflow Energy Power Generation y Renewable: o Siemens Wind Power (previously Bonus Energy in Brande. 2.3 MW.6 MW. 3. gearless 3 MW.

In addition. Strength Abundant financial resources well-known brand name Economies of scale Superior management talent Better marketing skills Superior product quality Good distributions Lower costs(raw materials ) weakness narrow product line Weak market image Internal political problem Alliances with weak firms Under-trained employees Internal operating problems Lack of strategic direction Weak spending on R&D Opportunities threats Rapid market growth Opening for foreign market Sales decline in substitute product Demographic shifts Other firms seek alliances New distribution methods New uses for product discovered Entry of new competitors new substitute products Product life cycle in decline Rival firm adopt new strategies Increased government regulation Economic down turn Foreign trade barriers . it creates core competencies in meeting the needs of its customers. When executing this analysis it is important to understand how these elements works together. When an organization matches internal strengths to external opportunities. an organization should act to convert internal weaknesses into strengths and external threats into opportunities.Environment of Siemens Company The SWOT Matrix helps visualize the analysis of the environment of the Company.

solutions and services that satisfies their requirements. Employees The Siemens all-trained.Innovative technology Changing customer needs/tastes Micro environment: These are internal factors close to the Siemens Company that have a direct impact on the organizations strategy. The globally binding Business Conduct Guidelines reflect this. honesty and integrity. highly motivated employees are critical to the goal of meeting and exceeding the customers expectations. To consistently deliver products. Suppliers: With a purchasing volume corresponding to around half of the company s revenue.     Customer care The value of direct contact Call centers: An open ear for customers Continuous improvement of the products Services Superior service creates value for customers. . Siemens is one of the largest purchasers worldwide. Legal compliance and equal opportunities: The Business Conduct Guidelines obligate employees at every level within the organization to abide by laws and statutory regulations and to embrace the principles of mutual respect. These factors include: Costumers: Siemens align their businesses with the needs and expectations of the customers. Labor and social policy: Siemens are bound by local statutory labor and social regulations in all of the countries in which Siemens do businesses and Siemens align the policies with key international standards.

Siemens will benefit from the increasing demand for infrastructure.Siemens AG intends to reward its employees for their outstanding performance during the financial and economic crisis with a one-time special payment. Demographic trends: Demographic change and healthcare. MO General Electric Company Fairfield.Media: Siemens is the best-placed transformation partner in the media sector. Germany . Location St. Louis. healthcare. and energy stemming from the growing population. Revenue of 75978 million. Competitor: Top Siemens Corporation Competitors Companies Emerson Electric Co. demographers are predicting that the earth will be home to eight billion people by 2025. CT Industries Where Siemens Corporation Competes y y y y y Industrial Automation & Industrial Control Products Manufacturing Computer Hardware Computer Services Information Technology Services Construction and design services Macro environment: Economics trends: Business and Financial condition: Siemens reported total profit till July 2010 was 21647million. Political trends: Munich. With the world s population life expectancies increasing. 'The company came through .

Siemens Oil & Gas Consulting. y y y Thus emphasizes on the value of money. This project is currently under execution and is moving at a very fast pace nearing completion. gas and petrochemical companies across the globe are looking for timely solutions to help them address the current challenges of a global economic downturn. y Increasing urbanization changes are exerting an ever greater impact on the company in current time s . trying to move beyond a bribery and corruption scandal. The idea of a Power and Desalination Project was conceived and developed by Siemens Pakistan for DHA Cogen Limited. The Combined Cycle Power Plant (CCPP) will provide 94 MW of power and its desalination plant has the capacity of 3 MIGD (Million Imperial Gallons per Day).more people are moving to urban areas in search for better jobs better education and better life. Up coming projects and challenges of Siemens In case of Pakistan Siemens as inhabitant of Karachi City are well aware of the acute shortage of fresh water and major shortfall of electricity. formerly known as Berwanger. created a new executiveboard position overseeing legal and compliance matters.availability and willingness of individual to work.these mega trends are exerting an ever great impact on the world in current times . Preference for energy efficient vehicles with low running cost. Social trends: Changes in social trend can impact on the demands of the product firm and increasing firms urbanization changes . Oil. DCL Co-generation Project is an exemplary project. Our approximately 400. Legal trends: Siemens AG. . First: Siemens provides technology to optimize the energy mix towards greener energy generation.the crisis with flying colors. offers innovative engineering solutions that provide unique answers to these challenges in areas of upstream and process safety management consulting. Costumer inspired solutions to design breakthrough products.000 employees can be very proud of their achievement. and increased the compliance role of chief financial officer Joe Kaeser. Siemens offers solutions for the upcoming energy challenges based on three steps. Such innovative projects are what this ever expanding Mega City of Karachi requires.

