Strategic Positioning and Environmental Audit for Samsung

This presentation discusses the strategic positioning and environmental audit for Samsung. It covers the strengths, weaknesses, opportunities, and threats for the company. It also explains the significance of stakeholder analysis in formulating new strategies. The presentation further explores a new strategy for Samsung using internal and external factor evaluation matrices. It concludes with insights into the future business strategy of Samsung.

BUSINESS STRATEGY
(TASK 2)

2.1 Strategic positioning by conducting
organizational audit
 Organizational audit generally help the business
organization to take enormous actions in order to place the
venture where it is existing today to a desired position where
it will be placed in the future.
Organization audit for the given venture can be done with
the help of SWOT analysis so that the firm will be able to
achieve their goals and objectives in effective manner.
 SWOT analysis for Samsung has been discussed effectively.

Continued...
Strengths:
 Samsung is considered as one of the most successful electronic
manufacturers. Further, the cited firm is also the largest
manufacturer of the television sets, LCD, mobile as well as
smart phones.
 Samsung holds the largest market share in many of the product
categories.
 Samsung having strong manufacturing and marketing
capabilities which make them unique and different from other
competitors.
 Samsung took the advantage as by identifying the growing
economy of the Asian market and they have set their
manufacturing plant in India in order to reduce their logistics
and supply chain.

Continued...
Weakness:
Still, Samsung is unable to match the Apple marketing
capabilities in the smart phone market. Apple share price has
extended quite more and on the contrary, Samsung has faced
the loss of 2.3%
Samsung's marketing tactics are still not so sophisticated as
compared with Apple.
Cited firm is leader in hardware segment but they have to
still depend on the software from different other parties.

Continued...
Opportunities:
 Samsung is growing the middle class segment by selling
more of their electronics products at an affordable price in
whole world.
 Planning to increase their sale with the help of online
mediators like Amazon, eBay, etc.
 Mentioned company also have strong financial position and
have opportunity to get into unrelated diversification.
 Organization is focusing on obtaining patents with the help
of acquisition.

Continued...
Threats:
 Samsung is working on different segments and product line.
Failure in one of the product will surely influence other
products and will lead to decrease in goodwill.
 Chinese companies like Xiomi and Huawei are growing
rivals for the venture as they are selling mobile phones with
better specifications in quite low cost.
 If Apple started developing consumer electronics product
like home appliances, then Samsung will face stiff
competition in that segment as well.
 Rapid technological advancement and declined margins on
hardware products making tough for the cited organization.

2.2 Environmental audit for Samsung
PESTLE analysis is treated as an important framework for macro
environmental analysis and it is also considered as a part of
advanced strategic management. PESTLE for Samsung has been
explained down under:
Political:
 Political factors shows the role of government and they are mainly
focused on framing the labour policies, different environmental
regulations, industries norms, etc.
 Cited firm have strong foreign relationship which generally boosting
up their sales and revenue throughout the world.
 Organization following the government tax policy in précised
manner. Therefore, they are getting immense support from
government of particular country as well.

Continued...
Economic:
 Economic factors include components like consumer spending,
inflation rate, raw material cost which play an important role in
shaping economic environment of Samsung.
 Cited organization also has powerful export sector along with
successful economic reforms.
Social:
 Social factor for Samsung includes elements like population,
purchasing pattern, cultural aspect and various others.
 Organization is now focusing on producing the best quality of gadgets
at an affordable price so that they get more of the response from the
individuals whole around the globe.
 Samsung focusing on giving best of the working environment to their
employees as well which results into more employee’s retention.

Continued...
Technological:
 Samsung being a tech leader, have to use the latest form of
technology, research and development.
 Mentioned organization attracting customers towards their existing or
newly launched product with the help of social media and YouTube
channels.
 Different government policies also influencing R&D helps cited firm
to produce the best of products to the customers at an affordable price.

Continued...
Environmental:
 Environment is been considered as one of the crucial external factors
in which company operates. This factor also include change in climate,
various environment regulations, etc.
 Samsung also knows that there are limited natural resources and they
have to optimize it efficiently in order to achieve their goals and
objectives.

