Executive Summery

At the initial phase of economic development companies are holding less rivals and besides holding little concern market, it means less complexness. And so easy and bit by bit size of the concern has increased and besides increased rivals and which consequences more complexness. And in past few old ages due to recession tonss of companies has faced large jobs. And this sort of job was solved by implementing policies and scheme.

In this sort of disputing concern environment Siemens is still successful because public presentation of Siemens is still stable. And one more ground for Siemens success is scheme which helps them to do more success in future. And by using analytical tools like SWOT analysis, PESTEL analysis they have found their success in this environment.


Siemens was founded in Berlin 1847 by Werner von Siemens. He is besides known as great conceiver, applied scientist and enterpriser of all clip. He has made universe ‘s first telegraph and electro dynamo. And his vision was to take this company in every field of technology. And today Siemens is engineering giant and demoing their strength in more than 190 states around the universe.

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Siemens vision is innovation and development in all over universe. And besides they believe that they are gait compositor in the field of technology and electronic industry. From its origin Siemens provide best merchandises and services to their clients. Siemens AG central office is in Berlin, Munich and Erlangen Germany. Currently worldwide more than 4, 20,800 employees are working in Siemens. At present Siemens has become large giant in many different sectors like industry, energy, communications, information, transit, wellness attention, constituents and illuming which has become highly of import portion of mundane life. And they have reported planetary gross of 76,651 Euros in 2009.And in Europe Siemens is known as Siemens AG. Siemens is celebrated for its proficient accomplishments, invention, quality, Trustworthiness and international criterions. And Today Chief executive officer of planetary Siemens AG is peter loscher ( C.E.O ) .

hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/ourhistory.htm

hypertext transfer protocol: //en.wikipedia.org/wiki/Siemens

Importance of Business environment

Meaning of Business Environment

Business environment is all about how outward forces are impacting to the concern determination. It can be forces like:

  1. Economic factor
  2. Social factor
  3. Political factor
  4. Legal factor
  5. Technological factor

These all factors are external and it controls externally. Because of this factors the concern proprietors have to do some sort of alterations in their concern.

Importance of Business Environment

Business endeavor is unfastened system. It interacts with its environment. It ever interacts with its environment. From its environment concern takes input like natural stuff, capital, energy and labor, and so converts into goods and services and sends it back to the environment.

Business and its external environment interact in these ways like:

  • By Substituting information
  • By substituting the resources
  • By substituting influence and power.

Mention by: Business Environment – Francis Cherunilam

hypertext transfer protocol: //www.indiastudychannel.com/resources/75065-Business-Environment.aspx

Scheme analysis

Strategy analysis is all about analyzing the administration ends, aims, External environment and internal environment. It may be looked as beginning of strategic direction procedure. It defines “ Advance work ” which has to be done in order to implement schemes. requires cognition in three countries:

Mhos is utilizing different sort of scheme to accomplish success in disputing environment. Siemens is holding different type of rivals in different sectors. But Siemens has ever understood the concern Strategy to stay leader in market. And Siemens is utilizing one of the schemes which is known as PESTEL analysis.

“ Siemens Mission ”

It is our end to make value for our clients, interest holders and hereafter for our employees.

Siemens Quality Policy

“ Customer Satisfaction through Continuous Improvement. ”

Mhos is more concern and more focussed about their quality. And quality is large factor which gives strength to presume lead function in their environment of logistic mechanization and stuff handling engineering. This helps them to supply universe category quality in their all merchandises.


India has mix economic system and in this environment Siemens is active since last more than 50 old ages. They are Masterss and keep top place in the sectors like Energy, Industry and Healthcare and besides utilizing IT solutions and services for all these sectors. In 2008, Harmonizing to The wall diary Siemens has ranked no. 1 from Asia ‘s top 200 most admirable companies in the corporate repute. And besides ranked top by concern hebdomad magazine from Asia ‘s top 50 companies. Presently Siemens India is holding about 17,200 employees working in their different sectors. Siemens spend tonss of money in their Research and development section.

