Business Environment Analysis and Expansion Strategies

The assignment emphasizes the significance of analyzing the business environment for a company like Samsung to expand its operations successfully. It suggests using PESTLE analysis to identify opportunities and threats, and to make strategic decisions regarding expansion globally or internationally.

Business Organisations and
Environments in a Global Context

INTRODUCTION
Business organisation are the enterprises where business operations are being carried for
providing goods and services to meet the customer needs (Anderson and et.al., 2016). It is very
necessary for organisations to concentrate on environment in which they are operating to control
risk or failure of business. The chosen company in this report is Samsung which is a South
Korean international enterprise headquartered in Samsung town, Seoul. It is an electronic
company which provides products such as mobile phones, washing machines, refrigerator etc.
Hence, in this report Samsung company will expand its operations to Australia to make the
company reach heights. Thus, various types of analytical approaches will be discussed under this
report such as; PESTLE analysis, BCG matrix and other tool which helps in knowing of business
environment in more impelling way.
MAIN BODY
Information of selected business organisation
Organisation is a place or an entity where a group of people work together, goods and
services are being produced and sold to customers for attaining common goals. The main motive
behind running business is to earn high profit and satisfy customer needs. Organisations should
grab the opportunities from the global environment and extend their business in different
countries.
In this report Samsung which is an electronic company is planning to expand their
operations in Australia as they are finding many opportunities to grow. It is a south Korean
multinational conglomerate company started by lee Byung- Chul in 1938 as a trading company
but since 1990 it has progressively globalised its products in electronics particularly in mobile
phones which have become the major source of profit. It has the sixth global brand value. It
contains various subsidiaries under the Samsung brand name.
Products offered by Samsung are quite expensive and incredible and creates a good
platform of competition for companies who are expanding its operations in electronics sector.
The new strategy adopted by Samsung on research allows them to quickly capitalise on
technology by their competitors. (Brustbauer, 2016). Samsung electronics is operating under the

segment of consumer electronics with a market share of approx 37.22% selling television, music
systems, washing machines, refrigerators and microwaves.
Samsung which is the most Profitable organisation whose main purpose is to provide
customers with standard products in order to share trust and confidence by satisfying their needs
and demands in a definite time period. Samsung is the fastest growing brand in the world and
wants to expand its operations in Australia by offering products with unique functions. Samsung
is adopting knowledgable legal structure in workplace in order to control risk and loss. Hence
helping the respective company to follow ethical nature to reduce risk of failure of business. It is
very essential for Samsung to maintain ethical structure and organisational structure for
effectively managing the organisation.
IT just follows simple efficient practices and methods for producing goods and services.
which serve for the betterment of society (Goleman, 2017). Samsung cares for philosophy and
values in order to carry business ethically and efficiently.
 People
 Excellence
 Change
 Integrity
 Co- prosperity
These values provide respective company certain actions and help in decision making. It
also maintains excellence, integrity in its business operations which helps to provide standard
products to customer and satisfy their needs. From their core values it is clearly determined that
company focus on innovating goods and services to their customers by maintaining excellence
and integrity in their work. Samsung which is going to expand its operations in Australia needs
to done proper planning by properly analysing the environment in identifying their needs and
values and target more customers (Henry, Foss,and Ah, 2016).
Goals and Objectives of Samsung-
 To realise that products get available to large customers in Australia in effective manner.
 To properly comfy in organisation culture of Australia and comfy with proper activities.
 To manufacture and deliver product and services at affordable rates.
Segmentation and Targeting group

