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SIEMENS
GROUP 8
Political
GERMANY
Parliamentary Democracy
 Federal Chancellor (head of government) is elected by the
Bundestag or Federal Assembly for a 4-year term
 Head of state is ceremonial president elected for up to two 5-
year term
Multi- Party System
 Christian Democratic Union and the Social Democratic Party of
Germany are largest denominating since 1949
Legal System
 16 states are all under same business law code
 Worker mobility allowed within EU countries
 1999: ratified the OECD’s Convention on Combating Bribery of
Foreign Public Officials
 2003: signed the United Nations Convention against
Corruption, but has not yet ratified it
UNITED STATES
Federal Republic
 Indirect election of president by electoral college for up to two
4-year terms
 The federal government has three branches: legislative,
executive, and judicial
Two- Major Party System
 Democrats and Republicans dominate US government
Legal System
 Business law code varies between states
 1977: Foreign Corrupt Practices Act (FCPA): US federal law
regarding transparency and bribery of foreign officials
 Applies to US businesses and foreign corporations operating
within the US.
International: Organization for Economic
Cooperation and Development (OECD)
• Consists of 34 countries committed to democracy with objective of
sustainable economic growth
• Gives guidelines of multinational enterprises including employment
and industrial relations, protection of the environment, consumer
interests, and fair competition and combating corruption
Social- Economic
Germany
 Life Expectancy:
at birth- women: 83%; men :78%
at age 60- women: 25%; men:22%
 Ratio of female to male tertiary enrollment:
107%
 Labor participation rate:
women: 54%; men: 66%
United States
 Life Expectancy:
at birth- women: 83%; men: 78%
at age 60- women: 25%; men: 22%
 Ratio of female to male tertiary enrollment:
139%
 Labor participation rate:
women: 57%;
men:69%
Unemployment
Rate
Population GDP GDP per
Capita
GDP
Growth
Inflation Labor force
Germany 5.4% 81.89
million
$3.428
trillion
$41,863 0.7% 2.0% 42,522,730
USA 8.1% 313.9
million
$16.24
trillion
$51,749 2.8% 2.1% 158,686,472
Culture
GERMANY
Language: German
Hofstede Cultural Dimensions
Power Distance - 35
 Individuals in societies are not equal.
 Strong middle class.
Individualism - 67
 Truly individualistic: Small families with
a focus on the parent-children
relationship.
Masculinity - 66
 Masculine: Live in order to work and draw
a lot of self-esteem from their tasks.
Uncertainty Avoidance - 65
 Strong preference for deductive rather
than inductive approaches.
Indulgence – 40
 Restraint: Tendency to cynicism and
pessimism
UNITED STATES
Language: English
Hofstede Cultural Dimensions
Power Distance - 40
 Equal rights, liberty and justice for all
Individualism - 91
 Mostly Individualistic: People look after
themselves and their immediate families
only.
Masculinity - 62
 Masculine: Strive to be the best they can
be. Success and being able to show
success is a motivator.
Uncertainty Avoidance – 46
 Fair degree of acceptance for new ideas
Indulgence - 68
 Indulgent: Work and play hard attitude
Technological
Germany
 Technological readiness in Global
competitiveness index, ranking 10th and
scoring 5.4
 Building Technologies
 Automation Technologies
 Drive Technology
 Superior Efficiency
 High Quality Reliability
 Maximum Productivity
 Combined-cycle power plant helped the
industry set up a efficiency benchmark
 “The plant unit 4 at Irschine creates
efficiency level of 60.75%
United States
 Technological readiness in Global
competitiveness index, ranking 17th and
scoring 5.1
 2012, Wind power technology used
efficient in the U.S. Innovating the
technology for higher productivity
 “The first time ever—the number one
source of new electricity generation
capacity.”
Industries Overview
Largest Energy Markets:
1. Europe
2. Americas
3. Asia
4. Germany
Siemens’ Revenue by Sector:
1. Energy
2. Industry
3. Infrastructure and Cities
4. Healthcare
Industry Opportunities
• General shift towards
sustainable energy using
energy-efficient natural
resources in light of
increasing environmental
and economic
challenges
• Expansion of wind
industry in the United
States
• In 2012, wind energy
served as largest
source of new
electricity generation
capacity in the United
States
• Can spill over to other
countries
EMERGINGMARKETS
• Investments in renewable
energy are increasing in
developing countries as
they face environmental
challenges
• Emerging markets want
lower dependence on
imported oil, address
increasing need for power
demand (i.e. discrepancy
between power supply
and demand in India), or
foster job creation
• Increased opportunities
for investments in India,
Turkey, Morocco, South
Africa and Brazil, and
many others
CHANGINGPOLICIES
• Developing countries shifting
policies to accommodate
renewable energy
• Opportunities through
government contracts or
Independent Power
Producers
ENVIRONMENTAL
Industry Threats
 Siemens margins are almost half the size of its
competitors. They face threat in their overall
revenue from major competitors.
