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    ENVIRONMENTAL ANALYSIS

    SIEMENS LTD-INDIA

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    Done by: S. Sasi Rekha (DI 902!

    "ONTENTS

    SIEMENS HISTORY

    STRATEGIC ANALYSIS

    Vision statement

    Mission statement

    Quality policy

    SIEMENS INIA

    Ene!"y secto!

    In#ust!y secto!

    Healt$ ca!e

    %ESTEL ANALYSIS

    %olitical &acto!s

    Economic &acto!s

    Social'cultu!al &acto!s

    Tec$nolo"ical &acto!s

    En(i!onmental &acto!s

    Le"al &acto!s

    IM%ACTS O) ECONOMY AN MAR*ET TRENS A))ECTING THE

    COM%ANY S+OT ANALYSIS

    St!en"t$s

    +ea,ness

    Oppo!tunities

    T$!eats

    RECOMMENATIONS

    SIEMENS #ISTORY

    Siemens -as &oun#e# in $e%&in .y 'e%ne% Von Sieen in )*+/ As an o!#ina!y

    in(ento!0 en"inee! an# ent!ep!eneu!0 +e!ne! Von Siemen ma#e t$e -o!l#1s &i!st pointe!

    Tele"!ap$ an# elect!ic #ynamo0 t$e in(entions t$at $elpe# put t$e spin in t$e In#ust!ial

    !e(olution/ As +e!ne! en(isione#0 t$e company $e sta!te# &!om st!en"t$ to st!en"t$ in

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    e(e!y &iel# o& elect!ical en"inee!in"/ Siemens is to#ay a tec$nolo"y "iant in mo!e t$an

    234 count!ies/ Ou! -o!, in t$e &iel#s o& in,s%y/ ene%y/ 1oni1aions/

    ino%aion/ %ans3o%aion/ hea&h 1a%e/ 1o3onens an, &ihin $a(e .ecome

    essential pa!ts o& e(e!y#ay li&e/

    4ROM 'OR5 S#O6 TO 7LO$AL 6LAYER 8 ()*+-)9)*!

    A 6ERIOD O4 "#AN7E 8 ()9)*-)9+!

    T#E A7E O4 7LO$ALIATION 8 ()9+-200!

    STRATE7I" ANALYSIS

    VISION STATEMENT:

    5To !emain ma!,et lea#e! an# tec$nolo"y pace sette! in t$e en"inee!in" an# elect!onics

    in#ust!y .y utili6in" t$e $i"$ tec$ e7pe!tise in Siemens "!oup -o!l#-i#e to maintain ou!

    st!on" an# p!ominent local p!esence/

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    MISSION STATEMENT:

    It is ou! "oal to set t$e .enc$ma!, .y .ein" t$e 5.est in class 8 in ou! &iel#s an# to c!eate

    (alue &o! ou! custome!s0 -ealt$ &o! ou! sta,e'$ol#e!s an# a &utu!e &o! ou! employees

    -$ile "i(in" .ac, "!aciously to society a piece o& ou! success/

    ;i1es

    &unctions ac!oss all t$!ee Secto!s/ In >44?0 Siemens In#ia -as t$e top !an,e# company .y

    @usiness +ee, in its annual !atin" o& Asia1s =4 companies/ Siemens -as also !an,e# No/ 2 in

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    t$e Co!po!ate Reputation .y T$e +all St!eet ou!nal in its su!(ey o& Asia1s >44 most a#mi!e#

    companies/ In &iscal >44? sales to custome!s in In#ia amounte# to almost EBR 2/3 .illion/

    Siemens cu!!ently $as o(e! 20>44 employees in In#ia/

    Ene%y Se1o%:

    Siemens consoli#ates its inno(ati(e o&&e!in"s in t$e Ene!"y secto! .y com.inin" its &ull !an"e

    e7pe!tise in t$e a!eas o& %o-e! Gene!ation D%G an# %o-e! T!ansmission F ist!i.ution

