Issues In Global Business And Strategic Concepts †Free Samples

Question: Discuss about the Issues In Global Business And Strategic Concepts. Answer: Introduction Siemens AG is the organisation involved in various sectors such as energy, healthcare and infrastructure and their headquarters are situated in Berlin and Munich. It has been included in the largest manufacturing industrial organisation amongst the European countries. Today, Siemens is included in the leading organisations involved in the generation of electricity through wind turbines. Wind source of generation of electricity is a good source as it does not requires huge investment and human efforts after its instalments. Along with each wind turbine, one power system is installed through computerised system which shows the speed of wind, generation of wind at certain time, condition of the machine, etc. And the main feature of these turbines is that their system shows an error in case of any issue with the wind turbine so that it could be solved as soon as possible to avoid the chance of generation of electricity. Wind energy is included in the renewable sources of energy generatio n. All those sources which are offered by nature such as sunlights, wind, rain, etc. are known as renewable energy sources. The report of issues in global business and strategic concept will determine the future requirements of population in terms of energy. This report will conclude the topics of political economy, strategy of international business, entry strategy and strategic alliance, exporting importing and countertrade, global production outsourcing, etc. Renewable Energy Strategy As per Wheelen Hunger, (2011) the energy resources which could be used more than one time without paying any cost are known as renewable energy sources. In other words, sources provided by nature such as wind, rain, sunlight, etc. are included in the renewable sources of energy. Apart from these resources, not a single artificial source for producing energy could be used more than once. Apart from its replenishment, these sources do not harm the environment and society. There are other sources also available through which electricity could be produced but these sources are bit costly. Alternative energy is another source of generation of energy through fossil fuels. These are non-traditional and they do not create much impact over the environment. As wind turbines work with the natural force of air, alternatives sources work with the help of fossil fuels. While comparing renewable energy and alternative energy a small difference generates which is environmental impact. Biomass is al so a part of renewable source of energy and it is found from the waste derived from the decomposition, animal wastages, etc. Alternative energy is also a source which contributes for renewable sources of energy. Biomass and biodiesel are two components which manufacture alternative energy (Connolly, et. al., 2012). Waste from animals, decomposition of animals, food, industrial waste, etc. are very useful as these produce an appropriate amount of energy sources. These are also counted in the renewable sources because they do not create negative impact over environment. Biodiesel is another component which is also used in vehicles and generators. It is an alternative source of energy sources and these are found below the land and machinery is built by human being to use them as an alternative source of energy (Twidell Weir, 2015). Operating Environment Operating environment is a term generally used in technical field and as Siemen is also involved in the same industry hence; operating environment for Siemens will be there workplace, employees and all other supporting machineries, etc. which helps to perform all the activities in appropriate manner. In their operating environment for wind division, turbines plays very important role and these turbines are of two types i.e. offshore and onshore wind project types (Tones Osgood, 2011). Offshore Wind project: Offshore project has much more potential then onshore projects for accomplishments of goals and objectives for the organisation. These turbines are setup at the sea or at fresh water. These were introduced in 1990s and at that time its average delivery was 6 MW which has turned to 350 MW. Rapid improvement in the potential of offshore projects has not only helps the Siemens to expand and to achieve till their targets; it has also found the correct way to use natural resources for fulfilment of energy resources demands. The average electricity generate from offshore project could fulfil the demand of Europe 7 times while for US people 4 times. These turbines were introduced with a view to determine the outcome but after determining its impact, it has been included in the most powerful resources of generation of energy without impacting environment (Barthelmie Jensen, 2010). Onshore Wind project: Onshore wind turbines are situated at the land and especially in the farm area or desert area because air flow is much high in those areas irrespective of urban area. Onshore wind power is also very potential and their maintenance and setup does not evolve a high cost. These are low maintenance and mainly they have emerged as the most favoured solution to resolve the issue of scarcity of energy resources. Now it is being followed in almost all parts of the globe and Siemens has gained the peak position through using both types of wind energy projects i.e. offshore and onshore projects (Enevoldsen Sovacool, 2016). Political Involvement There are some projects in every country which should be performed by government but due to their failure or non-interest in the concerned field, private organisation come up with a view to setup these kind of projects. Setting wind turbines is also one of the important