BY SAHEEN.V NSM

"Global Network of Innovation"

Siemens AG is a German multinational engineering and electronics conglomerate company headquartered in Munich , Bavaria and Berlin, Germany.

It is the largest Europe-based electronics and electrical engineering company.

Management Structure

Joe Kaeser(CEO)

Roland Busch

CEO Infrastructure

& Cities Sector

Klaus Helmrich

Chief Technology

Officer

Barbara Kux

Head of Supply Chain

Management

Hermann Requardt

CEO Healthcare

Sector

Siegfried Russwurm

CEO Industry

Sector

Peter Y. Solmssen

Head of Corporate

Legal and

Compliance

Michael Suess

CEO Energy Sector

Brigitte Ederer

Head of Corporate HR

and Labor Director

Gerhard Cromme(Chairman)

Beginnings and initial expansion

Company foundingThirty-one-year-old Werner von Siemens

and university mechanical engineer Johann Georg Halske establish the “Telegraphen-Bauanstalt von Siemens & Halske” (Telegraph Construction Company of Siemens & Halske) to manufacture his pointer telegraph.

on October 12, 1847

1847-1865

Beginnings and initial expansion

Berlin–Frankfurt/M.In 1848, Siemens & Halske wins the

contract to build the first long-distance telegraph line in Europe.

The 500-km route extends from Berlin to Frankfurt

1847-1865

Beginnings and initial expansion

First foreign subsidiaryStarting in 1853, Siemens &

Halske began expanding the Russian telegraph network. 

In 1855, Siemens & Halske established its first foreign subsidiary in St. Petersburg, headed by Carl von Siemens, the brother of the company founder

1847-1865

Triumph of heavy current engineering and internationalization

Dynamo-electric principleIn 1866, Werner von Siemens discovers the

dynamo-electric principle.By the end of the 1870s, the machine is

improved to the point that nothing any longer stands in the way of public and private electrification.

1865-1890

Triumph of heavy current engineering and internationalization

Indo-European Telegraph LineAfter only two years of construction,

Siemens begins operation of the Indo-European Telegraph Line in 1870: From then on, a message can arrive from London to Calcutta, in only 28 minutes instead of 30 day.

1847-1865

Triumph of heavy current engineering and internationalization

First electric railwayAt the Berlin Industrial Exposition in 1879,

Siemens & Halske presents the world's first electrical railway with an external power supply.

1847-1865

Growth through consolidation and partnerships

In 1890, Werner von Siemens retires from operational management.

In 1897 Siemens & Halske is transformed into a joint-stock corporation.

Streetcars for China

In 1899, Siemens builds an electrical plant in Beijing and constructs the first streetcar system in China.

1865-1918

Growth through consolidation and partnerships

Founding of Siemens-Schuckertwerke GmbH

In March 1903, the heavy-current divisions of Siemens & Halske are merged with the electrical joint-stock corporation formerly Schuckert & Co. to form Siemens-Schuckertwerke GmbH.

1865-1918

Growth through consolidation and partnerships

Berlin-SiemensstadtWith the aim of securing its expansion at its

traditional location, Siemens & Halske acquires a virtually uninhabited piece of land northwest of Berlin in 1897.

1865-1918

Return to the world market and unity within the “House of Siemens”

Founding of Osram GmbH KGIn 1919, Germany's leading light build

manufacturers combine to form Osram GmbH KG.

Siemens holds a 40% stake in the joint venture.

1918-1933

Return to the world market and unity within the “House of Siemens”

Electrification of IrelandIn 1925, the Irish Free State hires Siemens-

Schuckertwerke to electrify the entire country

1918-1933

Return to the world market and unity within the “House of Siemens”

Beginning of assembly line productionFrom 1924 onward Siemens promotes standardization and reorganization of processes toward assembly line production. 

1918-1933

The National Socialist economy and the war years

Expansion of electrical medicine

In 1932, Siemens and the Erlangen-based company Reiniger, Gebbert & Schall establish Siemens-Reiniger-Werke AG.

The joint venture quickly develops into world's largest company specializing in electrical medicine.

The new company brings to market a mobile x-ray unit.

1933-1945

The National Socialist economy and the war years

Use of forced labor

The war led to a labor shortage for Siemens .

Although at first people from the occupied eastern regions came to Germany voluntarily to work, as the war went on they were forced to work, as were Jews, concentration camp prisoners and prisoners of war.

1933-1945

The National Socialist economy and the war years

Situation at the end of the warAt the end of the war, most of the buildings

and plant facilities are completely in ruins. All material assets worldwide are confiscated

and all trademark and patent rights are rescinded.

1933-1945

Reconstruction and emergence as a global player

Relocation of company headquartersAfter the and of the war, parts of the

corporate management are relocated to Munich, and Hof in February 1945.

1945-1966

Reconstruction and emergence as a global player

Resurgence of the overseas business

At the end of 1951, a German consortium led by Siemens-Schuckertwerke is hired to build the San Nicolás steam power plant in Argentina.

SIMATIC control system

At the machine tool fair in Paris in fall 1959, Siemens presents the first generation of a “building-block system for solid-state controls” - the SIMATIC G.

1945-1966

New markets and areas of business

Founding of Kraftwerk Union AG

In 1969, Siemens and AG establish Kraftwerk Union AG, At first each of the two companies holds a 50% share of the capital stock.

Launch of the “Mega-Projekts”

In 1983, Siemens declares that the company has a strategic goal of developing megabit memory chips. The first 1-MB chips are produced at the end of 1987.