    D%T/ Btili6in" t$e most a#(ance# plant #ia"nostics an# systems tec$nolo"ies0 Siemens

    p!o(i#es comp!e$ensi(e se!(ices &o! complete po-e! plants an# &o! !otatin" mac$ines suc$

    as "as an# steam tu!.ines0 "ene!ato!s an# comp!esso!s/

    #ea&h1a%e Se1o%:

    @y com.inin" t$e most a#(ance# la.o!ato!y #ia"nostics0 ima"in" systems an# $ealt$ca!e

    in&o!mation tec$nolo"y0 Siemens Healt$ca!e #i(ision ena.les clinicians to #ia"nose #isease

    ea!lie! an# mo!e accu!ately0 ma,in" a #ecisi(e cont!i.ution to imp!o(in" t$e 9uality o&

    $ealt$ca!e/

    In,s%y:

    At Siemens0 en#'to'en# p!o#ucts0 systems an# solutions &o! in#ust!ial an# .uil#in"

    automation as -ell as in&!ast!uctu!e installations a!e p!o(i#e#/ T$ese tu!n,ey solutions co(e!p!oect mana"ement0 en"inee!in" an# so&t-a!e0 installation0 commissionin"0 a&te!'sales

    se!(ice0 plant maintenance an# t!ainin"/

    ENVIRONMENTAL ANALYSIS

    En(i!onment analysis is a comp!e$ensi(e analysis o& t$e inte!nal an# e7te!nal

    en(i!onmental &acto!s a&&ectin" an o!"ani6ation/ A -i#e !an"e o& in&luences

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    su!!oun#in" .usinesses can a&&ect o!"ani6ational #ecision ma,in" po-e!s0 st!ate"ies0

    p!ocess an# pe!&o!mance/

    6o&ii1a& a1o%s: T$ese !e&e! to "o(e!nment policy suc$ as t$e #e"!ee o&

    inte!(ention in t$e economy/ %olitical #ecisions can impact on many (ital a!eas &o!

    .usiness suc$ as t$e e#ucation o& t$e -o!,&o!ce0 t$e $ealt$ o& t$e nation an# t$e

    9uality o& t$e in&!ast!uctu!e o& t$e economy/

    Siemens stan#s out to .e a bea1on o 3o&ii1a& s%enhe(en in t$ese

    times o& unce!tainty an# tu!moil/

    T$e !e#uction in ta!i&&s on capital "oo#s0 t$e co!!ection o& t$e in(e!te#

    #uty st!uctu!es an# t$e lo-e!in" o& ta!i&&s on non'&e!!ous metals a!e.oun# to .e an ac!oss't$e'.oa!# positi(e &o! t$e en"inee!in" secto! in

    >443/

    Ta7 $oli#ay un#e! section ?4 IA e7ten#e# up to >424 an# !e#uction in

    impo!t #uties o& nap$t$a &!om 24 to = -as la!"ely positi(e &o! t$e

    po-e! secto!/

    Ho- e(e! CV -as impose# on special p!oects in po-e! secto!/

    Siemens -as a#(e!sely a&&ecte# -$en t$e "o(e!nment impose# an

    a##itional #uty in >44> on LO -$ic$ is t$e &uel use# .y po-e!

    plants/

    T$e E7po!t cont!ol policy o& Siemens p!o$i.its &!om pa!ticipatin"0

    #i!ectly o! in#i!ectly0 in t$e #e(elopment0 manu&actu!in" an#

    #ist!i.ution o& -eapons o& mass #est!uction an# missiles capa.le o&

    #eli(e!in" t$ese -eapons/

    Go(e!nment1s t$!ust ca!e -oul# .ene&it siemens since it is -ell

    esta.lis$e# in t$e $ealt$ ca!e se"ment

    E1onoi1 a1o%s: T$ese inclu#e inte!est !ates0 ta7ation c$an"es0 economic

    "!o-t$0 in&lation an# e7c$an"e !ates an# t$ese can $a(e a mao! in&luence on t$e

    &i!m1s .e$a(io!/

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    T$e slo-in" "lo.al economy !esulte# in a #ecline in in(estments0

