Final Draft P
Final Draft P
Final Draft P
A Project Report on
MARKETING AND BUSINESS DEVELOPMENT ACTIVITY WITH REFERENCE
TO SIEMENS LARGE DRIVE APPLICATIONS
Submitted By:
SANJIV JAMUNADHAR DUBEY
MMS (MARKETING)
Roll No: 181044
In partial fulfillment for the award of the degree of
MASTER OF MANAGEMENT STUDIES
SEMESTER-III
BATCH 2018-2020
Under the guidance of
Dr. Shreedharan Iyer
(Under University of Mumbai)
This is to certify that the project titled “A STUDY ON MARKETING AND BUSINESS
DEVELOPMENT ACTIVITY WITH REFERENCE TO SIEMENS LARGE DRIVE
APPLICATIONS” as a part of the curriculum of Master of Management Studies submitted
by Mr. SANJIV DUBEY, a student of Pillai Institute of Management Studies And Research
has been approved.
Name:
Date:
Place: ( Signature of student)
ACKNOWLEDGEMENT
I feel delighted to express my gratitude and response to all those distinguished personalities
who have guided and inspired me in completion of the project.
It gives me immense pleasure in presenting this project report on “A STUDY ON
MARKETIN AND BUSINESS DEVELOPMENT ACTIVITY WITH REFERENCE
TO SIEMENS LARGE DRIVE APPLICATIONS ”. It has been my privilege to have a
team of project guide who have assisted me from commencement of this project. The success
of this project is the result of sheer hard work and determination put in by me with the help of
my project guide.
I present my heartfelt gratitude towards Dr. C.K Sreedharan Sir for giving me this
opportunity to wide my horizons of undertaking by giving me this project and guiding me
throughout the project.
Lastly, I would like to thank all those who directly and indirectly helped me in completion of
this project.
Executive Summary
In the recent age of business where profit maximization is the main objective of every
individual, price competitiveness & service quality are the major thrust area to conquer the
market. Initiative, foresight, talent & competence are the imperatives to manage the modern
business.
The MMS course inculcates those skills in students which prepare them to face the challenges
of business world. In midst of the course, summer internship in some business organization is
arranged for student that is very essential. Such training gives practical experiences & helps
the students to view the real business world closely, which in turn widely influences their
conceptions and perception.
In this project of a study on A STUDY ON WITH REFERENCE TO SIEMENS LDA, this
Project shows overview of Siemens Industry, brief introduction of Siemens and performance
of the company
Tables of content
Part A
1 Introduction 7
3.1 PESTEL 21
3.2 Porter’s five forces analysis 23
3.3Porter’s Generic Strategies 24
4 Company Analysis
4.1 SWOT 26
4.2 7s framework 27
4.3 BCG Matrix 29
4.4 Ansoff Matrix 30
Part B
5 Introduction
References
Chapter 1
INTRODUCTION
Siemens, A German MNC is a technology company with core activities in the fields of
electrification, automation and digitalization and activities in nearly all countries of the
world. We are a leading supplier of power generation, power transmission and infrastructure
solutions as well as automation, drive and software solutions for industry and of medical
diagnostics solutions. Siemens comprises Siemens AG, a stock corporation under the
Federal laws of Germany, as the parent company and its subsidiaries. Our Company is
incorporated in Germany, with our corporate headquarters situated in Munich. As of
September 30, 2018, Siemens had around 379,000 employees
Siemens India manufactures steam turbines, turbo compressors, high-voltage switchgear
(circuit breakers, disconnectors and gas-insulated switchgear), switchboards, remote
monitoring systems (RMS), fire detectors and suppression systems, motors and generators,
relays and Smart Grid systems, transformers, and advanced medical imaging equipment. The
factories replicate global, best-in-class manufacturing systems and practices. It also has a
facility to overhaul and repair gas turbines, compressor blades and rotors.
Siemens India is a leader in technology solutions for intelligent (smart), sustainable cities,
smart grid, building technologies, mobility and power distribution. Siemens is already
involved in the Restructured Accelerated Power Development and Reforms Programme (R-
APDRP) of the Government of India for installing Smart Grid solutions in multiple cities in
India. Recently, Siemens India signed a Memorandum of Understanding with Confederation
of Indian Industry (CII) to be the Lead Industry Partner in a consortium for the
conceptualization and development of Smart Cities in India.
For over six decades, Siemens India has been the preferred technology solutions provider,
conceptualizing and implementing various flagship projects in Mobility, Energy
Management, Power and Gas, Smart Cities, Intelligent Infrastructure, Industrial Applications,
Healthcare and Smart Financing. Siemens India is also strengthening its digitalization
portfolio and working on select applications in the country.
Siemens India develops skills with Corporate Citizenship initiatives like ITI upgradation,
faculty development, Technical Skills Development Centre and Scholarship Programs for
meritorious Engineering students. The company has signed Memorandums of Understanding
with the Government of Gujarat and Steel Authority of India, and works with industry bodies,
such as Automation Industry Association, Indian Machine Tool Manufacturers Association
and CII, to impart technical education. Siemens also has initiatives for sustainable and
integrated community development in rural areas.
Industry
This sector includes Industry Automation, Drive Technologies and Customer Services
divisions.
Products in this category include building automation equipment and systems, building
operations equipment and systems, building fire safety equipment and systems, building
security equipment and systems, motors and drives for conveyor belts, pumps and
compressors, heavy duty motors and drivers for rolling steel mills, compressors for oil and
gas pipelines, mechanical components, automation equipment and systems for production
machinery and tools and industrial plants for water and raw material processing.