 Intense competition leads to pricing pressures,
thereby decreasing the group’s profitability.
 Surging raw material prices could strain
margins.
 Environmental and other governmental
regulations such as:
 Waste Electrical and Electronic
Equipment (WEEE) Directive of the EU
makes producers of electrical goods
financially responsible for collection,
recycling, treatment, and disposal of
products. Companies operating in these
markets become responsible for
implementing WEEE. Several of Siemens
product lines are subject to the WEEE
regulation. Therefore Siemens could incur
sizeable costs and liabilities under new
legislation.
 Emerging into new markets can lead to issues
with Political and Policy Stability. For example:
 A country's political landscape must be
well understood. Political swings can
bring renewable energy projects, and
supporting policies, to a halt.
Siemens’ Corporate
Culture
Despite German and
American legislation
against corruption and
bribery, Siemens’ engaged
heavily in such activities in
various countries.
Sources
 "Corruption Perceptions Index 2013 View Results Table View Brochure." Corruption Perceptions Index 2013. N.p., n.d.
Web. 09 Mar. 2014. <http://www.transparency.org/cpi2013/results>.
 "Donate." Top Stories RSS. N.p., n.d. Web. 11 Mar. 2014. <http://www.propublica.org/special/the-world-wide-web-of-
siemenss-corruption>.
 "Emerging Markets Take Over Renewable Energy Landscape." Renewable Energy World. N.p., n.d. Web. 11 Mar. 2014.
<http://www.renewableenergyworld.com/rea/news/article/2012/12/emerging-markets-take-over?page=2>.
 "Energy Efficiency in the U.S." – Siemens USA. N.p., n.d. Web. 11 Mar. 2014. <http://www.usa.siemens.com/energy-
efficiency/energy-efficiency.html>.
 "Energy Efficiency in the U.S." – Siemens USA. N.p., n.d. Web. 11 Mar. 2014. <http://www.usa.siemens.com/energy-
efficiency-in-the-us/>.
 "German Business Law." German Business Law. N.p., n.d. Web. 11 Mar. 2014. <http://www.germanbusinesslaw.de/>.
 "A Giant Awakens." The Economist. The Economist Newspaper, 11 Sept. 2010. Web. 11 Mar. 2014.
<http://www.economist.com/node/16990709>.
 "Global Competitiveness Index/ United States." The Global Competitiveness Report. World Economic Forum, n.d. Web.
11 Mar. 2014.
 "THE HOFSTEDE CENTRE." United States. N.p., n.d. Web. 10 Mar. 2014. <http://geert-hofstede.com/united-states.html>.
 Hutchinson, Harry. "Benchmark For A Gas Turbine." Mechanical Engineering 133.7 (2011): 12. Applied Science &
Technology Source. Web. 11 Mar. 2014.
 "Independent Power Producers (IPPs)." Independent Power Producers. N.p., n.d. Web. 11 Mar. 2014.
<http://www.energy.siemens.com/hq/en/industries-utilities/power/independent-ower-roducers.htm>.
 "Main Navigation." Federal Ministry for Economic Cooperation and Development. N.p., n.d. Web. 11 Mar. 2014.
<http://www.bmz.de/en/what_we_do/issues/goodgovernance/korruption/deutscherbeitrag/index.html>.
 Schubert, Siri, and T. Christian Miller. "Where Bribery Was Just a Line Item." The New York Times. The New York Times, 20
Dec. 2008. Web. 11 Mar. 2014.
 "Sustainability at Siemens." International Guidelines. N.p., n.d. Web. 11 Mar. 2014.
<http://www.siemens.com/sustainability/en/sustainability-at-siemens/international-guidelines.php>.
 "Threats." Ebscohost.com. Datamonitor, n.d. Web. 11 Mar. 2014.
<http://connection.ebscohost.com/c/articles/64430998/threats>.
 "United States." Freedom House. N.p., n.d. Web. 11 Mar. 2014. <http://freedomhouse.org/report/freedom-
world/2013/united-states#.Ux7dWo5a_ww>.
 "Utilities and Municipalities." - Siemens. N.p., n.d. Web. 11 Mar. 2014.
