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SIEMENS CORPORATION (SI), GERMANY. FINAL RESEARCH PRESENTATION Cevdet KIZIL. Description of the company. Established in 1847, Germany’s #1 and World’s one of the leading firms. Operates in 192 countries, employees 450,000.
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SIEMENS CORPORATION (SI), GERMANY FINAL RESEARCH PRESENTATION Cevdet KIZIL
Description of the company • Established in 1847, Germany’s #1 and World’s one of the leading firms. • Operates in 192 countries, employees 450,000. • Wide range of fields - health care, information & communications, electronics, energy & power, industry & automation, transportation & lightening, infrastructure, intermediate goods and consumer goods. • Conducts business in seven groups - Information and Communications, Automation and Control, Power Generation, Transportation, Medical Solutions, Lighting and Financing and Real Estate groups. • More devoted to providing products and services in electrical engineering and electronics.
Description of the industry • Siemens belongs to the Industry of Conglomerates. • This industry offers a broad array of manufactured products and services. • Products of industry are used in industrial and manufacturing processes. • Siemens ranks 2nd in the Conglomerates Industry, following the sector leader General Electric. • Famous companies like Tyco Int. and 3M Co. rank 3rd and 4th, below Siemens.
Mission & Vision Statement • Siemens Mission: • To provide solutions, products and services of the highest quality and reliability to its customers, meeting their needs, exceeding their expectations and maximizing their return on investment. • To be the supplier of choice by focusing on customer care and quality. • To be successful and profitable so as to maintain its technological position. • To ensure its employees’ future. • To establish and maintain constructive, long-term partnerships with its customers based on mutual trust. • Siemens Vision: • To put new ideas to work, creating innovative products and services to benefit its customers. • Powering the information age.
Organizational Strategies • Management style fosters open communication, sharing and synergy. • Employee responsibility & employee training. • Customer Valuation (considers suggestions, strong after sales support). • Research & Development (spends $5.4 billion on R&D, has 6330 patents). • Strengthening product portfolio. • Takes advantage of economics of scale. • Good relations with suppliers (gives Supplier of the Year Award every year). • Continual innovation (supports young companies, contests for engineers). • Decreasing costs. • Increasing production capacities. • Huge investments for growth. • Creating an e-business company (spends $860m for that). • Corporate citizenship and environmental friendly efforts. • Flexibility in supply chain management. • Sales strategy & engineering quality.
International Strategies • Several acquisitions (e.g. Bonus Energy, Moore, Danfoss Flowmetering). • Strategic business partnerships (e.g. Fujitsu, Westinghouse Corp., Bosch Company, Holy Redeemer Health System). • Joint-venture partnerships (e.g. Huawei Co.). • Strategic investments (e.g. MDdatacor). • Mergers (e.g. Framatome-Siemens). • Subsidiaries. • Aggressive growth. • Stock markets listing (e.g. NYSE).
International Expansion • Operating in 192 countries. • Established in Berlin (1847). • First foreign agency in London (1850). • Construction of the Russian State Telegraph Network (1855). • Russian Subsidiary of Siemens established in St. Petersburg (1855). • Siemens cable works in Woolwich on Thames, U.K. (1863). • Transatlantic telegraph cable from Ireland to the U.S. (1874). • Subsidiary in Vienna, Austria (1879). • Europe’s first underground rail line in Budapest, Hungary (May 1896). • Japanese subsidiary Fusi Denki Seizo KK in Tokyo, Japan (1923). • San Nicolas power plant in Argentina (1956). • Acquires Plessy Co. (U.K.) and Rolm Co. (U.S.A.) in 1991. • Famous partnership with the Fujitsu firm of Japan (1999). • Obtains a listing in the New York Stock Exchange (2001). • Merges nuclear activities with Framatome Co. (2001). • High technology trans rapid train between Long Yang Road Station and Pudong International Airport in Shanghai (2002).
Financial Information • Forbes recently ranked Siemens as the seventh most attractive company to invest in the world. • Net Revenues in 2003 – 74,233 (in billions of Euro). • Net Profit in 2003 – 2,445 (in billions of Euro). • Sales per activity – IT & telephones (22.00%), Misc, (18.00%), Energy production and distribution (14.00%), Electronic equipment for cars (11.00%). • Sales per region – Europe (57.00%), Americas (25.00%), Asia/Pacific (12.00%), Rest of the World (6.00%). • Growth rates in 5 years – Sales (1.85%), EPS (11.85%), Dividend (16.37%). • Net Income goes up to 4,403.5 (U.S. $ in millions) on 09/30/2004. • Top shareholders – Lazard Freres Asset Mgmt. (3,296,171), Fisher Investments (2,535,342), Fidelity Management and Research Co. (2,516,450).