Business Environment of Siemens Company - Assignment Example

Business environment Contents Task 4 1 4 2 4 3 5 M 5 D1 5 Task 2 6 2 6 2.2 6 2.3 6 M2 7 D2 7 Task 3 7 3 7 3.2 7 3.3 8 M3 8 Task 4 9 4.19 4.2 9 4.3 9 D3 10 References 11 Task 1 1.1 Siemens, a public ltd. company is known to provide its quality and reliable services along with value additional things to the customers. It is into providing different types of service to the customers which are of high quality. The purpose of sole trader is to provide efficient generate maximum profit within the limited resources available. The purpose of private limited company is to provide maximum dividends to the share holders. A public sector firm aims to work for societal benefit rather than profit generation while a corporation aims to bring more people under its shelter. Voluntary organizations also aim to work focussing on the benefits of the society. 1.2 Siemens looks to meet the objectives of the stakeholders in every possible way by providing every possible facility to all the stakeholders. It provides the owners with returns on investment while the managers can gain maximum experience while working in the organization. The employees are motivated and are provided with job satisfaction along with health and security services. The customers are treated well with good after sales service and prompt reply to their queries. It enjoys long lasting relationship with the suppliers and banks from whom they can get loan to finance new investments. It abides by the laws and regulations as enforced by the government and works for societal benefits through social responsibilities. 1.3 Siemens does take part with NHS trust and other partners to come up with good and latest technologically equipped hospitals. These hospitals provide good service to the customers and also help the society in having a good hospitality facility. It is a type of corporate social responsibility which the company performs very seriously and looks to provide a good condition to the society. The company follows highest order of ethics in the company and makes sure that the ethics is been followed by all the employees which can help in improving the society in a huge way. M 1 Mission of the company is to help the society in every possible way to face the challenges that are going to come because of the changing global environment and globalisation. Objectives of the company are to achieve the set goals and help in having a better future for the society. It looks to come up with services which can help in the improvement of the condition of the society and also in the overall development of the society. D1 The stakeholders are in the form of shareholders, managers, employees, customers, suppliers, banks, government and also the community. Siemens has come along with NHS trusts and also with other partners to build new and better hospitals. The company offers emergency units, medical treatments and all the latest equipments, operating systems and also various therapies. By providing such good facilities the company is able to provide a good hospital and energy management system. The company has looked to appoint contract based managers to make sure that they can take care of the customers in a very unique manner (A & C Black Publishers Ltd., 2009, pp. 34-39). The employees are taken special care of as various training and development programs are been conducted for enhancing their skills and special rewards are also been given. Apart from the health and safety of the employees and their family members is been taken into consideration. Good salary is been paid to the managers to make sure that they are satisfied with the job they do and thus are able to retain a huge number of employees every year. Siemens does help the government in a huge way by paying all the taxes on time and also by following all the rules and regulations that are been set up by the government of various locations. Task 2 2.1 Siemens looks to take care of all the economic condition which are Market economy, Command economy and Mixed economy based on which it allocates all the available resources. The resources like manpower, equipments etc. are been effectively utilised in different locations as the company has got its presence in various parts of the world. 2.2 The public investment in the health care sector will increase which will provide better fiscal condition for the customer to avail good health care facilities. The changing currency rates in the global economy do affect a lot over the company as it operates in the entire world having its presence in various countries (Sawyer, 2004, pp. 45-53). 2.3 Siemens is looking to build long term relationship with the private and public sector bodies. In this way it is able to grow and also improve its service. It also looks to provide top class service and value additional service to the customers. This has provided a good competitive edge to the company. M2 The rapid fluctuation in the currency rates does affect a lot on the growth of Siemens. As the price of the products that are been supplied from one place top other do carry in a huge way. As a result the company do offers its products at different price ranges to different customers across the global market. D2 Siemens must look to explore new markets on a continuous basis so as to capture maximum market share and also create a huge impact over the entire global market by attracting maximum number of customers. Task 3 3.1 The condition of the market plays a huge impact in deciding the price of the product and also the result that are obtained of the strategies made by the companies. It is generally that the company with the advantage of first mover in the market with unique product sets up the price and then the competitors follow. The success or failure of the strategies that are been set by the company also depends a lot on the market condition. 3.2 Bargaining power of supplier: It’s high when the supplier is big and there is less number of suppliers and less when there are many suppliers. For example, the supplier for the earth moving vehicles is very less so the bargaining power of them is high. Bargaining power of customers: It’s high when the customers get a lot of options in the market to buy a particular product. For example, the customers look to bargain more for normal household products than on health equipments. Rivalry among competitors: It’s high when there are many competitors present in the market. In this case the company looks to come up with unique strategy to get competitive advantage and attract customers. For example, Coca-Cola looks to come up with unique advertisements to attract more customers to get competitive advantage over Pepsi. Threat of substitutes: It’s high when there is a certain substitute product that can replace the original product. The company looks to provide a USP to their product so that it cannot be replaced by any substitutes. Threat of entrance of new companies: This threat is less for well stable and globally known company. To minimise this that company looks to create a good brand image and also capture a good market share by attracting most of customers. 3.3 The cultural and business environments do vary in a huge way from locations to locations. Siemens having its business in 190 separate countries experience a huge cultural difference. The company has a flexible system and trains its employees in a proper way so that they can adjust to the changing culture easily. M3 Siemens do looks to provide its product at an affordable price to the customers to get competitive edge in the global market. Siemens is in a market which does not have so many competitors so the strategies that are been set up by the company are generally been made focusing on the customers and companies growth. Task 4 4.1 International trade has provided a lot of options to the UK business environment. It has opened a lot of route for various companies to move and grow. A huge amount of market is opened to explore for the companies. The new technology that is been developed in other countries can be brought in the operations of the companies in UK. Materials from various locations can be imported where they are found at cheaper rate than UK. It also provides the companies to get a good competitive advantage over the competitors (Begg, 2009, pp. 34-38). 4.2 Increasing globalization does provide a lot of benefit to the UK business organisations. The companies are now able to avail the materials and technology at cheaper rates from other countries. The amount of sales volume has increased for the companies as a result the revenue has grown by a huge margin. It helps the companies to reduce their dependencies from a single existing market and explore new markets. It has also increased the level of competition for the companies as foreign companies have also looked to come in UK and compete with the UK companies. 4.3 European Union has made attempts to reduce the cost of regulations for the UK business organizations. This provides a huge opportunity for all the UK business organizations to explore and grow in global market. It will help the companies get more customers and also increase their sales volume thus helping them in increasing their revenue by a huge margin. It also reduces the dependencies of the companies on a single market and also gets competitive advantage over the competitors by growing globally. D3 Siemens has been a dynamic business organization not only in UK but across the globe having its presence in 190 different states. The company has got a huge profit by growing global in terms of the huge market that it has got to explore and also the number of customers it has is very huge than what its competitors have. The company has been able to take the materials from the locations where they are found at cheaper rates and of better quality and also avail the latest technologies (Morrison, 2006, pp. 23-28). Thus it is able to achieve customer satisfaction in better way. The only problem it has been facing is from the rapid fluctuation in the currency rates. References A & C Black Publishers Ltd., 2009. Whitakers Almanack 2010, 142nd Revised edition. Edinburgh: A & C Black Publishers Ltd. Begg, D. 2009. Foundations of Economics, 4th edition. London: McGraw-Hill Higher Education. Morrison, J. 2006. International Business Environment: Global and Local Marketplaces in a Changing World. London: Palgrave Macmillan. Sawyer, M. 2004. The UK Economy: A Manual of Applied Economics, 16th edition. London: OUP Oxford. . Read More