Energy sector

In energy sector Siemens strength is invention which makes them expertise in the countries like power coevals ( PG ) and power transmittal and distribution ( PTD ) .Siemens is utilizing latest system engineerings and works nosologies, And besides provides universe category services for power works and revolving machines like gas, generators, steam turbines and compressors.

hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/energy.htm

Healthcare sector

With the aid of latest research lab diagnostic, imaging system and healthcare information engineering, Siemens clinicians diagnose disease earlier. Siemens is one of the largest health care engineering providers in the universe.

hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/healthcare.htm

Industry sector

In industry sector Siemens provide terminal to stop merchandises and system and solutions are provided for substructure installing, constructing mechanization and industrial. And this sort of solutions lid undertaking direction, commissioning, works care, installing, technology and package.

hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/industry.htm


PESTLE Analysis tools utilizations on SIEMENS INDIA

Pestle analysis gives brief understanding about external concern environment. And it is a tool to understand the “ Large Picture ” of the Environment which you are runing. And gives thought about chances and menaces. By utilizing this tools companies are maximise their chances and minimise the menaces.

  1. Political Factor: Political factor describes stability and policies of authorities. It includes personal involvement on politicians which creates political environment. For Example In India, Bangalore is known as IT metropolis or in other words IT Centre of India and it has happened because of political support.
  • Today in the clip of uncertainness and uproar Siemens stands out to be a fire of political strength.
  • In 2002 when authorities forced excess responsibility on LDO it is a fuel utilizing by power works at that clip Siemens was adversely affected.
  • Besides In the particular undertakings of power sectors 4 % CVD was imposed.
  • Siemens prohibits straight or indirectly by fabrication, developing and administering the arm under its export control policy.
  • In the wellness attention section authorities force will profit Siemens since it is good established.
  • ECONOMIC Factor: Economic factor is influence the concern in state. And this sort of factors includes employment, rising prices rate, gross national merchandises, balance of payments and involvement rate consumer income etc.
    • Mhos head quarters Germany was majorly affected because of slow planetary economic system which resulted less investings. And in 2008 Gross domestic merchandise was 1.3 % .
    • Siemens is holding strong order backlog which softened the consequence of planetary recession on company ‘s gross and net income. Siemens expects net income between 6.0 billion and 6.5 billion in financial twelvemonth 2010.
    • hypertext transfer protocol: //www.siemens.com/press/en/pressrelease/ ? press=/en/pressrelease/2010/corporate_communication/2010-q1/axx20100132.htm

    • Due to recent economic sufferings Siemens cuts around 4 % of their employees to accomplish nest eggs of 1.2 billion Euros.
    • To derive investors confidence internal alterations are expected. And besides Siemens expects new orders of 15 billion Euros over 3 old ages.
  • SOCIAL FACTOR: Social factor describes the society where administration is bing. This factor includes imposts, values, life style, beliefs and population of societal environment. This factor has major impact on universe in current times.
    • To happen better occupations, better life style and better instruction most of the people are traveling in urban countries. And alterations in urbanisation exert large impact on companies this clip.
    • Indian clients are extremely sagacious, educated and good known about all merchandises they buy.
    • Customer inspired solution- To plan and develop merchandises.

    Social corporate duty of Siemens is:

