Management and Business Context for Business - myassignmenthelp

Question: Discuss about theManagement and Business Context for Global Business. Answer: In the modern global business it has become essential for organisations to make sure that they have an effective business structure for facing all the challenges that are coming to them (Wheelen Hunger, 2011). There are many internal and external factors that are posing threats for the bigger firms. One of other major factor that is making it difficult for the big firms to operate is Globalisation. This has made considerable increase in the competition which has become dangerous for most of the companies. Siemens is a Germen conglomerate firm having its headquarter in Munich and Berlin. It is the largest industrial manufacturing firm in Europe with its branch offices in abroad. It is in the business of healthcare, industry, energy and infrastructure. This essay highlights the organisational structure of Siemens as well as the internal and external factors that impact their business. It also showcases the risk that is currently confronting the business of the organisation. Every company makes their organisational structure in a way so as to bring smoothness in the work process (Carroll Buchholtz, 2014). There structure is hierarchical and has important persons at each levels of their organisation. Siemens has adopted organisational structure in a way that information can be easily communicated at each level. This helps them in making decisions at a quick pace. At the top of their organisational structure there is supervisory board that are responsible for making all the final corporate level decisions as well as the decisions that are of strategic importance. Under them is the managing board who work as an assistant for the supervisory board in the process of making decisions. In this management board there are CEOs of their different sectors. Under them are the various departments having different executives. Other cross sector services are present at this level only. Under them is the cross sector business which is at the second last level of the organisational structure consisting of services like IT solutions and finance. At the last level of the organisational structure are the regional units of the company. Only the supervisory board and the management boards are present at the head offices and rest others are present in various reasons of the world. There are many internal and external factors that are related to the company and tend to impact the business of the cited firm. It is crucial for the company to make sure that they have an effective plan for reducing the negative impact of these factors (Yang, Hong Modi, 2011). Internal factors Plays a very crucial role in this. The financial strength of the company helps to make sure that they can implement any strategy or decisions for their operations (Geppert, Matten Williams, 2016). A good cash flow also helps in bringing smoothness to the firm. Siemens has good financial assets with them which will help them in their growth. Siemens needs to make sure that they have effective relations with their employees as they are the valuable assets of a company. Any type of mismanagement in human resource can lead to loses due to the conditions like strikes or lockouts. Siemens has a good management and leadership at the top. Management and leadership have the greater impact on their business. This is also due to the fact that they are in the business of many things and hence they need to be properly managed. Apart from these internal issues the external environment also plays a crucial role in it. The political environment in the Europe is changing and hence it has greater impact on the business of the firms (Maylor, Blackmon Huemann, 2016). This is due to the fact that any change in the government policies directly affects the business of the organisation. In many countries of Europe there is economic instability (Bharadwaj, El Sawy, Pavlou Venkatraman, 2013). This has made it difficult for the companies like Siemens to ensure high profits. Any investments in the new business have to be done after the proper analysis in every sense. The demands of the society are changing especially in terms of technology Siemens is producing. These changes can also be noticed in the energy sector. This has forced the company to transform its business accordingly. Apart from this the speed with which technology is changing is very fast and hence Siemens also need to make sure that it does a business which is more research based. There are lot of companies that are in the market who are giving Siemens direct or indirect competition. This has forced the company to make sure that they have an effective plan for tackling such situation. A fairly new competitive strategy is required by the company. Due to globalisation the competition has become cut throat. There are several types of risks that are present in front of the Siemens. All these risks have to be properly handled so as to reduce their negative impact on their business (Cui, Loch, Grossmann He, 2012). In many parts of the world there has been economic breakdown. The slowdown in the American market and the decline of the European economy has become a problem for the Siemens as these two were the major market for them. There have been change in the energy needs of the people and hence Siemens need to make sure that they have planned for the future renewable energy needs of the society. Even when the Siemens have a greater brand name then also they have to make sure that they have new strategies for making growth in a sustainable manner. Competition is increasing at such a faster rate that it is becoming riskier to invest into new business. There have been changes in terms of technology at a much faster rate. This has created risk in the market. It is due to the fact that if the company is unable to match the global standards then new companies might take over their market share (Benta, Podean Mircean, 2011). In the existing financial burden, shifting of technology will requires a lot of money to be invested especially in the training of employees. The choice of the people is changing at much faster rate this has made it difficult for the company to fulfil the demands of the consumers they are serving. It has made difficult for the company to make sure that they are producing products as per the demand of the market (Epstein Buhovac, 2014). Due to this fast shift in choices any big plan is also at risk of getting failed. Its bribery scandal revealed in the year 2006 has risked its trust in the minds of the shareholders. This scandal was a blot on the image of the company which can be dangerous for them in their future operations. It is essential for the company of the scale of Siemens to make sure that there performance does not degrade. To ensure this they need to adopt best practices in the industry (Li, 2014). In order to avoid any kinds of strike offs and lock outs Siemens has to make sure that they understand the needs of their workers. It helps them in fostering healthy employee relation which is essential for the growth of the company. Siemens takes use of the management tools such as TQM and Six Sigma to make sure that they are producing products as per the demand of the market. It also helps them in finding gaps in their operations and filling them to ensure long term growth in the market. Siemens has adopted good supply chain management strategies that help them in making sure that they are fulfilling the demands on time. This company has healthy relations with their suppliers which helps them in available raw material at lower prices. This Company is known for its innovative products (Trimi Park, 2013). It has invested a lot in the innovations which is again due to the market demand. It helps them in achieving higher growth rates. Most important function that will help company in achieving is strategies. This is the requirement of the industry as in the globalised business it is the only thing that differentiates them form other competitors products. They need to invest more on the innovation and hence need to pump a lot of cash in the R D function. Company needs to make sure that they have an effective corporate social responsibility strategy (The Guardian, 2018). This will help in brand management of the company. It is the function of the top leadership and management to apply. This Company needs to have an effective performance monitoring and control system. It will help in making changes as per the requirement of the company and provides more control on the operations of the firm. On the concluding remark it can be said that the organisational structure of the Siemens is designed in hierarchical manner so that every level understands their set of responsibility. There are many internal and external factors that are impacting the business of the firm. Company also needs to deal with the risks that are posed in front of the company. They need to adopt best practices in the industry so as to improve their performance. Apart from this they can adopt various functions to implement all the planned strategies for them. In all these the role of the leadership and management becomes very important. References Benta, D., Podean, I. M., Mircean, C. (2011). On best practices for risk management in complex projects.Informatica Economica,15(2), 142. Bharadwaj, A., El Sawy, O., Pavlou, P., Venkatraman, N. (2013). Digital business strategy: toward a next generation of insights. Carroll, A., Buchholtz, A. 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