Energy
This sector includes Fossil Power Generation, Wind Power, Solar and Hydro, Oil and Gas,
Energy Service and Power Transmission divisions. The company earned 26.6 billion Euros in
Revenue in 2013. At present it employs about 83,500 employees.
o Some of the products in this sector include large scale gas and steam turbine generators, fossil
fuelled power plants, power plant modernizations and upgrades, wind power turbines and
wind farms, substations, high voltage circuit breakers, voltage regulators, surge arrestors,
transformers, process control, power management systems and decision support tools for
plant and network operators, air pollution control equipment, turbo compressors for
petrochemical, refining, oil and gas and chemical uses and training and consulting services.
Key Challenges
o The key challenges faced by the company in this area include resource efficiency, climate
protection, economic efficiency and reliable power supply.
Healthcare
This sector includes Imaging and Therapy Systems, Clinical Product, Diagnostics and
Customer Solutions divisions. The business unit is based in Erlangen, Germany with regional
presence in different areas around the world. The company formally became Siemens
Medical Solutions in 2001 and Siemens Healthcare in 2008. The company employs 49,000
employees with a larger concentration based in Germany.
Service Delivery – the company uses expert local service, training and logistics for service
delivery. The idea is to combine personalized care and advanced services that may be located
remotely.
Lifestyle Value Program – this is an integrated and comprehensive customer care plan to
help customers gain the most from their investments by offering programs and support to
further develop their skills, productivity and capabilities to ensure that patient care continues
to become better.
Customer Focus – the company focuses on continuous improvement, customers and quality.
There are customer outreach programs to communicate with them.
This sector comprises of the Rail Systems, Mobility and Logistics, Low and Medium
Voltage, Smart Grid, Building Technologies and OSRAM. This sector works towards
solutions for urban mobility, environmental protection and energy conservation. The
company employs close to 87,000 employees.
o Major products for this sector include rail systems, rail automation, infrastructure logistics,
intelligent traffic and transportation systems, electric mobility infrastructure, smart grids and
building technologies.
USP
o There is constant innovation and a concentrated focus on the customer itself.
1.2 Organization history in brief
1847 to 1901
Siemens & Halske was founded by Werner von Siemens and Johann Georg Halske on 12
October 1847. Based on the telegraph, their invention used a needle to point to the sequence
of letters, instead of using Morse code. The company, then called Telegraphen-Bauanstalt
von Siemens & Halske, opened its first workshop on 12 October.
In 1848, the company built the first long-distance telegraph line in Europe; 500 km from
Berlin to Frankfurt am Main. In 1850, the founder's younger brother, Carl Wilhelm Siemens,
later Sir Williams Siemens, started to represent the company in London. The London agency
became a branch office in 1858. In the 1850s, the company was involved in building long
distance telegraph networks in Russia. In 1855, a company branch headed by another
brother, Carl Heinrich von Siemens, opened in St Petersburg, Russia. In 1867, Siemens
completed the monumental Indo-European telegraph line stretching over 11,000 km
from London to Calcutta
In 1867, Werner von Siemens described a dynamo without permanent magnets. A similar
system was also independently invented by Charles Wheatstone, but Siemens became the
first company to build such devices. In 1881, a Siemens AC Alternator driven by a watermill
was used to power the world's first electric street lighting in the town of Godalming, United
Kingdom. The company continued to grow and diversified into electric trains and light bulbs.
In 1887, it opened its first office in Japan. In 1890, the founder retired and left running the
company to his brother Carl and sons Arnold and Wilhelm.
1901 to 1933
Siemens & Halske (S & H) was incorporated in 1897, and then merged parts of its activities
with Schuckert & Co., Nuremberg in 1903 to become Siemens-Schuckert. In 1907, Siemens
had 34,324 employees and was the seventh-largest company in the German empire by
number of employees. In 1919, S & H and two other companies jointly formed the Osram
Light bulb company.
During the 1920s and 1930s, S & H started to manufacture radios, television sets, and
electron microscopes electron microscopes.
In 1932, Reiniger, Gebbert & Schall (Erlangen), Phönix AG (Rudolstadt) and Siemens-
Reiniger-Veifa mbH(Berlin) merged to form the Siemens Reiniger-Werke AG (SRW), the
third of the so-called parent companies that merged in 1966 to form the present-day Siemens
AG.
In the 1920s, Siemens constructed the Ardnacrusha Hydro Power station on the River
Shannon in the then Irish Free State, and it was a world first for its design. The company is
remembered for its desire to raise the wages of its under-paid workers only to be overruled by
the government
1945 to 2001
In the 1950s, and from their new base in Bavaria, S&H started to
manufacture computers, semiconductor devices, washing machines, and pacemakers. In
1966, Siemens & Halske (S&H, founded in 1847), Siemens-Schuckerwerke (SSW, founded
in 1903) and Siemens-Reiniger-Werke (SRW, founded in 1932) merged to form Siemens
AG. In 1969, Siemens formed Kraftwek Union with AEG by pooling their nuclear power
businesses.
The company's first digital telephone exchange was produced in 1980. In 1988, Siemens
and GEC acquired the UK defence and technology company Plessey. Plessey's holdings were
split, and Siemens took over the avionics, radar and traffic control businesses—as Siemens
Plessey.
In 1985, Siemens bought Allis-Chalmers' interest in the partnership company Siemens-
Allis (formed 1978) which supplied electrical control equipment. It was incorporated into
Siemens' Energy and Automation division.
In 1987, Siemens reintegrated Kraftwerk Union, the unit overseeing nuclear power business.
In 1989, Siemens bought the solar photovoltaic business, including 3 solar module
manufacturing plants, from industry pioneer ARCO Solar, owned by oil firm ARCO.
In 1991, Siemens acquired Nixdorf Computer AG and renamed it Siemens Nixdorf
Information system AG, in order to produce personal computers.
In October 1991, Siemens acquired the Industrial Systems Division of Texas Instruments,
Inc, based in Johnson city, Tennessee. This division was organized as Siemens Industrial
Automation, Inc and was later absorbed by Siemens Energy and Automation, Inc.