    • Siemens is holding national commission under universe energy council.
    • Mhos is member of association in inventions, Advance research and Entrepreneurship.
    • Traditionally Siemens support assorted sort of humane undertakings and charity activities.
    • To advance societal activities throughout the universe Siemens has installed “ Caring custodies ” for many plans, enterprises and undertakings.
  • Technological Factor: Technological factor defines engineering handiness in state. It indicates research and development. And this factor is a cardinal factor in this sort of disputing concern environment. Technology helps to cut down cost, better quality and invention.
    • To developing engineering Siemens and other high-tech and electronic companies are confronting different sort of disputing concern jussive moods.
    • In this planetary market Mhos have to develop merchandises which are extremely advanced and cost medium.
    • In continuously altering engineering company is continued to squash by merchandise design complexnesss, regulative demands and monetary value points.
    • These presures threatern to assist commoditization, net income borders and fabrication procedure.
    • Today Siemens is most future thought company which has built planetary invention webs which help them to better their value concatenation, merchandises and procedures. And all these webs help organisation to run into in following concern jussive moods.
      • By maximising globalisation
      • By compacting time-market
      • By increasing end product in inventions
    • Opportunities and competition will ever be in this sort of Progress market.
  • Environmental Factor: Environmental factor is the most of import factor in today ‘s universe. It includes clime and conditions alteration. And due to planetary heating clime is altering. This is holding large impact on many industries to bring forth environment friendly merchandises and procedures.
    • Siemens is known as green substructure giant
    • Customers demand in energy are:
      • Decrease energy ingestion
      • Decrease electrification cost
    • Siemens ever stay in front by puting more and more money in environment portfolio.
    • Mhos merchandises make their clients to go more eco-friendly, energy efficient and competitory.
  • Legal Factor: Legal factors describe Torahs passed by a authorities. for illustration in India all concern operations includes Torahs like trade grade Act 1969, Essential commodities Act 1955, criterions of weights and steps Act 1969 and consumer protection Act 196 etc. It will besides impact the house ‘s cost ( E.g. if new system have to be developed ) .
    • Labor statute laws and foreign trade ordinances.
    • By cut downing green house gases Siemens power sector will bear load
    • By implementing 360 workforce direction, Siemens has realized tonss of returns on their investings.
    • Mhos is member of united state planetary compact.

    hypertext transfer protocol: //www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm

    hypertext transfer protocol: //www.scribd.com/doc/20642548/Environmental-Analysis-Siemens-Ltd-India

    SWOT Analysis: The most of import portion of strategic planning procedure is internal and external environment. The external environmental factors will be classified as chances and menaces. And internal environmental factors will be classified as strength and failing. SWOT analysis is referred by analyzing the strategic direction. And it is a utile tool for determination devising in all kind of state of affairs in concern and organisation. It besides measures concern unit and thoughts.

    INTERNAL STRENGTH: Internal strength defines corporate capablenesss, competences and resources which helps companies to do scheme. It besides defines comprehensive appraisal of internal environments strength and failings.


    • Mhos is more focussed on their stratergies.
    • Diversity-A most successful factor for Mhos
    • Decentralization
    • Siemens is holding really good trade name image
    • Siemens is holding their ain production procedure
    • Always implement local scheme but think globally
    • Wide scope of merchandises with high quality
    • Siemens provide first-class goods and services and on-line services to their clients.
    • Siemens is holding enfranchisement of ISO ( international Organization for Standardization )

    INTERNAL WEAKNESS: Internal failing diminishes company ‘s fight.


    • Mhos chief failing is low monetary value for high quality merchandises.
    • Siemens is holding really complicated organizational construction.
    • Assorted civilization
    • Weak assessment system for employees
    • Less employee satisfaction with fewer publicities.

    External Opportunity: External chances are like benefits which will be achieved by prosecuting available external chances and vision.


    • Having really strong place and turning chances in many states.
    • More and more abroad undertakings
    • IT Development
    • Market fusion opening up
    • Change in engineering

    External Menace: External menaces are define as Situation that may travel incorrect, dangers, Variations and other factors.


    • Slow planetary economic system has created menaces for many companies including Siemens.
    • Same policies and publicities are adopted by rivals.
    • Rivals are supplying less merchandise pricing
    • Less market portion

    hypertext transfer protocol: //www.marketresearch.com/product/display.asp? productid=2532350 & A ; xs=r & A ; SID=89051326-474016924-420363298 & A ; curr=USD & A ; kw= & A ; view=abs

    hypertext transfer protocol: //www.scribd.com/doc/20642548/Environmental-Analysis-Siemens-Ltd-India

    Porters 5 Forces Analysis: It is a powerful tool to understand that where power lies in concern. And this tool gives understanding about strength of the company. And it besides helps to avoid taking incorrect stairss in future. To remain in front and successful in this competitory market Siemens usage Porters 5 forces analysis against their rivals. Porters 5 forces analysis describes:

