Schneider Electric Singapore Pte Ltd
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Introduction to Management15 September 2017Mahirah Binte Abdul MahidCT0288357Word Count: 2322PT DipBL8Diploma in Business & LawAbdul RaoofIntroductionSchneider Electric Singapore Pte Ltd is a French multinational corporation & they are a global specialist in management of energy & providing solutions for the automation industry (Company Profile, n.d.). They have been operating in Singapore for the past 4 decades & currently has 1500 employees (Hui, 2015).According to Company Profile (n.d.), “Schneider Electric develops connected technologies and solutions to manage energy and process in ways that are safe, reliable, efficient and sustainable. The Group invests in R&D in order to sustain innovation and differentiation, with a strong commitment to sustainable development” (para. 2).Schneider Electric (SE), being a global leader, provides a wide range of engineering hardware & solutions such as Programmable Logic Controllers (PLCs), Variable Speed Drives, Solar Panels & Light Switches for residential usage (All Products, n.d.).SE’s modus operandi or mode of operation includes selling the hardware & solutions to system integrators (SI), local, regional & international distributors or directly bidding for huge government tender projects such as Changi Airport Terminal 4 & Marina Barrage.According to Hui (2015), over the next couple of years, Singapore will see an investment of S$102 million by SE to reinforce & expand their presence here. This includes establishing a software industry solutions centre & a software regional hub. PESTEL AnalysisPESTEL is a management framework used in strategic management to analyse the external factors affecting businesses. Businesses are not able to control these factors & they typically influence certain decisions made by the organisations. Political/LegalThe political & legal aspect of this framework refers to the overall stability of the political situation of a country & the extent of government intervention that can potentially affect organisations & businesses. It also involves the country’s legal system & how the said laws affect the business. Singapore gained independence on 9 August 1965 & her political arena has been dominated by the People’s Action Party (PAP) ever since (Introduction to …System, 2017). According to Introduction to …System (2017), “Singapore, under the leadership of the PAP, possesses a distinct political culture: authoritarian, pragmatic, rational and legalistic. Singapore’s power structure is highly centralized, characterized by a top-down style. It features appointment rather than election to most offices. Economic growth and political stability were maintained by the paternal guidance of the PAP. Thus, Singapore is not administered by politicians, but by bureaucrats, in a meritocracy where power is gained through skill, performance, and loyalty to the nation and its policies” (para. 3).
In 2006, the Tripartite Alliance for Fair Employment Practices (TAFEP) was set up to ensure workplaces were fair, responsible & progressive. According to Vision & Mission (2014), TAFEP’s mission is “To promote the adoption of fair, responsible and progressive employment practices so as to enable employees to realise their full potential and help their employers achieve organisational excellence” (para. 2).SE has adopted many initiatives to promote diversity & inclusivity of culture, gender equality & leader programs to complement TAFEP’s mission. According to Diversity & Inclusion (2016), “Schneider Electric Singapore won the corporate category in the HeForShe Impact Awards by the Singapore United Nation Women. The HeForShe Impact Awards is a supported by UN Women. It’s the first and inaugural award given by Singapore UN Women with as much as 70 entries submitted. The mobilization for HeforShe in Singapore has been recognized with the award” (para. 2).EconomicThe economic aspect of this framework refers to the country’s tax inflations, currency stability & unemployment rates which could potentially affect decisions made by businesses & organisations. Singapore’s economic growth over the past few years have been relatively stable & saw a 1.8 per cent Gross Domestic Product (GDP) growth in the year 2016 (Singapore Economy …Lee, 2017).According to Prime Minister (PM) Lee in Singapore Economy… Lee (2017), although a stable economy outlook is forecasted over the next few years Singapore however still faces a shortage of labour & required skills.According to Kit (2017), Singapore’s unemployment rate has also been slowly creeping up standing at 2.3 per cent as of March 2017.Moreover, PM Lee commented that, “Singapore’s clean, efficient business environment is not so easy to replicate. That’s an advantage we enjoy over many other quite vibrant economic centres but operating in a different way from Singapore. To keep on upgrading and keep on earning more that means you must keep on either improving the business environment; infrastructure or improve the skill and quality of people and I think we do all three” (para. 9 -10).Singapore’s corrupt-free environment has also benefitted businesses & foreign companies. According to Political & Economic …Limited (2016), a survey conducted by Political & Economic Risk Consultancy Limited (PERC) indicated that out of 16 countries surveyed, Singapore was positioned as the least corrupt country, achieving a score of 1.6. Earlier this year, SE was listed as amongst the World’s Most Ethical Companies by the Ethisphere Institute for 7 years in a row. SE also developed a Responsibility & Ethics Dynamics program to assist employees to resolve conflicts involving ethics (Schneider Electric …Companies, 2017).