In 1992, Siemens bought out IBM's half of ROLM (Siemens had bought into ROLM five
years earlier), thus creating Siemens ROLM Communications; eventually dropping ROLM
from the name later in the 1990s.
In 1993-1994, Siemens C651 electric trains for Singapore's Mass Rapid Transit (MRT)
system were built in Austria.
In 1997, Siemens agreed to sell the defence arm of Siemens Plessey to British
Aerospace (BAe) and a German aerospace company, Daimler Chrysler Aerospace. BAe and
DASA acquired the British and German divisions of the operation respectively.
In October 1997, Siemens Financial Services (SFS) was founded to act as competence centre
for financing issues and as a manager of financial risks within Siemens.
In 1998, Siemens acquired Westinghouse Power Generation for more than $1.5 billion from
the CBS Corporation and moving Siemens from third to second in the world power
generation market.
In 1999, Siemens' semiconductor operations were spun off into a new company
called Infineon Technologies. In the same year, Siemens Nixdorf Information system AG
became part of Fujitsu Siemens Computers AG, with its retail banking technology group
becoming Wincor Nixdorf.
In 2000, Shared Medical Systems Corporation was acquired by the Siemens' Medical
Engineering Group, eventually becoming part of Siemens Medical Solutions.
Also in 2000, Atecs-Mannesman was acquired by Siemens, The sale was finalised in April
2001 with 50% of the shares acquired, acquisition, Mannesmann VDO AG merged into
Siemens Automotive forming Siemens VDO Automotive AG, Atecs Mannesmann Dematic
Systems merged into Siemens Production and Logistics forming Siemens Dematic
AG, Mannesmann Demag Delaval merged into the Power Generation division of Siemens
AG. Other parts of the company were acquired by Robert Bosch Gmbh at the same time.
Also, Moore Products Co. of Spring House, PA USA was acquired by Siemens Energy &
Automation, Inc.
2001 to 2005
In 2001, Chemtech Group of Brazil was incorporated into the Siemens Group; it provides
industrial process optimisation, consultancy and other engineering services.
Also in 2001, Siemens formed joint venture Framatome with Areva SA of France by merging
much of the companies' nuclear businesses.
In 2002, Siemens sold some of its business activities to Kohlberg Kravis Roberts & Co. L.P.
(KKR), with its metering business included in the sale package.
In 2002, Siemens abandoned the solar photovoltaic industry by selling its participation in a
joint-venture company, established in 2001 with Shell and E.ON, to Shell.
In 2003, Siemens acquired the flow division of Danfoss and incorporated it into the
Automation and Drives division. Also in 2003 Siemens acquired IndX software (real-time
data organisation and presentation). The same year in an unrelated development Siemens
reopened its office in Kabul. Also in 2003 agreed to buy Alstom Industrial Turbines; a
manufacturer of small, medium and industrial gas turbines for €1.1 billion. On 11 February
2003, Siemens planned to shorten phones' shelf life by bringing out annual Xelibri lines, with
new devices launched as spring -summer and autumn-winter collections. On 6 March 2003,
the company opened an office in San Jose. On 7 March 2003, the company announced that it
planned to gain 10 per cent of the mainland China market for handsets. On 18 March 2003,
the company unveiled the latest in its series of Xelibri fashion phones.
In 2004, the wind energy company Bonus Energy in Brande, Denmark was
acquired, forming Siemens Wind Power division. Also in 2004 Siemens invested in Dasan
Networks (South Korea, broadband network equipment) acquiring ~40% of the shares, Nokia
Siemens disinvested itself of the shares in 2008. The same year Siemens acquired Photo-Scan
UK, CCTV systems, US Filter Corporation water and Waste Water Treatment Technologies/
Solutions, acquired from Veolia, Huntsville Electronics Corporation automobile electronics,
acquired from Chrysler, and Chantry Networks WLAN equipment.
In 2005, Siemens sold the Siemens mobile manufacturing business to BenQ, forming
the division. Also in 2005 Siemens acquired Flender Holding GmbH (Bocholt, Germany,
gears/industrial drives), Bewator AB (building security systems), Wheelabrator Air Pollution
Control, Inc. (Industrial and power station dust control systems), AN Windenergie GmbH.
(Wind energy), Power Technologies Inc. (Schenectady, USA, energy industry software and
training), CTI Molecular Imaging (Positron emission tomography and molecular
imaging systems), Myrio (IPTV systems), Shaw Power Technologies International Ltd
(UK/USA, electrical engineering consulting, acquired from Shaw Group), and Transmitton
(Ashby de la Zouch UK, rail and other industry control and asset management).
2006 to 2011
In 2006, Siemens announced the purchase of Bayer Diagnostics, which was incorporated into
the Medical Solutions Diagnostics division on 1 January 2007, also in 2006 Siemens acquired
Controlotron (New York) (ultrasonic flow meters) Also in 2006 Siemens acquired Diagnostic
Products Corp., Kadon Electro Mechanical Services Ltd. (now TurboCare Canada Ltd.),
Kühnle, Kopp, & Kausch AG, Opto Control, and VistaScape Security Systems. In January
2007, Siemens was fined €396 million by the European Commission for price fixing in EU
electricity markets through a cartel involving 11 companies, including ABB, Alstom, Fuji
Electric, Hitachi Japan, AE Power Systems, Mitsubishi Electric
Corp, Schneider, Areva, Toshiba and VA Tech. According to the Commission, "between
1988 and 2004, the companies rigged bids for procurement contracts, fixed prices, allocated
projects to each other, shared markets and exchanged commercially important and
confidential information." Siemens was given the highest fine of €396 million, more than half
of the total, for its alleged leadership role in the activity.