1966-1989

New markets and areas of business

Founding of Siemens AG

•Siemens & Halske, Siemens-Schukertwerke and Siemens-Reiniger-Werke are joined together legally and organizationally.

•Siemens AG is established on October 1, 1966.

1966-1989

The age of globalization

Expansion of business in China

•Siemens establishes Siemens Ltd. China in 1994.

•The Beijing-based company is the first holding company of a foreign corporation in the People's Republic.

1989-2012

The age of globalization

Listing on the New York Stock Exchange

In order to expand the company's presence in the American market, Siemens stock has been listed on the New York Stock Exchange since 2001.GLOBAL 500

Siemens: 47

1989-2012

The age of globalization

New corporate structure

Demographics, urbanization, and environmental and climate protection, the operation business is divided at the start of 2008 into 4Sectors:

1. Industry2. Energy3. Healthcare4. Infrastructure & Cities  

1989-2012

Businesses ENERGY

HEALTHCARE

INDUSTRY

INFRASTRUCTURE & CITIES

solution for eco-friendly energy

Services

Power Generatio

nPower Transmissio

n

Power Distributio

n

Mechanical Drives

Compression,

Expansion &

Ventilation

Automation, Controls, Protection & Electrical

Gas Turbines

Steam Turbines

Generators

Power Plants

Renewables

HV Cable SystemsHV SubstationHigh-Voltage Products HVDC TransmissionFACTSGrid Access SolutionsTransformers

Low VoltageMedium Voltage

Gas TurbinesSteam Turbines

Turbo compressorsExpansion TurbinesCompressor packagesFans

Smart Grid

Automation for Compressors

Power Generation

Power Transmission & DistributionAutomation, Controls, Protection & Electrical

Energy

Major Products

Products & Solutions

Communication Systems

Power generation technology

Industrial and Buildings Automation

Lighting

Medical Technology

Railway Vehicles

Water Treatment Systems

Home Appliances

. Fire AlarmsPLM

VISIONSiemens - The Pioneer

STRATEGY Achieving sustainable,

profitable growth

VALUEResponsible, excellent

& innovative

Values, Vision & Strategy

Worldwide presence

Active in 190 countries

Employees are from around 140

nations

360000 employees around the world

More than 285 manufacturing

locations worldwide

Offices in nearly every country

around the globe

Recent joint ventures

Telecoms equipments

Solar thermal power

business

Solar energy

Computer software company

AC drive electric

locomotives

Information technology

Nuclear power

activities

Productivity of

complex plant assets

SWOT

STRENGTH WEAKNESSES

•Diversified business in terms of business segments and geographic presence

•Strong R&D capabilities

•Diversified customer base

•Increasing debt to equity ratio

•Weak internal control

•Allegation of posting rival’s business secrets on its computer networks

•High dependence on third party providers

SWOT

OPPORTUNITIES THREATS

•Acquisition and joint ventures to drive growth

•New contracts and orders

•Increasing demand for electricity

•Intense competition

•Risks associated with conducting business outside Germany

•Environmental and other government regulations

Siemens strategy

They are aiming to capture and maintain leading market and technology positions in all their businesses in order to achieve sustainable profitable growth and, thus, continually increase their company value. They intend to reap particular benefit from the megatrends demographic change, urbanization, climate change and globalization. Their strategy is reflected in their three strategic directions:•Focus on innovation-driven growth markets•Get closer to their customers•Use the power of Siemens

Siemens in India

The Siemens Group in India comprises of 13 companies, providing direct employment to over 19,000 persons. Currently, the group has 21 manufacturing plants, a wide network of Sales and Service offices across the country as well as over 500 channel partners.Revenue :2,311 in millions of €

• Automation• Building Technologies• Consumer Products• Industry Solutions• Energy• Financial Solutions• Healthcare• Motors and Drives• Mobility

Siemens in India

Siemens India has launched the world's first 1200 kilovolt circuit breaker – a key component for powertransmission over long distances at high capacities and with low losses

• Siemens healthcare technology is now in use in 543 of India'srural districts as well as in all major cities

• With projects in eight cities in the state of Maharashtra,Siemens is laying the foundations for smart grids in India

Home Appliances

As Europe's no. 1 built-in appliance manufacturer, Siemens stands for outstanding engineering achievements, characterized by creativity, perfection and precision.

Razor -sharp designs harmonized with cutting edge technology and easy to use functions form the heart of all Siemens Home Appliances.

Home Appliances

•Cooking Appliances•Dishwashers•Washers & Dryers•Refrigerators & Wine Coolers•Coffee Centre

Principal Competitors are :

•AB Electrolux; (Swedish) 

•Whirlpool Corporation; (American)

•GE Consumer & Industrial; (Louisville.USA)

•Merloni Elettrodomestici S.p.A.;

•Candy S.p.A.;

•Haier Group Company; (Chinese) 

•Maytag Corporation. (American)

•Koninklijke Philips Electronics N.V. (Dutch)

Controversies

Nazi GermanySiemens was complicit in the use of forced labour from Nazi concentration camps during World War II(1939-1945)

Bribery caseSiemens agreed to pay a record $1.34 billion in fines in December 2008 after being investigated for serious bribery

Iran telecoms controversyNokia Siemens supplied telecommunications equipment to the Iranian telecom company that included the ability to intercept and monitor telecommunications. Nokia-Siemens later divested its call monitoring business, and reduced its activities in Iran.

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