    -$ic$ impacte# Ge!many0 t$e $ea# 9ua!te!s &o! Siemens0 as an

    e7po!t nation in pa!ticula!/ T$e in&lation !ate mo(e# in line -it$

    ene!"y p!ices/ T$e "!oss #omestic p!o#uct DG% -as up 2/J in

    >44?/

    In t$e t$i!# 9ua!te! o& >4430 Siemens1 st!on" o!#e! .ac,lo"

    soene, he i3a1 o he &oba& %e1ession on t$e company1s

    !e(enue an# p!o&it/ Siemens continues to e7pect Total Secto!s

    p!o&it &o! &iscal >443 to e7cee# t$e p!io!'yea! le(el o& K/ .illion/

    T$e company cut !ou"$ly &ou! pe!cent o& its -o!,&o!ce as pa!t o&

    an o(e!$aul !esultin" &!om !ecent economic -oes/ T$ese planne#

    cuts $elpe# t$e company to ac$ie(e a sa>ins a%e o ).2 bi&&ion

    e%os.

    T$ese inte!nal c$an"es a!e e7pecte# to %eain in>eso%

    1oni,en1e/ Siemens anticipates ne- o!#e!s o& a.out K2= .illion

    o(e! Jyea!s/ T$e ,e1&ine is ,e1e&e%ainan# t$e!e1s $ope t$at t$e

    company is no- app!oac$in" t$e lo- point/

    So1ia& a1o%s: C$an"es in social t!en#s can impact on t$e #eman# &o! a &i!msp!o#ucts an# t$e inc!easin" u!.ani6ation c$an"es/ T$ese me"a t!en#s a!e e7e!tin" an

    e(e!'"!eate! impact on t$e -o!l# in cu!!ent times/ a(aila.ility an# -illin"ness o&

    in#i(i#uals to -o!,/

    Inc!easin" u!.ani6ation c$an"es a!e e7e!tin" an e(e!'"!eate! impact

    on t$e company in cu!!ent times/ Mo!e people a!e mo(in" to u!.an

    a!eas in sea!c$ o& .ette! o.s0 .ette! e#ucation an# a .ette! li&e/

    In#ian custome!s a!e $i"$ly #isce!nin"0 e#ucate# an# -ell in&o!me#/

    T$usemp$asis is on t$e (alue &o! money/

    Custome! Inspi!e# Solutions to #esi"n .!ea,t$!ou"$ p!o#ucts/

    %!e&e!ence &o! ene!"y e&&icient (e$icles -it$ lo- !unnin" costs

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    Social co!po!ate !esponsi.ility o& Siemens is:

    Mem.e! o& Association o& A#(ance# Resea!c$0 Inno(ations an#

    Ent!ep!eneu!s$ip

    National Committee un#e! t$e +o!l# Ene!"y Council/

    5Ca!in" Han#s8 sums up t$e many p!o"!ams0 p!oects an# initiati(es

    t$at Siemens $as installe# &o! p!omotin" social acti(ities t$!ou"$out

    t$e -o!l#/

    Siemens t!a#itionally suppo!ts (a!ious c$a!ity acti(ities an# $umane

    p!oects t$!ou"$out t$e -o!l#/

    Te1hno&oi1a& a1o%s:Ne- tec$nolo"ies c!eate ne- p!o#ucts an# ne- p!ocesses/Tec$nolo"y can !e#uce costs0 imp!o(e 9uality an# lea# to inno(ation/ T$ese

    #e(elopments can .ene&it consume!s as -ell as t$e o!"ani6ations p!o(i#in" t$e p!o#ucts/

    Hi"$ tec$ an# elect!onics companies li,e Siemens &ace a (a!iety o&

    c$allen"in" .usiness impe!ati(es #ue to #e(elopin" tec$nolo"y/

    Siemens must #e(elop an# #eli(e! p!o#ucts t$at a!ehih&y inno>ai>e

    an, 1os sensii>e ?hi&e 1o3ein in he ,is%ibe, &oba&

    a%ke.

