Free Essay

Hbr Siemens Ag Global Development Case Discussion

In: Business and Management

Submitted By XenoFreedom
Words 528
Pages 3
HBR CASE DISCUSSION
“Siemens AG: Global Development Strategy (A)”

STRATEGIC OPTIONS

Option 1 : Move NetManager development and project management closer to HQ
+ NetManager is a really important project for the future of Siemens, so moving it closer to HQ will bring system developers and programmers closer to major customers for better market understanding and quicker troubleshooting and maintenance in the future. Additionally, the company can use the time to smooth out coordination problems with Indian RDC.
- Moving the project altogether will result in further delays which will make Deutsche Telekom wait even longer the product so Siemens would lose some trust from its biggest customer. Additionally, moving all the activities would incur huge extra costs to the company. Moreover, this option would send a very negative message to the Indian RDC which would bring more problems in the relationship between HQ and the RDC.

Option 2 : Keep NetManager development and project management in Indian RDC
+ Keeping the project in Indian RDC is the fastest option to deliver NetManager to Deutsche Telekom so the company would not worsen its reputation in the eye of its biggest customer. Additionally, this option will increase the capability of Indian RDC so they can become a better center with the same status as the US RDC.
- The ability of Indian RDC to troubleshoot this problem is still questionable, they have worked on this project since the beginning but the end result is still not good enough. Additionally, in the future Indian RDC would demand major investments and significant expansion of system-testing and hardware design capabilities to reach its intended status, which could be considered an inappropriate demand given their performance on this NetManager project.

Option 3 : Move NetManager major project responsibility and accountability to HQ and keep development activities in Indian RDC
+ Strict project management and quality control would be ensured by the HQ, while Indian RDC would still get some responsibility in the project for the development which would not bring a negative message to the RDC. Additionally, the RDC already has the development capability since they were the one who develop NetManager from the scratch so there won’t be any further delay (which would incur if development activities are being moved) for product delivery to Deutsche Telekom.
- Extra costs would be incurred for travel and coordination. Moreover, it’s still unclear whether a project of such complexity could be managed by people living thousands of miles away from its development center. If it couldn’t be managed well, it would bring more disaster to this very important project.

RECOMMENDATIONS OF STRATEGIC OPTIONS
Option 2 : Keep NetManager development and project management in Indian RDC * Given the condition, it’s very important to deliver NetManager to Deutsche Telekom without any further delays. Option 1 would compromise on this, so it’s not a viable option. * Based on the strategic movement Siemens had done with the Indian RDC with a view to increase the capability of Indian RDC so they can become a better RDC with the same status as the Florida RDC , it is important to also keep the project management in India. Option 3 would compromise on this, so it’s not a viable option.…...

Similar Documents

Free Essay

The Bribery Scandal at Siemens Ag Analysis

...The Bribery Scandal at Siemens AG Analysis Lvao Guo Arkansas State University The Bribery Scandal at Siemens AG Analysis This case discusses the bribery scandals that happened in Siemens AG in 2006 and 2007. There are a series of scandals involve that some of the company's employees establish slush funds to obtain contracts. In another case, they were accused by IG Metall of bribing a union. It bribes the labor representatives of supervisory board to enlist their support of policy. Since then, the company managers' bribery at the Italian energy company employees was convicted by German officials. After the raid on Siemens offices in Germany, they continued to investigate the possible misconduct on Siemens in several other countries like the US, Greece, Italy and Switzerland. Due to the aftermath of the scandal, the company's Chief Executive Officer Klaus Kleinfeld and Supervisory Board Chairman Heinrich von Peeler had to resign, even if they did not directly implicate. With the Siemens bribery scandal surfaced, Volkswagen AG, Duetusche Telecom AG, Duetsche Bahn AG, and Deutche Post AG unethical business practices exposed at the same time in Germany. Those corruption scandals make a query for the German Co-determination law and Mitbestimmug—wondering if they were flawed. From the viewpoint of a Siemens employee who is willing to break the law in order to gain large profits, it was definitely worth it. However, in my opinion, enterprises have to face the legal......

