Category: Samsung

The Battery Issue

Samsung’s Galaxy Note 7 has been recalled worldwide after reports that the devices can catch fire while charging due to a problem in the smartphone’s battery. At first, there were reports that the phones could overheat and explode. More and more phones were returned to the stores; Samsung exchanged the blasted phones for new, supposedly safe ones. However, batteries in these phones exploded too.

At last, Samsung has stopped any sales of the Galaxy Note 7 and announced that the production of the smartphone would be shut down (Domonoske and Gonzales par. 1). Neither old nor new models of the smartphone seemed to be reliable – they continued to explode, resulting in injuries and ignition.

Samsung Galaxy Note 7’s batteries overheat because their battery management system does not work correctly; although it does control the electrical current during the charging, it does not communicate with the phone chip when the battery is full. Thus, it begins to overheat, becomes unstable, and explodes (Chamary par. 4). As experts state, the problem also lies within the lithium-ion batteries because the manufacturers prefer those batteries that are less stable but show higher performance (Chamary par. 5). Thus, to gain profit, manufacturers prefer to neglect consumers’ safety.

Ethical Framework

Ethics in business decision making implies that the company will follow a particular set of rules while manufacturing, promoting, and selling their product. The exploding smartphones have shown that, although the Samsung Company’s status and quality of products were supposed to be at the highest levels, they are not trustworthy from the consumers’ point of view. As stated in Samsung Electronics’ Corporate Ethics, “We care for the environment, health, and safety” (2). Nevertheless, the recent problems with batteries have shown that Samsung had not thoroughly evaluated the consequences of using cheap, but unstable lithium-ion batteries in their products.

How Samsung Neglected the Ethics

Ethical standards can be various, but the main three ethical frameworks used in business decision making usually are the Consequentialist framework, the Duty framework, and the Virtue framework (“A Framework for Making Ethical Decisions” par. 11). The first focuses on the future effects of the product and how they will influence the consumers. The second framework implies that the manufacturer will pay attention to the duties it has and how these duties can be followed correctly. At last, the third framework demands to examine the character traits and virtues (of the company) to understand what they might be indicating (“A Framework for Making Ethical Decisions” par. 15).

As can be seen, all three frameworks were violated by Samsung. Moreover, Samsung decided to self-test the batteries, while Samsung’s rivals in the industry sent their batteries to outside labs for testing (Toh par. 8). Although such an approach is common because it allows the companies to preserve proprietary information about the products, the testing could have shown possible outcomes of the batteries’ malfunction. Another unethical decision that Samsung Electronics met is the avoidance of a straight explanation of the problem and its cause. So far, the company has only stated that it is working on the problem. Supposedly, the issue with batteries in replaced phones is not similar to the one detected in the original phones (Toh par. 13).

However, consumers cannot be certain if the next electronic devices manufactured by the company will suffer from the same problem. The brand image has been spoiled by the scandal, and to return the trust of the consumers, Samsung needs to find the answer as soon as possible. The customers’ trust was also undermined when the company assured the target market that the replacement phones are checked and will not explode. Although it is not a lie per se, it is similar to a deception that should not be ever used by such prominent and respected brands as Samsung Electronics.

However, there is also a danger that other devices from Samsung Electronics will carry the same problem within. Therefore, the company needs to prove that other Samsung smartphones, especially those from the Galaxy line, will be safely used by consumers, and not overcharge, heat, or explode. Such an approach will help Samsung restore its authority on the market. So far, the Samsung Galaxy Note 7’s exploding batteries have been an advantage to other companies, especially Apple and Google that have just introduced their new products (iPhone 7 and Google Pixel).

Although the Samsung Company has been criticized by many media across the world, it still managed to meet some decisions that would help the brand overcome the crisis. All Galaxy Note 7 smartphones can be exchanged for a Samsung smartphone of another type. A refund is also available for the consumers. At last, Samsung also allows consumers to exchange the Note 7 for another brand. Although the company has lost billions of dollars due to the flammable batteries, it left the consumers a choice and did not simply demand to return the phones to the manufacturer. This approach is ethical, although it does not diminish the damage the consumers had already experienced.

Opinion on the Case

It should be noted that it is not the first smartphone ever that has had malfunctioning exploding batteries or set itself on fire. Other phones, including Nokia and iPhone, were reported to have similar issues. For example, iPhones have burned their owners’ hands, legs, and backs – these events were covered by the media, but they happened before the scandal with Samsung Note 7. Thus, the problem could be foreseen, but it was not – and the question is whether Samsung Electronics’ testing system is far from flawless or it is a common problem for lithium-ion batteries that manufacturers prefer to ignore.

What Samsung should have done is, at least, allow third-party testing of the product after the first reports about the flammable batteries came. Such action could have helped Samsung avoid the horrible follow-up that destroyed (almost literally) the Galaxy Note 7 brand. The scandal had an impact on many consumers in different countries, and while South Korean citizens may forgive their national brand for the mistake, others will not regard the problem so lightheartedly.

Herein lies the problem that can lead to Samsung’s breakdown – there are plenty of multinational rivals on the market that (especially after this situation) will try not to let down their customers in any aspect, including the batteries. Samsung’s reputation has been significantly wounded, and the company does not try to bring any explanations on how it could have happened and what is the problem behind the malfunctions. The exploding batteries and the company’s inability to provide explicit clarifications might bring even more harm than it was expected at first.

Works Cited

A Framework for Making Ethical Decisions in 2013. Web.

Chamary, JV. “Why Are Samsung’s Galaxy Note 7 Phones Exploding?” Forbes. 2016. Web.

Domonoske, Camila, and Richard Gonzalez. “Samsung Permanently Powers Down Galaxy Note 7 Smartphones.” NPR. 2016. Web.

Samsung Electronics. Corporate Ethics. Web.

Toh, Michelle. “Samsung Self-Tested the Galaxy Note 7’s Faulty Batteries.” Time. 2016. Web.

I. Innovation is a necessary element for the sustainability of technology-based organizations. Innovation however, is believed to be an ongoing process. The five main challenges of innovation faced by organizations are generation of ideas, the environment, protecting the idea, execution of the idea to create a substantial outcome, and persuasion, or changing the image of the product among the potential buyers.

Generation of new ideas is the most essential part of sustaining innovation within organizations. When there are no new ideas, there can hardly be innovation. However, here idea does not just imply a thought striking a simpleton.

Rather, it is the solution to a problem; a problem that the organization strives to solve. In case of Samsung, it is observed that Jong Yong Yun as the new CEO changed many of the operations of the company. Earlier, Samsung was primarily a company that aped the technology of more successful companies like Sony or Mitsubishi and created their own products. These products were deliberately priced low in order to cater to customers who, due to lower budget, would end up purchasing their products.

However, once Yun took over the company, he realized that the best possible way to make the company stop from making loses is to turn its innovation strategy. Earlier, Samsung did not innovate. Rather it aped technology and design of premiere brands. He pushed the company to develop its own products. He stressed on innovating new products rather than replicating products of Sony or other companies.

The stress on innovation and generation of new ideas for the sake of development of new and futuristic products that are called the “wow products” became the insignia for the new strategy that Yun had for the company. The stress on product development was shifted from aping of established technology to development of attractive designs and advanced technology. Two strategies that were adopted by Samsung in order to help in idea generation are –

1. Samsung shifted its focus from aping the products of higher end, premiere brands like Sony, and concentrated in generation of new products, especially those with advanced technology and innovative designs.
2. Yun hired young and fresh engineers and managers in order to change the orientation of the company.

The environment of generation of the idea is essential, as this would help the employees work and produce a conducive surrounding for flow of ideas. In a highly bureaucratic organization, flow of idea is constrained by various rules, regulations, and hierarchical norms. The environment of the organization was changed in order to create a sustained environment for generation of ideas. The two strategies employed by Samsung to create a proper environment for idea generation are:

1. Yun discarded the bureaucratic structure of the organization and changed the structure to a merit based system in order to motivate these new young managers and engineers.
2. The culture of the organization was changed from one that was essentially of old nature where seniority and hierarchy gained preferences. This allowed managers to go through fewer hierarchical layers to produce their idea at the right place.

Ideas generated must be protected. In a highly competitive digital market, Samsung had to ensure that it created an advanced technology and retained exclusivity of the product. The idea become common once its availability is rampant. In order to maintain exclusivity of its innovation Samsung adopted the following strategy:

1. In order to remain ahead of the other companies in LCD technology market, and encouraging innovation, Samsung sources half of its filters from Sumitomo Chemical Company of Japan and the rest half it sources internally. This enables the company to hold an upper hand over its competitors as they are in a position to source their own screens for LCD technology.
2. Further, reducing the time from idea generation to production from one year to six months also helps the company to support innovation.

Ideas are not enough for a manufacturing company to create profit. These ideas once formulated must be put into place. The creation of the ideas into concrete outcome is an essential step in generation of innovation. An idea in itself is just an abstract concept, however, once it is given a tangible form, it becomes innovation. Samsung employs the following strategies to help its employees to give form to the ideas generated:

1. Ideas generated by the innovation team were quickly processed through hassle free organizational structure.
2. As Samsung’s new strategy was to concentrate more on manufacturing, the innovative ideas generated by the managers and engineers were immediately processed through the production process. The company also adopted steps to make the process more competitive in order to speed up the production process.

New products once manufactured must also be accepted by the market. If the market for the new product is not developed this would just leave the products in the warehouses increase inventory cost and mounting losses. In order to avoid this step the company employed the following strategy:

1. Samsung employed a new strategy of marketing and hired a new marketing head.
2. The company produced customer-oriented products such that they could product the products that would tab the unfulfilled needs of the customers.

How did Jong Yong Yun incorporate the five dimensions of entrepreneurial orientation into the reorganization of Samsung in 1996-1998? Please list 2 arguments for each dimension.

II. The five dimensions of entrepreneurial orientation are innovation, autonomy, risk-taking, competitive aggressiveness, and being proactive. Jong Yong Yun as CEO of Samsung displayed all of the above five entrepreneurial orientations.

Yun operated almost autonomously in changing the structure and the strategy of the company. Yun encouraged innovation through hiring of new and young engineers and forged a competitive culture that nurtured innovative product development. The whole process of changing the strategy of the company was a risk that Yun had taken. Further, changing the culture of a company completely is also a risky task that Yun employed.

Further Yun aimed to make Samsung a premiere brand when it had the reputation of being a low-cost product was also a risky adventure. Yun’s competitive aggressiveness helped Samsung become more innovative and achieve the position of one of premiere brands of the world. Yun did not wait for ideas to come to him. He went about making changes as and where he felt it necessary. His proactive decision-making helped the company to achieve a new height of success.