Customer normally target those groups who can afford to buy products in easy manner
and allows company to earn profits as well. Since Samsung is an electronic company which
provides mobile phones and all other electronic products so they can target all types of customer
and earns huge level of profits. It can be properly segmented as-
Segmentation- It has segmented Phone such as Samsung guru for rural areas and phone such as
galaxy segment for urban areas.
Targeting – Samsung targets trendy young peoples, professionals and large businesses. They not
only target people for increasing numbers but also for maintaining and satisfying customers.
Positioning- It is all about individuals perception about the company and position accordingly in
market on specific dimensions which focuses on pioneering the 4g segment of mobile phones
and also created a uncomparable brand image for an stand competitively in market.(Sekaran and
Bougie, 2016).
This helps company in properly delivery of products to customers at affordable rates.
UNIQUE SELLING PROPOSITION
USP of Samsung is to provide standard products to its potential customers who are being
targeted by the company. The USP of the products provided by Samsung are as follows
 Strong network among customers
 Standard products with affordable price
Hence, Samsung will now expand its business operations and business activities to another
country it is very essential to follow above considerations to attain goals of maximising
objectives. These factors will greatly help in proper managing the operations and able to generate
high revenue for the company.
Discussion of allocated business environment
Business is operating under very complex and dynamic government which is changing
from time to time. Policies and strategies of every company should be prepared by analysing
business environment. It is also necessary to analyse the market areas and target place where the
company is going to start their new operations in order to attain desired objectives. Samsung is
going to expand its operations in Australia where people are highly concerned about the
advancement of technology in product features (Shahriar, Schwarz and Newman, 2016).
Respective company is also having a high level of mobile phone penetration in the world.

Samsung is adopting BCG matrix to determine industry competitiveness. Thus following is a
description about BCG matrix in context to Samsung-
STAR- It determines incredible growth rate with high market share as well as it
determine that profit will get maximum in future. It is signified that Products manufactured by
Samsung such as mobile phones and tablets can be seen as star. It has expanded its resources to
expand its market in Australia (Storey, 2016). Plasma television is product of samsung is also
star for the company and it has able to gain increase sales in globally.
CASH COW- It depicts that here organisation will have low rate of growth but
increased share in market by the company to analyse this aspect to get beneficial returns.
Because of lower growth rate, investment needed should also be low. The home appliances
products of Samsung reflects product under cash cow as it doesn't need high level of investment
and helps in and attracting larger customers.
QUESTION MARKS- It is a kind of market where growth in market is high in matter
market share is usually low in nature. Example of question mark for Samsung is Galaxy 7 which
has gained negative reputation due top battery becoming overheated. This problem created
challenge for Samsung and bring galaxy 7 in category of stars. It has made competition of this
product weak in comparison to other Samsung mobile phones.
DOGS- In such condition there is low market share and low growth rate. Such market
needs more contribution. Galaxy smart watch is one such example as it has not able to gain
adequate attention from the target market. This watch has failed to take benefit from the growing
industry (Tukker and Tischner, 2017).
These matrix provide a ideal path for Samsung from start up to market leader. These
provide certain guidelines for the company to be funded with investments and make all of its
products to come in star category. These helps to analyse products in different categories and
allows company to take decisions for the betterment of company and can target large customer.
Application of appropriate analytical model
It is very essential for every organization to employ accurate analytic theory if they want
to enlarge its dealing especially in another country. It is very important for Samsung to examine
each and every feature so that business operations are carried in effective manner. Here are two
approaches used by company that are PESTLE.
PEST ANALYSIS

 Political factors- It is very essential for Samsung to analyse the political situation of the
country in order to expand its operations. Australia is having a steady authorities so they
will welcome Samsung in their nation with open hands and execution their operation's in
the fewest effectual way (Crane, Matten and Spence, 2013). They also have efficient and
transparent legal framework which highly allows company to start and expand its
business operations.
 Economic factors- The macro environment component like Inflation rate, interest rate,
foreign exchange rate are existing in system and is having a powerful effect on the
business actions and functions of Samsung. Australia has a strong economic growth rates
and country's GDP rate is also higher. There is high low degree of risk in Australian
economy because they have a stable interest rate, rising exchange rate and low rate of
inflation.
 Social factors- Alteration in societal tendency can impact on the demand for products
and services. They will also need to create the user supply for digital contented so that
more people can get gained towards them. However Australians are fully affected by high
technology factor and want products of high standard. People over there focus on
technology rather compromising for money(Van Der Aalst, La Rosa and Santoro, 2016).
It is essential for Samsung to design products according to demand which satisfy all
social group classes.
 Technological factors- Samsung is changing its business practices according to the
needs and demands of customers. Before , expanding its operations in Australia company
it should analyse technology advancements in certain country. There are several issues
which dominates technology policy of the country and disregards Samsung to expand its
operations. They should analyse the importance of technology as electronics business is
full of technological advancements it dissatisfies Samsung to expand its operations.
 Environmental factors- These factors include the change in weather and climate and
the temperature which affects working of many industries (Wales, 2016). As there is
scarcity of water and quality of soil is affected by salinization but both these factors
doesn't have much impact on the operations of Samsung and allows to expand its
operations. These have the certain impact on the industries in carrying business