Words: 457 - Pages: 2

Free Essay

Case 1: the Bribery Scandal at Siemens Ag

...illegal or just a cost of doing business? Discuss this in light of Siemens’ bribery scandal. We believe that bribing is unethical because it takes away the fairness of a business transaction between bidders of a contract. Bribing also has a negative impact on competition because it allows for oligopolies and monopolies to emerge in an industry due to smaller competitors being unable to financially compete with the amount of the bribes. This in turn  creates a barrier for entry for prospective companies and promotes the oligopoly or monopoly in place. The lack of competition affects consumer choice by reducing their options which then stifles innovation within the industry as there is no need to generate a competitive advantage to attain customers. The legality of bribing depends on the laws of the home country that the business is based from. For example, Siemens is a German based business and German law states that bribing officials of another country to win business contracts is illegal. So, under German law, Siemens was guilty of bribing an official when it bribed employees of the Italian company Enel to gain a contract as Enel was 68% owned by the Italian government. The counter-argument is that bribing is the cost of doing business. We disagree with this because the economic benefits gained from bribing are not outweighing the cost to a company’s reputation. As we see in this case, Siemens paid a 6 million euro bribe to secure a contract valued at 450......

Words: 1655 - Pages: 7

Free Essay

Siemens Ag Bribery

...Siemens AG Bribery Scandal This paper will focus on the analysis of the well-known and popular bribery scandal in the world, such as Siemens AG Bribery Scandal which occurred in November, 2006. Siemens AG is one of the largest and most popular electrical engineering companies operated in the world. The present company was founded in 1847 in Berlin and is now headquartered in Munich, Germany. The discussion and the proper analysis of this bribery scandal will help to learn many effective lessons from this situation helping organizations and individuals to avoid such cases and experiences in the future. Siemens was considered one of the most powerful and productive companies in the field of electronics and that bribery scandal surely affected its business and popularity in the world greatly. It was difficult to understand the underlying causes of this bribery scandal, especially on the part of such large, successful and popular company known not only in Germany but also all over the world. In fact, several employees and even executive board members were charged guilty in this scandal and imposed huge monetary fines for illegal and unethical behavior harming the business of the company greatly. Brooks and Dunn stated that the company developed a corrupt organizational culture “in which hundreds of millions of Euros were put into slush funds that were then used to pay bribes in order to obtain lucrative contracts” (Brooks and Dunn 290-291). There were several cases of such......

Words: 1268 - Pages: 6

Premium Essay

Global Sourcing Development at Ikea – a Case Study

...Abstract preview Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP conference Jens Hultman1, Susanne Hertz1, Rhona Johnsen2, Thomas Johnsen2 1: Jönköping International Business School, P.O Box 1026, SE-551 11 SWEDEN E-mail: jens.hultman@ihh.hj.se, susanne.hertz@ihh.hj.se Tel: +46 0(36) 10 10 00 2: Audencia Nantes School of Management, 8 Route de la Joneliere, BP 31222 – 44312 Nantes Cedex 3, France. E-mail: tjohnsen@audencia.com; rjohnsen@audencia.com Tel: + 33 (0)240 37 46 25 Abstract This study explores the dynamic process of global sourcing development through a case study of the Swedish home furnishing giant IKEA and its supply network concerning the PAX wardrobe system. The paper provides a synthesis of the existing global sourcing literature by dividing this growing body of research into three major themes: globalization processes and stages, motives/drivers, and organizational design and management. Moreover, the paper integrates the global sourcing literature with the established literature on the internationalization process of firms. Comparing the existing research on global sourcing and internationalization, we propose two research questions focused on: (1) the ways in which the IKEA global sourcing and supply chain development process resembles a linear stages process, and (2) the principal drivers of the development of global sourcing within IKEA. Relating the findings of the global sourcing process in the case of IKEA, the......

Words: 11008 - Pages: 45

Premium Essay

Siemens Development Strategy

...Siemens AG: Global Development Strategy • What were the major causes of the problems with the NetManager project? (I’m not looking for a list of points made in the case; I’m looking for you to step back to a higher level and analyze why these problems occurred.) The problems experienced by the NetManager project appear to be symptoms of integration vs. responsiveness issue within Siemens AG. As a transnational company, Siemens faces strong pressure to globally integrate its operations, and be responsive to the needs of their offices and customer’s needs. The main problem with NetManager was that it had mushroomed in size and strategic importance. This was the result of keeping up with the rapidly changing technological demands, and NetManager becoming a highly visible product for Siemens’ largest customers. Analyzing the various problems, we see that despite the competence of the Bangalore RDC, there is a serious number of integration problems between Munich headquarters and Bangalore. First, there was a gap in product knowledge and competence, which resulted in unrealistic expectations such as project deadlines. Indians held proficiency in desktop and personal computing programming languages, while the Germans held extensive product knowledge concerning their EWSD technology and its functions. As the project grew in size and scope, it required interdependence amongst EWSD systems, knowledge held by German management and not sufficiently provided to Bangalore. Then...

