Post on 08-Apr-2018
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V. B. Iyer
Manoj Prajapati
India Steel Works Ltd.
Siemens The story of a problem child of European
Heavy Industry
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German Engineering Conglomerate
Founded : 1847 in Berlin
Headquarters : Berlin, Munich ,Germany; New York,
United States Area served Worldwide
Key people : Peter Lscher(President & CEO)
Products : Communication System,Power Generation,
Transportation,Building Technology
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-In Turbulent Times
Lurching from profit to loss
Big Infra projects went wrong
Profit margin too thin to cross cost of capital Share prices lower than competitors
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Unethical Practices @ Siemens
Cash Desks
Tax Deductions
Fixation for Winning Contracts Stepping away from Unprofitable deals
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Reasons Behind this Downfall
Hesitance for choosing proper
Decisions.
Reliance on Domestic Market.
Obsession for Technologies
Negligence of Management
Shareholders Return- Should
it Care???
Cost of Scandal Scam - $ 2.6 Billion
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Who Corrupted Whom????
Was Siemens trying to seduce normally honestemployees and executives of potential customers?
Had the practice of bribery developed in Siemens as
a need to outbid the palm-greasing of competitorsas corrupted employees and executives of potential
customers would not sing otherwise?
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they
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A New Leader Mr. Lscher
Change in Management or Change in The
Attitude of Employees towards Work?????
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His Legacy
Judgement from the eye of an outsider
Reshaping Management Structure
Speed, Growth, Profitability without Bribing
Change in operation Management Delegation of Authority
Selling non-profitable unit and buying productiveone
Make presence in technological areas Eliminating barriers
Expertise in the areas of HDVC and Railways
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Powerful Symbol for resilience ofGermanys
manufacturing industry.
Orders of Siemens 16% higher than previousyear.
Operating Profit- 40%
Technological advancement
Growth Story
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GE Vs Siemens
GE Sales 50%
than Siemens
Market Cap:-
GE- $165Bn
Siemens- $87bn
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NewGlobal Compliance
Program since 2008
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10 Focus Areas for Anti-Corruption
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Training Against Anti-Corruption
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Compliance Guide for Anti- Corruption
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Introduction of Mr. Peter Lscher has worked as a
help
Reduction of sectors of operation Fixing Accountability- A good Management Approach
Use of Cheaper, Highly Skilled Engineers from India
and China, helped in increase in Market Share
In a Nutshell
Whether the Company will Continue to follow the Policies of Mr.
Lscher after he exits the company?
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Peter Lscher Effect of Improvement
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Thank You!!!