without involving the people on the ground. Siemens is optimizing efficiency along the whole energy chain: From power plants with an outstanding efficiency factor. relying on managers and executives to make all the decision based on endless reports and meetings. The information is used to create a better balance between supply and demand. Other divisions. it becomes more and more important to balance electrical grids with innovative ideas. leading to reduced costs as well as increased reliability. It is generally non innovative in it. Siemens supply wind turbines with a combined capacity of 227 megawatts (MW) for a wind farm located in Oklahoma. depending on the division. In a second step. Current issue: Siemens innovative or non innovative:Siemens can be both innovative and non innovative. It is tightly structured and following established policies versus seeking creative ways to meet new problems. Siemens has also announced that it intends to invest in setting up a new rotor blade manufacturing facility in Canada. in Canada: The Company recently has signed a framework agreement with Samsung C&T (construction and trading) Corporation for the supply of wind turbines for various projects. With a rising proportion of energy being produced by fluctuating renewable energy sources like wind and solar power. This is an intelligent electrical grid which provides a continuous. USA.000 employees to research and development. Another example for optimization of the energy mix towards greener energy generation is highly efficient gas turbines: Siemens will supply two gas turbine packages for a coal-fired integrated gasification combined-cycle (IGCC) power plant in Liberty. Our divisions are IT solutions and services. . Siemens is able to optimize entire energy systems and to build the power grid for the future the smart grid. It is focusing on squeezing the bottom line rather than doing everything possible to ensure the overall satisfaction of the customer. Mississippi. Approximately 65 percent of CO2 emissions from this power plant are expected to be captured a reduction of three million tons of carbon dioxide per annum. low-loss high voltage direct current transmission systems (HVDC) to bridge large distances to more efficient methods of electric power distribution in cities and highly sophisticated energy management systems for buildings. bidirectional flow of information between suppliers and consumers.For example. North America. Each day Siemens located in the U.S dedicates nearly 8. As a third step towards a sustainable power supply. however exemplify the innovative thinking and more horizontal structuring the company overall views innovation as the key entrepreneurial success by providing a rigorous innovation management and invest more than $6 billion in research and development.

above all. Company also began making steam turbines in 1920.Examples of innovation in Siemens can be seen in leadership role in it. 2nd edition. It always encourages and reward innovation. OECD The Measurement of Scientific and Technological Activities. other companies. research centers. . and is a still a guiding light for its strategy today. In 1881 when company was not 35 years old and 2500 employees Siemens brothers built the world built first public sector power plant in godalming in the south of England. This is a sentence that was spoken by its founder Werner von Siemens. just recently it built the world most efficient gas turbine. Making Innovation Work: How to Manage It. but we can invent it. DSTI. Marc J. It affords us a great competitive edge over other companies. This all is done by the innovations. This only can be achieved through innovation. "Towards a theory of innovation in services". think-tanks. as the most international company in the world. ISBN 0-13-149786-3. Research Policy 15: 161-73. Oslo Manual. Tony. (1984). Upper Saddle River: Wharton School Publishing. Measure It. customers who we constantly help overcome their challenges. Its model includes collaboration with universities. some time ago at Siemens. Responsibility and excellence. Questions & Answers: 1) What should be concept of innovation for IT dept of Siemens? 2) What is your opinion about the decision making approach of Siemens? 3) If you have a chance to join Siemens what kind of change you will bring in the company to improve its performance? References : Barras. We cannot predict the future. Its sources of innovation go beyond Siemens itself. Today power generation is one of company s largest income generators and continues to advance Werner von Siemens vision. it has great opportunities for making use of the best practices and diversity of more than 190 countries. it set it selves the challenge of being number one or two in the market sectors in which it operates. In addition. Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. Epstein and Robert Shelton (2006). start-ups. which it experience on a daily basis as a fundamental part of its strategy. and Profit from It. governments and. OECD / European Commission Eurostat. R. Paris 31 Dec 1995. Davila.

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