Words: 865 - Pages: 4

Premium Essay

Siemens Case Report

...The main issue drawn from the case, “Siemens AG: Global Development Strategy,” focuses on choosing the appropriate organizational design. To organize a business for innovation, it must first be determined whether an innovation is autonomous or systemic. It must also be determined whether the capabilities needed to produce the innovation can be obtained easily or must be created. Siemens focus was on an international development strategy, rather than a domestic one. This strategy resulted from three main factors. The first was the likelihood of labor shortages in the event all product development was centralized in Munich. Secondly, exceedingly customized solutions are often required for telecommunications customers and must be completed as quickly as possible. Lastly, in theory time zone differences could be used to conduct a continuous development strategy, although this idea fails in practice due to the remarkably high level of coordination required between overseas counterparts. As discussed in the article, “Organizing for Innovation: When is Virtual Virtuous?” global development network carries many prospective benefits, such as the potential to gather the top researchers from around the world, increase in the scope of research with increased resources and knowledge, save money by building in cheaper countries, and improve research quality and standards through internal competition and collaboration. Likewise, there are also many potential risks, such as large......

Words: 516 - Pages: 3

Premium Essay

Siemens Development Strategy

...Siemens AG: Global Development Strategy • What were the major causes of the problems with the NetManager project? (I’m not looking for a list of points made in the case; I’m looking for you to step back to a higher level and analyze why these problems occurred.) The problems experienced by the NetManager project appear to be symptoms of integration vs. responsiveness issue within Siemens AG. As a transnational company, Siemens faces strong pressure to globally integrate its operations, and be responsive to the needs of their offices and customer’s needs. The main problem with NetManager was that it had mushroomed in size and strategic importance. This was the result of keeping up with the rapidly changing technological demands, and NetManager becoming a highly visible product for Siemens’ largest customers. Analyzing the various problems, we see that despite the competence of the Bangalore RDC, there is a serious number of integration problems between Munich headquarters and Bangalore. First, there was a gap in product knowledge and competence, which resulted in unrealistic expectations such as project deadlines. Indians held proficiency in desktop and personal computing programming languages, while the Germans held extensive product knowledge concerning their EWSD technology and its functions. As the project grew in size and scope, it required interdependence amongst EWSD systems, knowledge held by German management and not sufficiently provided to Bangalore. Then...

Words: 306 - Pages: 2

Free Essay

A Concise Research on Siemens Ag and Nissan

...A Concise Research on Siemens AG and Nissan Contents I. Introduction………….…………………………………………………...…………….….1 II. Finding…………………………………....……………………………...…………...…...2 2.1 A concise background of Siemens AG and Nissan………………..…2 2.2 The high performance culture of Siemens….…………….….…………….........2 2.3 Comparison of organisational structure and culture…………….………………...…..2 2.4 Effectiveness of different leadership styles………………………………………......3 2.5 Approaches to management among Siemens AG and Nissan………………………..4 2.6 Factors influence individual behaviour at work………………………………………5 2.7 Different motivational theories………………………………………………………5 2.8 Nature of groups and group behaviour of Siemens…………………………………..6 2.9 Factors to the development of effective teamwork at Siemens………………………6 III. Conclusion…...……………………….………………………………………..………8 3.1 Structure and culture affect the performance of Siemens…………………………..8 3.2 Explanation of the leadership of Siemens AG……………………………………….8 3.3 Organisational theory influences the practice of management……………………8 3.4 Different leadership styles motivate organisations in periods of change……………9 3.5 The usefulness of motivational theories for managers………………….…………10 3.6 Impact of technology on team functioning within Siemens……………………10 Reference………………………………………………..………………….……….……….12 I. Introduction All my research is about two huge companies: Nissan Motor Company and Siemens AG. One topic has already been......