Continued...
Legal:
 Legal factors for Samsung includes law relating to customer safety,
environment, health and various others.
 Organization have to follow all the regal policies in order to have
effective functioning.
 Favourable tax policies will help Samsung to sell more of their product
will significantly increase their production and revenue.

2.3 Significance of stakeholder analysis
in formulating new strategy
 Stakeholders are those individuals who have interest in the success of
business venture and it involves employees, shareholders, suppliers,
customers, government, etc.
 For Samsung, market development strategy will play a significant role
as organization will focus on selling their existing product in the new
market.
 With this, cited firm will also be able to increase more of their
goodwill along with revenue and profits.
 Stakeholder mapping on the other side is the process of mapping the
stakeholder expectations which are based on the value hierarchies and
Key Performance Areas (KPA).

Continued...
Benefits of stakeholders mapping has been discussed down under:
 Technique to influence the other stakeholders
 Stakeholders interest
 Identifies the negative stakeholders and their impact on organization
projects.
Stakeholders for Samsung has been discussed down under:
 Customers: They are the lifeblood of Samsung and organization
develops products in order to satisfy their needs and demands only.
Organization can retain their customers by giving them discount offers
and also by providing them quality of services at low price.

Continued...
Shareholders: Shareholders are the external stakeholder and they
have interest in the success of the business enterprise. Investors want
the amount so invested get raised and they get a handsome amount of
dividend after specific time period.
Employees: Employees of Samsung are multi talented and their each
department need talented employees. Organization further focuses on
retaining these employees by giving them appraisals and incentives
periodically.
Government: Government interest comes into play when
organization wanted to expand their market in some countries.
Further, in order to develop new franchisee, they need to take
planning permission from local body and after that they can start their
establishment process.

Stakeholder Mapping for Samsung

2.4 New strategy for Samsung
 Samsung can implement new strategy with the help of Internal Factor
Evaluation (IFE) and External Factor Evaluation (EFE) matrix.
 IFE matrix is a strategic tool which is used by business enterprise in
order to evaluate the internal environment along with the strength and
weakness of the business organization.
 On contrary side, EFE is also a strategic tool which helps in evaluating
the external environment in order to identify the opportunities and
threats.
 EFE matrix shows that how effectively organization strategy respond
to threats and opportunities.
 Here the number ranges from 4 to 1 where 4 stands for superior
response, 3 above average response, 2 average response and 1 poor
response. In EFE matrix, strength can receive rating as 3 and 4
whereas weakness 2 and 1 respectively.

External factor evaluation Matrix
Major external factors Weight
(%) Weight Rate Weighted Score
(%) Weighted Score
Opportunities
Expanding business
opportunities 30% 0.30 3 90% 0.90
Application development 10% 0.20 1 10% 0.10
Labour for production
(outside) 15% 0.15 2 30% 0.30
Threats
Competitors 20% 0.20 2 40% 0.40
Price war with competitors 10% 0.10 1 10% 0.10
Rapid technological change 15% 0.15 2 15% 0.15
TOTAL 100 1 195% 1.95

Internal factor evaluation Matrix
Major internal factors Weight (%) Weight Rate Weighted Score
Strength
Distributors locations 15% 0.15 4 60% 0.60
Innovation and design 20% 0.20 3 60% 0.60
Financial performance 25% 0.25 4 100% 1.00
Weakness
Low profit margin 15% 0.15 1 15% 0.15
Varied products (less
concentration) 15% 0.15 2 30% 0.30
Marketing tactics 10% 0.10 1 10% 0.10
TOTAL 100% 1 275% 2.75

IE Matrix

Continued...
From the previous slide, we can identify that Samsung
have to hold and maintain their strength in order to
give their major competitors tough competitors.
Further, the score of the graph is also equavalent in
both the factors and mentioned firm has to reach
their 2020 vision for increasing more of their
revenue and productivity.

Future Business Strategy of Samsung
• Mentioned organization has created vision 2020 and their tag
line for that is Inspire the World and Create the Future.
• This new vision eventually showcase the Samsung
electronics commitments in order to inspire the communities
by introducing best of the products at an affordable price for
their customers.
• Samsung having 3 major strengths and these are New
technology, Innovative products and developing Creative
solutions.
• Further, they are also focusing on promoting new value for
Samsung core products and with that they will be able to
increase their different stakeholders in significant manner.

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