In March 2007, a Siemens board member was temporarily arrested and accused of illegally
financing a business-friendly labour association which competes against the union IG Metall.
He has been released on bail. Offices of the labour union and of Siemens have been searched.
Siemens denies any wrongdoing.] In April the Fixed Networks, Mobile Networks and Carrier
Services divisions of Siemens merged with Nokia's Network Business Group in a 50/50 joint
venture, creating a fixed and mobile network company called Nokia Siemens Networks.
Nokia delayed the merger due to bribery investigations against Siemens.[100] In October 2007,
a court in Munich found that the company had bribed public officials in Libya, Russia, and
Nigeria in return for the awarding of contracts; four former Nigerian Ministers of
Communications were among those named as recipients of the payments. The company
admitted to having paid the bribes and agreed to pay a fine of 201 million euros. In December
2007, the Nigerian government cancelled a contract with Siemens due to the bribery
findings.[101][102]
In July 2008, Siemens AG announced a joint venture of the Enterprise
Communications business with the Gores Group, renamed Unify in 2013. The Gores Group
holding a majority interest of 51% stake, with Siemens AG holding a minority interest of
49%. In August 2008, Siemens Project Ventures invested $15 million in the Arava Power
Company. In a press release published that month, Peter Löscher, President and CEO of
Siemens AG said: “This investment is another consequential step in further strengthening our
green and sustainable technologies”. Siemens now holds a 40% stake in the company.In
January 2009, Siemens announced to sell its 34% stake in Framatome, complaining limited
managerial influence. In March, it announced to form an alliance with Rosatom of Russia to
engage in nuclear-power activities
In April 2009, Fujitsu Siemens Computers became Fujitsu Technology Solutions as a result
of Fujitsu buying out Siemens' share of the company.
In June 2009 news broke that Nokia Siemens had supplied telecommunications equipment to
the Iranian telecom company that included the ability to intercept and monitor
telecommunications, a facility known as "lawful intercept". The equipment was believed to
have been used in the suppression of the 2009 Iranian election protests, leading to criticism of
the company, including by the European Parliament. Nokia-Siemens later divested its call
monitoring business, and reduced its activities. In October 2009, Siemens signed a $418
million contract to buy an Israeli company in the solar thermal power business.
In December 2010, Siemens agreed to sell its IT Solutions and Services subsidiary for €850
million to Atos. As part of the deal, Siemens agreed to take a 15% stake in the enlarged Atos,
to be held for a minimum of five years. In addition, Siemens concluded a seven-year
outsourcing contract worth around €5.5 billion, under which Atos will provide managed
services and systems integration to Siemens.
2011 to present
In March 2011, it was decided to list Osram on the stock market in the autumn, but CEO
Peter Löscher said Siemens intended to retain a long-term interest in the company, which was
already independent from the technological and managerial viewpoints.
In September 2011, Siemens, which had been responsible for constructing all 17 of
Germany's existing nuclear power plants, announced that it would exit the nuclear sector
following the Fukushima disaster and the subsequent changes to German energy policy.
Chief executive Peter Löscher has supported the German government's
planned Energiewende, its transition to renewable energy technologies, calling it a "project of
the century" and saying Berlin's target of reaching 35% renewable energy sources by 2020
was feasible.
In November 2012, Siemens acquired the Rail division of Invensys for £1.7 billion. In the
same month, Siemens made the announcement of acquiring a privately held company, LMS
International NV.
In August 2013, Nokia acquired 100% of the company Nokia Siemens Networks, with a buy-
out of Siemens AG, ending Siemens role in telecommunication. In August 2013, Siemens
won a $966.8 million order for power plant components from oil firm Saudi Aramco, the
largest bid it has ever received from the Saudi company.
In 2014, Siemens plans to build a $264 million facility for making offshore wind turbines in
Paull, England, as Britain's wind power rapidly expands. Siemens chose the Hull area on the
east coast of England because it is close to other large offshore projects planned in coming
years. The new plant is expected to begin producing turbine rotor blades in 2016. The plant
and the associated service center, in Green Port Hull nearby, will employ about 1,000
workers. The facilities will serve the UK market, where the electricity that major power
producers generate from wind grew by about 38 percent in 2013, representing about 6 percent
of total electricity, according to government figures. There are also plans to increase Britain's
wind-generating capacity at least threefold by 2020, to 14 gigawatts.
In May 2014, Rolls-Royce agreed to sell its gas turbine and compressor energy business to
Siemens for £1 billion.
In June 2014, Siemens and Mitsubishi Heavy Industries announced their formation of joint
ventures to bid for Alstom's troubled energy and transportation businesses (in locomotives,
steam turbines, and aircraft engines). A rival bid by General Electric (GE) has been criticized
by French government sources, who consider Alstom's operations as a "vital national
interest" at a moment when the French unemployment level stands above 10% and some
voters are turning towards the far-right.
In 2015, Siemens acquired U.S. oilfield equipment maker Dresser-Rand Group Inc for $7.6
billion.
In November 2016, Siemens announced the acquisition of EDA company Mentor
Graphics for $4.5 billion.
In November 2017, the U.S. Department of Justice charged three Chinese employees of
Guangzhou Bo Yu Information Technology Company Limited with hacking into corporate
entities, including Siemens AG.
In December 2017, Siemens announced the acquisition of medical technology company Fast
Track Diagnostics for an undisclosed amount.
In August 2018, Siemens announced the acquisition of rapid application
development company Mendix for €0.6 billion in cash.