    T$e company is continue# to .ein" s9uee6e# .y a""!essi(e p!ice

    points0 p!o#uct #esi"n comple7ities0 !e"ulato!y !e9ui!ements an#

    continually c$an"in" tec$nolo"y/

    In tu!n t$ese p!essu!es t$!eaten to e%o,e 3%oi a%ins/ 1on%ibe

    o 1oo,ii@aion/ 1o3&i1ae he ana1%in 3%o1ess an,

    s&o? he ake-a%ke 1y1&e.

    Siemens .ein" to#ay1s most &o!-a!#'t$in,in" company $as .uilt

    7&oba& Inno>aion Ne?o%ks t$at ena.les t$em to continuously

    imp!o(e t$ei! p!o#ucts an# p!ocesses an# o!"ani6e t$ei! (alue c$ain

    so t$at inno(ation can &lou!is$/ T$ese net-o!,s empo-e! t$e

    o!"ani6ation to meet t$e &ollo-in" .usiness impe!ati(es/

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    Inc!easin" t$e yiel# o& inno(ation

    Comp!essin" time'ma!,et

    Meetin" .usiness an# !e"ulato!y !e9ui!ements &o! $ealt$y

    competition -it$ competito!s Optimi6in" !esou!ces

    Ma7imi6in" "lo.ali6ation a#(anta"es

    In t$is ,in# o& sop$isticate# ma!,et t$e oppo!tunity an# competition

    -ill e7ist to"et$e!/

    Implementation o& 6%o,1 Lie1y1&e Manaeen (6LM! to

    succee# an# "!o- in a #eman#in" "lo.al ma!,et/ T$e "oals a!e to

    .!in" p!o&ita.le ne- i#eas to ma!,et a$ea# o& t$e competition -$ile

    inc!easin" .ot$ !e(enue an# ma!,et s$a!e/

    En>i%onena& a1o%s:En(i!onmental &acto!s inclu#e t$e -eat$e! an# climate

    c$an"e/ +it$ mao! climate c$an"es occu!!in" #ue to "lo.al -a!min"0 t$e!e is a

    "!o-in" #esi!e to p!otect t$e en(i!onment/ T$is is $a(in" an impact on many

    in#ust!ies to mo(e to-a!#s mo!e en(i!onmentally &!ien#ly p!o#ucts an# p!ocesses/

    Siemens is t$e %een in%as%1%e"iant/

    Siemens is &acin" a c$allen"e in meetin" !isin" nee#s o& custome!s in -ays

    t$at a!e cost e&&icient0 sustaina.le an# en(i!onmentally compati.le/

    "soe% ,ean,s as inene%y a!e0

    Re#uce# ene!"y consumption

    Re#uce# elect!i&ication costs

    Solutions a!e0

    ). Siemens p!o(es to .e t$e t!en# sette! .y inno(atin" t$e

    -o!l#1s &i!st t!am -it$out o(e!$ea# po-e! lines an# -it$

    ene!"y sto!a"e system/ T$e ne- system allo-s up to 0

    &ess ene%y 1ons3ion an# up to ?4 tons less co>

    emissions a yea!t!am/

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    2. T$e con(e!sion o& all t!a&&ic li"$ts in Ge!many to LED

    tec$nolo"y sa(es up to 2/ .illion ,+$yea! an# sa(in"s o&

    app!o7 K 24 million yea!/ 6%o3ane as s33&y&o! !epai!

    se!(ices is no &one% %eBi%e,.

