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Siemens AG Global Development Strategy A Case Solution

Solution Id Length Case Author Case Publisher
2686 1454 Words (7 Pages) Stefan Thomke, Ashok Nimgade Harvard Business School : 602061
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It was the year 1847 when two people, W. Siemens and J. Halske, came together to establish an organization that came to be known as Siemens. The management at Siemens very smartly capitalized on all the opportunities coming their way. The company reflected continuous progress and development from telephonic invention to electric power generation. It was in the year 1909 that the company developed an automatic telephone to cater to the 2500 users back in Munich, Germany. Siemens was one of those big names with huge dominance in the fields such as telecommunication, data processing systems, nuclear plants and medical equipment etc. Siemens made its expansion based on technological developments as well as close ties with its big customers. Industry experts believed that most of the problems faced by Siemens were due to its geographical location. Mainly, the high labour costs and over-regulation in Germany created problems for the management. 

It is discovered that Siemens has almost site taken a worldwide method to items since its inception. They had every time considered themselves to be a major company. To enhance the group's international standing and presence, the effective information system put forth every effort to raise authority and influence in centres. It's possible that there were other explanations as well, but the prime causes Siemens established infrastructure investment centres around the world are as follows. The scarcity of union workers: Siemens was largely based in Munich, Germany.

Following questions are answered in this case study solution

  1. Why does Siemens have regional development centers (RDCs) around the world? What are the differences between RDCs in India, Germany and the US? How are these issues managed and resolved? 

  2. What has gone wrong with ADMOSS and Net Manager Projects? Please consider the Bangalore and Munich perspectives. 

  3. How should Siemens reconfigure its innovation strategy for the future? Where would you put new project?

Case Analysis for Siemens AG Global Development Strategy A

The ICN failed to standardize and centralize the products primarily due to a lack of labour within those areas. The use of geographic technicians and specialists contributed to quicker response times. These answers primarily addressed customer requirements, such as EWSD. This primarily allows the organization to be more accessible to its clientele and effectively meet their needs.

1. Why does Siemens have regional development centres (RDCs) around the world? What are the differences between RDCs in India, Germany and the US? How are these issues managed and resolved? 

It has been found that since the company's creation, Siemens has always had a global approach to things. They always viewed themselves as a multinational organization. To strengthen the global image as well as the presence of the organization, the management of the organization made its best attempt to increase the power and authority in the regional centres. There could have been other reasons, but the primary reasons for which Siemens conducted regional development centres all around the globe are as follows. 

The shortage of local labour force: Siemens was primarily situated in Munich, Germany. It was majorly because of the lack of labour in these areas that the ICN failed to standardize and centralize the product areas. 

The employment of regional engineers and technicians is reflected in the realization of a faster response. These responses mainly catered to local demands such as EWSD. This mainly provides an opportunity for the organization to be better available to its clients and cater to their demands well.

German middle managers ran freshly formulated RDCs, although local supervisors acquired the most authority in advanced parts. A continuing point of contention was the level of autonomy to give more or less every centre. That, however much position to give designers operating on components in various RDCs has also been a source of contention. German main headquarters usually organized RDC collaborative efforts through institutions, such as national science symposiums in Munich that included people from various RDCs, in addition to fostering casual, invariably synchronistic confrontations with both varying RDC associates in Munich. 

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