Siemens Germany
Departments-
2- Smart Infrastructure
3- Digital Industries
4- Mobility
6-Siemens Healhineers
7-Financial Services
The Americas
Argentina
Brazil
Canada
Chile
USA
Mexico
Venezuela
Asia
Afghanistan
Australia
Cambodia
China
Hong Kong
INDIA
Indonesia
Japan
Korea
Malaysia
New Zealand
Pakistan
Philippines
Singapore
Thailand
Taiwan
Vietnam
Europe
Austria
Belgium
Croatia
Czech Republic
Denmark
Finland
France
Greece
Hungary
Ireland
Italy
Luxemburg
Netherlands
Norway
Poland
Vision
To remain the market leader and technology pace setter in the engineering and electronics
industry by utilizing the high tech engineering high tech expertise of the Siemens group
worldwide to maintain our strong and Prominent local presence.
Milestones
When Ireland gained its independence in 1922, most of the country still had no electricity.
Apart from a few major cities like Dublin and Cork, the country was “totally untouched,
electrically speaking.” The entire capacity of all public electric power plants came to about
27,000 kilowatts (kW). So at that point, economic development in the Irish Free State (now
the Republic of Ireland) lagged far behind the other Western European countries. It was high
time for a change.
The initial situation looked none too promising. The Free State had hardly any coal deposits
of its own. In the search for alternative energy sources, Irish physicist and electrical engineer
Thomas McLaughlin – a Siemens employee, who had been with Siemens-Schuckertwerke
(SSW) in Berlin since the end of 1922 – realized Ireland had a hitherto almost untapped
super-resource: domestic hydroelectric power. More precisely, his idea was to use the River
Shannon, some 370 kilometres long, to electrify the entire country and contribute to its
economic development. The territory to be supplied had a population of about three million at
the time, and at roughly 70,000 square kilometres was about the same size as Bavaria.
Ultimately, a 358-pages project plan from Siemens won the Irish Free State over. A short
time later, on August 13, 1925, the “Shannon Agreement” was signed. Siemens-
Schuckertwerke would be the general contractor and supply the electrical equipment.
Over the course of the 52-month Irish megaproject, it became increasingly obvious what a
massive organizational and technical challenge it posed for all involved.
Factors like the country’s damp climate, troublesome soil conditions and geological
formations repeatedly interfered with the progress of the digging work. A further
complicating factor was that Ireland had almost no construction industry worth mentioning.
Which meant that many of the roughly 3,500 workers – who at the government’s request
were mostly recruited domestically – had little experience with civil engineering? Almost all
the machinery and materials even had to be shipped from the mainland to Ireland on specially
chartered steamers. The construction machinery and equipment alone came to some 30,000
metric tons.
Yet little by little, the big project on the River Shannon arose. The river supplied the entire
Irish Free State with electricity by way of a grid designed for 110 kilovolts (kV), 37.5 kV and
10 kV, with a total length of 3400 kilometers and a great many switching points and
transformer stations – just as Thomas McLaughlin had envisioned. That success story still
lingers in memory not just at Siemens, but among the local population of Ireland today.
EGYPT-
In 2015, Egypt declared war on power failures, and awarded Siemens its biggest contract of
all time. The mission: generate power to serve 45 million people. A glance back at history
shows that Siemens has always been the right partner for fast, reliable completion of such
megaprojects.
Around 90 years later, Egypt is faced with a similarly daunting task. With about 99.6 percent
of the population connected to the grid, Egypt has Africa’s highest level of energy supply.
But in 2010, the most heavily populated Arab state faced a severe energy crisis. The main
source of trouble was not a shortage of fossil fuels, but economic and regulatory factors.
After 2011, political, economic and social uncertainty prevailed, and by the beginning of
2013, the country’s foreign currency reserves had fallen to their lowest level ever, 13 billion
US dollars. Consequent financing bottlenecks caused domestic natural gas production to
collapse. Egypt had been struggling for years with unpredictable waves of power failures – in
a country where the population was growing by an explosive two percent per year, and was
thus likely to be consuming more and more electricity.
Time to act-
So in 2015 the decision was made to face up to the challenges. Nothing less than then future
energy supply of the entire country stood high on the national agenda. A strong partner with
extensive experience in megaprojects was needed: Siemens. That June, a contract was signed
between Egypt, Siemens and the Egyptian consortium partners Elsewedy and Orascom. It
covered the construction and turnkey handover of three 4.8 gigawatt combined-cycle power
plants and twelve wind farms, with a projected 600 wind turbines and an installed capacity of
two gigawatts, at Burullus, New Capital and Beni Suef – the biggest order in Siemens history
to date
And Siemens is making history again in 2018. On completion, those three combined-cycle
power plants in the Egypt megaproject will be the highest-capacity units in the world. And no
wonder – more than 43,500 workers there are laboring on a plant that covers the area of more
than 300 soccer fields.
Jointly with Orascom Construction and Elsewedy Electric, Siemens is playing a significant
role in ensuring a solid financing of the 6-billion-dollar deal with the Egyptian government.
Meanwhile the construction phase has posed a number of logistical problems. Similarly to
Ireland, here one sometimes has to cope with poor soil conditions, a shortage of skilled
personnel, and difficulties with transporting materials. Fishing ports are being expanded to
provide reliable shipping routes and housing is being built for staff.
Even the weather can sometimes call work to a halt. Instead of the 2,800 foundation piers
originally planned, 18,400 had to be sunk to stabilize the boggy ground under the
construction site. But none of these difficulties kept the team from completing the project
successfully, as Peter Ullrich, Siemens’ overall project leader for the Egyptian megaproject,
proudly announced: “Together we’re making the impossible possible – and we’re still on
schedule.”
In fact they’re even ahead of schedule – because early completion of some of the work meant
that delivery of an additional gas turbine could be moved ahead. In other words, 400 more
megawatts of electricity will be fed into the Egyptian power grid – far more than expected.
Chapter 2
Industry Analysis:
Political
Political factors are one of the main factors that affect the operations of the organization.
Every country has its own governments with different laws and legislation, rules and
regulations, import and export policies etc.
