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Siemens is one of the world’s largest companies in the field of electrical engineering and electronics. Its more than 470,000 employees develop and manufacture products, design and create systems and plants, and provide customized services. The company supports customers in about 190 countries with innovative technologies and wide-ranging expertise. Business lines of Siemens include: Information and Communications, Automation and Control, Power, Transportation, Medical and Lighting.

Siemens is active in many business areas, and may benefit from globalization and booming economies in Asia, particularly China, and eastern Europe, where Siemens provides infrastructures in communication, IT, transportation and power, including wind turbines . Siemens is also experiencing huge improvement in its productivity, exemplified by its decision to dump its under-performing telecoms handset business for a joint venture with Nokia (NOK).

Siemens also holds the Siemens Science, Math and Technology Competition annually, encouraging high school students to engage in cutting-edge research and develop innovative technologies.

[edit] Business Financials

Siemens has been able to both increase sales and overall gross profit over the past few years. This is because General Electric Company (GE) and Siemens dominate the world market in production of the large turbines that utilities use to power cities and large factories. Emerging Markets such as China, Russia and India are experiencing strong growth in power consumption and the lack of competition for product sales in these markets will help to ensure growing sales for years.

[edit] Key Trends and Forces

• Economic and Political Stability: Siemens is highly impacted by economic and political conditions around the world considering that its largest clients are actual countries. Political conditions in/with China, whose energy appetite makes it a valuable costumer, are incredibly important to Siemens financial success. Also, regions like the Middle East that currently are experiencing political and economical turmoil, such as the situation in Iraq, are in need of infrastructure build up that Siemens provides are equally important to Siemens' success.

• Regulation: Governments are beginning to demand more efficiency in from the energy sector, like in the U.S. where legislation regulating emissions and other standards across in the industry are beginning to pass. Also, Siemens large MED sector is very vulnerable to agencies such as the FDA.

• Corruption Allegations: Siemens has found itself facing more than five investigations regarding price-fixing cartels and corruption allegations including being found guilty in January of 2008 resulting in a €397 million fine. The one case currently facing Siemens that might prove to have the greatest impact and be the most costly is the investigation currently being waged by the Munich state prosecutor's office and the U.S. SEC. In this instance, it is alleged that Siemens might be illegally securing contracts through the bribery of sales managers. The cost alone which Siemens faces in participating and dealing with these investigations is in the high three digit million € mark annually. However, it is more than possible that the fine that might be levied against Siemens could be upward of one billion dollars greatly hurting the value of the company.

• The Siemens Foundation: Through an American sub-organization known as the Siemens Foundation, Siemens also devotes funds to rewarding students and AP teachers. One of its main programs is the Siemens Westinghouse Competition in maths, science, and technology, which annually grants scholarships up to U.S. $100,000 to both individual and team entrants. According to the foundation Web site, Siemens awards a total of nearly U.S. $2 million in scholarship money every year.
• Sensitivity to Currencies and Interest Rates: Siemens conducts a high volume of its business volume in the United States and as exports from Europe. This in turn makes them sensitive to Exchange Rates and especially the performance of The Dollar vs. the euro.

[edit] Products

[edit] References

1. ↑ diagnostics.siemens.com