    T$e 1soe% ,ean,s as in Mobi&iy a!e0

    Lo-e! emissions

    Hi"$ possi.le e&&iciency

    Solutions a!e0

    2/ Intensi(e !esea!c$ into t$e su.ect o& elect!o mo.ility/ An

    elect!ic ca! ma#e o& %e1y1&e, ae%ia&can simultaneously

    .e .ot$0 a means o& t!anspo!t -it$ less emission an# a

    mo.ile ene!"y'sto!a"e #e(ice/

    >/ Sea "oin" t!a&&ic p!esents ample oppo!tunities &o! ene!"y

    consumption an# inno(ation/ Siemens manu&actu!es

    elect!ic .ooste! #!i(es &o! s$ips -$ic$ 1 ,iese&

    1ons3ion .y muc$ as 24/ T$e .est o& t$ese also

    inco!po!ate "ene!ato!s t$at 1a3%e ?ase hea %o e&

    eChas to p!o(i#e a##itional elect!ic po-e!/

    Siemens is a$ea# o& in(estin" in t$e en(i!onmental po!t&olio/ O& K 2= .illion

    o!#e!s e7pecte#0 a.out bi&&ion is ea%a%ke, o% %een in%as%1%e/

    %!o#ucts an# solutions ena.les t$ei! custome!s to .ecome mo!e ene%y

    ei1ien/ e1o-%ien,&y an, 1o3eii>e.

    Lea& a1o%s: T$ese a!e !elate# to t$e le"al en(i!onment in -$ic$ &i!ms

    ope!ate/ Le"al c$an"es can a&&ect a &i!ms costs De/"/ i& ne- systems an#

    p!oce#u!es $a(e to .e #e(elope# an# #eman# De/"/ i& t$e la- a&&ects t$e

    li,eli$oo# o& custome!s .uyin" t$e "oo# o! usin" t$e se!(ice/

    %o-e! Secto! -ill .ea! .u!#en &o! !e#ucin" G!een $ouse "ases

    )o!ei"n t!a#e !e"ulations an# la.o! le"islations/

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    Siemens IT Solutions in#ust!y0 to"et$e! -it$ G!eenpeace0 a!e pus$in"

    &o! c$an"es in In#ia1s en(i!onmental la-s to .ette! !e&lect t$e

    comple7ities o& mana"in" an# $an#lin" elect!onic -aste/

    Implementation o& I3a1 0 'o%ko%1e Manaeen0 Siemens

    .usiness se!(ices $as !eali6e# a si"ni&icant !etu!n on in(estments/

    A mem.e! o& Bnite# Nations Glo.al Compact/

    Supplie!s to !espect )un#amental employment !i"$ts &o!me# .y t$e

    inte!national la.o! o!"ani6ation/

    Re"ulato!y )!ame-o!, un#e! t$e Minist!y o& S$ippin"0 Roa#

    T!anspo!t an# Hi"$-ays -$ic$ p!o(i#es "ui#elines/

    Siemens %LM So&t-a!e $as pu.licly t!a#e# secu!ities it is su.ect to

    t$e secu!ities la-s in many count!ies/ T$ese la-s "o(e!n t$e

    #issemination o! use o& in&o!mation a.out t$e a&&ai!s o& Siemens %LM

    So&t-a!e/ Violations o& t$e secu!ities la-s coul# su.ect you an# t$e

    Company to se(e!e c!iminal an# ci(il penalties/

    IM6A"TS O4 T#E E"ONOMY AND T#E MAR5ET TRENDS ON T#E

    'OR5IN7 O4 T#E "OM6ANY

    $siness o3e%aions:

    T$e Company $as !eco!#e# a st!on" "!o-t$ #u!in" t$e )inancial Yea! en#e# on J4t$

    Septem.e!0 >44/ Tu!no(e! inc!ease# s$a!ply .y 2 an# stoo# at Rs/0 >? million as

    compa!e# to Rs/=0 24J million in t$e p!e(ious yea! >44='4/ +$ile all t$e .usinesses

    cont!i.ute# to t$e "!o-t$0 t$e ,ey #!i(e!s -e!e %o-e!0 Automation F !i(es an#

    In#ust!ial Solutions an# Se!(ices .usinesses/ Ne- O!#e!s !ecei(e# .y t$e Company

    #u!in" t$e )inancial Yea! en#e# on J4t$ Septem.e!0 >440 -e!e (alue# at Rs/2420 44

    million as compa!e# to Rs/?>0 4>= million #u!in" >44='40 !e"iste!in" a !ise o& >J/ T$e

    mao! cont!i.uto! an# (olume #!i(e! -as t$e %o-e! .usiness/ T$e %!o&it a&te! Ta7

    inc!ease# .y to Rs/=0 3= million &!om Rs/J0 42 million as in >44='4/

    Ro.ust economic "!o-t$ o& o(e! 3

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    Cu!!ency &luctuation "ains

    )o!aye# into ne-e! ma!,et se"ments F penet!ate# into @ F C cities

    Inc!ease# t$e e7po!t .usiness to mo!e t$an J4 o& t$e total .usiness

    Resea%1h an, De>e&o3en/ Te1hno&oy Abso%3ion/ Ene%y "onse%>aion/ e1.

