Instructions Case Study—Siemens Read the Siemens case study located in the section titled Case Studies in your textbook concerning the following situation: Siemens is a leading global electrical engineering and electronics firm headquartered in Munich, Germany. Profiling a highly-diversified company, this case addresses the issue of optimizing the business portfolio through a coherent corporate strategy. An in-depth look at the programs designed and implemented at Siemens to spur management innovation provides a unique opportunity to study an organization’s efforts to facilitate the transfer corporate-level core competencies across business divisions in order to strengthen competitive position and performance. The case opens with an introduction and a profile of the company. Management innovation activity at Siemens is then thoroughly reviewed, including the context, evolution, purpose, content, implementation, capability development, and performance measurement of the company’s top+ program. This case study demonstrates how the principles of strategic management apply to Siemens’ structured and systematic approach to management innovation and business excellence. It also provides a framework for assessing the effectiveness of the company’s corporate management tools and programs. Describe Siemens’ corporate-level strategy and characterize its level of diversification. Discuss the advantages and disadvantages of the company’s matrix organizational structure. Does the organizational design effectively support the needs of Siemens’ corporate-level strategy?  Describe how the company structured the top+ program. Who was responsible for oversight and coordination of the business excellence initiatives? How does the management innovation activity at Siemen’s facilitate achievement of the company’s corporate objectives? Using a balanced scorecard framework, outline the financial and strategic organizational controls used by Siemens to drive management behavior and firm performance. Are the corporate criteria balanced? Are they yielding desired outcomes for the company?  Conduct a financial analysis using Siemens’ financial performance results from 1998 to 2007 to assess the effectiveness or success of the top+ program. What recommendations would you make to improve either the design or implementation of the company’s management innovation efforts? Submission Details: Present your report as an 8–12-page Microsoft Word document formatted in APA style. Support your responses with examples.  Cite any sources in APA format. Name your document MGT4070_W5_LastName_FirstInitial.doc Submit your document to the Submissions Area by the due date assigned.                                                     Siemens CASE 15: Siemens: Management Innovation at the Corporate Level Markus MenzGünter Müller-Stewens Institute of Management, University of St. Gallen Introduction At the Annual Shareholders’ Meeting in February 1998, ...

1. Instructions
Case Study—Siemens
Read the Siemens case study located in the section titled
Case Studies
in your textbook concerning the following situation:
Siemens is a leading global electrical engineering and
electronics firm headquartered in Munich, Germany. Profiling a
highly-diversified company, this case addresses the issue of
optimizing the business portfolio through a coherent corporate
strategy. An in-depth look at the programs designed and
implemented at Siemens to spur management innovation
provides a unique opportunity to study an organization’s efforts
to facilitate the transfer corporate-level core competencies
across business divisions in order to strengthen competitive
position and performance.
The case opens with an introduction and a profile of the
company. Management innovation activity at Siemens is then
thoroughly reviewed, including the context, evolution, purpose,
content, implementation, capability development, and
performance measurement of the company’s
top+
program.
This case study demonstrates how the principles of strategic
management apply to Siemens’ structured and systematic

2. approach to management innovation and business excellence. It
also provides a framework for assessing the effectiveness of the
company’s corporate management tools and programs.
Describe Siemens’ corporate-level strategy and characterize its
level of diversification. Discuss the advantages and
disadvantages of the company’s matrix organizational structure.
Does the organizational design effectively support the needs of
Siemens’ corporate-level strategy?
Describe how the company structured the
top+
program. Who was responsible for oversight and coordination of
the business excellence initiatives? How does the management
innovation activity at Siemen’s facilitate achievement of the
company’s corporate objectives?
Using a balanced scorecard framework, outline the financial and
strategic organizational controls used by Siemens to drive
management behavior and firm performance. Are the corporate
criteria balanced? Are they yielding desired outcomes for the
company?
Conduct a financial analysis using Siemens’ financial
performance results from 1998 to 2007 to assess the
effectiveness or success of the
top+
program. What recommendations would you make to improve
either the design or implementation of the company’s
management innovation efforts?

3. Submission Details:
Present your report as an 8–12-page Microsoft Word document
formatted in APA style.
Support your responses with examples. Cite any sources in
APA format.
Name your document MGT4070_W5_LastName_FirstInitial.doc
Submit your document to the
Submissions Area
by
the due date assigned.
Siemens
CASE 15:
Siemens: Management Innovation at the Corporate Level
Markus MenzGünter Müller-Stewens
Institute of Management, University of St. Gallen
Introduction
At the Annual Shareholders’ Meeting in February 1998,
Siemens announced disappointing overall results for fiscal

4. 1997. While the firm’s sales growth met shareholder
expectations, net income remained largely stable. During the
following weeks and months, Siemens’ top management not
only faced increased pressure from its shareholders, but also
higher environmental uncertainty and stronger global
competition than during the early and mid-1990s. The challenge
for the top management team was to optimize the business
portfolio in a way that promised to add substantial shareholder
value over the next years. Hence, the need was to devel op and
implement a revised and more coherent corporate strategy.In
response to the developments in 1997 and early 1998 and to
facilitate the implementation of the corporate strategy, Siemens
launched its first comprehensive corporate program in July
1998. A critical part of the so-called Ten-Point Program was the
top
+ program, which exclusively addressed issues of business
excellence and management innovation. How did Siemens
design and implement the
top
+ program and its management innovations? To what extent and
how did Siemens benefit from these efforts? These and other
related issues will be illustrated in the following.
Company Profile of Siemens
Founded in 1847, Siemens developed into one of the leading
global electrical engineering and electronics firms over the past
160 years. At the end of fiscal 2007 (September 30, 2007),
Siemens employed nearly 400,000 people at 1,698 locations all
over the world. From 1998 to 2007, firm revenues and profits
increased almost every year, resulting in revenues of 72.448
billion EUR and net income of 4.038 billion EUR.
Headquartered in Munich, Germany, Siemens is publicly listed
in Germany at the Frankfurt Stock Exchange and in the US at
the New York Stock Exchange (NYSE). By the end of fiscal
2007, Siemens’ market capitalization had reached 88.147 billion

5. EUR.
1
During the period from 1998 to 2007, the business
portfolio
was frequently adjusted (see
Exhibits 1
and
2
). Examples include the spin-off of the semiconductor business
under the name Infineon Technologies by an initial public
offering (IPO) in 1999. At the end of 2007, the firm’s portfolio
consisted of the following operating groups: Automation &
Drives (A&D), Industrial
Solution
s and Services (I&S), Siemens Building Technologies (SBT),
Osram, Transportation Systems (TS), Power Generation (PG),
Power Transmission and Distribution (PTD), Medical