Control Mechanism's

Control Mechanism's

Market control is the control use of pricing and economic elements that influences the regulations of the company. Siemens Building Technology defiantly utilizes market control. Siemens is a service based company. SBT provides service within building technology, for example, fire systems, security as well as the new addition which is HVAC.

The Solutions department is a section of SBT that provides the initial plan and installation. Solutions will create a project plan and submit it to different clients. It is similar to placing a bid for a job. Once the bidding process is complete, there is an agreement made. Of course this process allows the lowest bidder to win. The market rates play a big part in this process. If cost of product is high or possibly the process of shipping and installing is high, there will be a flux in bids. A competitive edge must always be active to maintain market control. Every aspect of production will be at competitive pricing. There are elements like supply and demand and accessibility that makes market controls have highs and lows in production. The cost to run off of the status of the economy can vary. The training and supervision is low due to the fact that the standards are based off of the current market rates.

The Sales department is the next process for SBT. Once Solutions provides a positive experience for the clients, the sales team will attempt to obtain a contract. The aspects of contracts consist of advantage points like locked in pricing; for instance if the market rate for products or installation increase, all of the contract customers are locked into their contract rate. Another advantage point is if a customer utilizes their system and needs constant service, than a lower rate would apply opposed to the adjusting rates.

The Service department is the last of the three divisions that use market controls. Contract as well as non contract customers will call in and request service for several different reasons. The most consistent reason that reoccurs is the fire system having false alarms or other issues that need to be resolved. The charge to the customer varies. Like I have previously stated, depending on the current market rates, time and maintenance charges with vary. Many customers need replacement parts or additional stations, when this occurs the service coordinator will attempt to get the most competitive price from different vendors. The Economic state will influence every aspect of SBT’s process. From the initial bid all the way down to monitoring of the systems. Market control is what makes Siemens Building Technology successful. Without the guide of the adjusting market, SBT could

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