III. The international strategy adopted by Samsung is to project itself as a company provides innovative, stylistic, and high quality products. in order to project itself as a brand that nurtures innovation, the company employed one advertising agency that looked after its promotions globally.

They helped Samsung create this new image. Further, Samsung stopped selling products through chains like Wal-Mart and K-Mart that had the reputation of selling cheap products. Instead, it started marketing its products through higher end chains. This helped Samsung change its strategy and internally project itself as a premiere brand.

IV. Yun has been a successful leader to transform the company from a loss making, low-end digital manufacturer to an international premiere brand. The transformation was done by employing the following steps.

1. Setting a direction: Yun from the very beginning aimed at making Samsung a premiere brand. His idea was to change the image of the company and produce products that would suit that new image. That is why he stopped the production of low-end replicated technology products and stressed on innovation and product development. Yun also created a structure that would sustain this innovative culture.
2. Designing the organization: In order to create a new organization, Yun changed the structure and culture of the organization. Samsung’s hierarchical structure was changed to have fewer layers to stop bureaucracy. Secondly, he also created an environment that would nature innovation within the organization. Innovation became the key to the success of the company.
3. Nurturing a culture dedicated to excellence and ethical behavior: culture is an essential element that nurtures successful innovation. Yun believed that he had to create an organization that innovated from within and not through replication. Therefore, Yun hired young minds who would brainstorm in a different, more open and energetic environment to create new ideas and put it into implementation. Another endeavor in this direction was setting up the innovation lab in Seoul that natured futuristic design and technology.

With over 200 subsidiaries across the continent, Samsung has devised a powerful business model in order to remain profitable (Samsung Global Strategy Group 2015). The firm uses innovative strategies and practices in order to produce new products. The concept of research and development (R&D) is also taken seriously. Such changes include eye-catching electronic devices and superior smartphones that can address the needs of more consumers.

Company’s mission: Devoting our technology and talent towards creating superior services and products that can contribute to a sustainable global society. Samsung’s vision is to inspire its stakeholders and communities by leveraging new technology, creative solutions, and innovative products.

This paper analyses Samsung’s business strategy. The findings are used to recommend the most appropriate strategy that can support the strategic needs of this organization in Asia.

Current Strategic Position of Samsung

Understanding Samsung’s Strategy

Throughout the 1970s and 1980s, Samsung was manufacturing and marketing cheap television sets and microwaves. According to history, the firm was struggling due to lack of superior products. The level of competition was extremely high thus making it impossible for Samsung to achieve most of its business goals. Many people believed that ‘the firm was also struggling with financial uncertainty’ (Lee & Lee 2014, p. 4).

Experts believe strongly that things have changed significantly for this giant company. The company’s products are superior and admirable. Many people ‘purchase Samsung’s products because they believe that they catch the pulse of the consumer’ (Singh 2012, p. 4). Samsung Group has understood how to focus on the buyer’s emotions. It achieves this goal by offering elegant, superior, and attention-grabbing devices. Such devices are designed in a professional manner in order to remain competitive in the global market.

Within the past two decades, Samsung has been combining various business strategies in an attempt to address the changing expectations of its global customers. It has focused on the power of innovation in order to achieve these goals. The company’s products are designed to meet the needs of every high-end market (Jung, 2014). However, competition has always remained a major challenge for Samsung. That being the case, the firm focuses on powerful approaches in order to deal with the increasing level of competition.

After producing its first Samsung Smartphone, the corporation conducted a thorough market research in order to understand the major issues facing different consumers. The firm realised that ‘most of the existing competitors were using high prices to market their devices’ (Bouman 2014, p. 8).

This observation encouraged the firm to lower the prices of its smartphones by around 20 dollars in various nations. This move was aimed at attracting many potential customers. More people realised that such smartphones were affordable. The move made it easier for Samsung to market more smartphones than ever before. The same business strategy was adopted for every segment and product (Singh 2012). This move improved the company’s business performance within the shortest time possible.

The above discussion gives a summary of Samsung’s business strategy. Samsung therefore continues to use a wide range of strategies and approaches in order to position itself in the global market. To begin with, the firm uses various approaches to change its brand image (Jung 2014).

Samsung uses powerful adverts and innovative strategies in order to become the leading producer of quality devices and services. As well, brand repositioning is undertaken in an attempt to inform more people about the firm’s superior products. This practice has become ‘a long-term investment at the company’ (Lee & Lee 2014, p. 8). It is currently attracting a large number of potential buyers across Asia.

PESTEL Analysis

Political

The political environment has been favourable for Samsung. However, the Asian region is associated with new political changes that can threaten its future performance. The current instability faced in Korea can affect the firm’s future. For example, the conflict between North Korea and South Korea can affect the region’s future political climate. Such political uncertainties can have disastrous implications on Samsung’s future business goals. Samsung considers such uncertainties whenever designing its strategic plans (Xu 2009).

Economic

The company operates in different Asian countries. The economic performances of such nations continue to dictate the firm’s business performance. The current economic vagueness experienced in the world should also be taken seriously. Many customers in different ‘Asian countries have portrayed a reduced purchasing ability’ (Markides 2004, p. 6).

The firm is presently considering new strategies that can support its business objectives. Statistics show that the economies of the nations are rising steadily. South Korea’s current GDP is 1.39 trillion US dollars (Nakagawa 2014, p. 221). The slow economic growth encountered in China has led to reduction in shipments to the country. This issue can affect the region’s economy.

Social Factors

Asia has encountered new social values and practices due to the current wave of globalisation. The changing needs of the targeted customers will affect the corporation’s business model. For example, more people are travelling frequently and engaging in various social activities. Samsung will be required to re-pattern its business strategies in order to address the cultural values and needs of many consumers in Asia.

Technological Factors

The company is very innovative thus making it successful. Samsung has powerful technological abilities and strengths. It uses such technologies to produce innovative and superior mobile devices. The use of modern technologies makes it possible for the Samsung to realise its business objectives.

However, Apple has ‘accused the firm of imitating its product design’ (Tong-hyung 2014, p. 3). The current lawsuit is affecting the trust of many customers in different parts of the world. The firm will also be required to use new technologies in an attempt to deal with competition and succeed in the smartphone industry (Xu 2009). Companies are also working hard to produce faster. Some competitors are also focusing on the superiority and effectiveness of bigger smartphones (Xu 2009).

Environmental Factors

New laws and policies force companies to engage in sustainable business practices. The firm is expected to focus on sustainable business strategies and operations. The company is required to keep the environment clean, manage waste, and support the needs of every surrounding community (Singh 2012). The company will have to ‘face stricter rules regarding the issue of sustainability in the coming years’ (Zafar, Habib & Bilal 2014, p. 72). These environmental issues are critical towards supporting many firms in this industry.

Legal Aspects

Samsung has been forced ‘to pay heavy fines for charges that it imitated Apple’s iPhone and iPad’ (Tong-hyung 2014, p. 3). This legal issue discouraged more customers in different parts of the world from using the company’s devices. As well, the firm has to consider various business laws and regulations in order to achieve its objectives. The current lawsuits affecting the firm can affect its future business performance (Xu 2009).

Analysis

According to the above analysis, Samsung has been facing competition from many companies. Some of these companies include ‘Apple Incorporation, Sony, Toshiba, Ramtoms, and Hewlett Packard’ (Singh 2012, p. 7). It is also notable that the firm operates in different market segments thus attracting more competitors.

The existence of competition is something that forces Samsung Group to focus on the most appropriate business approaches and practices. Such actions are undertaken in order to achieve its business potential. This issue explains why Samsung Group has been undertaking numerous research from the market. Such researches mainly focus ‘on the changing consumer preferences, competitive strengths of different companies, changing demographics, and emerging markets’ (Lee & Lee 2014, p. 3).

The next important step towards having a successful strategy is using reduced prices. Samsung Group ‘renews its pricing strategy frequently’ (Lee & Lee 2007, p. 498). This move is undertaken in order to deal with the increasing level of competition.

The pricing strategies are also dictated by the changing preferences and expectations of many Asian consumers. The prices used by immediate competitors are used to ensure the company’s products are purchased by more customers. The pricing strategy plays a significant role towards increasing the company’s sales and revenues.

The above business model explains why Samsung is currently one of the most profitable companies in the world. Its presence in many emerging Asian nations makes it more competitive. The firm is also playing a major role in its industry. This is the case because it ‘sets the pace for innovation, product improvement, customer support, sustainability practices, and technology use’ (Singh 2012, p. 3).

Samsung has also ‘forced different competitors to come up with superior gadgets that can meet the ever-changing needs of more consumers’ (Sun, Sun & Xu 2014, p. 4). Samsung’s efforts have forced many players in the industry to reduce their prices. This move has made different smartphones available to more customers. Such efforts have made Samsung a recognisable player in the industry.

Nature of the Industry

Consumers of such smartphones have remained loyal than ever before. They ‘purchase new devices whenever they are launched in the market’ (Bouman 2014, p. 8). The leading players in the industry have understood how to focus on this kind of loyalty. The competitors are always convinced that every new product will attract more potential buyers (Kess & Isoherranen 2014).

This massive industry is therefore characterised by numerous companies that market different smartphones to the increasing number of potential consumers. Bouman (2014) argues that the ‘industry is defined by ever-evolving designs and mobile technologies’ (p. 11). The leading competitors in the industry use aggressive pricing methods and continuous imitation in order to achieve the best outcomes. Most of the targeted consumers are very sensitive about prices thus forcing the players to focus on the best business practices.

The major consumers in this industry are usually aged between 18 and 45. As well, many older citizens and politicians have been observed to purchase such mobile devices. Rivalry has also remained extremely high in this industry. This is the case because many competitors use similar pricing strategies, technologies, and R&D processes in order to address the changing needs of more customers (Sun, Sun & Xu 2014). However, some companies have identified their specific competitive advantages in order to remain successful in this industry.

Apple has remained the biggest player in the smartphone industry. The firm is admired by many customers because of its ability to innovate and produce powerful devices. It focuses on a few devices in order to achieve the best outcomes. Apple Incorporation has ‘remained the most profitable, successful, and admirable firm in the industry’ (Singh 2012, p. 13).

It is also ‘identified as one of the biggest technology corporations in the globe today’ (Kess & Isoherranen 2014, p. 1117). The firm uses powerful R&D strategies and numerous resources to produce revolutionary smartphones such as the iPhone 4 and the iPhone 5. The company launched the iPhone 6 thus making it the most successful smartphone in the whole world. This argument shows clearly that Apple is a successful player in the industry.

