Global Brand Company Analysis

By Chandresh Dedhia – XMBA -54

• Corporate Governance & Ethical practice of company

• CSR

• Success Story

• Failure & Setback Story

• R&D

• Future Global challenges

• Acquisition and Divestments

• Introduction - History - Origin

• Vision - Mission - Values of the company

• Key Product - Key Market -Key Competitions

• SWOT

• Financials

I. Global turnover

II. Global net profits or

III. Turnover - Geographic

Index

• Siemens AG (German pronunciation: [ˈziːmɛns]) is a German multinational engineering and electronics conglomerate company headquartered in Berlin and Munich.

• It is Europe's largest engineering company and maker of medical diagnostics equipment and its medical health-care division, which generates about 12 percent of the company's total sales, is its second-most profitable unit behind the industrial automation division.

• Siemens' principal activities are in the fields of industry, energy, transportation and healthcare.

• It is organized into four main divisions: Industry, Energy, Healthcare, and Infrastructure & Cities.

• Siemens and its subsidiaries employ around 360,000 people across nearly 190 countries and reported global revenue of approximately €78.3 billion in 2012. The company has been the subject of a number of controversies in its history.

Introduction

Origin

• Werner Siemens – known as Werner von Siemens from 1888 was born in 1816 in Lenthe, near Hanover, Germany.

• He joined the Prussian army in 1835, where he spent three years studying mathematics, physics, chemistry and ballistics at the Artillery and Engineering Academy in Berlin.

• Werner von Siemens was awarded his first Prussian patent in 1842 – for an electrolytic method of gold and silver plating.

• His younger brother Wilhelm later marketed this invention successfully in Britain.

Origin

• In 1846, Werner von Siemens hit upon an idea for improving the Wheatstone telegraph.

• Using just simple means – cigar boxes, tinplate, pieces of iron, and some insulated copper wire – he designed his own pointer telegraph.

• He entrusted the apparatus‘ construction to a mechanical engineer, Johann Georg Halske, who was won over by its simplicity and reliability.

• In Berlin in October 1847, the two men formed their own company, Telegraphen-Bauanstalt von Siemens & Halske, and set up a small workshop in a back building at 19 Schöneberger Strasse.

• A week after the company was founded, the design of the pointer telegraph was awarded a patent in Prussia.

• In 1848, the company received a government contract to install a

telegraph line between Berlin and Frankfurt/Main – the company’s first

major success – and Siemens managed to complete the line in time for

the Prussian monarch’s election as Germany’s hereditary emperor.

• The lack of follow-up contracts from the Prussian state plunged the

company into a crisis during the early 1850s, but its fortunes turned

when it received new orders from Russia and Britain.

• In 1853, Siemens & Halske began building a telegraph network in

Russia, which stretched from Finland to the Crimea, covering a

distance of around 10,000 kilometres.

• The company was also contracted by the Russian government to

provide maintenance services.

• In 1855, Werner von Siemens set up a subsidiary in St. Petersburg,

headed by his brother Carl.

Origin

• The English business was managed by Werner’s brother Wilhelm, who later made England his home and changed his name to Charles William Siemens.

• In 1858, the subsidiary Siemens, Halske & Co. (renamed Siemens Brothers in 1865) was set up in Britain.

• The subsidiary’s operations centred on the production and laying of submarine cables, which it began manufacturing at its own cable plant at Woolwich on the River Thames in 1863.

• In 1870, Telegraph line from London to Calcutta (Kolkata) covering 11,000 kms opens

Origin

History

History

Vision

Mission (Strategy)

Values

Key Products

Key Markets

Competitors

• ABB• Alstorm• Bombardier• Emerson Electric• Schneider Electric• Abbot Laboratories• Rockwell Automation• Honeywell International

Strengths

•Pioneer of Technology

•Market leadership through innovation in Energy, Healthcare, Infrastructure and Cities

•Financial Excellence & Stability

•Over 40000 employees shows its commanding global position

•Operations in 190 countries

•JV with many companies have made it powerful brand

Opportunities

•Expanding market share in emerging markets

•Strategic acquisitions, partnerships and colloborations

•Setting up of institutions worldwide for in-house solutions

•Increase in demand for electricity and related services and products

Threats

•Strict government policies and environmental regulation affect operations

•Economic fluctuations and currency devaluations affect the financial performance as it is an international company

•Heavy dependence on few suppliers

Weaknesses

•Dependance on third part providers can affect operational efficiency

•Few allegations of corruptions in the corporate environment by individuals hit the headlines.

•Non compliances found in some cases

S W

TO

SWOT

STP

Financials

Global Turnover

Global Net Profit & Margin

Turnover in Geographic regions

Corporate Governance

CSR

Project Asha

Sanjivani Mobile Clinic

Success Story

Youtube video

• Iran telecoms controversy

• Nokia Siemens supplied telecommunications equipment to the Iranian telecom company that included the ability to intercept and monitor telecommunications, a facility known as "lawful intercept".

• The equipment was believed to have been used in the suppression of the 2009–2010 Iranian election protests, leading to criticism of the company, including by the European Parliament.

• Nokia-Siemens later divested its call monitoring business, and reduced its activities in Iran.

Failure Story

• Bribery case

• Siemens agreed to pay a record $1.34 billion in fines in December 2008 after being investigated for serious bribery. The investigation found questionable payments of roughly €1.3 billion, from 2002 to 2006 that triggered a broad range of inquiries in Germany, the United States and many other countries.

• In May 2007 a German court convicted two former executives of paying about €6 million in bribes from 1999 to 2002 to help Siemens win natural gas turbine supply contracts with Enel, an Italian energy company. The contracts were valued at about €450 million. Siemens was fined €38 million.

Stringent resource allocation for growth fields in electrification, automation and digitalization

R&D and New Product Development

Future Global ChallengesIn depth analysis of businesses has let to specific conclusions

Future Global Challenges

Simplification leads to reduction of overhead and support function cost by close to 1 Billion euros

Vision 2020

Value creation and cultural change

Acquisition

Divestment

Photo Gallery

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