projects for every country as this helps the country to solve their energy consumption issues. Siemens is also involved in the same field but Singapore government took interest while setting up these turbines in the sea and in the land (Engels, et. al., 2013). Government may take interest in public interest projects for their welfare and for their welfare. Government intervene in the market through imposing tariffs i.e. taxes, imposing subsidies i.e. contributing to less down the cost of production hence, people could get it at low rates, etc. Government perform this action for increasing the economic growth of the country. Some other interests of government are protecting jobs for citizens of the country, setting appropriate rates so that customers could afford energy resources, etc. (Swofford Slattery, 2010). Strategy of international business Siemens is an organisation which is already involved in health, infrastructure and in the wind division as well. In this report, strategic policies of Siemens are analysed to evaluate its impact today and in coming future. Strategy is a plan or action taken by an individual, group, and organisation or by government to perform. Without making strategies, implementation and planning process may differ and create issues. Siemens have developed a set of strategies for wind division so that appropriate outcome could be gained. These policies are profitability of the organisation, cost implementation, reducing cost, appointment of experienced candidates, etc. While entering into another country, every organisation needs to take permission from their countrys government as well as from other countrys government. Some countries have implemented the free trade. This term determines that government will not impose any kind of glitch in working of organisation and they can do business in any co untry in which they want without any issue. While setting up wind division, Siemens performed these activities which turned as their strategies to achieve success and sustainable growth for future (Cavusgil, et. al., 2014). Setting up wind turbines was the motive for Siemens to fulfil the requirement of its countrys requirement in relevance with energy resources and to export the extra energy generated to maximise their profitability and for its expansion. Siemens developed a set of effective strategies for research and development department to evaluate the rough estimate of electricity required by the country, strategies for determination of appropriate places to setup wind turbines, etc. Siemens is included in the leading manufacturers of energy resources and they have also set up their business in other countries for business expansion. Their techniques for extracting the electricity from turbines and the most effective reason for their rapid success are maintenance and adequate care for turbines. This helps them to make the process error free and efficient (Welch, et. al., 2011). Strategies of Siemens wind power division As per Juckenack Madlener, (2011) Siemens is involved in various activities such as healthcare, infrastructure sector and in the wind energy sector too. The primary activity which is performed by Siemens is manufacturing of medical equipment and this sector contributes 12% of the total sales for Siemens. The organisation is working across the globe and approximately 362,000 employees are engaged with this organisation and along with this they have reported 75.6 billion global revenue in the year of 2015. The organisation was found in the year of 1847 by Werner von Siemens and Johann Georg Halske. And today it is being the leading organisation in various sectors and it all depends upon the strategies used by the organisation for attaining the success. Every organisation requires an point through which it can boost up its growth and for this they requires clear direction, effective internal setup, adequate employees who could turn the negative things into positive ones, etc. These strategies help any business to grow rapidly and this also attracts the customers. Below is the discussion regarding the strategies used by Siemens in relevance to wind division: Focuses on innovation: Most appropriate strategy which is crucial for performing in certain fields is innovation. Innovation is the term which acquires suitable methods and research programs so that adequate measures could be adopted for achieving the targets. Today Siemens has developed their effective position in the global market using these strategies which have made their distinctive image from its competitors. Producing electricity through wind turbines is not easy and not so hard; it only requires adequate planning and a set of appropriate methods to achieve appropriate outcomes (ONeal, et. al., 2011). Customer Centric approach: This approach determines that organisation concentrate on satisfaction of its customers and amongst this, organisation is working has given employment opportunities so that they could build valid trust level in the society. In every field, Siemens has used this approach for effective results. Siemens is also involved in the manufacturing of medical equipment and the most important feature of this approach is to attain sustain profitability of the organisation. Siemens have adopted the technique of electrification which eases various methods such as power generation, power distribution, power transmission and application of electrical energy and along with this electrification technique also promotes the feature of automation and digitalisation. Siemens concentrate on developing adequate relationship with the customers and for the same have setup a separate department under which customers feedbacks are solved as soon as possible by providing them adequate r esolutions to their issues. For appointment of employees