The main key point of how political factor has affected siemens is the affect country legislations and standards they must abide by which can limit their supply by regulating certain aspects of components by the legislation within that country. thus, meaning less free movement on designing of component due to the nature of standards and legislation implied within a country to be followed. For example, with the head office being in Germany the company is administrated to German law and standards being DIN and European corporate law and their standards of ISO which is applied when manufacturing components which is briefly described in the technological factor. an example for the U.K that the company would have to abide by a legislation to that market for instance is the Trades Description Act which expresses that an organisation cannot erroneously publicize any of its items or services which means no falsehood of advertising components or items or any of their services they have to offer.
at a glance Siemens has been affected in the U.K due to certain law which has affected their operations, such as consumer protection Acts that empower the customer to have certain rights on the off chance that they are provided with defective or harmed merchandise. this area would
As Siemens are a global company they will be liable to the fiscal policies utilized by governments inside numerous nations, moreover when items are being sold globally there will be import and export controls that will alter the organizations financial aspect, for example the import and export tax that must be paid and fees for certain goods. the supply has also been affected at this stage due to the fact that some countries would have more stern import and export legislations to abide by compared to other countries having more leniency laws when it comes to import and export thus affected supply due to restrains of certain countries which have emplaced these laws
another political factor that can affect Siemens is in the weapons industry. an area such as the government prohibition of preventing manufacturing, developing and distribution of weapons under a government export control policy which can affect the supply of the company since the supply has been withstrained with these policies to hold siemens at bay within the supplying of weapons to be used in military applications at war. thus, meaning during war Siemens supply would decrease due to less distribution and tight policies to be followed which constrains aspects of manufacturing thus decreasing supply.
the economical factor affects a business in a country with restraints such as inflation rate, interest rate, employment cost and total national products. Uncertainties mainly from (geo)political risks had very limited effects on the global economy. International tensions with North Korea and Iran increased thus causing an uproar with product supply; negotiations regarding the U.K. leaving the European Union are complicated and separatist tensions in Spain added significant uncertainty. These developments potentially weigh on investment decisions, but this barely materialized in fiscal 2017.
Siemens has been affected by variations in the exchange rate between the euro and US dollar due to a huge percentage of siemens business amount is managed in USA and Europe exporting to them. conflicts being brought about by such countries as north Korea or Iran have caused uncertainties in the different fields of the market. this instability has caused Siemens to be looking at different aspects of the market such as different demand aspects which have a higher reliability when looking at profit aspects.
The global economy started to accelerate at the beginning of fiscal 2017 and gained further momentum. Expansion of world GDP, which in 2016 was the weakest since the global financial crisis at 2.5%, was projected to rise to 3.1% in 2017 based on market exchange rates. The global uprising was broadly based on a structural basis. In emerging markets and advanced countries, economic activity gained strength. Growth forecasts for 2017 improved for Europe from 1.5% at the beginning of fiscal 2017 to 2.3% and for China from 6.3% to 6.8%. The only negative surprise was the Middle East region. The 2017 growth projection decreased to 1.4% after starting at 2.8% at the beginning of fiscal 2017. Lower oil prices and oil production cuts had bigger impact than anticipated.
The ongoing Economic downturn has led to a decreased capital expenditure from clients Siemens business has been negatively impacted by the prolonged economic downturn in most of its markets worldwide. Investment sentiment continues to be weak for the Company’s customers in important industry segments and regional markets in the US, Europe, Asia and south America. siemens information and communications business is particularly affected by the current market conditions in the telecommunications industry.
lenders have said that are to increase the cot of borrowing due to actions of the bank of England. when it becomes more expensive to borrow money people tend to spend less this is because they must pay more back in interest. disposable incomes fall so therefore its likely that the consumer spending falls, these negative knocks on effects can be costly to siemens sales turnover