Site Loader

A careful review of the strategy content literature reveals that the essential quality of a strategy is its originality since originality allows a firm to outperform its rivals. Originality can take the form of a first-mover advantage, a unique position in the market, a unique bundle of resources, or a unique dynamic capability (Gibbert, 2010). Strategic changes, are directed at creating a new type of alignment – a new fit between the basic set-up of the firm and the characteristics of the environment. While operational changes are necessary to maintain the business and organizational systems, strategic changes are directed at renewing them. Some parts of the firm’s business system and organizational system can be preserved, while others need to be transformed for the firm to stay up-to-date and competitive. This process of constantly enacting strategic changes to remain in harmony with external conditions is called ‘strategic renewal’. We speak of strategic change when fundamental alterations are made to the business system or the organizational system (bob de Wit, 2010).  Siemens is a German-based multinational in the electronics and electrical engineering industry. While the German market barometer rose slightly over 25% from October 1 to September 30, 1999, Siemens’ stock surged over 90%. This is true for the capital market bubble, which burst spectacularly as expected and nor can Siemens escape these effects and their resulting pressures”. During the second quarter of 2001, however, ”dark clouds gathered over the global economy”. The most important reasons were. the world economy declined in the aftermath of September 11.

The project studied at the Siemens company called the ‘Top Plus Program,’ sought to improve business excellence by focusing on the three so-called ‘Top Plus Fields: productivity, innovation, and growth. Siemens made considerable progress in the three top fields. In terms of the first Top Plus field, productivity, the company had generally achieved productivity gains of between 3 and 4% a year before the program was conceived. Since the implementation of the Top Plus Program, however, the company accumulated productivity gains totalling nearly 40%. In terms of the second Top Plus field, innovation, the company also made considerable progress. In the early 1990s, Siemens registered an average of 3000 inventions per year and in 2002 the number had grown to more than 8000 per year. In terms of the third Top Plus field, growth, the company saw new orders climbing by 20bn Euro to nearly 60bn Euro (Gibbert, 2004).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Post Author: admin


I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out