As mentioned earlier, the smartphone industry focuses on the needs of many customers aged between 18 and 45 years. Majority of these customers have good jobs and opportunities. They are tech-savvy and have good education (Singh 2012). The competitors in the industry also understand how to partner with different software producers in order to deliver powerful apps. Such applications are usually aimed at addressing the needs of these potential customers.

The ‘other important observation is that the customers are global’ (Sun et al. 2014, p. 11). This means that the players in the smartphone industry should use international strategies to market their devices to more customers. Bouman (2014) believes strongly that ‘new markets will continue to emerge for these smartphones’ (p. 5).

More young and old people are embracing the benefits of such smartphones. The availability of 3G and 4G internet services also makes such devices more useful. These developments encourage more competitors in the industry to produce quality products than ever before.

Samsung’s Value Chain

Samsung uses a powerful value chain strategy in order to achieve its goals. The firm’s logistical operations are executed by different companies and subsidiaries. For instance, Samsung Electronics Logitec plays a major role towards supporting the company’s operations (Samsung Global Strategy Group 2015).

The operations make it easier for the company to deliver more goods to different potential customers. Proper marketing strategies are also used to support to support the company’s value chain. Sales promotions, advertisements, competent marketers, and logistical operations support the company’s value chain. The firm also focuses on the best practices in order to deliver quality services to different customers.

The other important consideration is that Apple uses powerful production strategies. It has been outsourcing different services in order to produce its superior devices. This approach has continued to produce the best results. This is the case because the firm has managed to reduce its production costs. The reduction of its production costs makes it possible for the company to market its superior products using reduced prices (Kess & Isoherranen 2014).

The firm’s revolutionary devices have remained successful in different parts of the world. However, Apple can never ignore the presence of powerful competitors such as Samsung, HTC, and Nokia, and Tecno (Kess & Isoherranen 2014). This situation explains why these companies focus on the most appropriate strategies in an attempt to emerge successful in the smartphone industry.

Challenges Facing Samsung

Many companies in this industry continue to face various challenges. Most of these challenges are external in nature. That being the case, the firms must identify and use the most appropriate strategies in order to achieve their business potential. Samsung is currently facing numerous challenges.

It is appropriate for the firm to use powerful strategies and approaches in order to deal with such problems (Bouman 2014). This approach will make it easier for the firm to achieve its business objectives. The PESTEL analysis presented below gives a detailed analysis of the major external factors affecting the corporation

Business Environment

Samsung also faces different strengths and weaknesses. Such strengths have been critical towards supporting its business strategy. The existing weaknesses are monitored and analysed in order to develop better strategies for effective business performance (Zafar, Habib & Bilal 2014).

The existence of opportunities encourages the company to pursue most of its business goals in a specific market such as Asia. Some threats can also affect the company’s future performance. The SWOT Analysis presented below gives a succinct summary of the company’s external and internal environments.

Porter’s Five Forces

The industry’s level of rivalry and attractiveness continue to present new challenges to the company. A proper understanding of the forces faced by Samsung in the industry can encourage the leaders to make appropriate business decisions (Rowley & Paik 2008). Such decisions will eventually support the company’s business practices. The Porter’s Five Forces presented below gives a detailed overview of the major issues facing this company.

Industry Rivalry

The smartphone industry has become very competitive. This is the case because there are many companies such as Nokia, Apple, and LG. Most of these companies ‘are fighting for dominance in the industry thus making it impossible for Samsung to become the leading player’ (Katkyama 2010, p. 24). Competition in emerging Asian markets is also on the rise. These changes continue to affect the company’s performance in the smartphone industry.

Barriers to Entry

This industry has giant corporations with operations in many countries. Every newcomer will be forced to incur numerous expenses in order to have a significant impact (Manchester 2012). As well, the companies incur numerous expenses in order to market their revolutionary devices to more consumers. This situation explains why the threat of new entrants is extremely low (Nedelea & Paun 2009). However, the existing players are making it hard for the firm to achieve most of its business potential.

Bargaining Power of Buyers

Many customers are providential to choose the best smartphones in the market. This is the case because the market has been flooded with different devices (Manchester 2012). The buyers are also ready to purchase specific products that can satisfy their changing expectations.

Producers and marketers of such phones must consider these needs in order to innovate the best smartphones (Nedelea & Paun 2009). Many consumers also want different companies to engage in sustainable practices. The bargaining power of such customers is extremely high thus forcing Samsung to embrace better business practices.

Bargaining Power of Different Suppliers

Many suppliers in the industry are able to offer quality services. They also supply a wide range of raw materials and accessories. Companies such as Samsung should be ready to address the needs of such suppliers in order to achieve their potential. It is appropriate for companies in this sector to analyse the changing behaviours and demands of these suppliers (Hill & Jones 2012). This approach will make such companies more successful.

Substitute Goods

The ‘smartphone industry is associated with a wide range of superior and substandard mobile devices’ (Hill & Jones 2012, p. 18). These smartphones can complete various tasks and satisfy the needs of more customers. Samsung has been forced to use powerful pricing methods in an attempt to deal with this threat.

The existence of such products will make it impossible for companies such as Samsung to become the leading players in the industry (Samsung Electronics: Sustainability Report 2014). The firm should therefore use powerful business tactics in order to attract more customers.

The smartphone industry is characterised by ‘unique trends that are not observed in the other sectors’ (Kess & Isoherranen 2014, p. 1114). To begin with, the level of competition in the industry has led to new changes and improvements. Such improvements are recorded every year in an attempt to deliver the best support to more customers. As well, the industry is ‘fast-paced because the players have the required financial strength’ (Bouman 2014, p. 8).

The companies operating in this industry have been focusing on the power of R&D in an attempt to produce superior products. Such products are aimed at transforming the lifestyles of the targeted customers. This fact explains why smartphones have been constantly changing. The companies have been adding new features that can attract more customers. Every new smartphone is believed to be ‘an improvement of its immediate predecessor’ (Bouman 2014, p. 9).

SWOT Analysis

Internal Analysis

The other important aspect of Samsung’s strategy is its continued focus on research and development (R&D). Samsung uses the concept of R&D to identify the gaps facing the industry. The firm attracts new experts in order to produce new smartphones that can compete successfully in the global market.

The same approach is used to improve different products in order to make them superior (Lee & Lee 2007). Innovation is embraced at this company. The practice makes it easier for Samsung to produce new products that can address various gaps in the market. Consumer feedback and suggestions are considered whenever innovating new products. Samsung has managed to produce powerful products that have the potential to address the needs of its loyal customers.

Tackling the Above Challenges: Implications

The use of Change Theory can produce the best results. For instance, Kurt Lewin’s change theory can produce the best outcomes (Hernaus 2011). The PESTEL and Porter’s Five Forces presented above should be used to address the issues affecting Samsung. The firm uses different strategies in order to deal with the above challenges. Such strategies are aimed at supporting the targeted business objectives.

The first approach focuses on the power of continued research and innovation. Samsung Group has employed advanced technologies and experts in order to produce quality smartphones. Such devices can compete successfully in the global market (Samsung Electronics: Sustainability Report 2014). The ‘firm uses the concept of innovation in order to realise every targeted goal’ (Hernaus 2011, p. 7).

The innovative practices embraced by the company are aimed at addressing various issues. The first issue to consider is the changing expectations of different consumers. The company produces powerful devices and smartphones that can deliver the best promises to such customers. The proposed theory will ensure the firm focuses on the best outcomes.

The completed PESTEL outlines the business strategies and innovations embraced by different competitors. The firm uses the strategy to produce new devices that can deal with the challenge of competition. Unfortunately, the firm has faced numerous lawsuits from Apple Incorporation.

The move has also ‘affected the company’s profitability after paying heavy penalties for alleged mobile design infringement’ (Jung 2014, p. 137). These penalties have affected the company’s image thus discouraging more consumers in different parts of Asia from purchasing its products. This challenge has emerged from the company’s continued efforts to become successful.

The second strategy used by Samsung in order to deal with the above challenges revolves around the concept of pricing. Nakagawa (2014) argues that ‘Samsung’s pricing strategy has been appropriate within the past ten years’ (p. 223). The firm examines the prices used by its rival companies. The firm uses cheaper prices to market its smartphones. This strategy has encouraged more customers to purchase and use the company’s mobile devices.

The emergence of cheaper products in the market has threatened the sustainability of Samsung’s devices. For instance, HTC is currently marketing cheaper smartphones in the market. New players such as Lenovo are making it impossible for Samsung to remain the leading player in the smartphone industry. Many consumers in Asia have also been associating the company’s cheap prices with ineffectiveness. This new problem continues to affect the company’s performance.

The firm is also known to use proactive measures in an attempt to deal with competition. For instance, the company produces numerous devices within a very short time. This prolific approach makes it easier for the firm’s devices to compete directly with other superior products.

Many customers have been ‘purchasing such products because they are superior, elegant, and cheap’ (Hernaus 2011, p. 8). However, this strategy has resulted in new problems. For instance, Samsung’s prolific strategy has discouraged many customers, especially in the developing world. Many Asians are ‘not ready to purchase new devices after every six months’ (Chang 2011, p. 76). That being the case, the targeted customers have decided to focus on superior devices such as the iPhone 6.

Samsung also embraces the power of technological changes in order to deal with competition and address every challenge encountered in the industry. The firm collaborates with different companies such as Google Incorporation in an attempt to produce powerful smartphones.

The company’s devices use Android operating system (Nakagawa 2014). However, many ‘consumers in the developing world believe strongly that the operating system is no match for Apple’s iOS’ (Chang 2011, p. 12). This scenario explains why the company’s products are yet to perform positively in the Asian market (Nakagawa 2014).

The above tools show how the external environment is forcing different companies such as Samsung to engage in sustainable practices. The concept of sustainability focuses on different issues such as ‘waste management, environmental conservation, and focus on the existing regulations’ (Chang 2011, p. 98).

The firm has collaborated with different stakeholders in order to promote the most appropriate sustainability practices. The corporation is therefore required to embrace the best practices in order to deal with these implications. The decision ‘to invest in new countries has encountered numerous challenges such as political instability, economic uncertainty, and reduced revenues’ (Chang 2011, p. 103).

Recommendations to Meet the Company’s Strategic Needs

According to the proposed theory, several changes will be required in order to support Samsung’s strategic needs and objectives. Such changes should be executed in accordance with the internal and external forces affecting the corporation. It is agreeable that Samsung uses some of the best business practices in an attempt to emerge successful (Samsung Global Strategy Group 2015).

However, the challenges identified above have been making it impossible for Samsung to realise most of its business goals (Chen 2015). The SWOT Analysis presented below should be used to support the best strategies.

