Business Strategy, Planning & Management

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BUSINESS STRATEGY,
PLANNING & MANAGEMENT
[Type the document subtitle]
7/17/2019
Student name

BUSINESS STRATEGY, PLANNING & MANAGEMENT
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Contents
Introduction, Background, and Rationale........................................................................................2
The Literature Review.....................................................................................................................3
Strategic decision.............................................................................................................................7
The Strategic Proposal.....................................................................................................................8
Competitive advantage strategy...................................................................................................8
Porters five force model...............................................................................................................9
1. The threat of new entrants.............................................................................................9
2. Bargaining power of buyers..........................................................................................9
3. Threat of substitute......................................................................................................10
4. Bargaining power of suppliers....................................................................................10
5. Industry rivalry............................................................................................................10
Pestle analysis............................................................................................................................11
Political factors......................................................................................................................11
Economic factors...................................................................................................................12
Technological factors.............................................................................................................12
Legal factors..........................................................................................................................12
Environmental factors............................................................................................................13
Strategic development process..................................................................................................13
Conclusions, recommendations and limitations............................................................................14
Recommendations......................................................................................................................15
Product quality assurance......................................................................................................15
Premium product range..........................................................................................................15
Limitation..................................................................................................................................16
Limited study scope...............................................................................................................16
Data collection.......................................................................................................................16
References......................................................................................................................................17

BUSINESS STRATEGY, PLANNING & MANAGEMENT
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Introduction, Background, and Rationale
Business strategy is action that an organization is utilizing to attract new customers, competing
in the industry successfully, keeping the business performance strong, and attaint the goals of the
organization. Moreover, a plan is the primary step in strategy development, which is the base for
all the activation and action to be conducted in a business. It can be said that the direction is
being provided to the company through appropriate planning. However, since the environment is
dynamic and future perspective is very difficult to measure the planning stage could be one of
the major challenges for the companies (Baker & Bowen, 2015). The purpose of the report is to
identify and assess the strategy and strategic management of the company along with the
understanding of various strategic frameworks. An organizational case will be considered in the
report further.
Samsung is a South Korean company included in the conglomerate industry. In the report, the
discussion will include Samsung electronics considered to be one of the largest electronics
company providing various products to the customer across the globe. The key products of the
company include mobile phones, television, washing appliances, kitchen appliance, air
conditioners and another consumer electronic product range, with quality as one of the key
measures to be included in the product range. The electronic industry is very competitive as the
level of innovation by the companies has increased and technology plays key importance that
changes very rapidly with the advancement of technology in every nation (samsunglife, 2019).
The research problem is to identify and assess the strategic development of Samsung considering
the forces and external environmental factor affecting Samsung strategy. The secondary data will

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be collected and analysed using the implication of various models like the porters five force
model, pestle analysis for macro environment analysis in the report further.
The Literature Review
Company is planning strategies in order to gain competitive advantage especially in the
increasing competitive environment and industries. It can be said that the decision related to the
strategic development of the company largely responsible for success of the company in the
industry and sustainability of the company depends on the strategy, that the company has
developed. One of the models to assess the competitive advantage of the company is photos
generic strategies (Aksoy, 2018). According to the Andersson there are four broad categories or
alternative strategies that a company can adopt in order to gain competitive advantage in the
market. The grid is bifurcated into two aspects that is the source of competitive advantage and
markets in which the company will compete; the four strategies includes cost leadership strategy,
cost focus strategy, differentiation strategy, and differentiation focus strategy. Cost leadership
strategy is the one that depends on the least cost strategy of the company that is to keep the
prices of the products offered to the customer and the lowest aspect while targeting the broad
market in order to compete in the mass. Second strategy that this cost focused strategy focuses
over the cost minimisation while competing in narrow market, this strategy is suitable for the
companies that are conducting small or medium size business (Andersson, 2016). Differentiation
leadership strategy is one of the most common strategies adopted by the company that focuses
over the product or service differentiation which will include the product innovation, new
product development, large number and various variety of products to be offered to the customer
on the market in which the company competes is the broad market. Differentiation Focus

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strategy is similar to that of differentiation leadership, however the key difference is that in case
of differentiation focus strategy, company competes in narrow market along with a high quality,
innovative and various product and service range.
Figure 1: (Source: (Aksoy, 2018)
Porters five force model is used to assess the factors that impact the business of the organization.
The five forces include the first rivalry among the competitors. Many scholars have researched
this framework, as this is one of the relevant frameworks found by the researchers to assist the
competition in the industry. According to the scholars, competition is increasing and it is
important to assess every strategy of the competitors in order to gain competitive advantage and
the strategic change in competitors reflects in the strategy of the organization itself. As per the
researchers, the threat of new entrants is another major factor affecting the business as the new
companies entering into the industry may be a threat to the company, which is assessed through
this factor (Bergin, 2017). The threat of substitute reflects that there are other products or
services that can fulfil similar needs, which the company is targeting for the customers that may
be a threat for the company and it can be assessed through this factor in the model. Buyers are

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the major stakeholders for the company according to the Scholars, it has been researched that the
customer behaviour is the major aspect that is affecting the business of the organization where
the negotiation power of the buyers may largely affect the strategy of the company, which is
assessed through this model while analysing bargaining power of buyers. The last factor includes
bargaining power of suppliers, suppliers and also play a major role Especially if the strategy of
the company is cost leadership or post focus strategy as the cost of the raw material will affect
the overall cost of the company at large extent. In case the suppliers on a monopoly position
Deepak any power of suppliers could be quite high which may impact the company business
strongly (Chari & Feng, 2018).
Figure 2:(Source: (Ogutu & Mathooko, 2015)
Pestle analysis has also been one of the popular strategic models that have been considered by
researchers to consider in their work. According to the scholars, the six forces that affect the
business on the national level include political factors, social factors, economic factors,
technological factors, and environmental factors, legal factors that will affect the success or