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.
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