The first route should focus on the benefits of corporate social responsibility (CSR). This approach makes it easier for many corporations to engage in ethical and sustainable businesses. Samsung’s new CSR should consider every ethical, legal, and environmental issue in order to achieve the best outcomes.

The approach will ensure the company’s innovation and R&D team produces original ideas. Such designs should ‘be competitive, innovative, and revolutionary’ (Chen 2015, p. 3). The firm should involve different stakeholders whenever addressing various sustainability issues.

A powerful ‘market strategy should consider different factors such as the prices of competitors, demographics, consumer needs, and presence of substitute goods’ (Jung 2014, p. 138). The above Porter’s Five Forces model should be used to address the needs of different suppliers and customers. The understanding will ensure the firm identifies ‘new market segments, technological changes, and changing demographics’ (Nakagawa 2014, p. 224).

The targeted customers in the continent will be able to support the company’s business strategy and eventually make the firm successful. Competition is something unavoidable in the smartphone industry. Innovative marketing approaches and customer-focused practices will eventually support the company’s entrepreneurial needs.

TOWS Analysis

This TOWS Analysis shows that Samsung should redesign its strategy. Samsung’s focus on different products affects its competitiveness in the global market environment (Chen 2015). This situation should encourage the company’s leaders to concentrate on a limited number of segments. The smartphone sector should also be given priority because it has the potential to produce the best results (Katkyama 2010). These strategic paths will eventually make Samsung a leading marketer of advanced smartphones in Asia.

Reference List

Bouman, T. 2014, Samsung Enterprise Business: XChange Solution Provider. Web.

Chang, S. 2011, Sony vs Samsung: The Inside Story of the Electronics Giants’ Battle, McGraw Hill, New York.

Chen, L. 2015, ‘The World’s Largest Tech Companies: Apple Beats Samsung, Microsoft, Google’, Forbes, vol. 1, no. 1, pp. 1-4.

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Jung, S. 2014, ‘The Analysis of Strategic Management of Samsung Electronics Company through the Generic Value Chain Model’, International Journal of Software Engineering and Its Applications, vol. 8, no. 12, pp. 133-142.

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Lee, B. & Lee, S. 2014, Case of Samsung’s Mobile Phone Business. Web.

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Markides, C. 2004, ‘What is Strategy and how do you know if you have one’, Business Strategy Review, vol. 15, no. 2, pp. 5-12.

Nakagawa, R. 2014, ‘The Rapid Growth of the Smartphone Market in China and the Business Ecosystem’, AJ, vol. 25, no. 3, pp. 219-229.

Nedelea, S. & Paun, L. 2009, ‘The Importance of the Strategic Management Process in the Knowledge-Based Economy’, Review of International Comparative Management, vol. 10, no. 1, pp. 95-105.

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Samsung Electronics: Sustainability Report 2014. Web.

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Singh, D. 2012, ‘The High-Quality Low-Price Business Strategy of Samsung Mobile in Penetrating Competitive Market of India’, SSRN, vol. 1, no. 1, pp. 1-16.

Sun, J., Sun, X & Xu, T. 2014, ‘Competitive Advantage Based on Innovation: The Case of Samsung’, Renmin School of Business, vol. 1, no. 1, pp. 1-13.

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Xu, R. 2009, ‘Analysis of Samsung Notebook Strategy: Case Study for Samsung Notebook’, NHH, vol. 1, no. 1, pp. 1-76.

Zafar, F., Habib, I. & Bilal, H. 2014, ‘How to achieve Financial Gains with Corporate Social Responsibility in Businesses’, European Journal of Business and Management, vol. 6, no. 1, pp. 68-77.

The Samsung Group of companies ran various subsidiaries among them Samsung Electronics that owned Samsung Electronics Canada. As much as the company has been a success in Canada, it faced various challenges when the management under the stewardship of Park set up the strategy for branding in Canada. The first was the amount of Capital to invest in promotions. The challenge was whether the budget allocated on promotional services was to be increased or retained. There was another issue of the reasons behind either of the decisions.

In 2003, the management had introduced new brand-building initiatives, yet the amount allocated to advertisements and promotions had remained constant for half a decade. Over that period, more than half of the amount had been channeled to promotional services. In the same year, Park had to make a decision on whether the $ 15 million allocated to the sector was enough considering the new developments. To arrive at a progressive decision, Park had to consider two other issues. First, SECA was enjoying advantages of advertisement by SEA that had increased advertising coverage following a decision to increase expenditure in that business division. Secondly, the head office was planning to sponsor global events such as the Olympics. The decision to take full advantage of the spillovers was well advised. This is because to a large extend it cut down on the expenditure.

The second challenge was associated with company products and their distribution. New developments had indicators of abolishing low-end products that were valuable in Canada. The challenge for Park was that these goods formed the primary source of profits for SECA. The decision by Park to continue the production of the same was wise as it would not have made sense to kill the products that formed the base of the profits. In the same breadth, a challenge was whether SECA would change its distribution style to emulate Sony. As much as the system had merits, the challenge was that, the system was already associated with the rival. Allowing the chain stores to operate under the Samsung brand was wonderful while the company owned production part.

The third problem was related to pricing. A choice had to be made between retaining the existing retail prices and increasing them. In adopting the former, SECA would have to find other sources of funds for its repositioning efforts. In the latter, the company faced the risk of losing clients to competitors. Categorizing the products into various classes did the magic in differentiating the prices.

Stages of brand building

Brand Positioning

Samsung always endeavored to make sure that customers put great value on their products. Most goods were sold to end consumers using retailers. LCD monitors had to be sold directly to consumers since they became popular. Goods with real value were produced so that they capture customer interests. SECA however, used special stores such as future shops and Best Buys to release their products to the markets.

Attribute

The company products are characterized by their nature that falls into two categories. Consumer electronics that include appliances are on one hand and the Information Technology products on the other end. The basis of this strategy takes two dimensions. It puts into consideration the interests of retailers and the customer. The aim is to maximize sales volumes against the profit margins. SECA uses prearranged factory transfer prices. The VCRs were considered price-valued, Conventional televisions and appliances were premium-priced. Other products were categorized as mid-range. In the Information Technology division, LCDs recorded impressive records because of its fame and increased demand.

Benefits

SECA enjoys the use of various marketing mixes to promote its different brands. Most of them however, depended on the happenings in the US. The focus was to make sure that both current clients and target clients got information about products. Although the company profited from spillovers of advertisements, it became difficult to get tailor-made adverts for its Canadian market. High definition television sets and cable networks were flagship projects specifically for Canada.

Beliefs and values

Samsung’s values and beliefs are pegged on the production of a range of products under its brand. Television sets both audio and video, camera and their recorders, mobile phones, Home appliances and the PCs make up the various groups of products. The company has put together a team of professional experts to produce these goods. The designers segment the products to suit dynamic markets while at the same time keeping the quality high. Mobile phones, Television sets, laptops, and consumer electronics are priced to fit the disposable incomes of people in various cadres.

Market segments

The top management of SECA grouped the consumer electronics market in Canada into four. The segments were the young generation, hobbyists, high-income families and the business users. The company targeted the high-income consumers because from them bigger profit margins could be realized. This group was characterized by large, one-time purchases of goods whose durability was high. High quality televisions are some of the products that were common to these customers. The decisions made by this group were guided by the brand image. Statistics had shown that these consumers preferred associating with established brands. The result of this was that the company experienced twenty percent increase in sales from this group. This was more than the overall increase by the whole company.

SECA categorized the young generation as the second high-growth segment. Buyers in this grouped were teenagers and others barely thirty years of age. The catch was in their interests and enthusiasm for change. This group was however, hampered by limited resources. They therefore, tended to buy small gadgets. To cater for them the company vigorously marketed MP3 player and other high- tech digital products. The business user group was ranked third. It went for goods that were reliable and could satisfy their needs. Quoted here was when the banks replaced all their CRT monitors with LCD monitors in all their branches. Hobbyists were smaller group whose profit margin was modest since most of them were price sensitive.

Analysis of the Marketing Mix

Samsung Electronics owns the Samsung Electronics Canada. It is headquartered in Mississauga, Ontario. Most of its products come from Korea and US. The duties of the company include advertising and promotions, Sales force management and Customer service. The company uses various marketing mixes in all this. Product pricing is one method that it needs to improve. More categories of this should be added. This would make the company expand its idea of profits. It would maximize both sales volume and profit margins.

The company also uses its positioning and distributions as another mix. Adopting a wholesome approach where goods will be sold both in bulk and to individual consumers would open avenues for increased profits and customer contacts. In using promotion as a marketing mix, the company should develop specific promotional activities to suit their Canadian markets. SECA finally, uses its products as another mix. The range of products produced by the company must be increased. The company should learn from some of its flagship products that have done well in Canada. This area will make SECA venture into new market areas in addition to holding tightly in areas they fully control.

Importance of Business Interests in Foreign Countries

Samsung is one of the largest organizations in the technology industry, linked to its philosophy of orientation concerning a wide array of electronic devices tailored to individual populations. It has a positive policy and marketing strategy that deals with internationalization (Almutairi et al., 2019). The organization utilizes a diversification structure, leading the multinational conglomerate to operate in different sectors such as the electronics manufacturing industry.

The technology organization further operates in a market with relatively easy market entry as technological development and minimal product diversification have resulted in many market entrants. Its interest in foreign countries is a major risk for Samsung if it does not continually develop the processes necessary to address different regions worldwide (Almutairi et al., 2019). The organization should balance high-quality products and affordability to maintain a large market share. This is difficult due to the varying nature of countries, making companies in the smartphone manufacturing industry keen on innovation and foreign markets as they need continual growth in customer loyalty to remain competitive.

Business Interests’ Impact on Accounting-related Policies

Samsung has faced numerous tumultuous periods in recent years owing to the changing demographics in its electronics markets worldwide. For instance, South Korea sought to revitalize its businesses and asked Samsung to reinvest in the home country instead of outsourcing its production to Vietnam (Arnold & Lewis, 2019). Samsung’s conglomerate nature needs to adhere to each country’s accounting norms to prevent litigation if it fails to consider proper accounting designs.

Furthermore, Samsung faces great economic turmoil due to the changing business environments posited by the war in Ukraine and covid-19 effects. Global supply chains faced a significant alteration, factors that affect the company’s accounting policies to reflect changes in the markets (Arnold & Lewis, 2019). Samsung’s supply chain needed revamping following the need for different supply chains to mitigate covid-19 effects worldwide during 2020 and 2021.

Accounting Processes

Business Accounting Cycle

Samsung’s accounting cycle involves sourcing documents such as ledgers, conducting a trial balance, and developing financial statements to reflect the company’s position in the electronics industry (Samsung, 2019). The organization uses standard business practice, producing a quarterly financial statement.

