EMERGING

More documents

Recommendations

Info

<strong>EMERGING</strong> MARKETS: A Review of Business and Legal Issues experience to manage the corporation (he had never been a CEO), did not have any distinctive features, and normally he would never be appointed the corporation's CEO. Unclear selection criteria could have originated from G. Gromme's wish to strongly influence corporation management thanks to the inexperience and the lack of knowledge of the company on the part of the new President of the Board of Directors. 1 G.Cromme and J.Ackermann, the President of Deutsche Bank AG, were the persons who supported Löscher’s candidacy. They stressed his strong points, i.e.: the knowledge of international business, including the US market, experience gained in the competitive company (GE Inc.), knowledge of the medical sector, which could help him in supervising one of the company's most important departments, and, finally, his personality traits. The succession showed characteristics of a crisis model – the current President of the Board of Directors did not participate in the proceedings, which were carried out by the Chairman of the Supervisory Board in haste and under the pressure of time. 2 The oldest member of the Supervisory Board said that the Board had never made a choice so rapidly. 3 This sudden succession was also commented on as “coup d'état” carried out by the Supervisory Board and even as a result of mobbing, which the legally incumbent President was subject to. 4 In spite of all this, probably due to the extensive experience of Cromme, the nomination of Löscher was fully accepted by the market. 5 The succession procedure lasted for less than a month, which seems to be the standard in the case of a sudden, post-crisis vacancy. 6 1 2 3 4 5 6 H.Johannsmann from Interconsillium, after Handelsblatt, 22.05; D.A.Nadler, B.A.Behan, M.B.Nadler, 2006, Building Better Boards, Josseys-Bass, San Francisco, p.176; A.Hennersdorf, 2007, Entfrosten and Entrosten, Wirtschaftswoche, 22, p.73; P.Beets, 2007, Mighty mess at Siemens, 9.05, p. 16; http://www.marketwatch.com/News/Story/analysts-welcome-pick-loeschernext/story.aspx?guid=%7B003F10D1%2D831C%2D47C1%2DA8FD%2D7FC40770E3FA%7D Cf The succession of the new CEO of Citigroup Inc. lasted almost the same time; a candidate from outside the corporation was chosen, The Wall Street Journal, 2007, Citi may name Pandit CEO next week, 7.12, Page 22 Volume 1, April 2009
<strong>EMERGING</strong> MARKETS: A Review of Business and Legal Issues On 20 May, P.Löscher was unanimously elected President of the Management Board, the post to be taken on 1 July 2007 .1 The new CEO’s first public statement was as follows: “I will be working together with the 475,000 proud Siemensians ”.2 The programme for regain trust The events analysed in this case study occurred 159 years after W. Siemens and J.G. Halske established the first company producing telegraphs, the precursor of Siemens AG. The company’s 160 th , round anniversary was used to promote it and to regain trust, which had lessened as a result of the corruption scandal. All over the world advertisements and articles stressed that Siemens had changed the world by its innovative products, and that today’s Siemens “continues such traditional values as business continuity, awareness of customers' needs and high qualifications of its employees”. It was pointed out that with the power of innovativeness and its clear objective, i.e. to become a world leader in corporate governance, the corporation could continue its sustained, profitable growth. “Siemens is more than tradition and ability to adapt”, said Peter Löscher, the President of Siemens AG Board of Directors on the occasion of the anniversary .3 These celebrations are part of a global promotion campaign, announced in September 2007. It costs about EUR 300 mln. 4 The campaign, which reminds all previous achievements of the corporation, is meant to direct customers’ and investors' attention to main areas of core business defined in the new strategy (cf. the section about strategy). This should reduce the impact of numerous agency reports related to new stages of the scandal. The campaign's slogan is “Siemens answers” major questions of the present for 160 years now. Its objective is “to make people understand Siemens better.” 5 With the new campaign Siemens is catching up 1 2 3 4 5 He got 23% more in basic remuneration than his predecessor, and a right to compensation for the lost benefits he would have had in the previous job (Der Spiegel), S.Hoffman, 2007, Weltbürger aus Willach, Handelsblatt, 21.05, p.15 From the company's documents, e.g. www.siemens.pl M.Esterl, 2007, For Siemens, image repair, The Wall Street Journal, Nov.29; p.6; the image campaign is carried out by Ogilvy &Mather www.btobonline.com/apps/apps/pbcs.dll/article?AID=/20071105/FREE/711105034/1 Page 23 Volume 1, April 2009
Page 1 and 2: EMERGING MARKETS: A Review of Busin
Page 21: EMERGING MARKETS: A Review of Busin
Page 73 and 74:
EMERGING MARKETS: A Review of Busin
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
show all

EMERGING

Create successful ePaper yourself

Delete template?

Save as template?