    1. Supplier Power
    2. Buyer Power
    3. Competitive Competition
    4. Menaces of permutation
    5. Menaces of New Entrants
    1. Supplier Power: Supplier power defines bargaining of power of the providers. It means how much it is easier for your providers to boost their monetary values. It is proved that in today ‘s market it is really hard for the companies to do net income because of recession. Siemens is holding many rivals like Cisco, haier, hitachi, Larson and Tubro, Ericsson, Phillips, Samsung, Toshiba, Vestas Wind system etc. All of these major corporations are enduring because of “ Recession ” . And because of this all the companies approach their providers to cut their monetary values and it is really hard for the providers to sell their goods on really low monetary value with less net income border. And because of this most of the large companies prefer to purchase goods from abroad at really low cost for e.g. China. From China they buy goods for really inexpensive monetary value and sold their merchandises to the clients at sensible monetary value.
    2. Buyer power: Buyer power defines dickering power of the clients. In today ‘s concern market people are become more intelligent and more concern about merchandise monetary value and quality. And they choose that sort of merchandises which makes their life easier and utilize that merchandise in day-to-day life. Siemens understands their clients needs really good and ever supply best monetary value and quality to their clients. Siemens provides best consumer merchandises like hearing instruments, place contraptions and illuming. It is really of import for the companies to understand clients demand and all the concern environment is running or altering harmonizing to the clients demand.
    3. Competitive Competition: It defines dickering power of rivals. It means that if you have many rivals which provide about same quality and monetary value as you offer so you must hold to move strongly in that state of affairs but if you have good trade name image and something alone comparison to your rivals so you have tremendous strength. Siemens ever provides best monetary value, quality and first-class services to their clients to accomplish their success against all rivals.
    4. Menaces of permutation: It happens when clients find different manner of making what you do. And this sort of things reduces your merchandise demand. Because of this ground Siemens has started to put more and more money in research and development to happen more and more progress engineering and singularity in their merchandise.
    5. Menaces of New Entrants: In all sectors of concern environment new rivals are increasing quickly and Some of them find success and some non. Siemens is large trade name and holding good capital to capture little market excessively. Siemens, Samsung, Toshiba, L & A ; T and other large corporations have besides covered little rural countries and sold their merchandises at really comparative monetary value. New entrants are holding less range to capture market against these large giants because of deficiency of capital and resources.
    6. hypertext transfer protocol: //www.mindtools.com/pages/article/newTMC_08.htm

      hypertext transfer protocol: //en.wikipedia.org/wiki/Siemens # Rivals

      hypertext transfer protocol: //siemens.pmhclients.com/index.php/siemensindia/


    • I think Mhos have to work out on employee satisfaction and they have to increase by giving employees fillips and inducements.
    • As Siemens is holding really complicated organizational construction they have to better co-ordination between upper degree and lower degree direction.
    • Mhos besides have to supply good wage graduated table to their lower degree employees as comparison to their rivals.
    • Mhos have to work on their constabularies and publicities because most of Siemens rivals have adopted about same constabularies and publicities.


    In this concern environment Siemens scheme has proved and applied on practical life. That ‘s why Siemens is successful to understand their clients ‘ demands and by supplying universe category services they fulfil it.


    • hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/ourhistory.htm
    • hypertext transfer protocol: //en.wikipedia.org/wiki/Siemens
    • The Business Environment – Francis Cherunilam
    • hypertext transfer protocol: //www.indiastudychannel.com/resources/75065-Business-Environment.aspx
    • hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/energy.htm
    • hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/healthcare.htm
    • hypertext transfer protocol: //www.siemens.co.in/en/about_us/index/our_business_segments/industry.htm
    • hypertext transfer protocol: //www.siemens.com/press/en/pressrelease/ ? press=/en/pressrelease/2010/corporate_communication/2010-q1/axx20100132.htm
    • hypertext transfer protocol: //www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm
    • hypertext transfer protocol: //www.scribd.com/doc/20642548/Environmental-Analysis-Siemens-Ltd-India
    • hypertext transfer protocol: //www.marketresearch.com/product/display.asp? productid=2532350 & A ; xs=r & A ; SID=89051326-474016924-420363298 & A ; curr=USD & A ; kw= & A ; view=abs
    • hypertext transfer protocol: //www.mindtools.com/pages/article/newTMC_08.htm
    • hypertext transfer protocol: //en.wikipedia.org/wiki/Siemens # Rivals
    • hypertext transfer protocol: //siemens.pmhclients.com/index.php/siemensindia/