for Siemens, there is strong process exists as for wind energy division, experienced and talented candidates would be proven as useful. Growth and expansion of the business depends upon its work procedures, ethics and its employees and their employees are so talented and along with employees their technicians are also very potential (Wagner, et. al., 2011). Flexible gas turbines: People are very much aware about the generation process of energy as well as of scarce resources of energy. Hence, they have also taken initiative of setting up power plants like solar energy, biomass energy plant, etc. for generation of electricity for their usage. Wind turbines used by Siemens are effective enough and result oriented. These turbines are gas turbines through which they have replaced the old techniques through which cost of production has also reduced and efficiency of the organisation has increased. These turbines are small in size as compared to the old ones and the old turbines used were so heavy so that high speed air volume could make an effect to them and these turbines are light in weight so that light air flow could also be used in generation of electricity (Soares, 2011). Offshore wind power: Wind power acts as the crucial component of renewable energy sources and it is for long term purpose. Offshore wind turbines are so effective and the chances of error found in their procedure is approximately nil. Siemens is one of the leading organisations which are using this technique for generation of electricity and this technique has turned into the most crucial factor for their success. Today Siemens has been ranked at the peak position in this industry. By reviewing the success of Siemens, many organisations of the same field have also adopted this technique for electricity production and to attain adequate position (Bilgili, et. al., 2011). Sources of energy production: Energy consumption is increased widely rapidly and the sources for production of energy have reduced widely. Natural resources and other resources which are included in renewable resources other than wind, water, geothermal heat, etc. and alternative resources, biomass energy resources are also included in the renewable resources of energy. Biodiesel is also being included in the renewable resources of electricity and other energy sources. It is a type of oil that is also used in engines of vehicles, generators, etc. Energy produced from these sources is kept in the centralised and systematic manner so that consumers requirement could be fulfilled from their only (Brownson, et. al., 2011). Urban and Rural area mobility: Urban and rural area are distinctive from each other in various manner and the basic difference is consumption and supply of electricity in those areas. Supply of electricity is very less in rural areas and this is the main reason for their non-development. Transportation services between rural and urban areas are also a major reason for non-development of rural areas. Siemens have reduced the effect of transportation services and for this they have built adequate mediums so that life standard of rural people could also be improved. This strategy used by Siemens increased their popularity in the urban as well as in rural areas (Schrank, et. al., 2012). Digital-twin software: Merge of real world and virtual world is increasing more and more. Software provided by Siemens has reduced the efforts of its customers in manufacturing of products effectively and efficiently (Cerrone, et. al., 2014). Crucial factors for industries: Major business industries ad enterprises require adequate amount of electricity and other energy resources to run their factories for production kind of activities. Siemens have provided them the amount of energy resources as required by them to make a good image amongst the industrialists. As wind energy is the cheapest source of generation of electricity and there is not negative impact of wind turbines over environment. Expansion of industries and business enterprises is due to fulfilment of appropriate amount of energy resources (Onetti, et. al., 2012). Control over necessary things: The most and crucial thing for Siemens for wind division is turbines. Their maintenance regular check-up is very necessary so that all the procedure of production of electricity using air flow could not be wasted. Apart from this, employees should also be treated well and time to time attractive policies should be implemented in the workplace of the organisation so that employees could get motivated and work for even more better from their previous performance. For instance, a technician was awarded with a surprise gift for his past performance, hence he gets motivated and a bit greedy too in relevance to surprise gift. From that time, the same technician has earned a lot of gifts from the organisation through his constant impressive performance. Performing up to the standards of the organisation helps both, organisation as well as individual (Casadesus-Masanell Ricart, 2010). Siemens wind power division Strategies to meet future expectations Siemens is working in various fields and energy sector is one of those fields under which Siemens performs. There are various strategies adopted by Siemens for increasing the efficiency of the organisation and to fulfil the energy related requirement of the people across the globe. Some of its current strategies are as follows: For accomplishment of future goals and objective, Siemens needs to evaluate and adopt an effective set of strategies, which are as follows: Globalisation: It is the term where organisations of other countries moves forward to their business expansion and to fulfil the demands of market. It is very common these days because every country does not have all specialities, hence the general motive to