    Siemens $as .een inc!easin" its spen# on Resea!c$ an# e(elopment acti(ities/ T$e

    inc!ease# in&!ast!uctu!al an# &inancial suppo!t !e&lects t$e Company1s !esol(e to stay

    a$ea# o& competition .y #eli(e!in" inno(ati(e 9uality p!o#ucts an# its commitment to

    total custome! satis&action/

    7&oba& eC3ansion E7pansion o& sola! .usiness to Italy

    Tu!,menistan c$ooses Siemens as tec$nolo"y pa!tne! &o! in&!ast!uctu!e e7pansion

    Siemens Healt$ca!e colla.o!ates -it$ !/ Na!es$ T!e$an1s Me#anta'T$e Me#icity

    to p!o(i#e a&&o!#a.le $i"$'en# $ealt$ca!e #eli(e!y solutions

    S'OT ANALYSIS

    Ine%na& a1o%s

    6osii>e Neai>e

    ECe%na& a1o%s

    STRE

    N7#TS

    'EA

    5NESS

    O66ORT

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    Ine%na& S%enhs a!e t$e co!e competencies0 co!po!ate capa.ilities an#

    !esou!ces t$at p!o(i#e t$e .asis &o! a company1s st!ate"y/

    STREN7#TS O4 SIEMENS ARE:

    i(e!sity A success &acto! &o! Siemens

    St!ate"ic &ocus

    Sustaina.le success t$!ou"$ #i(e!sity

    T$in, "lo.ally an# act locally st!ate"y

    Hi"$ 9uality an# Vast !an"e o& p!o#ucts

    @!an# ima"e an# o-n p!o#uction

    Customi6e# p!o#ucts an# ISO ce!ti&ication

    A&te! sale se!(ice an# online se!(ice

    ecent!ali6ation

    Ine%na& ?eaknessis t$e unsuccess&ul application o& a competency o! t$e non'

    e7ploitation o& a c!itical &acto! t$at #iminis$es company competiti(eness/

    'EA5NESSES O4 SIEMENS ARE:

    Lo- p!ice p!o#ucts/

    Mi7e# cultu!es an# a comple7 o!"ani6ational cultu!e/

    Lo- employee satis&action le(el an# -ea, app!aisal system

    Less p!omotion/

    ECe%na& O33o%niiesa!e t$e .ene&its t$at a!e li,ely to acc!ue &!om

    pu!suin" t$e (ision an# a(aila.le e7te!nal oppo!tunities/

    O66ORT

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    Ma!,et inte"!ation openin" up

    St!on" position an# "!o-in" oppo!tunities in ot$e! count!ies

    ECe%na& Th%easa!e t$e pit&alls an# t$e #an"e!s0 t$e (a!iations an#

    e7ceptions possi.le/

    T#REATS 4OR SIEMENS ARE:

    Lo- p!o#uct p!icin" .y competito!s

    Slo-#o-n in "lo.al economy/

    Less ma!,et s$a!e

    T$epolicies an# p!omotional p!o"!ams a#opte# .y ot$e! .!an#s/

    RE"OMMENDATIONS:

    A .ette! coo!#ination s$oul# .e #e(elope# .et-een t$e top'le(el mana"ement

    an# lo-e! le(el employees/

    %ay scale o& lo-e! le(el employees s$oul# inc!ease as compa!e# to competito!s/

    Siemens s$oul# !etain t$ei! "oo# employees .y "i(in" t$em incenti(es/

    %!ope! t!ainin" s$oul# .e "i(en to t$e employees/

    Employee satis&action le(el s$oul# inc!ease .y app!aisin" t$em at spot an# .y

    "i(in" t$em #i&&e!ent incenti(es li,e .onuses/

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