INDIVIDUAL REPORT-MNC

by [Name]

Course

Professor’s Name

Institution

Location of Institution

Date
 Individual Report-MNC

Introduction

Siemens Company was founded in the year 1847 and has its headquarters situated in

Munich (Yahoo Finance, 2017). The company operates in the technological industry and some of

the main core activities of the company include digitalization, electrification, and automation

(Siemens.com, 2017). The company operates globally with its products being sold in most

countries of the world. The company is divided into various divisions which are power and gas,

renewable energy, and financial services (Siemens.com, 2017). The reason why the company has

been selected is because it operates in an industry that is currently competitive due to the changes

in technology. Therefore, it would be imperative to determine the changes in the environment

and how they have affected the firm’s operations.

The Environment

The SWOT analysis will be utilized to evaluate the environment in which Siemens

operates in. According to Ommani (2011), the SWOT analysis seeks to analyze the firm’s

external threats and opportunities and the internal strengths and weaknesses. Helms and Nixon

(2010), affirmed that the SWOT analysis is an imperative tool that enables the management to

determine the strategic action that should be taken. Therefore, after analyzing the external and

internal environment, the management should implement various strategies that are required to

minimize on the threats and weaknesses and maximize on the strengths and opportunities.

One of the strengths of Siemens is that it is one of the leading in terms of technology. The

other strengths of Siemens is that the firms operates in more than 180 countries across the world.

The number of countries that a company operates in is essential since it determines the level of
profitability. The other strengths of Siemens is its financial returns as determined by the ability

of the firm to make profits. In addition, Siemens has been providing a return to the amount

invested by the shareholders. Another strengths is the company leadership position in the market.

Being a leader in the industry is crucial since it determines the amount of profit generated by a

firm. Finally, Siemens has been able to enter into partnership with various global companies

which has led to the creation of a strong brand.

However, despite the numerous strengths of the firm, there are few weaknesses that

Siemens needs to minimize. One of the weaknesses that might affect the firms operations is the

increase in the number of lawsuits. The legal claims might reduce the earnings of the firm and,

therefore, affect the returns to the shareholders. The other weaknesses of Siemens is the company

reliance on other companies to create a powerful brand and this might affect its profitability in

future if the companies being relied upon fail.

One of the opportunities of the company is its ability to strengthen the market leadership

to make more profits. The other opportunity that Siemens has is that the world is changing into a

digitized economy. Therefore, since digitization is one of the organization’s core activities, the

company has a better chance of increasing its revenues and profits. One of the threats faced by

Siemens is the increased competition from the established and upcoming countries. The other

threat is that the business operates in an industry that is prompt to regulations changes. Another

threat that might affect the competitive ability of Siemens is the increase geo-political risk in

areas such as middle-east which might affect the firm’s ability to invest additional resources in

the countries.

The Culture
 The culture of Siemens incorporates everyone in the organization irrespective of the

position held (Siemens.com 2018, pp.22). The organization’s culture is based on five major

pillars which are equity, leadership, behaviors, values, and people’s orientation (Siemens.com

2018, pp.10). Equity is concerned with the fair treatment of the employees of the organization.

Values relates to the acceptable code of conduct that should be enumerated by the employees of

the firm. Inside the organization, the management usually acts as the role model to the other

employees. The management of the firm is also required to empower and inspire the employees

in achieving their objectives which is achieved by ensuring required resources are available

(Siemens.com 2018, pp.11).

All the employees are required to act responsibly by taking care of the firm’s resources.

The culture fosters the act of efficient use of resources by the employees which is critical in

attaining the objectives of the firm. The culture of Siemens also values its employees by

providing them with the required training they may require to achieve their objectives. In

addition, the company has more than 370,000 employees across different cultures of the world

(Siemens.com 2018, pp.11). Integrating the different cultures into one is an indication of the

success that the company has made since it was incorporated.

Based on the media culture perception of Siemens, there are some changes that are

required to ensure that the objectives of the company are attained. The CEO of the company

during the year 2016 affirmed that it was imperative to change the culture of the organization to

how to get work done approach (Minter 2016). The move was aimed at ensuring that the

resources are utilized efficiently given the fact that the world is being faced by scarce energy

resources.