operations so environmental factors should be properly discussed before start up or
expanding.
 Legal factors- These are accompanying to legal surroundings in which firms function.
There are certain regulation in Australian community which focuses on gaining in
minimum wage, and greater need for firms to recycle are recent laws affects organisation
actions. These affect the operation's of Samsung if new systems and procedures have to
be developed.
It is very essential for Samsung to form the use of this model in order to analyse the
environment in Australia which helps in gaining competitive advantage in the market. Hence,
company should do proper preparation to attain a good marketplace position and it can be said
that they can accomplish high place in market within short period of time (Westhead, Solesvik,
2016).
Data and charts to support business in Australia
Samsung is regarded as one of the large electronic organisation and is carrying its
concern dealing successfully. They are delivering different kinds of products to the customers
which is related to mobile phones and house hold appliances. The main objective of the company
is to provide best standard products to customers at reasonable prices. If the companies want to
expand its operations internationally or globally they should maintain effective relationship with
clients and customers to stay connected and allows company to expand its operations worldwide.
In order to accomplish objectives set by the company within the prescribed time limit
they should properly analyse the environment and the market with the use of various concepts
and theories such as BCG matrix, PEST analysis and many others as all these approaches are
having a very strong impact on the business activities and provides certain guidelines which
allows company to take certain decisions for attaining the business objectives. Economic
situation of the country should be analysed if Samsung wants to expand its operation's
internationally.
Economic Condition- Through this factor economy of the particular region and the
country is identified. Strong and big companies like Samsung who wants to expand their
business operations have to identify economy of the particular country which will have positive
or negative implications on the business operations. Economy cycles leads to contractions and
fluctuations of business operations conducted by company (Shahria, Schwarz and Newman,

2016). It is also said that various micro economic and macro economic factors includes fiscal
policy, inflation , interests and exchange rates etc.
Interpretation
As per the above described graph it can be represented that economical state of Australia
is going upside down since numerous of years which is having a powerful effect on the
performance and productivity in the organisation. It is also analysed that presently the condition
of Australia is not so good and it is not good for Samsung to start their operations as it will not
be able to generate good level of profits and sales within limited time (Storey, 2016). When the
economy is in boom then it is suggest-able for the company to expand operations during that
time and increase sales and satisfy customer needs.
Illustration 1: GDP data confirms a decline in Australia's, 2018
(Source: GDP data confirms a decline in Australia's, 2018)

CONCLUSION
From the above report it has been concluded that business environment is having a very
significant effect on the dealing of the organisation. It is very crucial for Samsung to analyse the
external environment to expand its operations. In order to analyse in proper manner various types
of approaches like pestle analysis should be used to understand the environment in particular
country. These greatly aid to take certain actions and decision regarding the expansion globally
or internationally. They can also make use of bar graphs and charts to determine the economic
condition of country and decide its expansion.

REFERENCES
Books and Journals
Anderson, D.R. and et. al., 2016. Statistics for business & economics. Nelson Education.
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural model.
International Small Business Journal. 34(1). pp.70-85.
Crane, A., Matten, D. and Spence, L., 2013. Corporate social responsibility in a global context.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of
methodological approaches. International Small Business Journal. 34(3). pp.217-241.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Shahriar, A. Z. M., Schwarz, S. and Newman, A., 2016. Profit orientation of microfinance
institutions and provision of financial capital to business start-ups. International Small
Business Journal. 34(4). pp.532-552.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Tukker, A. and Tischner, U., 2017. New business for old Europe. Taylor & Francis.
Van Der Aalst, W. M., La Rosa, M. and Santoro, F. M., 2016. Business process management.
Wales, W. J., 2016. Entrepreneurial orientation: A review and synthesis of promising research
directions. International Small Business Journal. 34(1). pp.3-15.
Westhead, P. and Solesvik, M.Z., 2016. Entrepreneurship education and entrepreneurial
intention: Do female students benefit?. International Small Business Journal. 34(8).
pp.979-1003.
ONLINE
GDP data confirms a decline in Australia's, 2018. [Online]. Available through:
<https://www.businessinsider.com.au/australia-economic-growth-q4-gdp-2018-3>