Words: 3408 - Pages: 14

Free Essay

Siemens Case Study

...Siemens AG is a German multinational engineering and electronics conglomerate company headquartered in Berlinand 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. There were a series of scandals that involved some of the company's employees bribing foreign officials to gain contracts and creating slush funds for this purpose. In 2008, it was revealed that Siemens had bribed the two main political parties of Greece for approximately 10 years to be the sole provider of mechanical and electrical equipment of the Greek state. After the exposure the German authorities moved to arrest the representatives of Siemens in Greece, who had managed to escape from the Greek authorities. The German judicial system didn't allow the Greek authorities to cross-question the representatives. As a result, there wasn't any solid evidence against the...

Words: 655 - Pages: 3

Premium Essay

Siemens Ag, Germany: Training and Development

...Siemens AG, Germany: Training and development Organisational background Siemens AG is one of Germany’s leading technology companies. It operates in the fields of information and communications, automation and control, power, transportation, medical solutions and lighting. The company employs a total of 460,800 people worldwide, including 124,000 women, who represent about 27% of its global workforce. Some 165,000 employees work for Siemens in Germany. With its continuing reputation as an attractive employer, it appeals to qualified young professionals. Siemens is very active in the training of young people and in developing its staff competencies. Some 158,300 employees (corresponding to 34% of the company’s total workforce) hold a university degree; of these, 117,000 employees or 26% of the workforce are qualified engineers and scientists. A further 160,000 employees or 35% of staff have served an apprenticeship or completed vocational training, while just under a third of employees (142,500 people) have an unrelated qualification or no vocational training. As a company of long-standing tradition, Siemens has always endeavoured to retain its staff. It relies on an excellent workforce and offers a wide range of training programmes to enable all company employees to continue to develop professionally. Careers often last within the company until retirement. The age profile of Siemens AG reveals a high proportion of people in the middle age group, with relatively few......

Words: 1197 - Pages: 5

Premium Essay

Continental Ag Case Study

...Introduction Throughout the last several decades, Continental AG has transformed itself from a small German company into a global systems supplier that manufactures components, modules, and tires for the automotive industry. The International Management Program (IMP) within Continental AG is designed and implemented for high-potential managers to be challenged with strategic projects of importance to the corporation and to observe how they handle themselves and the project itself. Unfortunately, the IMP is currently experiencing major complications with one group of participants. Over the last nine years the IMP has apparently been a very successful and fruitful program. The IMP 2000, however, includes three individuals that have not progressed efficiently and are way behind schedule with their project. With six weeks before the deadline, this specific project may have to be scrapped, but the following analysis will go into more detail about what can be done to make sure this situation does not happen in the future. Problem Identification 1. The team is constructed before identifying and completing the task analysis 2. After team formation, relationships are inappropriately developed and nurtured Diagnosis Proper team construction is designed to foster effectiveness. In this case, however, the team consisting of Herr Doctor Klaus Meier, Herr Werner Winkel, and Mr. John Caldwell has been dysfunctional and anything but effective. The first major......

Words: 2594 - Pages: 11

Free Essay

Bribery Scandal at Siemens Ag

...This case discusses the bribery scandals that were unearthed at Siemens AG (Siemens) in 2006 and 2007. There were a series of scandals that involved some of the company's employees bribing foreign officials to gain contracts and creating slush funds for this purpose. More so, in this case, the company was accused of bribing labor representatives on the supervisory board in order to gain their support for its policies. After the German authorities conducted raids on Siemens' offices in Germany, investigations were initiated on Siemens in several other countries like the US, Greece, Italy and Switzerland for possible misconduct. As fallout of this scandal, the CEO of the company, Klaus Kleinfeld and the chairman of the supervisory board, Heinrich von Pierer; had to resign even though they were not directly implicated (Durgaaus, 2008). With bribery scandals surfacing in Siemens and many other German companies like Volkswagen, questions were also raised about the effectiveness of the Co-determination law in Germany, which advocated a system in which a supervisory board governed the management board and at least half the supervisory board seats had to be filled by labor representatives. In such a system, critics contended that the management always needed the labor representatives' support to be in job and gain support for company policies, which led to a suspicious alliance between them. The case also highlights the opinions of several analysts on the issues related to......

