Product details

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Abstract

The mobile phone division of Siemens AG, the German electronics major, is the fourth largest producer of mobile handsets in the world. But since 2001 it has been constantly reporting losses quarter after quarter. The company''s efforts to revive the division''s fortunes failed to yield any substantial result and the division has grown to be the ''Achilles heel'' for the European giant. With the appointment of the new Chief Executive Officer (CEO), Klaus Kleinfeld, a decision on the mobile division has become the top priority. The troubled unit poses four possible options for the new CEO - sale, closure, joint venture or a turnaround. The case study outlines the growth of Siemens'' mobile phone division, the factors responsible for its decline and the strategies adopted during the troubled times. It provides scope for discussing the various options available for the CEO to make a decision on the future of the loss-making mobile unit.
Location:
Size:
EUR4.979 billion (2004 sales)
Other setting(s):
2001-2005

About

Abstract

The mobile phone division of Siemens AG, the German electronics major, is the fourth largest producer of mobile handsets in the world. But since 2001 it has been constantly reporting losses quarter after quarter. The company''s efforts to revive the division''s fortunes failed to yield any substantial result and the division has grown to be the ''Achilles heel'' for the European giant. With the appointment of the new Chief Executive Officer (CEO), Klaus Kleinfeld, a decision on the mobile division has become the top priority. The troubled unit poses four possible options for the new CEO - sale, closure, joint venture or a turnaround. The case study outlines the growth of Siemens'' mobile phone division, the factors responsible for its decline and the strategies adopted during the troubled times. It provides scope for discussing the various options available for the CEO to make a decision on the future of the loss-making mobile unit.

Settings

Location:
Size:
EUR4.979 billion (2004 sales)
Other setting(s):
2001-2005

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