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Assignment:
Case study
Comparing corporate strategy at two multinationals: General Electric (USA) and Siemens (Germany)
Multinationals are supposed to make superior profits from their internal resources and from their external market positions. But a comparison of two leading companies suggests that pursuing profitability is more complex in practice.
1. Can Siemens ever achieve the profit margins of GE? What should it do now- continue to divest under-performing parts and invest in the profitable parts? Or is something more radical required - perhaps to break itself up and cease to be a conglomerate?
2. What conclusions do you draw on the strategic benefits of operating a corporate strategy? Does the theory outlined in this chapter help?
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