Siemen's new strategy : re-engineering

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Siemens’s new strategy : Re-engineering

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What we have here is a press article adapted from The Economist, an organization which edit several articles of many anonymous journalists. It was published the 27th of October 2012. It deals with the Siemens Industry, some difficulties and strategic mistakes encountered by this worldwide famous institution. The text also shows why Siemens stills be able to handle these troubles.

Firstly, we will present sources of these problems. Secondly, we will give some evidences of the office’s strength.

In the 2012’s summer, owing to the economic crisis, new orders had fallen in drops in every domain, mostly in energy, infrastructure and cities. Even if, in 2011, the recipe was successfully the best at any point, the year after, orders from Germany and India had decreased higher than 40%. Same thing in China with 11% less. And, when orders come down while revenues explode, contracts like the one signed with Germany (which protects assignments and factories in an extended period in Germany) prevent costs reduction and the enterprise’s durability. Despite this, Siemens relativized and wagered on a global rehabilitation in 2012 and too numerous projects : it was big ones strategic fallacies.

Notwithstanding, this article shows us that the agency keeps a cool head by dint of her experience on the market.

Indeed, thanks to Peter Löscher, the head of the venture since 2007, Siemens has fattened and altered its wallet by 50%, and now, he fancies decrease charges, bunch sales coverage, reduce administration and more prejudice underperforming domains. To add to that facts, and if the world economy rises with a moderation of the German’s energy policy, the corporation projects to sell turbines, trains, transformers and scanners. Due to that and a shake-up, Mr Löscher wishes to pay off 3 billion euros of allotments and to strike GE, his biggest rival, to reach 100 billion euros of annual incomes. Thus, Siemens is there for the long term.

To put it in a nutshell, Löscher’s business is a worldwide giant which has fought many difficulties and did some strategic errors, but these delusions don’t killed the firm.

Nevertheless, not all companies have this chance to resist to a financial crisis. An economic crisis can turn the lives of millions of people into hell, or be the root of many suicides.

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