“A functional modifications are essential to keep up

“A careful review of the strategy content
literature reveals that the essential quality of a strategy is its originality
since originality allows a firm to outperform its rivals. Originality can take the form of a first-mover advantage, a
unique position in the market, a unique bundle of resources, or a unique
dynamic capability” (Gibbert, 2010). Strategic changes are
aimed at developing a new sort of alignment — a new fit between the basic set
up of the company and the features of the environment. While functional
modifications are essential to keep up the company and organisational systems,
strategic changes are aimed at renewing them. Some areas of the company’s
business system and a corporate system could be maintained, but some will need
to be changed for the company to remain competitive and up-to-date. This
practice of continuously enacting strategic modifications to stay in harmony
with outside conditions is known as ‘strategic renewal’. We talk about
strategic change when basic alterations are made to the company system or the
organisational system (de Wit, 2010).

Siemens is a German-based
multinational in the electronics and electrical engineering industry. While the
German market barometer rose slightly over 25% from October 1 to September 30,
1999, Siemens’ stock surged over 90%. This is true for the capital market
bubble, which burst spectacularly as expected and nor can Siemens escape these
effects and their resulting pressures. During the second quarter of 2001,
however, ”dark clouds gathered over the global economy”. The most important
reasons were the world economy declined in the aftermath of September 11 (Gibbert, 2004).

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The project studied at the Siemens firm called the ‘Top Plus Program,’
searched to enhance business excellence by concentrating on the three so-called
‘Top Plus Fields: productivity, innovation, and growth. Siemens made great
progress in the three top fields. In the case of the first Top Plus field,
productivity, the firm had generally realized productivity gains of between
three and four percent a year before the program was imagined. Since the
execution of the Top Plus Program, the business gathered productivity gains
totalled almost 40 percent. Concerning of the second Top Plus field,
innovation, the business also made significant progress. From the early 1990s,
Siemens enrolled an average of 3000 inventions each year and in 2002 the number
had increased to over 8000 each year. Concerning the third Top Plus area,
growth, the Business saw new orders rising from 20bn Euro to almost 60bn Euro