Political GERMANY UNITED STATES Parliamentary Democracy Federal Republic Federal Chancel or (head of government) is elected by the
Indirect election of president by electoral col ege for up to two Bundestag or Federal Strong middle class. 4-year terms
The federal government has three branches: legislative, Head of state is ceremonial president elected for up to two 5-year executive, and judicial term Multi- Party System Two- Major Party System Democrats and Republicans dominate US government Christian Democratic Union and the Social Democratic Party of Germany are largest denominating since 1949 Legal System Legal System Business law code varies between states 16 states are all under same business law code 1977: Foreign Corrupt Practices Act (FCPA): US federal law Worker mobility allowed within EU countries regarding transparency and bribery of foreign officials. Applies 1999: ratified the OECD’s Convention on Combating Bribery of to US businesses and foreign corporations operating within the Foreign Public Officials US. 2003: signed the United Nations Convention against Corruption, but has not yet ratified it International: Organization for Economic Cooperation and Development (OECD) • Consists of 34 countries committed to democracy with objective of sustainable economic growth • Gives guidelines of multinational enterprises including employment and industrial relations, protection of the environment, consumer interests, and fair competition and combating corruption
Social Economic Germany United States
Life Expectancy: o Life Expectancy at birth-- women :83% men :78% at birth-- women :83 men :78% at age 60--women :25% men:22% at age 60--women :25 men :22%
Ratio of female to male tertiary o Ratio of female to male tertiary enrollment: 107% enrollment: 139%
Unemploy- Population GDP GDP per GDP Inflation Labor ment rate capita Growth force Germany 5.4% 81.89 $3.428 $41,863 0.7% 2.0% 42,522,7 million trillion 30 USA 8.1% 313.9 $16.24 $51,749 2.8% 2.1% 158,686, million trillion 472
Culture GERMANY UNITED STATES Language: German Language: English Hofstede Cultural Dimensions Hofstede Cultural Dimensions Power Distance - 35 Power Distance - 40 Individuals in societies are not equal.
Equal rights, liberty and justice for all Strong middle class. Individualism - 91 Individualism - 67
Mostly Individualistic: People look after Truly individualistic: Small families with a focus themselves and their immediate families on the parent-children relationship. only. Masculinity - 66 Masculinity - 62 Masculine: Live in order to work and draw a lot of self-esteem from their tasks.
Masculine: Strive to be the best they can Uncertainty Avoidance - 65 be. Success and being able to show success is a motivator. Strong preference for deductive rather than inductive approaches. Uncertainty Avoidance – 46 Indulgence – 40
Fair degree of acceptance for new ideas Restraint: Tendency to cynicism and Indulgence - 68 pessimism
Indulgent: Work and play hard attitude
Technological Germany United States
Technological readiness in Global
Technological readiness in Global competitiveness index, ranking 10th and competitiveness index, ranking 17th and scoring 5.4 scoring 5.1
2012, Wind power technology used
Drive Technology efficient in the U.S. Innovating the
Superior Efficiency technology for higher productivity
High Quality Reliability
“The first time ever—the number one
Maximum Productivity source of new electricity generation
Combined-cycle power plant helped the capacity.” industry set up a efficiency benchmark
“The plant unit 4 at Irschine creates efficiency level of 60.75%
Industries Overview Largest Energy Markets: 1. Europe 2. Americas 3. Asia 4. Germany Siemens’ Revenue by Sector: 1. Energy 2. Industry 3. Infrastructure and Cities 4. Healthcare
Industry Opportunities S L S A • T • General shift towards EInvestments in renewable • IEDeveloping countries shifting sustainable energy using energy are increasing in policies to accommodate Tenergy-efficient natural Kdeveloping countries as N ICrenewable energy resources in light of Rthey face environmental inEcreasing Achalenges L environmental and M O economic challenges • N MEmerging markets want lower dependence on P • Expansion of wind O Gimported oil, address G industry in the United increasing need for power States IR INdemand (i.e. discrepancy IN • In 2012, wind energy V Gbetween power supply G served as largest and demand in India), or Nsource of new Rfoster job creation N Eelectricity generation E A capacity in the United • MIncreased opportunities States Efor investments in India, H • Can spil over to other Turkey, Morocco, South C countries Africa and Brazil, and many others • Opportunities through government contracts or Independent Power Producers
Siemens margins are almost half the size of
Intense competition leads to pricing its competitors. They face threat in their pressures, thereby decreasing the group’s overal revenue from major competitors. profitability.
Surging raw material prices could strain margins.
Environmental and other governmental regulations such as:
Waste Electrical and Electronic Equipment (WEEE) Directive of the EU makes producers of electrical goods financial y responsible for col ection, recycling, treatment, and disposal of products. Companies operating in these markets become responsible for implementing WEEE. Several of Siemens product lines are subject to the WEEE regulation. Therefore Siemens could incur sizeable costs and liabilities under new legislation.
Emerging into new markets can lead to issues with Political and Policy Stability. For example:
A country's political landscape must be wel understood. Political swings can bring renewable energy projects, and supporting policies, to a halt.
Siemens’ Corporate Culture Despite German and American legislation against corruption and bribery, Siemens’ engaged heavily in such activities in various countries.