Siemens-Global Competitors



Siemens-Global CompetitorsMauricio L. RodriguezPost UniversityAbstractCompanies are steadily becoming globalized entities. They no longer just reside and do business in one country. Siemens Corporation started off in Germany in 1847 and has now become a global competitor in manufacturing fields. Siemens has organization established in over 190 countries. Organized into working groups they steadily grew globally through individual efforts within their region and did not focus entirely on the global aspect of the corporation. Siemens continued to grow but at a lower rate than other global companies. In 2007 they brought in a new CEO to change and revitalize the company. The focus was now truly turned to the growth of the company on the global level. It was restructured to work as a global entity and restructured its performance and profit margins into a company effort instead of each individual market. With a global view Siemens can continue to foster a great relationship with their local operational nations and regions.Keywords: global market, global management, conglomerate Siemens-Global CompetitorsAdvances made because of Free Trade agreements are seen at all levels of Manufacturing and led to many new business models throughout the industrialized Nations. Siemens Corporations has been a company that has thrived globally from a small company in Germany to be a world powerhouse. Prior to a change of Siemens Chief executive officer in 2007, Siemens’ competitiveness internationally was geared towards national or regional markets, this made them very knowledgeable of their local areas but did not truly have a global strategy. In late 2007, Siemens changed CEO and brought in Peter Loscher who started to change and pursue a global managerial strategy and to streamline the roles of high level management. With this change regional and national differences are not ignored but are more integrated on developing relationships and ownership for the regional and national managers.As a global company prior to the change of CEO, Siemens had a global footprint, but the company acted more like individual organizations in each nation or region. The managers in charge of these areas had local knowledge and worked on ensuring that Siemens was profitable in their markets of responsibilities. These managers where not tasked to grow the company globally, so they did not maintain a good knowledge base of how the company as a global entity was doing in other regions. Their focus was on the profit margins of their local areas of assignments. The benefit of this strategy is that Siemens was able to work with customers at a local understanding which helped with their overall market share. Since it took more people to run this type of system Siemens profit margins took a negative impact because of the sheer number of people that worked in this type of organization.In 2007 Mr. Loscher, took over as CEO and started to change many aspects of the global organization of Siemens. He took away many positions that did not have enough accountability and where redundant in scope. One of the major changes was to make the business division have more accountability for failing or not completing a project in a profitable way. In turn he also restructured he company into 17 regions. In doing this the sector managers had a new role to ensure that they had their goals set to contribute to the global operating income and not just to worry about their sector or region. A benefit to this strategy is that it takes the focus away from just the local market to ensuring that the assigned area will contribute to the global effort and to keep the global goals of the company at the forefront of the regional managers. By focusing on the global market, Siemens did not lose touch with their local customers. With Global account management (GAM) also playing a part in decision making, Siemens continued to grow their relationships at all levels. Shi, L. H., White, J. C., Zou, S., & Cavusgil, S. T. (2010) state: “… increase the life of global account relationships by focusing on inter-country and inter-organizational coordination, marketing activities standardization, and global integration (p. 634)”. As the business puts effort into ensuring that managers focus on the company as a whole and not just a small area, their global footprint will continue to grow and the current cutomer relationships they have developed will condinue to come back to Siemens for their needs.As the new managerial structure takes hold at all levels. Differences at the national or regional level will not be ignored. Managers at the regional level are entrusted with growing their profit margin to contribute globally. In turn that means that they must continue to foster a good relationship with the local customers and future business. The managers must stay focused on both the global and local levels. To ensure that their organizations are giving the best product possible while working with the local culture and atmosphere. ConclusionSiemens Corporation has done what is necessary to ensure their continued growth in the global market. While starting off as a multi-national leveled management organization that was focused at each individual nation or regional markets. At those times it each was more focused on their market share and looking outside their area for just operational needs, now they are a globally minded company. As changes occurred they revitalized and streamlined what it means to be a globalized company and the organization of the managers and their goals are also in line with the company as a global player and not just on their individual area. As they continue to grow having a true global vision, Siemens will not lose touch with the customers and regions that they service, but through globalization will be able to bring their local customers and partners a better approach to getting things done. ReferencesShi, L. H., White, J. C., Zou, S., & Cavusgil, S. T. (2010). Global Account Management Strategies: drivers and outcomes. Journal of International Business Studies, 41(4), 620-638. 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