<http://www.energy.siemens.com/hq/en/industries-utilities/power/utilites-municipalities.htm>
 —"World Development Indicators -U.S/Germany a."Data.The World Bank, n.d. Thurs. 6 March. 2014

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Group 8 Siemens Comparative National Analysis

  • 2. Political GERMANY Parliamentary Democracy  Federal Chancellor (head of government) is elected by the Bundestag or Federal Assembly for a 4-year term  Head of state is ceremonial president elected for up to two 5- year term Multi- Party System  Christian Democratic Union and the Social Democratic Party of Germany are largest denominating since 1949 Legal System  16 states are all under same business law code  Worker mobility allowed within EU countries  1999: ratified the OECD’s Convention on Combating Bribery of Foreign Public Officials  2003: signed the United Nations Convention against Corruption, but has not yet ratified it UNITED STATES Federal Republic  Indirect election of president by electoral college for up to two 4-year terms  The federal government has three branches: legislative, executive, and judicial Two- Major Party System  Democrats and Republicans dominate US government Legal System  Business law code varies between states  1977: Foreign Corrupt Practices Act (FCPA): US federal law regarding transparency and bribery of foreign officials  Applies to US businesses and foreign corporations operating within the US. International: Organization for Economic Cooperation and Development (OECD) • Consists of 34 countries committed to democracy with objective of sustainable economic growth • Gives guidelines of multinational enterprises including employment and industrial relations, protection of the environment, consumer interests, and fair competition and combating corruption
  • 3. Social- Economic Germany  Life Expectancy: at birth- women: 83%; men :78% at age 60- women: 25%; men:22%  Ratio of female to male tertiary enrollment: 107%  Labor participation rate: women: 54%; men: 66% United States  Life Expectancy: at birth- women: 83%; men: 78% at age 60- women: 25%; men: 22%  Ratio of female to male tertiary enrollment: 139%  Labor participation rate: women: 57%; men:69% Unemployment Rate Population GDP GDP per Capita GDP Growth Inflation Labor force Germany 5.4% 81.89 million $3.428 trillion $41,863 0.7% 2.0% 42,522,730 USA 8.1% 313.9 million $16.24 trillion $51,749 2.8% 2.1% 158,686,472
  • 4. Culture GERMANY Language: German Hofstede Cultural Dimensions Power Distance - 35  Individuals in societies are not equal.  Strong middle class. Individualism - 67  Truly individualistic: Small families with a focus on the parent-children relationship. Masculinity - 66  Masculine: Live in order to work and draw a lot of self-esteem from their tasks. Uncertainty Avoidance - 65  Strong preference for deductive rather than inductive approaches. Indulgence – 40  Restraint: Tendency to cynicism and pessimism UNITED STATES Language: English Hofstede Cultural Dimensions Power Distance - 40  Equal rights, liberty and justice for all Individualism - 91  Mostly Individualistic: People look after themselves and their immediate families only. Masculinity - 62  Masculine: Strive to be the best they can be. Success and being able to show success is a motivator. Uncertainty Avoidance – 46  Fair degree of acceptance for new ideas Indulgence - 68  Indulgent: Work and play hard attitude
  • 5. Technological Germany  Technological readiness in Global competitiveness index, ranking 10th and scoring 5.4  Building Technologies  Automation Technologies  Drive Technology  Superior Efficiency  High Quality Reliability  Maximum Productivity  Combined-cycle power plant helped the industry set up a efficiency benchmark  “The plant unit 4 at Irschine creates efficiency level of 60.75% United States  Technological readiness in Global competitiveness index, ranking 17th and scoring 5.1  2012, Wind power technology used efficient in the U.S. Innovating the technology for higher productivity  “The first time ever—the number one source of new electricity generation capacity.”
