Siemens Energy

Siemens Energy: How to Engineer a Green Future

Analyse features of the macro-environment that may affect Siemens Energy using the PESTEL framework.

Siemens is a Germany based multinational engineering and Electronics Corporation. It has headquarters in Berlin and Munich, Germany. It is the largest European electrical and electronics engineering company, famous worldwide for their activities in the fields of energy, healthcare, transportation and industry. It also has a Financial Services Division as well.

Siemens Energy has recently been recognized as member of the esteemed Energy Industry Partnership Programme sponsored by the World Economic Forum. Other members of the same program are Chevron, Exxon, Shell, Kuwait Petroleum, Vestas Wind System, and major energy suppliers like Duke Energy and Tokyo Electric Power. Wolfgang Dehen, CEO Siemens Energy, after having a meeting with the executives of the partner companies feels very proud of the fact that they have been recognized by such a high-profile international organization. This meeting was conducted in order to bring major oil and energy companies of the world on one platform, and to come out with collective ways to curb worldwide energy crisis, to improve worldwide energy efficiency. This has sprung up a number of opportunities and threats for Siemens Energy. And the company needs to take some serious strategic decisions. But before it takes all those decision, it needs to assess the macro-environment that may affect Siemens Energy using PESTAL framework as follows.

Political

All over the world major economies like the US, the UK, Australia, China, India, Germany, France etc. are facing severe energy crisis. It acts like a bottleneck in an economy. The first demand from any government by the public is of economic progress of the country that ultimately leads to the demand of energy stability in the region since it is one of the most important factors. Energy crisis involves a number of issues like equitable distribution of oil, energy resources, different pricing mechanisms also affect energy distribution or balances the factor of demand and supply, and then the recent much voiced topic of the environmental issues are making head of states, governments, energy & oil companies, industrialists, scientists, academics all over the world to think about energy crisis seriously. This raises opportunities future investment opportunities for Siemens worth investing. It will help the company in expanding its scope both geographical and strategically as well. Therefore governments are making energy & oil policies as if not addressed properly energy issues might have serious political repercussions.

Economic

Whether it is a commercial need or household, world greatly depends on fossil fuels for their energy supply. And this dependence is so huge that we also get to listen to myths that wars are being waged to get hold of world energy supply like the controversial Iraq War. Thencomes the dependence on OPEC countries for oil supply that makes the entire industry a monopoly since they supply oil to the most part of the world. This factor can have extreme repercussions on the world industry, food supply, also on domestic consumption ...