PresentationGroup5SiemensAGPresentationOverviewSiemensProductsandMarketsDegreeofTransnationalizationImpactsofNationalOriginDeparturefromNationalOriginIsSiemensaGlobalFirm?ProductsandMarkets‘Our428,000employeesworkon…productsin1,700locationsinnearlyeverycountryonearth.’(Siemens.comGlobalWebsite,2010)MarketDevelopmentsince2000(Source:Datamonitor,2009)ProductDevelopmentsince2000Industry•MagnetTechnology•BuildingTechnologies•Transportation•ITInfrastructure•Rail•AutomotivesupplyEnergy•WaterFiltration•Airpollutioncontrolsystems•RenewableEnergy•Windenergy•Waterpower•Steamturbine-generator•SolarpannelplanHealthcare•Immunodiagnostics•Diagnosticsproducts(Source:Datamonitor,2009)M&AActivitybySectorsince2004252IndustryEnergyHealthcare(Source:Siemens.com,2010)DegreeofTransnationalizationLocation-Production-Sales-AssetsR&DManagementTeams-HeadOffice-SubsidiariesMarketListings&OwnershipLocation:Production,SalesandAssets(SiemensCompanyPresentation,September2008)Research&DevelopmentEurope,CIS,Africa,MiddleEastAmericasAsia,AustraliaWorldwideshareWorldwideshareWorldwideshareR&DEmployees20,20066%7,40024%3,20010%MajorR&DFacilities9453%5732%2515%Europe,CIS,Africa,MiddleEastAmericasAsia,AustraliaWorldwideshareWorldwideshareWorldwideshareR&DEmployees20,20066%7,40024%3,20010%MajorR&DFacilities9453%5732%2515%Employees243,00060%92,00023%70,00017%SupervisoryBoardMembersThyssenKrupp,Saint-Gobain,Allianz,Trumpf,MAN,AmsphereSeniorManagementP.LöscherW.DehenJ.KäserB.KuxH.RequardtS.RusswurmP.SolmssenAge51555155544554SiemensEmploymentpriortoSM1726022160NationalityGermanGermanGermanGermanGermanGermanUSAEducationBusinessBusinessBusinessBusinessTechnicalStudiesTechnicalStudiesLawSubstantialInternationalExperience(5)1.DominationofHQnationals2.Internalpromotionvs.Externalhiring3.Business/Lawvs.TechnicalStudies4.InternationalExperienceStockMarketListings12thMarch2001:NYSE1999:SwissExchangeThelistingofSiemensshares...isthelogicalconsequenceofthecompany'sglobalizationdrive,companyCEOHeinrichV.Pierersaidinastatement.ListingherealsogivesSiemensanadditionalcurrencyforpotentialacquisitionsandstrategicinvestments.“(CNETNews,13thMarch2001)1990:LondonStockExchange1899:DeutscheBörse(Source:Siemens.comShareInformation,2010)OwnershipStructure5,3%SiemensFamilyEstimated9%Employees‘shareholdingsImpactofNationalOriginStyleandTrajectoryManagementinHOandSubsidiariesHistoryNationalCharacteristics:GermanyOrganizedandproduction-oriented‘Long-termist’approach(Börsch,2004)FamilyownershipCommunitarianapproachtowardsproblemresolutionDevelopedindustrialnetworksbetweenbuyerandsupplierfirmsQualityproductionstrategies(Streeck,1997)DistinctivepatternofcorporatecontrolStrategicHRMImplicationsofGermanOriginforTransnationalizationGeographyandindustries:Lessergeographicalreach(predominatelyWesternEurope)GermancompaniesarepronetolocateingeographicallycontiguousandculturallyrelatedcountrieswheretheGermanproductionmodelcanbereproducedwithrelativeease(Lane,1998)Narrowspectrumofindustries(High-skillmedium-andhigh-technologyindustries)Internationalizationstrategies:HighnationalinvestmentscomparedtotransnationalvolumeDeepernationalembeddednessanddependenceonhome-countryinstitutionalstructures(Lane,1998)PreferenceforexportingoverFDI(Dunning,1979)Highvolumeofstrategicalliancesandco-operations(HagedoornandSchakenraad,1990)Brownfieldinternationalizationandlong-termtransformationofsubsidiaries(KristensenandMorgan,2007)Decisionmakingandcorefunctions:Decisionmakingcentredinhome-countryControllingpositionsremaininthehandsofhomecountrynationalsStrongrelianceonthehomebase:corefunctionsinhomecountry(Dorrenbacher,2004)R&DactivitiesremainprimarilyinGermany(Lane,1998)1991:RolmUKSiemens:HistoryofTransnationalization19thcentury20thcentury21stcentury1848:Foundation1855:Russia1858:Britain1879:Austria1892:US1945:ExpropriatationForeignagenciesinkeymarketsaroundtheworld1923:JapanMid1950s:RegainingforeigncompaniesGlobalexpansionofmarketspredominatelyinUSandAsianPacificregion1998:Westinghouse2001:ListingNYSESiemens:StyleandTrajectoryofTransnationalizationM&AActivityGreenfeeldActivityJointVenture/CooperationMajorExportingActivity(Source:Datamonitor,2009)GlobalExpansionsince2000Siemens:StyleandTrajectoryofTransnationalizationBrownfieldinternationalizationstrategy32bnEurooverthelast10years(Siemens,M&AProjectsPresentation2009)Siemens:StyleandTrajectoryofTransnationalizationCross-boarderacquisitions(vonPierer&Javidan,2002)Fullintegrationofnewsubsidiaries(vonPierer&Javidan,2002)StrongbasisinUSAforover100years,focusincreasedsincebeinglistedonNYSEPrimarybusinessfunctionsremaininGermanyandnearbyEuropeancountries(Lane,1998)Germancompaniesappeartopursueglobalintegrationonlyverypartiallyornotatall.Thus,Siemensaimsforonlysomeco-ordinationwithincontinentsforitsnon-Europeaninvestment(Lane,1998)ManagementinHOandsubsidiariesGermannationalsholdtopmanagementpositionsGermanlanguage(Fredrikssonetal,2006)Communicationandknowledgesharingbetweenheadquartersandsubsidiaries–“SiemensShareNet”Dif