Words: 257 - Pages: 2

Free Essay

Siemens Ag: Global Development

...For the exclusive use of N. Sinden, 2015. 9-602-061 REV: MARCH 18, 2002 STEFAN THOMKE Siemens AG: Global Development Strategy (A) It was the spring of 2000, but even under the afternoon shade of the palm trees at the Oberoi hotel in Bangalore, South India, it felt like summer. Horst Eberl sat contemplating the recommendations that he and his subdivisional co-head, Karl-Friedrich Hunke, would be preparing for the Siemens Information and Communications Networks (ICN) management board. Things were neat, tidy, and cool on this grassy side of the hotel. Just outside the main walls however lay the dust, pollution, and confusion of the Indian traffic. And if one took life in one’s hands by darting through the traffic, across the street lay Siemens’ regional development center in India, scattered among floors rented in three different office buildings. Two back-up power generators, as well as battery backup for all computers, helped ensure a reliable infrastructure for the 600 personnel here. What vexed Eberl and Hunke was that Deutsche Telekom, Siemens ICN’s largest customer, was upset because of slow product delivery on a new telecommunications software product, the so-called NetManager. For a variety of reasons the project had rapidly mushroomed in size and scope beyond what had been initially envisioned. To solve the problem, Eberl, co-head of ICN’s largest subdivision, had to travel some 7000 kilometers to this dusty corner of the world: despite the......

Words: 12790 - Pages: 52

Premium Essay

Fundamental Analysis of Siemens Ag

...Siemens AG is a German global operating technology company and was founded 1847 in Berlin. The four principal divisions of the company are energy, healthcare, industry and infrastructure and cities. In this fundamental analysis I will first outline the major financial key figures for creditors and liability claimholders. In terms of the SWOT analysis I will analyze the industry and global environment Siemens is operating in. The final point will be a link between the major financial key figures and the SWOT. Based on the outcome, I will give a further outlook and advices for the creditors as focused stakeholders in this report.   I want to start with the current Profitability and Risk situation of Siemens. This represents the most important information’s for the creditors and liability claimholders. Financial Key-Figures: Profitability analysis Profitability measure the company's ability to generate profitable sales from its resources (assets). Over the last 5 years the revenue of Siemens stagnated and from the year 2010 to 2014 the company increased its revenues from 67,8 billion euro to 71,9 billion euro, which is an increase of only 6%. Whereby over the last 2 years the revenue decreased about 7% from 77,3 billion euro to 71,9 billion euro. Siemens gross profit margin deteriorated from 2012 to 2013 but increased from 2013 to 2014 by 5,5%, which indicates that the cost of goods sold decreased more than the revenue. From the year 2010 to 2014 the company was able......

Words: 2930 - Pages: 12

Free Essay

Siemens - Sustainable Development (French)

...La politique environnementale du groupe siemens Introduction Acteur majeur dans le domaine de l’électronique et de l’électrotechnique, Siemens est depuis toujours synonyme de performance technique, innovation, qualité, fiabilité et présence internationale. Fort d’une existence de plus de 163 ans, l’entreprise Siemens développe, conçoit, réalise et fabrique des produits, des systèmes et des installations et fournit une vaste gamme de solutions sur mesure. Le groupe siemens regroupe à l’heure actuelle plus de 420 000 collaborateurs de part le monde et dispose d’un chiffre d’affaires s’évaluant à plus de 76,6 Milliards d’euros. Les 3 grandes valeurs défendues par la politique du groupe Siemens sont : responsabilité, excellence et innovation. L’innovation et l’excellence ont toujours rimé avec le groupe Siemens en faisant la clé de son succès, alors que, depuis seulement quelques années, le groupe Siemens accorde de plus en plus d’importance à la responsabilité et plus particulièrement au développement durable avec notamment les enjeux environnementaux, sociaux et économiques. Urbanisation et développement durable, mondialisation et compétitivité, mutation démographique et santé, changement climatique et approvisionnement en énergie : le monde doit relever des défis majeurs. Comment couvrir les besoins énergétiques croissants de la planète sans nuire à l’environnement ? Comment augmenter la productivité industrielle tout en réduisant les émissions de gaz à effet de serre ?......

Words: 3890 - Pages: 16

MORE ITEMS + | Carry Bags Cases | Voir le Film