Industry and automation sector are huge in size and operating and serving the customers
worldwide, it should beware of the political factors. Political unrest in major parts of the
Middle East & Africa may affect the Business.
The political factors include:
1. Employment laws
2. Tax policy
3. Trade restrictions and tariffs
4. Political stability
Economic-
Economic factors may have a direct or indirect long term impact on a company, since it
affects the purchasing power of consumers and could possibly change demand/supply models
in the economy. These include interest rates, taxation changes, economic growth, inflation
and exchange rates and these can have a major influence on the firm’s behaviour.
Consequently it also affects the way companies price their products and services.
In industrial automation solutions a rise in raw material prices increases the manufacturing costs
in machinery and to maintain a balance, the organization has to increase its prices.
Social-
Also known as socio-cultural factors are the areas that involve the shared belief and attitudes
of the population. These factors include – population growth, age distribution, health
consciousness, and career attitudes and so on. These factors are of particular interest as they
have a direct effect on how marketers understand customers and what drives them. Increasing
urbanization changes are exerting an ever-greater impact on the company in current times
Social factors influence people's choices and include the beliefs, values and attitudes of
society. So understanding changes in this area can be crucial. Such changes can impact
purchasing behaviour. Consumer attitude is very important social factor. Automation industry
is operating in many diversified countries. Hence it becomes essential to consider the social
factors while framing the business. Industry like GE, Siemens are involved in various social
activities like giving scholarship opportunity to students to enhance their skills.
Technology
In the machinery industry Technological factors are most affected. Suppose in case any
technology are change then that time they influence the industry and their cost are also
increase but other side their production and industry growth are also increase consciousness.
Technological factors involve strengthens its leadership in digitalization and automation by
combining software, platforms, and services.
Environmental
The industrial sector in which Automation Company operates has moved towards the
sustainable development i.e. they are focusing on new technologies and innovations to
increase the efficiency and productivity of the organization by not impacting the environment
and also providing guidelines to the customers for doing the same. Their mission is “to enable
economic growth through infrastructure and energy development, and to provide solutions
that protect people and preserve the planet”. Industries are investing 100 million Euros to
become Carbon neutral by 2030
Legal
These are related to the legal environment in which firms operate. Legal changes can affect a
firm's operations. Different countries have different types of legal system for human rights,
property rights all over the world. Industrial companies consider all changes in legal system
of a country and adopted that culture for the sustainability. In many cases there is practice of
dishonesty. The intellectual property rights are not matured and implemented enough. The
rule of law is not so strictly practiced. Besides the tax imposed on electronic product is
usually higher than other products.
2.2 Porter’s Five Forces Analysis:
Porter’s five forces model is one of the strategic models to assess the attractiveness of the
industry as well as root causes of competition and profits irrespective of type of industry
(service or manufacturing). According to this model the key five forces affect the profitability
of an industry in a negative way. But according to Brandenburger and Nalebuff’s value net,
these forces in fact enhance the profitability of an industry. But in this study we limit our
exercise to Porter’s five forces only.
These forces are: Rivalry among the existing firms, Threat of new entrants, Threat of
substitutes, bargaining power of suppliers and bargaining power of buyers or customers.
Porter’s Five Forces Framework (PFFF)
In Industrial sector it requires a huge amount of investment therefore it makes difficult for
new entrants. High research and development cost is required. These make a weaker force
for new entrants. The industry requires strict licensing & Legal requirements to be fulfilled
before starting of a company which makes a weaker force for new entrants.
The number of supplier is more compared to buyers in industrial sectors therefore it makes a
weaker force for bargaining power of supplier. Suppliers have less control over price. Having
numbers of buyers, profits are closely tied therefore suppliers have to provide reasonable
price. This makes a weaker force within the industry.
Availability of substitute’s products are very low and far more expensive. This possess a
weaker force threat of substitutes products.
Presence of competitors is low in this industry. The existing firms are usually large in size
therefore firms are engage in highly competitive actions to become a market leader.
COMPANY ANALYSIS
Swot Analysis
Strengths Weakness
Opportunities Threats
1. Digitization can be huge markets and new 1. Threats from competitors like GENERAL
opportunities and rapid growth over next few ELECTRIC based in US which get advantage
years. under the new administration which favours
2. Increase in Smart cities project globally to domestic firms and local manufacturing.
spur demand of next-gen technology which 2. Instability in Middle-East increase geo-
can drive Siemens growth. political risk.
3.2- 7S framework to analyses the different aspects of the organization:
Shared Values:
Siemens values work on principle of Responsible-Excellent-Innovation. The main aim of the
company is to give Siemens’ individual businesses significantly more entrepreneurial
freedom under the strong
Strategy:
Siemens strategy is to be the pioneer of their time- this vision motivates them in everything
they do. Siemens aiming to capture and maintain leading market and technology positions in
all our business in order to achieve sustainable profitable growth and, thus, continually
increases the value of company.
Structure:
The company structure is to provide Siemens’ individual business with great entrepreneurial
freedom. They believe giving more freedom to employees will make company stronger and
more flexible.
System:
System includes formal procedures for measurement, reward and resource allocation.
Staff:
CEO/ MD
Divisional Executive
Director Director
Deputy
General General
Manager Manager
Manager of
Department
Deputy
Department
Managers
Employees
Style:
Siemens is a company that was led for generations by owners who had a passionate interest in
the firm’s long-term successful development. They all knew that every individual makes a
contribution every day to the company’s enduring success we’re following this conviction
and want to foster an ownership culture worldwide that includes all of our people.
Managers serve as role models in the company’s strategic direction and ensure the
sustainable and efficient use of available resources – thus inspiring and empowering their
teams to give their best for the company. Behaviours of the managers bring the ownership
culture to life Entrepreneurial behaviour should be the standard and foundation for how we
act at Siemens. This applies to each individual in the company – since only then can
behaviours constantly evolve and improve. Owners care for each individual.
