Introduction
It is evident in the contemporary dynamic global business environment that organisations need to be accommodating to the swift technological adjustment, clustering consumer demands, and augmented global interdependence. The two organisations that have been evaluated in this report are Siemens AG, a multinational engineering and technology firm, and the British Red Cross, a non-profit humanitarian organisation. These entities are analysed in terms of how they operate and succeed in competitive and socially driven environments. Task 1 analyses their organisational formations, their major stakeholders, the impact of digitisation and the use of leadership and management theories. Task 2 is concerned with the micro and macroeconomic factors, global problems, and ethical and cultural responsibilities. These sections, combined with each other, reveal the interaction between inner and outer forces that influence the ability of organisations to perform and remain sustainable and successful in the modern business world.
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Task 1 – Organisational Structures, Digitisation and Leadership
1.1 Types of Organisations, Structures, and Stakeholders
There are different organisations based on the ownership, purpose and goals. Its three prime sectors are the private, public, and voluntary (non-profit) ones. Organisational structure describes the arrangement of authority, communication, and responsibilities in a way that it helps reach the objectives. The functional, divisional, matrix, and flat hierarchies are common structures with their effects on the coordination and performance (Steyn, 2020).
Siemens AG is a private multinational conglomerate company that deals with engineering, technology and manufacturing. It is a public limited company (PLC) which is based in Munich, Germany, and operates in more than 190 countries (Globaldata, 2021). Its mission is to innovate sustainably with automation, electrification and digitalisation, with the vision being to transform the everyday to make industries smarter, sustainable. Aftermath of COVID at Siemens deals with the supply chain disruption issues, inflation pressure, and adverse demand for the workforce with a digital skill level.
British Red Cross, conversely, is a voluntary humanitarian movement of the UK charity legislation, part of the International Red Cross and Red Crescent Movement. It has a mission of helping people in crisis and a vision of creating a world where the population will be assisted during times of emergencies (British Red Cross, 2025). The post-pandemic issues within the organisation are fewer funds raised, digital barriers to inclusion, and additional demand of assistance because of the crisis in the world.
The two organisations have various stakeholders. Internal stakeholders in Siemens are employees and the management, as well as shareholders, whereas the external stakeholders are customers, governments, and communities. In the case of the British Red Cross, external stakeholders include government partners, beneficiaries, donors, and trustees, whereas internal ones are the volunteers, the participants of the organisation, and the staff members (Boutilier, 2024).
Based on the Matrix developed by Mendelow, the shareholders and major clients of Siemens have high power and interest that shape the strategy. The moderate power of employees and unions with high interest belongs to the category of keep informed (Kumar, 2022). Media and NGOs are characterised by greater power of reputation influence (monitor). In the case of the British Red Cross, the high-power, high-interest stakeholders are donors and government agencies, as they control funding. The low-power but high-morality stakeholders are the beneficiaries.
The Stakeholder Theory of Freeman states that to support their legitimacy and sustainability, organisations have to strike a balance between the expectations of stakeholders. Siemens needs to make a profit and social responsibility agreed, and the Red Cross needs to be transparent and accountable to donors and communities (Phillips et al., 2019). Both credibility and long-term success on long term is improved through effective stakeholder management.
1.2 Impact of Digitisation on Structure, Operations, and Strategy
Digitisation involves the transformation of information into digital formats, whereas digital transformation involves applying digital technologies when improving operations, innovation and value creation. It affects the organisation structure, organisation performance and strategic competitiveness in the different industries.
The Siemens AG has integrated digitisation in its Smart Infrastructure and Digital Industries. Siemens has also been decentralised and made agile structurally so that its global units can rapidly collaborate. Internet of Things (IoT), Artificial Intelligence (AI), and automation are now essential to its operations in order to enhance the manufacturing, logistics, and energy efficiency (Cozmiuc and Petrisor, 2022). The prescriptive maintenance and cost-saving use the deployment of digital twins, which are virtual replicas of the product and system.
