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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!!!