IFAS and EFAS for Siemens

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EFAS and an IFAS for Siemens

Introduction- About the company
As per Wikipedia, Siemens AG is Europe's largest engineering conglomerate and its headquarters are located in Berlin and Munich, Germany. It has got approximately 480,000 employees worldwide in nearly 190 countries and reported global revenue of $110.82 billion as of 2008.

Environmental analysis - EFAS and IFAS
Environmental analysis is an essential element of formulating strategy. Strategy is about:
"* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kinds of activities are involved in such markets? (Markets; scope)
* How can the business perform better than the competition in those markets? (advantage)?
* What resources (skills, assets, finance, relationships, technical competence, and facilities) are required in order to be able to compete? (resources)?
* What external, environmental factors affect the businesses' ability to compete? (environment)?
* What are the values and expectations of those who have power in and around the business? (stakeholders)"
As per quickmba, "Strategic planning clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track."
EFAS- External Environmental analysis tells about the opportunities and threats.

Macro Economic environment
As per Wikipedia "The gross domestic product (GDP) is one of the measures of national income and input for a given country's economy. GDP is defined as the total cost of all finished goods and services produced within the country in a stipulated period of time (usually a 365-day year). It is sometimes regarded as the sum of profits added at every level of production (the intermediate stages) of all final goods and services produced within a country in a stipulated timeframe, and it is rarely given a monetary value.
http://en.wikipedia.org/wiki/Gross_domestic_product.

The world economy is affected now by recession and contraction in GDP. According to estimates of Global Insight, Inc. released on November 14, 2008, global gross domestic product (GDP) is expected to grow more slowly in 2009, at an estimated rate of 1.1% compared to an estimated 2.7% in 2008. This may lead to reduced spending by the businesses and the consumers which can lead to the contraction in worldwide demand. (Siemens Annual report, 2008)This may lead to reduction in margins and revenues.

Another important factor is the Siemens' dependence on foreign markets. Hence in foreign markets it would be affected by:
? Economic or political conditions including inflation, recession, interest rate fluctuations and actual or anticipated military or political conflicts;
? Longer accounts receivable cycles and financial instability among customers;
? Trade regulations and procedures and actions ...