Digitisation is a tool employed by the British Red Cross to enhance service delivery and crisis intervention. The new cloud-based systems are introduced to improve the collaboration of the volunteers and the management of the donations, and social media platforms are extended to reach more and raise more money. Data analytics can be utilised to identify the vulnerable groups and distribute resources in an effective way (McKenna, 2021).
Application of Porter's Value Chain shows Siemens is adding value by optimising primary activities, that is, operations and service using digital media, whereas the British Red Cross is adding value by optimising support activities, that is, human resources and communication using technology. Both show that the modern business environment puts efficiency, competitiveness, and stakeholder engagement in the centre, reflecting digitisation as its key attribute (Ricciotti, 2019).
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1.3 Leadership and Management Theories and Challenges
Leadership is concerned with inspiration and motivating individuals towards a common objective, whereas management concerns itself with planning, organising and controlling of resources. Leadership and vision as well as change and management, are interrelated yet both require stability and efficiency.
The Transformational Leadership Theory is very applicable to Siemens. This will promote innovation, empowerment, and shared vision, which are some of the characteristics that will help it go through the technological change. Siemens CEO, Roland Busch, upholds sustainability and digital innovation as an inclusive leader who encourages employees to be receptive toward change and unceasing learning. Transformational leadership is known to promote creativity and cross-functional cooperation, which is crucial to ensuring the innovation advantage of Siemens (Kwan, 2019).
The opposite is true of the British Red Cross, which is an example of the Servant Leadership Theory in which leaders serve others, put forth empathy, and act ethically. This is in line with the humanitarian values of the organisation. Servant leaders provide strength to volunteers, trust and compassionate decision-making. This strategy facilitates morale and interest in crisis operations that will result in effective humanitarian intervention and robust organisational image (Canavesi and Minelli, 2021).
Neither of the two organisations can avoid the Administrative Theory by Henri Fayol as far as management is concerned. Planning, organising, coordination, and control Fayol functions, which are planning, organising coordination and controlling, are applied regularly of the structured project management and global governance systems by Siemens. The British Red Cross uses the same principles to coordinate scattered volunteers and standardise the emergency responses (Ozay, 2024).
The two organisations have leadership challenges. Siemens has to work with cultural diversity, innovation pressure, and AI ethics, whereas the Red Cross focuses on the motivation of volunteers, resource limitations, and emotional burnout during crises (Kwan, 2019). Good leadership and management lead to success in the long-term-Siemens has succeeded in maintaining innovation with the help of a transformational culture, whereas the Red Cross has been able to gain trust and resilience with help of servant leaders.
Task 2 – Economic Theories, Global Issues and Ethics
2.1 Microeconomic and Macroeconomic Influences
Microeconomics is the study of individual decision-making of firms and consumers in terms of resource allocation, production and pricing, whereas macroeconomics is the study of general national and international issues that affect the overall economic performance, namely the GDP, inflation and fiscal policy issues. They both influence the process of organisational adjustment and strategic planning (Ismoilova et al., 2020).
Market competition is one of the microeconomic concepts that has affected Siemens AG. Siemens operates in three different fields, which include automation, energy, as well as healthcare industry, thus turning out to be highly competitive in the world market against some players such as General Electric and ABB. The Five Forces Model of industry (1980) provided by Porter states that the profitability of an industry is determined by the intensity of rivalry, the power of suppliers, the power of buyers, substitutes, and the barriers to entry. Siemens copes with this pressure with product differentiation, significant investment in R&D (€5.7 billion in 2024) and technological innovation, such as digital twin technology, automation by AI, and other (Siemens, 2025). These measures are more efficient, cost-effective, and customer loyalty is enhanced so that Siemens can be at the top even without any competition in the markets.
The pricing strategy of Siemens is also determined by the price elasticity of demand. The demand of its products, especially industrial automation and medical imaging, is price inelastic because customers are more focused on quality and innovation as opposed to price. This will enable Siemens to maintain the high-premium price at the expense of meeting the inflation costs changes in terms of automation and digital optimisation (Ruan et al., 2020).