Bad Debt Expense

The company’s bad debt expense account illustrates it has been losing money from the failed collection of payments or other revenue generation schemes (Samsung, 2019).

Revenue Recognition

Samsung recognizes revenue based on the likelihood of its probable significance in terms of reversing the organization’s cumulative revenue. The company determines revenue when the risk or reward of ownership is transferred to the buyer, or its consideration amount is measurable. Its financial statements are recorded with Korean IFRS, while audits adhere to International Auditing Standards (IAS) (Samsung, 2019).

Inventory Methods

Samsung manages inventory using Lean Six Sigma. This is an inventory management system aimed at boosting manufacturing processes. The organization uses a reduced cycle time through its SLIM model (Samsung, 2019). Additionally, it creates most of its products in the 3rd quarter, taking advantage of a boost in demand. Finally, Samsung regulates product development as most of its inventory is manufactured in-house. Samsung faces compliance issues by developing a solution to financial accounting problems. The organization needs to develop an accurate notion of each country of operation’s laws to adhere to Korean and local accounting policies.

Conclusively, Samsung operates in a highly competitive industry that requires innovation and adherence to strict and prudent accounting practices to ensure success. It uses a SLIM and internationalization strategy due to its global nature. Samsung uses Korean IFRS and the IAS to ensure compliance with accounting policies. It keeps ledgers, and journals, producing quarterly income statements and balance sheets to illustrate its position within each fiscal year.

References

Almutairi , M., Mehta , S., Al Rashidi, F., Villa , M. A., & Anggawinata, F. (2019). Analysis of Samsung’s Internationalization Process and The Strategies Implemented to Generate an Effective Positioning of Its Brand and Products in Foreign Markets. Journal of the Community Development in Asia, 27–39.

Arnold, G., & Lewis, D. (2019). Corporate Financial Management. Pearson Education Limited.

Samsung. (2019). (rep.). SAMSUNG ELECTRONICS Co., Ltd. 2019 Business Report For the year ended December 31, 2019 (pp. 1–261).

Introduction

Samsung is a large South Korean electronics company that has global market coverage. This firm was started in 1938, by Lee Byung-Chill as a trading firm. During these years, this firm traded as a retail firm, mostly in apparels. The firm received a massive growth and extending its line of products to include food processing, insurance, textile and securities. The firm was able to grow rapidly because of the enabling environment.

This firm entered the electronics industry in 1960s. The management of this firm had seen some of the benefits of operating in the electronic industry. Technology was becoming relevant, and this firm realized that there were a lot of opportunities in this industry. The management believed that the firm was able to make it through given the kind of labor it had, and the resources it had managed to amass.

In 1970s, this firm entered shipbuilding and construction industry. The management was determined to diversify in as many industries as possible in order to minimize the effect that may arise due to any external factor that may affect any of the industries.

This was one of the first few firms that embraced Total Quality Management as a tool for ensuring that there is constant customer satisfaction. Since then, this firm has received a consistent growth in various sectors it has invested in. this firm currently operates in different units, with each unit in its own industry, and operating semi autonomously. Samsung Electronics is the world’s largest IT Company in terms of revenues earned (Montgomery, 2012).

This unit has been in constant competition with Apple in the Smartphone industry, and given the current trends, it is easier to predict that this firm may soon become the leading manufacturer and distributer of Smartphone. Samsung Heavy Industries is the second biggest shipbuilder on the basis of the revenue earned. Other notable Samsung products include Samsung Engineering which offers various engineering solutions, Samsung Life Insurance which offers life insurance, and Samsung Everland among other products.

SWOT Analysis of Samsung

According to Montgomery (2012), SWOT analysis is always a very important tool that helps in determining the internal ability and weaknesses of the firm, and the opportunities and threats that are available in the external environment. This analysis will help in understanding this firm, and in knowing some of the factors that have propelled it to its current position in the market.

Strengths and Weaknesses of the Company

Samsung has some special abilities that can be considered its main strength in the market. The ability of this firm to diversify in about ten industries which includes electronics, locomotives, insurance, entertainment, transport, among others is a special ability that makes it stand out in the world as one of the few firms to operate in more than ten industries (Samsung mobiles, 2012).

To help it succeed in these industries, this firm has come up with a quality control unit in all its subsidiaries in order to ensure that it delivers quality products to the customer. Ability to deliver quality service to the customer has made it develop a special niche in the market making its products popular across the world.

The firm is also one of the first firms that embraced value chain management (Cheap Samsung phones, 2012). Through this, the firm has been able to continue satisfying its customers at a cheaper cost. The ability of this firm to adopt the emerging technologies has been considered as strength by other firms. Samsung Galaxy is one of its recent products that demonstrates its capacity to deliver special satisfaction to its customers by bringing products that are a little beyond the expectations of the market.

Despite the above strengths for this firm, it has some weaknesses that have impeded its growth to a given degree. One of the main concerns that this firm has not addressed properly is the issue of environmental management. The components of the products of this firm are known to be very dangerous to the environment (Samsung mobiles, 2012). Old phones, television sets, laptops among other products pose a serious challenge to the environment.

This firm has been criticized by a number of scholars, alongside other firms, to be leading in the pollution of the environment. This firm is yet to come up with a clear structure on how it can manage environmental pollution caused by its wastes around the globe (Yodhia, 2013). The firm has claimed that it has been engaging in corporate social responsibility. However, this has not been enough to make the public believe its commitment to a cleaner environment (Cheap Samsung phones, 2012).

Opportunities and Threats

In every industry, there are always opportunities and threats that a firm may come across in the external environment. There are various opportunities that exist for Samsung in its operations in the global market. One of the opportunities that this firm has had is an expansive and unexploited market in the third world countries (Cheap Samsung phones, 2012).

Most of the electronics firms have focused their effort on building a large base of loyal customers in the leading economies like the United States and the European markets. This firm has managed to tap into the emerging markets in African and parts of Asia. The stable economic growth in the major economies means that there is increased opportunity for this firm to increase its sales in such countries as the American markets and the markets in Europe (Cheap Samsung phones, 2012).

This growth of the economy means that the consumers will always have enough to spend on luxurious goods such as Samsung Galaxy. There is an interesting trend in the market where this firm is competing with Apple for the market share of the tablets.

The Samsung Galaxy Note 10.1 and Apple iPad 3 have been competing in the market for supremacy (Samsung mobiles, 2012). Although this may be considered as a threat, this competition has offered the two firms an opportunity to acquire a special niche in the industry, outsmarting some of the former industry giant like Nokia and Motorola.

The emergent of an economically empowered youth around the world is also another opportunity that this firm has been able to exploit (Cheap Samsung phones, 2012). In the IT industry, their main target market is the youth. With an economically empowered youth, this firm can generate a lot of benefits through increased sales.

There are threats that exist in this industry that is worth noting. Technology is probably the main threat that this firm faces in this industry. Samsung has used technology to reach its current position. It is one of the few firms that have managed to adapt to the emerging technologies very fast.

However, it is a nightmare trying to figure out what some of the competitors can do with this same technology. Another threat that this firm faces is the stiff competition posed by rival firms. This industry is one of the most competitive industries in the world (Samsung mobiles, 2012). Any slight mistake by the firm may result in a situation where its market share is taken over by other rival firms.

Evaluation of SWOT Analysis

The SWOT analysis above shows that Samsung is in a very strong competitive position in the market. The firm is in a sound position to compete favorably with other firms and achieve desired results. The firm can easily continue pursuing its current strategies profitably. In order to turn its weaknesses into strength, this firm should consider increasing its campaigns on environmental conservations. This can be achieved by developing new strategies taking into consideration the current prevailing circumstances

Conclusion

The analysis of Samsung done above clearly demonstrates that this firm has a higher capacity to achieve the best result in various industries in which it operates. This firm should consider coming up with a marketing management strategy that will make its products not only known, but also cherished in the market.

The management should put customer’s satisfaction above immediate gains such as profitability. Profitability of a firm always comes as a result of a built trust between the firm and the buyer. It may cost the firm trying to develop this trust. However, once the trust is developed, there will be a continuous profitability to the firm. The management should also take into consideration, the need to maximize emerging technologies as a way of remaining competitive.

The market has become very hostile, and Samsung must ensure that it develops competitive strategies regularly to counter threats posed by competitors. This can be achieved through structuring the company on the basis of the current market forces, and ensuring that technology is at the core of all operations of the firm.

References

Cheap Samsung phones. (2012). The history. Web.

Montgomery, A. (2012). Apple and Samsung on the rise in Best Global Brands ranking. Web.

Samsung mobiles. (2012). Samsung history. Web.

Yodhia, A. (2013). Sample of SWOT Analysis: Samsung case. Web.

Introduction

The success of a business is determined by the quality of decisions that managers at different levels make. The decisions should be well thought and ensure that at any one point they can facilitate utilization of a company’s strengths and it mitigates internal weakness.

The decisions should ensure that a company stands external threats as it takes advantage of opportunities offered by environment it is operating in. S.W.O.T. and T.O.W.S analysis are management tools used to interpolate external and internal strengths of a company. Samsung is an international electronic company with well known brands in the market (Samsung Official Website, 2010).

By undertaking an S.W.O.T. /T.O.W.S. analysis for the company, its stakeholders will understand its market standing. This paper takes a look at S.W.O.T./T.O.W.S analysis of Samsung Company.

Strengths

Samsung has is highly developed in technology; this assisted the company make products which are responsive to customers need all over the world. Its products are respected for their reliability and quality. This has made the company gain a strong brand name.

Customers have become loyal to the company as they are aware and guaranteed quality. In every five months, the company undertakes its level of technology evaluation and aims at being the leader in technological development in line with its mission statement. It also has a well developed art-crafts infrastructures.

The company has a pool of experienced employees who are able to make unique products which the customers want. In decision making, employees are included to give their contributions. This move that has assisted the company improves its products with time. This has created customer satisfaction and helped the company command a large market. The company focuses at ensuring their end customer satisfaction.

Increased population with better lifestyles has created a demand for electronic goods. This results to an increased market that can be tapped by the company.

Weaknesses

The company lacks an innovative mind to make new products; rather it focuses on improving its current products. This hampers its products differentiation since they are similar to those in the market with few improvements. This is a competitor attack approach which may not always work to the good of Samsung.

The company enjoys economies of scale which from a psychological point of view acts to the disadvantage of the company. The large market enables the company to sell its products cheaply, however people tend to think that low cost goods are low quality. This affects the companies market negatively.

As a result of massive investment in technology and products improvement, the company’s products are ahead of the level of technology that people in the world have. This has resulted to products which are not user friendly (Goold & Campbell, 2002).

