Directorate of distance education

Organization
From 1847 until 19811 a Siemens family member controlled the 
day-to-day operations. That changed with the retirement of Peter von 
Siemens in 1981. Since that time the company has been directed by non-
Siemens family members.
Rest of Europe 
29
Other region
4
North America
10
Asia 
8
Germany
46
America
3
Siemens sales percentage by region
Siemens corporate structure is based on the concept of decentralized 
responsibility. This philosophy is supported by a flat hierarchy and, 
consequently, short decision-making paths. Management believes that 
decentralized organization guarantees maximum market responsiveness 
in today’s competitive environment.
The corporate structure is characterized by three primary divisions: 
groups, regional un its, and corporate divisions and centralized services. 
The groups are the previously mentioned fifteen business segments as well 
as several legally independent business entities (e.g., SNI). Headed by a 

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group president, the group has worldwide responsibility for its business 
activity. The groups are intended to act as “stand-alone” businesses, 
resembling an independent company.
The role of the regional units Is to implement the business goals 
of the groups. The regional units must encourage maximum local units 
understand each group’s overall strategy. In most cases the regional unit 
deals directly with local subsidiaries.
The utilization of corporate divisions and centralized services 
is intended to separate staff functions from service units. Within the 
corporate divisions there are five main corporate departments: finance, 
research and development, human resources, production and logistics, 
and planning and development. These departments provide general 
guidelines and seve as a coordinating function in their particular area. 
This coordinating function supports each group’s business while keeping 
Siemens’ overall strategic goals in mind.
Having finished the consultants’ report Wilton Zwick leaned back 
in his chair and wondered about ZEI’s future. He realized that ZEI’s 
decision would, in large measure, determine the company’s future. A 
misstep at this juncture might be disastrous. A correct decision, however, 
could launch a new era of growth and prosperity. 
****

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Notes
189