Case Study On Siemens

Submitted by: Team 5

Abhinav Lather (GMP-16-03)
Sharma (GMP-16-21)
Anupama Singh (GMP-16-10)
22)
Sohil Jain (GMP-16-034)

Naveen Kumar
Nevin Franics(GMP-16Kunal Waghrey (GMP-16-18)

Organizational Structure
Siemens

Issues

The corporate management structure was complex with many levels of

SOLUTIONS

Reorganization: Peter Loscher reorganized Siemens from 10

groups to 3 sectors & reorganized 190 countries into 17 regional
clusters. Dismantled the CEC.
Four eyed principal :
Replaced with CEO principle: One CEO for each sector which led to a
clear change of command.
Abolished all P&L A/C except 4 categories:
Higher focus on contribution to global P&L than fragmented
statements.
Right of Way:
Customization was encouraged to improve relationships with local
customers.
Transparency:
Collaborating with external authorities and lawyers; launching an
amnesty program.
Customer redressal:
Established competence centres for customers to have a better

Analysis of Strength and

Weakness
STRENGTHS:

WEAKNESS:

Pioneer of technology
driven services.

Tarnished reputation led to low

employee morale and low
stakeholder confidence.

Market leadership through

innovation with domain
expertise in industry,
energy and healthcare.

There is no middle ground

between global and regional
management.

Financial excellence.

Strong supply chain.

Peter Loscher was new to

Siemens and this raised
additional challenges as he
needed to instil confidence in
employees and shareholders.

Tackling challenges

The restructured organisation was transparent, efficient and

customer centric.

CEO Peter Loscher, was an experienced global leader and had

a strong managerial background.

He consolidated the management structure and merged

product lines in order to manage the resources efficiently.

Diverse company with expertise in varied domains.

Adding climate change and globalisation to the existing
megatrends thereby making it a socially responsible company.

Our RECOMMENDATIONS
Find a middle ground between regional and global
management.
Establish more slim bureaucracy and to focus more on core
competencies and divest non-profitable units.
Supervisory board should be empowered by adding a
member each from three verticals which would lead to more
clarity about the operations of the verticals.
These members can have a small sub committee under them
consisting if country level managers.
Encouragement in form of appraisals and recognition for
outstanding and innovative employees.
More focus on data management systems for internal and
external atmospheres.