Opportunities

Globalisation has facilitates the movement of goods and services across different countries. If the company is able to differentiate its products, the opened economies offer an opportunity for large markets. It should also aim at offering artefact variation. When this is affected, the company is able to enjoy a larger market share than it currently enjoys.

The company already enjoys customer loyalty, it can further the advantage by offering product variation. At-least it has a base that it can lay foundation for future products developments on. If it aims at increasing the type of products it produces as it improves the current brands, the company is likely to enjoy an increased customer base.

The demand for mobile phones has drastically increased. This is an opportunity that the company should take advantage of. It should venture in the areas more aggressively and aim to produce commodities that satisfy the needs of all classes of customers since phone are bought across the board (Fred, 2008).

Threats

Electronic industry has a number of strong players; they include Sony and Nokia Company. This high competition limits Samsung in attaining its goals and objectives. Competition with these well developed players requires an aggressive management team which makes products which are responsive to the needs of customers.

Some companies like Nokia have concentrates in one area of production; phones, this has made their products quality to be higher than those of companies dealing with more than one category of products. Competing with such companies offers Samsung a problem.

Samsung advertising and marketing methodologies are not excessive; however its competitors have excessive advertising. This threats that the company may lose its existing customers.

The world is recovering from economic crisis which occurred from end of 2007. This is offering a threat to businesses since market has gone down and not predictable (Esquerre, 2005).

Conclusion

Understanding a company’s strengths, weaknesses, opportunities and threats is important as it assists management and stake holders in making various decisions regarding the company. Samsung enjoys a high level of technology which results to customer satisfaction; however the company lacks products differentiation.

The external environment offers opportunities for more businesslike in mobile phone segments but the challenge that the company has is high competition from established players. To ensure that the company remains competitive, its management should embrace aggressive marketing and innovations methodologies.

Bibliography

Esquerre, B. (2005). Have You Done Your S.W.O.T Today? Fitness Business Pro, 21(12), 24. Retrieved from Business Source Complete database.

Fred, D. (2008). Strategic Management: Concepts and Cases. New Jersey: Pearson Education.

Goold, M. & Campbell, A. (2002). Do you have a well-designed organization? Harvard Business Review. 80(3). 117-124.

Paley, N. (1999). The manager’s guide to competitive marketing strategies. New Jersey: CRC Press.

Samsung Official Website. (2010). Web.

Introduction

Globalization has resulted in an improved trade among different countries. There is movement of goods and services from one country to another. The policies of comparative and absolute advantage are economic tools which have facilitated the development in international trade. Electronic industry is drastically changing with many phone making industries on the increase.

This has resulted in making of different models of phones, laptops and other electronics. One of the world leading electronic makers is Samsung. It is located in Samsung Town, Seoul, South Korea, and forms the world’s largest conglomerate company by revenue. The main products by the company are Television sets, Radios, phones, Camera tape recorders, and recently it has diversified to a growing laptop market.

The idea to have such a company was coined in 1969 by Lee Byung-chull and started as a small electronic workshop. The company’s main mission is to inspire the world to create a better future for human species. The company aims to introduce its laptops to Australia. Australia is the world’s smallest continent but Samsung has not tapped the market with its new development.

This paper evaluates the decision to venture in Australian market, the focus on developing/forecasting options for 2025. It will also undertake this task by evaluating social, economic, political situation of Australia. In the last pages of the report, it will give recommendations on the leadership style to be adopted in the venture.

Brief background of Samsung

Samsung is an international South Korean company which was established in 1969 in Daegu, South Korea as a small electronic shop. The first venture of the company was to manufacture Television sets, radios, Calculators and other home electronic appliances like refrigerators.

This was in the era of black and white T.V. sets and in 1981, the company had made over 10million black and white T.V.s. as opportunities arose the company diversified to other electronic ventures and in 1988 merged with Samsung Semiconductor & Communications. This merger was the door to modern products of the company.

To remain competitive in the changing electronic world, the company has ventured in massive technological development where it has made products aimed at satisfying the end customer. One of the strongholds of the company is technological innovation and development of its products. It also enjoys a large market and thus it can sell its products at relatively low prices.

This move has enabled the company target all classes of population in its countries of operation. Internally the company has a strong working team which it ensures that they are given a good working condition to facilitate innovation and creativity among them. The company understands that the area that it is operating in should benefit from its operations and thus it has embarked on massive corporate social responsibilities.

These responsibilities include tree planting, scholarships, and health programs. In the international market, the company operates in terms of branches of the main company and it has also franchised its name to marketers and sales company but all products manufactured are centrally controlled (Samsung Official Website, 2010).

The following chart shows the core values held by the company;

Diagram 1

In 2009, the company made revenue of $117.4 billion. This was the highest in Conglomerate Company in the world. The major competitors of the company are other electronic companies like Sony, Nokia and LG.

The target market

The company aims to venture in Australian market where it aims to sell laptops. The company already has a branch in Australia; however the branch does not sell laptops. The reason where the venture has not been facilitated is the perceived competition in the country; however as trend in social, economical, and political environments change, by 2025, the company aims to have ventured and dominated the market.

One of the countries that it imports to is Asia. Despite that it has opened its borders for trade, there are supply logistics, which are procedural that must be undertaken when a company is importing into Australia. The move has been attracted by the following factors which exist in Australia.

Population and Economic Trends in Australia

Australian population and the world population are on the rise where the numbers of youths who are enlightened is growing considerably. Australia, the world’s smallest continent with a population of 22,431,468 (Australian bureau of Statistics, 2010), involves itself in international trade to ensure that there is a wide range of products for its population.

On the other side, office spaces are becoming limited and an existence of briefcase companies on the rise. These people however need to communicate with each other and do business. One of the ways of doing this is the use of laptops. On its side laptops will need to be charged, the technology of solar changing can be the solution to this. It is cheap to use and efficient clean technology.

The world is continuously facing an increased population. The numbers of youth and young families, who are continuously adopting modern lifestyle, are on the rise. As a result there is increased demand for laptops. With the rate of population growth, the number of people in the country is expected to double. The increase will offer Samsung adequate market to support its operations and remain afloat in the country.

On the other hand, the company has good relationship with other countries which makes it an international market destination. This will assist Samsung to tap more international customers as they trade in Australia.

The economic growth rate according to World Bank reports is expected to grow at a rate of an average of 4% in the next decade. On the other hand, the after world cup effect will oil to the machinery of economic growth and thus the future of the country can be predicted to be bright as the days go by. As the economy expands, the costs of carrying out business will highly be reduced.

The labor market is composed of both locals and international people living in the country. There are both private run jobs and those that the government has. According to the Australian bureau of statistics in April 2010, the rate of unemployment stood at 5.4% up from 4.4% in the year 2007 survey. There is a minimum wage rate that is determined by the grade that the employee is. This is provided by the labor laws in the country.

The federal minimum wage is of $14.31 per hour and $543 per week (before tax) since October 2008. The largest population of the working class is the youth and students. Each state is given the freedom to set some of the laws that govern them regarding labor. Some of the general rules are that for an immigrant to get a job, he or she must have a Job permit. The economy is a 24 hour economy and thus the workers work in shifts.

The country recognizes the trade unions that are under the bracket of Australian Council of trade Union. The labor unions are the ones that fight for the rights of the employees in areas like wages, weekend, and leave policies. The trade unions have reduced the incidences of strike in the country and of late there is no reported national wide strike.

The employment rate, technological development, and increased living standards that are continuously increasing in the country will create a demand for Samsung Laptops. When people are learned, they understand the need for information and will buy laptops.

By 2020, the country aims to have at least 95% of its population connected to the internet. This move will offer market to Samsung products. To ensure that the company is able to tap the market, it should use the existing branch to introduce the product. Already the company has a strong brand name in Australia

Proposed Expansion Project

The expansion will be to Australia. Samsung will introduce its new product (laptops) in the Australia market. The program will incorporate the following process;

• Undertaking a research and market analysis to establish the best way to enter and remain competitive in the market
• Expanding Australian Samsung Company; the expansion will be aimed at accommodating the new development
• Training managers who will directly be involved in the implementation
• Setting targets and strategies to attain them

Samsung have a strong brand name in Australia and it’s respected for its advancement in technology. The products will enter the market through Samsung branch in Australia. It will also work with Australian local telecommunication companies where it will offer laptops to these companies for sale at a discounted cost.

Information about development or advancing across cultures: A Comparison of Country cultural issues likely to influence the project

Different countries have different culture which can influence the implementation of Samsungs products. In Australia, there are different cultures which are influenced by the origins of various ethnic groups in the country.

Since late 17th century, the culture of Australians can be defined as Anglo-Celtic Western culture, however with globalization this culture has been eroded and only thin streams of it exist. Today, there is a move to the American culture and British culture.

Most of earlier visitors to Australia were Muslims from east Indonesian archipelago. In the 19th and 17th century, most visitors were fishermen and traders. They arrived through the islands of the Malay Archipelago and New Guinea (Caldwell, 1987). The main area that they inhabited was northern coasts of Western Australia, the Queensland and Northern Territory.

They were Muslims who traded with local Indigenous and fished for sea cucumber which was nicknamed, ‘trepang’. These early coastal interaction led to intermarriage of Makassar-ese and locals. In the late 17th century, Muslims from African countries which British had concurred came to Australia as sailors or convicts.

The early significant number of Muslim immigrants was in 1800s when Afghan camel drivers arrived from the Indian sub-continent. The different ethnic groups have different perceptions towards Samsung products. Those who originate from countries which have good trade relations with Korea are likely to embrace the move faster and easier than those who originate from countries which are not in good trade terms with Korea.

One of the major breakthrough that globalization has brought is enhancing movement of people from one region to another. Persons of different cultures interact. It is appreciated that human beings develop a certain mode of behavior from factors arising from socialization right from childhood to adulthood. Our values, beliefs and morals are largely influenced by the society we live in, culture, and hereditary factors.

Societies have different mechanisms that are geared to re-enforcing certain behavior deemed acceptable. However, as human beings interact with each other, change their lifestyle or are compelled to change their mode of belief whether consciously or not, a behavior modification, which in most cases conflicts with previously instilled values, occurs. Globalization has enabled people to interact with each other.

They have different culture and the emergence of a global culture is starting to be experienced. Such leads to acquisition of new ways of doing things and cultural exchanges; of the greatest it influence the information and technology’s role in enhancing cultural effects.

The consolidation of the media such as the television, the internet, radio, magazines and newspapers from one country find their way to another because of the opened interaction between nations, consequently influencing people’s way of life.

As Australians interact with other countries, they change their kind of lifestyle. The new culture which has been born by interaction as a result of globalization will offer a good trade platform to Samsung as it will reduce the effects of negative ethnicity (Moran, 2005).