We strive for a people-oriented approach that values and clearly fosters diversity of
experience and expertise. If this is reflected in all that we do, we‘ll improve the performance
of our company. Ownership culture is based on our company values.
If everyone in the company acts responsibly, achieves excellent results and is innovative,
they will personally contribute to the sustainable success of Siemens. Responsible, excellent,
innovative – these values are the foundation of our ownership culture. Owners identify
themselves fully with Siemens. We strongly believe that employee shareholders act
responsibly and are oriented to the long term when they directly participate in their
company’s success. That’s why the equity culture is an integral part of our ownership culture.
Skills:
This refers to organization's core competencies and distinctive capabilities. Employee must
possess the skills which is the essential requirement for the job.
3.3-BCG MATRIX
The BCG Matrix has been developed in 1970s by Boston Consultancy Group with the aim to
help organizations to differentiate between profitable and non-profitable ventures.
Knowledge about the market share and growth potential helps the management to make
investment decision and refrain from spending resources on products that are not likely to
give favourable results. The analysis using BCG Matrix is based on a framework including
four components,
1. Stars
2. Cash Cows
3. Question mark
4. Dogs
Stars:
Product which have high market growth and share. Following are the star products of
Siemens.
Automation & Drives.
Siemens Building Technologies.
Power transmission & Distribution
Medical
Cash Cows:
Products which have high market share but limited scope for further development.
Motors
Question Marks:
Products which is uncertain whether they would play in financial growth of an organization.
Siemens Financial Services
Power generation through Solar & Wind
Real Estate
Dogs:
Products which consumes organization and resources but not able to produce return on
investment.
Siemens Home appliances
3.4-Ansoff Matrix:
Ansoff's Matrix is a marketing planning model that helps a business determine its product
and market growth strategy. Ansoff’s product/market growth matrix suggests that a business‟
attempts to grow depend on whether it markets new or existing products in new or existing
markets. The output from the Ansoff product/market matrix is a series of suggested growth
strategies which set the direction for the business strategy.
Siemens has adopted Product Development & Market Development strategy which is a
growth strategy where the business focuses on selling existing products into existing markets.
Innovation is essential for ensuring long-term competitiveness. This applies to their entire
portfolio of products, solutions and services. Added value for their customers is based
increasingly on software and IT solutions. As a result, they’ve made this field a particular
focus of their attention – for example, through research and development activities in
software architecture and platforms. Tools such as partner networks are enabling them to
manage highly effective innovation processes and an open innovation culture. They’re
concentrating on new technology driven growth areas as well as innovative business models.
Market Development:
Operating in more than 190 countries globally and having the expertise and long heritage of
160 years has helped the company in being a leader in the majority of the businesses it
operates into.
The market in which Siemens operates is overcrowded with large numbers companies across
the different industry segments and product & service categories.
Technological disruption, increasing labour cost, fluctuating oil prices, changing the lifestyle
of the communities, rising purchasing power parity, rising infrastructure cost, depleting the
level of natural gas are some of the factors affecting the company in the businesses it
operates.
Siemens customers consist of both retail as well as small firms, Multinational Corporations
and government organisations from varied sectors/industries.
Siemens retail segment customers are the households, vehicle owners, tech-savvy young
generations
Part B
EXPERIENTIAL LEARNING
Experiential learning is a process through which students develop knowledge, skills and
values from direct experiences outside a traditional academic setting. Experiential learning
encompasses a variety of activities including internships, service learning, undergraduate
research, study abroad and other creative and professional work experiences. Well planned,
supervised and assessed experiential learning programs can stimulate academic inquiry by
promoting, interdisciplinary learning, civic engagement, career development, cultural
awareness, leadership and other professional and intellectual skills. To determine the best
practices in experiential learning, it is necessary to first define experiential learning.
“In its simplest form, experiential learning means learning from experience or learning by
doing. Experiential education first immerses learners in an experience and then encourages
reflection about the experience to develop new skills, new attitudes, or new ways of
thinking.”
The study contributes towards the understanding of different marketing practices used by the
company. The study helps in providing insights on how to prepare an effective marketing
practices and how to improve work output.
During the two months of internship period, few obstacles came in. Some of the
limitations in making the report are following
The internship duration was only two months. The time periods available to study the
subject’s observation, analysis and conclusion was limited.
Due to confidentially clauses within the organization, it was not possible to gather
some more information that could make the report much greater from all aspects.
6. METHODOLOGY
Ethnographic Study
Ethnography is a qualitative study of perception and behaviour that occurs among groups.
Ethnography finds its roots in early 20th century Anthropology and its aim was to observe
and understand how people’s location, environment and other contexts affect their day to day
activities.
Ethnographic study is the research study where the researchers observe and or interact with
the participants of the study in real-time environment. Ethnography first found its use in
anthropology and is now widely used across all social science studies.
In this project we are going to try and understand a consumer’s thought process and stimuli
that makes them prefer a brand of Automation products over its competitors based on the
quality and controlling parameters observed throughout the two months of internship.
For this project purpose the data had been collected from following sources:
Primary Data:
Primary data has been collected by communicating with seniors and team members.
Observing the on-going process in my department has been another source of information to
write this report.
Secondary Data:
Primary Data is not sufficient for making the report. Global websites of Siemens was a
secondary source where I got relevant information about the organization.
7. OBSERVATION
Organisational training started with the induction session on the 7th May 2019 at
Siemens Kalva which is located at Airoli. Here my seniors’ management explained
me the structure of the internship along with the responsibilities that we were to
undertake within the following two months. They explained me about the product and
their uses.