for merging is to deliver most adequate and appropriate so that products demand could be enhanced. For instance, A company of automobile industry from Japan merges with a company in Singapore which were best in developing models and designs. Hence, combination of appropriate technology and best design will result in increasing deaden for the product and it will leads to profitability and expansion in international markets. Involving this step in the strategies of Siemens could help in expansion and growth in the international markets. International monetary funds, world bank, etc. are some of the examples of globalisation (Zoomers, 2010). Political Economy: The policies, standards and benchmarks developed to perform the activities for international trade or for local trade should match the political considerations such as economic, legal aspects of the particular country. Adaptation of these strategies will turn the things up for Siemens and it will leads to the growth and expansion of the organisation. Wind division is not an easy task but it will be easy if it performed with experienced and talented technicians, by following all the rules and regulations set up by the countrys government, legal, social and other considerations fulfilment, etc. Non-fulfilment of political considerations could create many difficulties for the organisation and for its performance. To maintain the adequate image and to avoid any kind of glitch in the processes of the organisation, these should be fulfilled adequately to attain the effective and efficient performance (Marx, 2010). International Trade Theory: With the increasing demand for the products and services, organisation needs to expand its production capacity to match with the requirements. Siemens has setup the wind division as offshore and onshore projects and with increasing demand of energy resources by increasing population of Singapore, they needs to develop more wind turbines for extraction of extra energy resources. Performing these activities would conclude the huge investment as well as adequate place is also required so that effective outcomes could be obtained. International theory has various aspects which helps the organisation in expansion. The first aspect is free trade under which organisation is free to move to any country for business purpose or for setting up any kind of business project, they does not need to take permission from local government. Hence, Siemens could move to any international market for setting up as they have the adequate techniques through which they have been r anked at the peak position in the same industry. This will fulfil the demand of the energy resources of its consumers as well as it will also help the organisation to build the effective image in the international market (Johnson, 2013). Conclusion The report concluded the strategies used by Siemens to build effective image in the wind division sector which is an energy generation sector. Along with the generation of energy resources, this organization is involved in the manufacturing and distribution of health sector and infrastructure sector. Its strategies to meet the future expectations of the countrys people were also discussed in this report. Importance of operating environment, following political involvement and strategies for international business were also discussed. Siemens have been ranked at peak position with its strategies used and to maintain the same position in the dynamic and competitive business environment, organization requires keeping up to date their strategies so that future and current expectations could be meeting up rapidly. While evaluating the Siemens strategies, they have performed their trading activities by following each step carefully. They performed research and development activities to ana lyse the market conditions to set up wind turbines, estimating cost to set up the system and most importantly arranging funds for the project. All these activities were performed and then with the due permission from the Singapore government, they initiated performing in wind division through setting up offshore and onshore energy projects to extract the energy from natural resources. Recommendations It is recommended that Siemens should use the effective strategies and appropriate policies in relevance to the wind projects. These projects are high cost oriented and with the high cost, there is a huge risk factor is involved. Hence, adequate policies in relation with the maintenance of the wind turbines should be developed. A small glitch in the wind turbines performance could impact the generation of electricity. In the year of 1990 when these turbines were launched, its height and capacity of production was 6 MW whereas it has turned to 350 MW in present. As per reviewing the market demand of energy resources, it is increasing wisely and Siemens needs to evaluate these data so that appropriate outcomes could be oriented in the future. Using offshore and onshore projects of wind energy should also be evaluated effectively so that appropriate energy could be generated. Offshore energy projects are potential enough whereas onshore energy project has developed its image as it has f ulfilled the market demand rapidly in recent years. Hence, managing balance between these two energy projects is the main and crucial factor for achieving adequate position in the market. References Barthelmie, R.J. Jensen, L.E., 2010, Evaluation of wind farm efficiency and wind turbine wakes at the Nysted offshore wind farm,Wind Energy,vol. 13 (6), pp.573-586. Bilgili, M., Yasar, A. Simsek, E., 2011, Offshore wind power development in Europe and its comparison with onshore counterpart,Renewable and Sustainable Energy Reviews,vol. 15 (2), pp.905-915. 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