HENRY JAMES B.

NEPOMUCENO

1. WHICH OF THE MODES OF CONDUCTING INTERNATIONAL BUSINESS HAS

SIEMENS USED?

- Global market or International business is growing at a fast rate and there are more
than 180 nations-states in the world with different market and profitable potential.
However for an organization earn sufficient Income in Me global market It needs 50
Mow Me right bone and form of market entry mode whilst entering international market
(Hill, 2003).

Some of the basic entry modes Siemens used are

•Direct exporting

• Indirect exporting

• Foreign licensing

• Mint Venture, Wholly-owned subsidiary

• Turnkey Operation and Management Contract

The modes in which Siemens is directing international business is through the Tertiary
sector, in which the company supplies services (52% of output in UK), and the
Secondary sector, In which they are manufacturing the parts they sell to the ITC,
HealthCare, Transport and Energy divisions (48% of output in UK). With 30 Companies
and growing in the UK, the company must assess the local needs to achieve growth
and profit targets, which is then reported to the Head Office in Germany. In order to
establish a central means of growth and improvement Siemens created "Centres of
Excellence,” for the entire global group. One such locator is Robe Manor Research
Facility (OK), where any international company may Mize the expertise and technology
in order to adapt theft local business needs. Siemens also has a global strategy.
"Siemens One," where customers may seek out a particular skill, technology or product
they require, and receive the service horn other locations d It Is not available locally. All
in all, Siemens modes of conducting international business are two-fold, with the ability
to focus on a local scale, globally.