Macroeconomically, there must be inflation and an increase in GDP. The inflation rate in the Eurozone stayed at approximately 5% in 2024 (OECD, 2024), which increased the cost of inputs and energy. Siemens meets this by investing in energy-efficient manufacturing, diversifying its suppliers and cost control by way of smart manufacturing.
Macroeconomic factors like government expenditure and unemployment have a direct impact on the operations of the British Red Cross, which includes its funding. Economic crises decline donations by populations as the demand for humanitarian services intensifies. This relationship is proven by the Circular Flow of Income model: as the household income decreases, charitable funds become less, which curtails the non-profit financial sources (Araujo-Morera et al., 2021).
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2.2 Global Issues, Ethics, and Cultural Diversity
Globalisation has integrated the economies and societies, resulting in opportunities for international cooperation as well as posing sustainability, ethics and cultural management challenges. The global problems require solutions to achieve responsible and sustainable operations.
Sustainability is one of the critical problems for both Siemens AG and the British Red Cross. The concept of sustainability is integrated into the business concept of Siemens under the so-called framework of Degree, which includes Decarbonisation, Ethics, Governance, Resource efficiency, Equity, and Employability (Swallow, 2021). Applying Carroll’s CSR Pyramid, Siemens fulfils:
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Economic obligations by spurring innovation and profitability by the use of green technologies.
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Environmental and digital responsibility (observing legal regulations) (Kusyk, 2021).
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Responsibilities in ethical practices by developing clear AI and responsible sourcing.
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Philanthropic activities through education and community development programmes (Kusyk, 2021).
Siemens' investments in renewable energy, the circular manufacturing process and intelligent infrastructure are also oriented towards the Triple Bottom Line (People, Planet, Profit) and enhance the efficiency and reduce emissions.
In the case of the British Red Cross, sustainability is attached to humanitarian action. It uses the same concept of Triple Bottom Line, grouping the issues around people in the form of humanitarian assistance, Planet by reducing its carbon footprint in its logistical operations and Profit by holding it accountable to finances. Its environmental practises feature waste, paperless solutions, and environmentally friendly transport solutions (Loviscek, 2020).
The second international concern is an culturally inclusive world. Siemens is a company with more than 190 offices in various countries, and it employs different teams where the dimensions of culture are applied with the help of Hofstede and contribute to the work and mutual respect among the employees. Its Diversity, Equity, and Inclusion (DEI) initiatives are enforced so that people have equal opportunities and understand the cultures and now, women occupy approximately 30% of the leadership. This kind of diversity leads to innovation and a stronger image of Siemens worldwide (Arsel et al., 2021).
In the same vein, the British Red Cross embraces the idea of cultural inclusion as a key factor to humanitarian performance. It educates personnel and volunteers about cross-cultural communication, assuring people of all origins reside in an impartial environment. Its Code of Conduct supports equality, transparency, and non-discrimination, that is characteristic of Red Cross Principles of Humanity and Impartiality (Ifrc, 1994).
Ethical governance is highlighted in the two organisations. Siemens helps to implement anti-corruption measures, disclosure, and responsible AI, whereas the British Red Cross ensures accountability of the donors and transparency of their funds. Such initiatives serve to strengthen organisational legitimacy and develop trust in the stakeholders (Loviscek, 2020).
Conclusion
To summarise, the Siemens AG and the British Red Cross analysis points to the fact that it is the cumulative impact of internal and external factors to contributes to organisational success. There is flexibility, efficiency, and focus of strategy through internal capacity, quality of leadership, and good structures, as well as digital innovation. Outside the organisation, the economic situation, globalisation and stakeholder ethics impact on decision-making, sustainability, and trust by stakeholders. Siemens shows how digital transformation and transformational leadership are the source of competitiveness, and the British Red Cross shows how ethical governance and servant leadership in humanitarianism work. The two organisations demonstrate that long-term sustainability is reliant on the equilibrium between profitability or social mission as well as ethical and environmental responsibility.
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