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This document is based on the discussion of German engineering organisation Siemens AG. It is a well-known German conglomerate and its headquarter is located at Munich. Munich is known as the largest industrial area. Our experts are here to provide you with the necessary case study assignment help. The company is acknowledged as the largest manufacturing organisation considering the entire Europe. There are many branches of the organisation scattered in the abroad countries. The main divisions of the organisation include Industry, Healthcare, Energy, as well as the infrastructure and cities. Infrastructure and cities is the main activity that represent the entire organisation. Considering the history of the organisation, it was developed by Werner Von Siemens as well as Johann Georg Halske. It was developed during the year of 1847. The approximate date of its foundation is 1st October. Initially, the organisation was known as – Telegraphen-Bauanstalt von Siemens & Halske. The company developed a long-distance relationship with Europe during the year of 1848. You can get custom case study help for any subject from us.

The company provides a huge range of products including the electrical-engineering as well as electronic related products as well as services. Researchers have divided the product range of the organisation including – building related, automation, industrial plants, lighting or energy-related products, medical products, logistics-related products and transportation. Our 3000+ Assignment writers solve your woes at student-friendly prices. The paper will mention the potential strengths, weaknesses and the external factors that influences or affects the performance of the organisation.

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Siemens SWOT Analysis

Strengths

The company contains a worldwide presence or omnipresence. It contributes the entire consumer world with their extraordinary capability of power generation, distribution, transmission, effective electric application, and smart grid solution. It is now operating with more than 3,72,000 employees covering almost 200 countries. The infrastructure of the organisation includes an organised office building, Research and development facilities and warehouses in almost every region.

Second strength of the organisation is the extreme capability of innovation. All the employees of the organisation are skilled enough. They are providing the extraordinary services from almost 170 years. The company has established a benchmark considering their innovation beyond any ideas. The company claims that they have skilled employees who can produce almost 34 innovation per day. Hence, the company provides more than 7,450 innovative products covering an entire year.

The company invests a huge amount on the procedure of advertising. In this regard, the company mainly focuses on technological innovation. They have launched a program in the United States that is known as “ingenuity for life”. It demonstrates that technology not only shapes the business image but also shapes the communal image at a greater extent.

The company assures 100% consumer satisfaction through their extraordinary products and services. The CEO mentioned that they believe in internal collaboration that provides extraordinary services to the consumers. Siemens is always investing more day by day to build a better relationship with the consumers to ensure improved consumer experience and consumer satisfaction.

Weaknesses

Researchers have observed limited weaknesses of the organisation. Firstly, the company is highly dependence of the third-party providers for the operational efficiency.  There is various negative impact on the higher reliance on third party vendors. It includes, negative reputation. People can get against of the company as they lack the notion of originality. Secondly, third party dependence also introduces different alterations in the supply chain line. Many of the third-party vendors are not well-equipped or provider of good materials to the multinational organisation. Hence, it may hamper the quality of their products and services.

Secondly, the company is alleged with huge lawsuits as mentioned by different researchers. The researchers have observed that, Siemens need to pay almost $1.6 billion to America and European organisation to settle the charges. The company also felt guilty for using the corrupted practices in dealing with the foreign businesses. Siemen had to settle different cases related to the allegation of using bribes to get any contracts.

Opportunities

As an opportunity, the organisation can utilise the emerging markets. If they want to maintain their good performance in the marketplace, the company need to build an expertise for implementing new strategies to enter into new marketplace. In this regard, the company needs to strengthen their relationship with the consumers. Along with this, the organisation can also get a change to contribute for the global economy. Siemens has developed its growth in the countries like Russia, India and Brazil. By taking the opportunities and targeting the emerging markets, the company can expand the business and target the emerging economy of South Africa, Vietnam, Thailand and others.

Secondly, the company can also consider the notion of changing environmental policies. Siemens can have different opportunities within the market. For example, researchers have mentioned that people are looking for green technologies to leverage the notion of environmental sustainability. In this regard, the researchers need to consider the vision 2020+ agenda developed by the United Nations along with all the member states.

Finally, the company may take the advantage of the procedure of Digitisation. It has developed different companies to ensure availability. The procedure of digitisation can also help Siemens to alter their pricing strategies and create a brand new consumer portfolio.

Threats

There are two potential threats for the organisation. Firstly, the existing competition. However, existing consumers including Microsoft and Google are competing for the software or IT related products provided by Siemens to the consumers.

Secondly, the economic fluctuation due to the current recession and pandemic situation is increasing the threats for the organisation. Pandemic situation restricted people to purchase any luxury or entertainment related products due to different financial crunches

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Siemens PESTLE Analysis

Factor

Analysis

Political

First element of the PESTLE analysis is Political factors. There are certain political factors that influence or affect the performance of a business organisation. Firstly, the political stability. Taking the example of German, the political system of Germany, the political system is quite stable. The company can get various opportunities to maintain stability in their performance also. Being a Germany company, it will have a detail understanding of the political regulations regarding import and export better than other organisations. There are lesser chances to observe any alterations in policies and regulations.

Economic

Secondly, the economic factor contains a direct impact on the organisation. The company needs to understand the business cycle of the economies of the operating countries. The emerging countries including South Africa and India are providing huge opportunities to Siemens to perform with better facilities. Along with this, the impact of inflation and recession is challenging the growth and development of the organisation. Finally, the organisation is also providing huge opportunities of employability to support both the national and international economy. However, the recent pandemic situation is also challenging this aspect that is becoming a gradual tension for Siemens

Social

Siemens is following an interesting demographic trend. The company includes the aging population, the socio-economic variables and the migration trends to promote their products and provide their services. The company values the notion of power distance and equality. Power distance refers to the study of traditionality assigned to different gender roles that is aligned with the marketing as well as communication practices. Siemens also need to study the concept of communal norms as well as class distribution at the time of doing the business with others. Considering the demands of the consumers, the company is also providing the online services.

Technological

Technology is the fundamental aspect of business performance of Siemens. The organisation collects the latest technological trends to achieve different operational advantages. It includes the enhancing the profitability, enhancing the innovative process, and boosting the functional efficiency. The technological factor of Siemens provides huge opportunities for the organisation to flourish at a greater rate. Apart from designing their products, the company also implementing different technological innovation to promote their names through the social media platforms. It enhances the connectivity of the organisation with the potential consumers. Along with this, the company can also increase their availability through the use of digitisation.

Legal

The company adheres to all the legalities developed by different countries. For example, they have incorporated abiding by the employee protection law to promote a safe and secured workforce. Labour is the fundamental asset of an organisation. It belongs to the moral obligation of an organisation. Along with this, the company must acknowledge the consumer protection regulations and laws. It includes protecting the information of all the consumers. It also includes anti-discrimination laws for both the employees and the consumers. Finally, the organisation also needs to consider the intellectual property laws that protects the organisation to implement different valuable ideas.

Environmental

Final component of the PESTLE framework includes environmental factors. The entire globe is becoming concerned about the notion of green technology. The company needs to implement the green technology to reduce the procedure of waste production. They also need to promote the use of recyclable energy and recyclable products. The company can use the technology of renewable technology to support the sustainability. Sustainability is a notion to use the present resources without compromising the future generation. In this regard, the company will be able to address the conditions of climate through the use of renewable technology. 

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