  • 6. Industries Overview Largest Energy Markets: 1. Europe 2. Americas 3. Asia 4. Germany Siemens’ Revenue by Sector: 1. Energy 2. Industry 3. Infrastructure and Cities 4. Healthcare
  • 7. Industry Opportunities • General shift towards sustainable energy using energy-efficient natural resources in light of increasing environmental and economic challenges • Expansion of wind industry in the United States • In 2012, wind energy served as largest source of new electricity generation capacity in the United States • Can spill over to other countries EMERGINGMARKETS • Investments in renewable energy are increasing in developing countries as they face environmental challenges • Emerging markets want lower dependence on imported oil, address increasing need for power demand (i.e. discrepancy between power supply and demand in India), or foster job creation • Increased opportunities for investments in India, Turkey, Morocco, South Africa and Brazil, and many others CHANGINGPOLICIES • Developing countries shifting policies to accommodate renewable energy • Opportunities through government contracts or Independent Power Producers ENVIRONMENTAL
  • 8. Industry Threats  Siemens margins are almost half the size of its competitors. They face threat in their overall revenue from major competitors.  Intense competition leads to pricing pressures, thereby decreasing the group’s profitability.  Surging raw material prices could strain margins.  Environmental and other governmental regulations such as:  Waste Electrical and Electronic Equipment (WEEE) Directive of the EU makes producers of electrical goods financially responsible for collection, recycling, treatment, and disposal of products. Companies operating in these markets become responsible for implementing WEEE. Several of Siemens product lines are subject to the WEEE regulation. Therefore Siemens could incur sizeable costs and liabilities under new legislation.  Emerging into new markets can lead to issues with Political and Policy Stability. For example:  A country's political landscape must be well understood. Political swings can bring renewable energy projects, and supporting policies, to a halt.
  • 9. Siemens’ Corporate Culture Despite German and American legislation against corruption and bribery, Siemens’ engaged heavily in such activities in various countries.
  • 10. Sources  "Corruption Perceptions Index 2013 View Results Table View Brochure." Corruption Perceptions Index 2013. N.p., n.d. Web. 09 Mar. 2014. <http://www.transparency.org/cpi2013/results>.  "Donate." Top Stories RSS. N.p., n.d. Web. 11 Mar. 2014. <http://www.propublica.org/special/the-world-wide-web-of- siemenss-corruption>.  "Emerging Markets Take Over Renewable Energy Landscape." Renewable Energy World. N.p., n.d. Web. 11 Mar. 2014. <http://www.renewableenergyworld.com/rea/news/article/2012/12/emerging-markets-take-over?page=2>.  "Energy Efficiency in the U.S." – Siemens USA. N.p., n.d. Web. 11 Mar. 2014. <http://www.usa.siemens.com/energy- efficiency/energy-efficiency.html>.  "Energy Efficiency in the U.S." – Siemens USA. N.p., n.d. Web. 11 Mar. 2014. <http://www.usa.siemens.com/energy- efficiency-in-the-us/>.  "German Business Law." German Business Law. N.p., n.d. Web. 11 Mar. 2014. <http://www.germanbusinesslaw.de/>.  "A Giant Awakens." The Economist. The Economist Newspaper, 11 Sept. 2010. Web. 11 Mar. 2014. <http://www.economist.com/node/16990709>.  "Global Competitiveness Index/ United States." The Global Competitiveness Report. World Economic Forum, n.d. Web. 11 Mar. 2014.  "THE HOFSTEDE CENTRE." United States. N.p., n.d. Web. 10 Mar. 2014. <http://geert-hofstede.com/united-states.html>.  Hutchinson, Harry. "Benchmark For A Gas Turbine." Mechanical Engineering 133.7 (2011): 12. Applied Science & Technology Source. Web. 11 Mar. 2014.  "Independent Power Producers (IPPs)." Independent Power Producers. N.p., n.d. Web. 11 Mar. 2014. <http://www.energy.siemens.com/hq/en/industries-utilities/power/independent-ower-roducers.htm>.  "Main Navigation." Federal Ministry for Economic Cooperation and Development. N.p., n.d. Web. 11 Mar. 2014. <http://www.bmz.de/en/what_we_do/issues/goodgovernance/korruption/deutscherbeitrag/index.html>.  Schubert, Siri, and T. Christian Miller. "Where Bribery Was Just a Line Item." The New York Times. The New York Times, 20 Dec. 2008. Web. 11 Mar. 2014.  "Sustainability at Siemens." International Guidelines. N.p., n.d. Web. 11 Mar. 2014. <http://www.siemens.com/sustainability/en/sustainability-at-siemens/international-guidelines.php>.  "Threats." Ebscohost.com. Datamonitor, n.d. Web. 11 Mar. 2014. <http://connection.ebscohost.com/c/articles/64430998/threats>.  "United States." Freedom House. N.p., n.d. Web. 11 Mar. 2014. <http://freedomhouse.org/report/freedom- world/2013/united-states#.Ux7dWo5a_ww>.  "Utilities and Municipalities." - Siemens. N.p., n.d. Web. 11 Mar. 2014. <http://www.energy.siemens.com/hq/en/industries-utilities/power/utilites-municipalities.htm>  —"World Development Indicators -U.S/Germany a."Data.The World Bank, n.d. Thurs. 6 March. 2014