1.

Which of the modes of conducting international business has

Siemens used?
Some of the basic entry mode Siemens use a direct exporting, indirect exporting, and
foreign licensing, joint venture (wholly - owned subsidiary), turnkey operation and
management contracts. As indicated in the case study the mode in which Siemens is
conducting international business is through tertiary sector in which company
supplies services in UK (52% of output). This sort of service capability driver’s
competitive advantage over other suppliers and his deliberate strategy. Another mode
is the Secondary or manufacturing sector, in which company manufactures
specialised products and sell it to the ITC, healthcare, transport and energy division
in UK (48% of output).
Siemen have 30 businesses and growing in the UK, the company requires an
understanding of local needs and culture to achieve growth and profit targets, which
is then reported to the German parent company. In order to establish the central mean
of growth and improvement, Siemen created "Centre of Excellence", for the entire
global group. Siemen also has a global strategy "Siemens One", where customers
may seek out a particular skill, technology or product they require, and receive the
service from another location if it not available locally. All in all, Siemen modes of
conducting international business are two-fold, with the availability to focus on a
local scale, globally.

2. In what ways does the company reflect the diversity of national

cultures?
Siemens Energy believes inclusion and diversity creates more opportunity for success.
It doesn't matter the gender, age, ethnic background, sexual orientation, or disability -
everyone has an equal part to play in energizing society. Diversity is also a key tool
for increasing the company’s competitiveness and thereby securing its future success.
The more diverse a workforce is, the more perspectives, the more expertise, the more
mindsets and the more momentum are combined. Heterogeneous groups are more
creative, innovative and successful in performing complex tasks than homogenous
teams. In addition, more diversity substantially increases a company’s attractiveness
as an employer. Siemens strive to transform the everyday for customers, employees
and society. Committing to this transformation means committing to Diversity, Equity
and Inclusion. Diversity ensures that they reflect the communities in which they
operate. Through Equity they ensure everyone has access to the same opportunities
and is treated fairly. And, Inclusion is how they actively empower the voices of each
and every individual. Through a spirit of Belonging they empower their people,
finding untapped opportunities for everyone’s growth. Belonging enables the creation
of technology with purpose. Belonging transforms.
3. Which of Yip’s list of factors driving globalisation has affected the company?
What other factors may have encouraged this move?
Here are the list of factors driving globalization which affected the company:
 Market Drivers:
Siemens has 190 factories in separate nations. Each operates to achieve targets for
growth and profit. To do this best, the company must know and meet the local needs
of their customer in different countries.
As domestic market become more and more saturated, the opportunities for growth a
limited and global expanding is a way most organization choose to overcome this
situation. Common customer needs and the opportunity to use global marketing
channels and transfer marketing to some extent are also incentives to choose
internationalization.
 Cost Globalization Drivers:
Sourcing efficiency and cost vary from country to country and global firms can take
advantage of this fact. Other cost drivers to globalisation are the opportunity to build
global scale economies and high product development cost nowadays.
 Competitive Drivers:
With global market, global inter-firm competition increasing an organizations a forced
to "play" international. Strong interdependences among countries and high two-way
trades and FDI actions also support this driver.
 Government Drivers:
Include factors as favourable trade policies.
 Economics Factors: Sourcing Efficiencies.
With each company of Siemens having a speciality, it became important for customers
to be able to source out the particular skills or products they required and still have
Siemens delivery. With this, Siemen developed global strategy "Siemens One".

 Environmental Factors: Improving Communications.

Siemens has paired up with a hospital network in the UK in order to modernize the
technology and equipment within the hospitals. By doing so, the company established
the good communication within the hospitals.