Leadership styles needed

For a start, the company should be supported by the head office and the branch. There should be a number of employees who work directly in the local Australian Samsung Company and focus specifically on the promotion of laptop business.

The company will embrace two leadership styles; they are

Distant Leadership

This is a style of leadership where a leader is not with the team but operates by giving instructions from a distance. Samsung head office is the one which will use the approach. Top management of the company will be mandated to use the leadership structure. In this style the leader ensure that he has a well structured team which can be run alone without much control.

He may also operate via micro team leaders who are answerable to him. This kind of leadership has one advantage over other styles in that it offers team members a chance to undertake decisions without always consulting the leader.

They are trusted with programs and thus given a chance to exercise their talents and potentials. The success of this approach in Samsung Company will be dependent on the qualification of the managers of Australian branch.

The weakness of this kind of leadership is that the leader has no control over the actions of team members they may involve in unacceptable conduct with the ignorance of the leader. On the other hand, the style does not create close link between the leaders and the team this hinders loyalty to man the team. Finally, the leader lacks in-depth understanding of issues affecting a team and thus could make uninformed decisions.

Close leadership

The approach will be adopted by the managers on the ground in Australian Samsung Company. This is leadership where the leader is in close proximity with the subordinates. He is with them at all stages and goes through different experiences with them.

He understands problems that his team is undergoing through and participates in decision/solution finding not from a told point of view but an in depth understanding angle. Close relations lead to a team that fully understand each other’s strengths and devised means of creating efficiency (Williams, 2009).

Managers of Australian branch will be the one to advice and formulate policies to be used in Australia for marketing Samsung New products.

Business communication-development

Business communication is vital for success in all businesses. For an effective marketing and adverting, Samsung must ensure that it understands the most effective internal and external communication strategies to adopt in Australia. Success in this context means, being able to accomplish a particular task or to achieve a specific objective.

Good business communications in relationships either with fellow staffs or customers is needed in order to prosper. Business success can be measured in terms of the practicability of business relationships which is directly proportional to the quality of communication.

Four communication weaknesses or barriers at Samsung are overload of messages, failure to share information among major stakeholders, failure to include employees in decision making processes, and personal attributes. Organizational culture is complex with varied definitions. It includes custom, knowledge, belief, morals, and personal capabilities; it affects the communication efficiency in a company.

Examples of variable that can shape an organizational culture are value, gender, norms and morals which are held by the organization members. Values are the basic principles that make up an organizational culture. Scholars argue that, it is likely that, one can scrutinize the values that are apprehended in a particular organizational culture and make some modifications.

In most cases organizational values are stable and many people disagree with the fact that such values can be changed. Every organization holds different views when it comes to gender. Some view that, men should be given more responsibilities than women while others belief that men should be paid more than women.

Norms are the accepted social rules that guide the behavior of a certain group of people in a particular situation. It is the corporate responsibility of organization executives to posses as well as exercise the ability to shape organizational morals in order to make the organizational culture effective (Guffer & Almonte, 2009).

Conclusion

Samsung is an international South Korean company which was established in 1969 in Daegu, South Korea. It is located in Samsung Town, Seoul, South Korea, and forms the world’s largest conglomerate company by revenue. The company aims at developing an additional expansion which will be responsible for selling laptops in Australia. The move will target to make the company the leading laptop provider in Australia.

It attracts investments due to the following factors; high population growth rate, multicultural practices in the country, strong brand name of Samsung existing products in the country and strategic positioning of the country.

When the move has been implemented, the company needs to have a two stage management, this is where there will be distance leadership (this will be controlled from head office) and close leadership (this is control from local branch). They will aim at developing appropriate market entry and dominance strategy.

Reference List

Australian Bureau of Statistics.(2010). Australia’s Population. Retrieved from https://www.abs.gov.au/

Caldwell, J. C. (1987). “Chapter 2: Population”. In Wray Vamplew (ed.). Australians: Historical Statistics. Broadway, New South Wales, Australia: Fairfax, Syme & Weldon Associates. pp. 23 and 26. ISBN 0-949288-29-2.

Guffer, M. E. & Almonte, R. (2009). Essentials of Business Communication. New York: Cengage Learning.

Moran, A. (2005). Australia: nation, belonging, and globalization. London: Routledge.

Samsung Official Website.(2010). Samsung. Retrieved from https://www.samsung.com/africa_en/

Williams, H. (2009). Leadership Capacity — A Key To Sustaining Lasting Improvement. Education, 130(1), 30. Retrieved from MasterFILE Premier database.

Executive summary

• Information is power.
• Credible information on quality improvement is important to this organization.
• The organization to adopt ‘quality electronic production techniques’.
• Methodology used helped in data gathering.
• This organization to advance its competiveness based on the findings this presentation.

This presentation will discuss the importance of adopting and embracing quality provisions within your. It is important to adopt ‘quality electronic production techniques’ due to the sensitive nature of the electronic gadgets. This forms the proposed program that this organization should adopt. Information in this presentation emerged from secondary techniques helpful in data gathering. This ensured achievement of in-depth information applicable in facilitating the realization of factual findings (Lehman et al, 2010). Analytically, effective production of quality electronics will require this organization to set proper planning and use of non-defective materials. It is recommendable that this organization should advance its competiveness based on the findings of this presentation.

Introduction

• Organizations endeavor to succeed despite the challenges.
• Quality improvement critical for this organization’s advancements (Kothari, 2005).
• Data was acquired through secondary resources.
• Results/findings helpful in advancing this organization.
• Recommendations will incorporate proposals (Dantzker & Hunter, 2012).

This presentation will address growth-oriented and credible performance issues established to steer the production of electronic facilities (with functional value) in this organization. The discussions will be based on the diverse sub-headings set to improve service delivery in this organization. Evidently, this organization should enact quality improvement provisions based their validity and relevancy in the current market. Analytical aspects used in this study provided credible information on quality provisions for this organization. It will be crucial for this organization to advance and eradicate possible defects that might compromise the quality of electronic items produced. It is imperative to agree that this organization endeavors to grasp considerable market share globally; nonetheless, this can be achieved fully through establishment, ratification, and embracement of quality production processes.

Statement of the Problem

• This organization experiences low performance and quality hitches.
• Items do not match functional specifications and durability required (Luo, 2001).
• Quality techniques to be adopted promptly.

The ratings of this organization indicate low performance rates. The company has registered low ratings on scientific, environmental, and social ratings despite credible advancements in technologies (GoodGuide, 2012). You are required to score 10 out of the possible 10 due to the sensitive nature of your business (Luo, 2001). This has been hindering your performance in various aspects. Consequently, it has called for the need to present a report on the imperativeness of adopting quality techniques of manufacturing excellent software(s). The information is set to streamline operations at this institution by facilitating the adoption of probable manufacturing procedures and integration of superior processes of electronic assembling.

Methodology Used

• Execution of extensive study for this organization.
• Methodology identified (Lehman et al., 2010).
• Secondary technique of information gathering applied to help in the acquisition of reliable data.
• Credible investigative technique adopted and purposive information gathering method applied.
• Analysis and recommendations made for this organization.

This presentation report is provided after the execution of an extensive study through application of clear guidelines and procedures from the initial stages to completion. Secondly, the recipients of the report were identified where the board members, administrators, employees, and consumers of this organization are the probable beneficiaries. The information will enhance your knowledge of the effective electronic production techniques worth adoption. Secondary technique of information gathering was applicable to help in the acquisition of reliable data (Kothari, 2005). A credible investigative technique was adopted where purposive information gathering method was applied. The technique helped in the realization of realistic, relevant, and accurate data that addresses the purpose of the study sufficiently. This enables identification of data collection techniques (DCT) that purposely provide relevant information required by this organization (Dantzker & Hunter, 2012).

Results and Analysis

• Implementation of quality production techniques requires absolute dedication and determination.
• Quality provision critical.
• This organization to initiate proper supervisory measures
• Hire qualified Quality Assurance personnel (Chitale & Gupta, 2007).
• Implement quality electronic manufacturing techniques.
• Processing of excellent electronic items important (Evans & Evans, 2008).

Implementing quality production of electronics in this organization requires absolute dedication and determination of various stakeholders. Evans & Evans (2008) states that realization of highly functional electronic products that fosters individual’s performance and communication requires eradication of inconsistent manufacturing practices that might compromise quality. Quality is a critical provision in an organizational environment (Chitale & Gupta, 2007). This institution should also initiate proper supervisory measures and hire qualified Quality Assurance personnel to manage assembling of electronic parts. As noted, it is significant to implement quality electronic manufacturing techniques. Quality must be nurtured through systematic approaches. The approaches must be informed scientifically and technologically to avert possible complications. This organization should adopt favorable machine maintenance mechanisms and limit the use of obsolete materials in assembling various equipments.

Findings

• Quality to be observed for enhanced customer satisfaction and organizational progress.
• Adoption of quality electronic production techniques crucial (Lehman, DuFrene & Jaffe, 2010).
• This organization to streamline its processing procedures.
• Quality production depends on policies, production strategies, assembling procedures, and personnel literacy levels (Gad, 2008).
• Products produced should attain timely supply and professional handling.
• Managers to design performance policies (Locker & Kaczmarek, 2007).

Quality should be observed for enhanced customer satisfaction and organizational progress (Gad, 2008). Adoption of quality electronic production techniques is crucial in advancing people’s lifestyles. Electronic assembling should follow due procedures to ensure that quality items with functional orientation are produced for usage (Lehman, DuFrene & Jaffe, 2010) . As noted, the realization of quality production of electronic items is dependent on various factors that range from policies, production strategies, assembling procedures, and personnel literacy levels. The products also require timely supply and professional handling to facilitate their usage in good time. Based on the findings, the managers of the company have a responsibility of designing performance policies to promote effective coordination of electronic assembling (Locker & Kaczmarek, 2007).

Recommendations

• Recommendations set to enhance policy formulation in this organization.
• Eliminate the usage of obsolete raw materials and processes due to their adverse effects (Chang, 2008).
• Use recommended materials that are user-friendly.
• Execute proper planning and resource allocation.
• Strike a clear balance on resources allocation.

There are several recommendations proposed for this organization based on the findings and the results attained. This company to enhance its policy formulation and ensure that relevant measures are undertaken by the company’s administration to streamline its production of electronic gadgets. In particular, you should eliminate the usage of obsolete raw materials and processes due to their adverse effects. You also need to use recommended materials that are user-friendly. Proper planning and resource allocation is also essential in ensuring timely and quality processing of the products (Chang, 2008). Resource allocation facilitates acquisition of relevant processing equipment and various incentives that are crucial in the realization of quality output.