After that I was trained about what are the product as well as services Siemens
delivers in industry sector , how they retained the customer, how they manufacture the
products after studying the need of the customer?, how the delivery takes place in the
company?.
Working with LDA Department of the Siemens, Kalva through internship has helped
me to understand their strategies, work culture and the process that they have adopted
to have a vast competitive advantage over their competitors.
I have learned many thing things in Siemens but the thing I have learned with
Siemens is treat your customers equally. This teaches us that no matter how the
customer is, for them every customer is equal and they treat them equally.
Siemens focuses on after sale services. They always keep in touch with their customer
after selling the products.
Every department of the company is interrelated in one or the other way. Thus, I
understood the importance of a team and working with a team for a common goal.
As a fresher you are in for a roller coster of experience. You have information coming
from all sides and you will have to try your best to grasp it. The knowledge and
practical experience you get here is something that will help you lifelong no matter
where you go or what you do.
8 Conclusions
Siemens being a huge Multinational company has its own unique way of handling each unit
department and each sector. The company has its headquarter at Berlin, Germany and a
branch office at Airoli. The understanding between departments and the gross functional
working of Siemens leads to the success. I have also seen that how they maintain secrecy of
information they get. Apart from increasing the technological advancement they also see to it
that the skills of every employee are also improved by conducting various workshops. Their
employees are also provided with the up-to-date information which leads to increase in their
as well department’s productivity.
It was a great learning opportunity for the intern. As my internship draws to a close and
reflects back on all I have learned. I realized what an excellent experience it has been.
Working with LDA Department of Siemens through internship has helped me to understand
their strategies, work culture and the process that they have adopted to have a vast
competitive advantage over their competitors.
Communication Skills
Independent
PART C
PESTEL ANALYSIS
PESTEL analysis is a framework or a tool used by marketers to analyse and monitor internal
and external factors that have an impact on the organisation. The advantages of pestel
analysis involves deeper understanding about the company. By examining the Political,
Economic, Social, Technological, Environmental, Legal.
These advantages help with the idea phase, product development, product launching, content
marketing strategies and other factors, to increase success. The advantages of PESTEL
analysis involve being cost effective, providing a deeper understanding of business, alterness
to threats, and a method to exploit opportunities. PESTLE analysis is a strategic planning
method to reduce business threats. By examining the Political, Economic, Social,
Technological, Legal, and Environmental factors, firms will gain valuable advantages. These
advantages help with the idea phase, product development, product launching, content
marketing strategies, and other factors, to increase success. The advantages of PESTLE
analysis involve being cost effective, providing a deeper understanding of business, alertness
to threats, and a method to exploit opportunities.
SWOT ANALYSIS
SWOT analysis is a powerful tool for understanding a firm’s internal strength, internal
weakness, market opportunities and external threats
A SWOT (strengths, weaknesses, opportunities and threats) analysis can help you identify
and understand key issues affecting your business, but it does not necessarily offer solutions.
You should be aware of the limitations as well as the benefits of a SWOT analysis before you
decide to conduct one. Knowing what you can reasonably expect to achieve will make the
SWOT analysis more useful for your business, and will save you time. Ultimately, you must
be prepared to spend the time to review your SWOT analysis and use it to determine the best
way forward in your business. The main advantages of conducting a SWOT analysis is that it
has little or no cost anyone who understands your business can perform a SWOT analysis.
You can also use a SWOT analysis when you don't have much time to address a complex
situation. This means that you can take steps towards improving your business without the
expense of an external consultant or business adviser.
MCKINSEY 7S FRAMEWORK
BCG MATRIX
BCG matrix helps companies to analyse their business units and product lines.
All these techniques and tools helped me during internship. These techniques helped me in
relating with organization. I got an opportunity to understand things in a better way by these
concepts and tools.
ANSOFF
Ansoff matrix is a business analysis technique that provides a framework enabling growth
opportunities to be identified, The matrix shows focus on company’s present and potential
future products or areas of engagement. The matrix shows us to consider ways with four
possible product or market to grow business via existing new products or in existing
Ansoff matrix is a business analysis technique that provides a framework enabling growth
opportunities to be identified, The matrix shows focus on company’s present and potential
future products or areas of engagement. The matrix shows us to consider ways with four
possible product or market to grow business via existing new products or in existing.
All the tools techniques and skills acquired from PIMSR have really been helpful throughout
the internship because all those concepts have really played a greater role in adding value to
the company as well myself in understanding various aspects.
Weekly Reports
Week 1
7th May – 10th May
In first week of my internship I had a formal introduction with my seniors and team
members.
They gave me a brief knowledge about the company’s history, structure and the
products.
Seniors also explained me about the working pattern of the company.
Week 2
13th May – 17th May
My team members explained me in detail about the products which come under the
LDA department. I was in Large Drive Application (LDA) Department which offers
drives solution to Industries.
They explain me about the Terms & Condition and other policies of Siemens while
offering the product specification to customers which they had made inquiry for the
same.
I send 1 product proposal /offer based on their enquiry.
Week 3 & 4
20th May – 31st May
Week 5
3rd June – 7th June
Week 6
10th June- 14th June
Week 7 & 8
17th June – 28th June
(Siemens, 2019)
Siemens. (2019). Siemens- Ingennity for Life. Retrieved Aug 5, 2019, from Siemens India:
https://new.siemens.com/in/en.html
About Siemens. (2019). Retrieved July 2019, from Siemens Ingennity for Life:
https://new.siemens.com/in/en/company/about.html
Siemens SWOT & PESTLE Analysis. (2019, Feb). Retrieved July 2019, from S & P- SWOT
& PESTLE.com: https://www.swotandpestle.com/siemens/
Claudia. (2019). Marketing Promotion Strategies From Concept To Top Brands Practice.
Retrieved August 2019, from Bannersnack: https://blog.bannersnack.com/marketing-
promotion-strategies/