The Economist published a great story on how Siemens, battered by bribery scandal, recruited an outsider CEO and now has started to leverage the potential benefits of owning several business that could be run as stand-alone companies, operating at large scale all across the world, and avoiding to over-engineer products. The story illustrates most of the key ideas of SM3, including how to implement a corporate strategy.
Read: A Giant Awakens
Europe’s biggest engineering firm used to be known for two things: making everything but a profit; and scandal. Now things look very different
WHEN Alcatel, a French maker of telecoms equipment, announced its plan in 2006 to merge with Lucent, an American rival, reactions were mixed. There was general agreement that bigger was better and that the combined firm would benefit from greater geographical reach. But there was also scepticism that its French and American managers would be able to get along. With good reason, it seems: on July 29th Alcatel-Lucent announced its sixth consecutive quarterly loss and the resignations of Serge Tchuruk, its French chairman, and Patricia Russo, its American chief executive. Their firm’s troubles stem in large part from its internal clash of cultures. Read more on Economist.com