Managers should strike a clear balance on resources allocation to ensure that there are adequate funds to facilitate the acquisition of the needed raw materials, hiring of competent personnel, and purchase of relevant equipment. standards by everyone participating in the processing sequence. This would facilitate production of electronic gadgets with limited defects.

Conclusion

• Quality observation is important to this organization.
• Adoption of viable manufacturing procedures and integration of quality processes will be helpful.
• Company’s officials to craft more conventional processing policies.
• This organization to facilitate the development of viable performance strategies that are technologically informed and consumer oriented.

Quality observation is important to this organization’s growth. The ratings of this company indicate low performance rates on scientific, environmental, and social ratings despite credible advancements in technologies. On the methodology, a credible investigative technique and a purposive information gathering method was used. Based on the findings, the adoption of quality electronic production techniques is vital in advancing this company’s progression. The company has a responsibility of designing performance policies to promote effective coordination of electronic assembling. Analytically, this company should implement quality electronic manufacturing techniques.

References

Chang, S. (2008). Sony vs. Samsung: The inside story of the electronics giants’ battle for global supremacy. Singapore: Wiley.

Chitale, A. & Gupta, R. (2007). Product design and manufacturing. New Delhi: Prentice-Hall of India.

Dantzker, M. & Hunter, R. (2012). Research methods for criminology and criminal justice. Sudbury, MA: Jones & Bartlett Learning.

Evans, J. & Evans, J. (2008). Quality and performance excellence: Management, organization, and strategy. Mason, OH: Thomson Business and Economics

Gad, S. (2008). Regulations and quality. Hoboken, N.J: Wiley

GoodGuide. (2012). Related Company Ratings. Web.

Kothari, C. (2005). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd

Lehman, C., DuFrene, D. & Jaffe, C. (2010). Professional communications: 2010 custom edition (2nd ed.) Mason, OH: Cengage Learning.

Locker, K. O., & Kaczmarek, S. K. (2007). Business communication: Building critical skills. Boston, MA: McGraw-Hill.

Luo, Y. (2001). Strategy, structure, and performance of MNCs in China. Westport, CT: Quorum Books.

Samsung. (2012). About samsung, Web.

Chang, S. (2008). Sony vs. Samsung: The inside story of the electronics giants’ battle for global supremacy. Singapore: Wiley.

Chitale, A. & Gupta, R. (2007). Product design and manufacturing. New Delhi: Prentice-Hall of India.

Dantzker, M. & Hunter, R. (2012). Research methods for criminology and criminal justice. Sudbury, MA: Jones & Bartlett Learning.

Evans, J. & Evans, J. (2008). Quality and performance excellence: Management, organization, and strategy. Mason, OH: Thomson Business and Economics

Gad, S. (2008). Regulations and quality. Hoboken, N.J: Wiley

GoodGuide. (2012). Related Company Ratings. Web.

Kothari, C. (2005). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd

Lehman, C., DuFrene, D. & Jaffe, C. (2010). Professional communications: 2010 custom edition (2nd ed.) Mason, OH: Cengage Learning.

Locker, K. O., & Kaczmarek, S. K. (2007). Business communication: Building critical skills. Boston, MA: McGraw-Hill.

Luo, Y. (2001). Strategy, structure, and performance of MNCs in China. Westport, CT: Quorum Books.

Introduction

Well established modern business organizations have increasingly been seeking to expand their operations beyond the boundaries of their mother countries. Consequently, at the international level we have a new kind of business known as international business.

Business organizations particularly from world’s major economies and the emerging Asian economies offering goods and services in different commercial sectors or industries are striving to establish a high profile presence in the international markets in an attempt to improve their profitability and remain competitive in an era of accelerated globalization.

Some of them are part and parcel of the business organizations known as multinational corporations (MNCs) or multinational enterprises (MNEs) which have operational branches in many stable nations world over.

There are various reasons that motivate a company’s desire to expand to the international or foreign markets. Kurtz have identified four main reasons that usually motivates companies or business organizations seek to expand to international markets namely the desire to use current resources and access to new resources, seeking to expand or develop new markets, competitive rivalry and controlling core competences and learning (215).

These authors point out that companies search for economies of scale in the use of their existing resources by expanding in to new foreign markets. At times they enter international markets in order to reach certain valuable resources like raw materials, specialized knowledge or cheap labour.

As companies become well established in the domestic markets they begin searching for international markets in order to increase their revenue and gain more profits, enhance their competition with major rivals and influence further development of their core competencies Kurtz (215).The aim of this task is to analyze Samsung company in UAE.

Doing Business in UAE

United Arabs Emirates (UAE) is situated southeast of Arabian Peninsula in southwest Asia on the Persian Gulf. It borders Oman and Saudi Arabia and shares sea borders with Iran, Qatar, Bahrain, Iraq and Kuwait Communicaid (1).

It’s a federation of Emirates ruled by Emirs and hence termed as the United Arabs Emirates Communicaid (1). According to Mina cited in Greenaway, UAE is a major player in world trade and that it has been the most significant Middle East trade partner for the European Union,US,Canada and Japan (61).

UAE’s religious and historical influences combined with a progressive attitude and broad economic opportunities make UAE a most fascinating and unique place to do business Communicaid (1).Communicaid observes that a proper understanding of UAE’s unique culture is vital for those wishing to profitably do business in the Emirates (1).

Samsung’s International business strategies

Samsung Company originates from South Korea. The Samsung Group of companies is made up of many international associated businesses like Samsung Electronics, Samsung Heavy Industries, Samsung Engineering, Samsung C &T, and Samsung Life Insurance among others which are united under the popular Samsung brand.

Samsung began to rise as an international corporation in the 1990s.It is during this same period that Samsung changed its strategy from an emulating cost leader to a differentiator. Rowley and Paik notes that Samsung sold off ten subsidiaries downscale and amalgamated operations so as to concentrate on three sectors in order to form the group’s core namely Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering and construction (11).

Samsung Electronics is the world’s largest technology company in terms of sales volume. In fact, Samsung brand is particularly popular because of its consumer electronics brand. For example, Giudice, Peruta and Carayannis points out that “Samsung has been the world’s most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world.” (P.66). Samsung’s electronic products from mobile phones to smart TVs are popular in the UAE markets.

Even though there are numerous advantages that accrue from a company’s expansion into international markets, proper international business strategies must be put in place by the management in order to reap the benefits of economies of scale.

As Samsung approached foreign markets against a background of the popular Asian money crisis in the 1990s, the firm underwent important strategic changes in order to stand a chance of succeeding in international business as well as domestic business Mathur (269).

The firm shifted from being a company driven by technology that was largely imported into a firm that was driven by the market. In its international business, Samsung has successfully embraced a market driven strategy that is receptive to change Mathur (269).

According to Mathur (269), Samsung’s international business strategies have been guided by the firms endeavors to value creation and profitability, the need to become differentiable and one offering distinct value for money to its customers (269).

Its international business strategies have also included innovativeness for creating products and finding new foreign marketplaces, a better understanding of its market places and extensive use of R&D to develop new products for its customers whose taste and preference is constantly changing.

These strategies according to Mathur enabled Samsung to become a recognized international brand by the 2001 (269).Samsung’s major competence has been its leadership in digital technology, digital displays and digital wireless since 1980s Mathur (269).

Samsung adapts its products for its different foreign markets. Kurtz argues that the main key to success in international markets lies in a company’s ability to adapt its products to local inclinations and culture (216).For example, in order to satisfy its China’s large and different population Samsung provides different models and price ranges on its electrical devices and electronics Kurtz (216).

Samsung marketers according to Kurtz understands that people who live in the hot and humid climate of Guangdong province require bigger refrigerators than those who reside in the northern parts of China (216).Samsung thus adapts its products to suit the preferences and ways of life for specific markets.

Even though Samsung has been the most popular consumer electronics in the world since 2005, it is bound to encounter stiff competition from other key players like Nokia in UAE electronics markets. According to Giudice, Peruta and Carayannis Nokia has been a first mover for long.

For example, by 2003 Nokia was importing more than five million devices while Samsung was shipping only a few hundreds. In addition, Nokia has been among the forerunners to venture in creation of smart phones and go the directions of foreign markets requiring low cost phones like China and India Giudice, Peruta and Carayannis (66).Samsung has to put on these competitive elements in order to trade profitably in UAE.

Difference between vision and mission in formulation of business strategies

Many people assume that business vision and mission are one and the same thing and even uses the two terms interchangeably. There is however a clear distinction between these two things in a business context. However, the two are integral parts of a business strategy.

According to Stark, a business mission is the unique undertaking or reason for which a company is intended or destined (130). A business mission clearly describes the purpose of the company. He argues that there is a big difference between a strategy and a mission. On one hand a mission describes a company’s purpose while on the other hand a strategy describes the way to achieve goals of a company (130).

In a nut shell, a business mission identifies a desired destiny while a strategy describes how the company will reach that destiny. For example, Samsung’s mission can be to provide the most superior affordable products for all people in different stations in life while its strategy for realizing that can be through innovation, economical and proper use of resources and skills.

Stark observes that a vision in a business context is a mental image of something in future. So that a business vision describes the desired future state of a company thus it is also different from a strategy that describes the way a company like Samsung will achieve its objectives Stark (130).

Conclusion

To sum up, business strategies are to a large extent universal in nature and even application especially in market economies. What make them different are essentially the diverse business environments of various world economies. So that what makes a firm’s international business strategy different from its national or domestic strategy is of course diversity in business environments.

Therefore, the most important question that is supposed to bother a firm like Samsung is not whether the market is foreign or domestic but whether there are differences in business environments of its target markets.

If there are no differences then its domestic business strategy need not to be changed in order to succeed in a foreign market but if the business environments are different, new international business strategies must be designed or its domestic business strategies must be adapted to suit its target foreign market so as to reap benefits of expanding into international markets.

Works Cited

Communicaid. Doing Business in the UAE | UAE Social and Business Culture. Communicaid.com.Web.2009. 5th May 2011.

Giudice, Manlio, Peruta, David and Carayannis, Elias. Knowledge and the Family Business: The Governance and Management of Family Firms in the New Knowledge Economy. New York, NY: Springer, 2010. Print.

Greenaway, Daniel. The World Economy: Global Trade Policy 2008. London: John Wiley and Sons, 2009.Print.

Kurtz, David. Contemporary Marketing. New York: Cengage Learning, 2009. Print.

Mathur, Charles. Global Business Strategies. New, Delhi: I. K. International Pvt Ltd, 2011.Print.

Rowley, Chris and Paik, Y. The changing face of Korean management. London: Taylor & Francis, 2009. Print.