Introduction to Business Strategy
Added on 2019-12-03
21 Pages6650 Words130 Views
BUSINESS STRATEGY1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................41.1Role of vision, mission, goals and core competence of Samsung in strategic planning.........41.2 Factors that should be considered while formulating strategy...............................................51.3 Effectiveness of techniques used while developing business plan........................................6TASK 2............................................................................................................................................72.1 Strategic positioning for Samsung with the help of organizational audit..............................72.2 Environmental audit for Samsung.......................................................................................102.3 Significance of stakeholders analysis..................................................................................112.4 New strategy for Samsung...................................................................................................12TASK 3..........................................................................................................................................133.1 Alternative strategies for Samsung......................................................................................133.2 Justification of selection of strategy....................................................................................14TASK 4..........................................................................................................................................154.1 Roles and responsibilities for strategy implementation.......................................................154.2 Resources required to implement new strategy...................................................................164.3 Contribution of SMART objectives in achievement of goals..............................................17CONCLUSION ............................................................................................................................18REFERENCES..............................................................................................................................192
INTRODUCTIONBusiness strategy is a business tool used by the management to attain its goals andobjectives. It assists business in planning and decision making for making the businesssuccessful in the competitive market environment. The business strategy is a key functionperformed by top level executives for the benefit of the company. This further help theorganization in attaining business goals smoothly which further aid in enhancing productivityand profitability of the organization (Kourdi, 2010). However, there are different types ofbusiness strategy like, growth, market entry, diversification etc which can be selected by themarketing manager as per the current needs and scenarios. In the present research report,different aspects of business strategy will be studied. In order to facilitate the study Samsung hasbeen selected. The company was founded by Lee Byung-chul in the year 1938. Samsung is aconglomerate which deals in clothing, electronics, telecommunications, and electroniccomponents, digital and other electrical equipment. The company has reached its targetcustomers with the help of wide range of own dedicated stores. Presently, Samsung hasdiversified its operations in different areas like, insurance, financial services, advertising,entertainment; hospitality etc, In addition to this, company is also providing retail, informationand ship building services. Further, in this report, implication of mission, vision and objectives in making businessstrategy will be described. Thereafter, the impact of external and internal environment onbusiness operations of the company will be illustrated. Further, a new strategy will be planned toenhance market share, reputation and profitability of the organization in global and domesticmarket. Thereafter, SMART objectives will be devised for Samsung to implement the strategy toattain business goals. 3
TASK 11.1Role of vision, mission, goals and core competence of Samsung in strategic planningVision: The vision of company is to provide superior quality services and products to itstarget customers. Thereafter, Samsung vision is to become highly valued company in thesociety in which it serves. The vision statement of company reflects the desire of theorganization to have constant growth and development in the field of technology. Further,Samsung is perceived as modern and innovative organization in market. Company furtherwants to expand its business operations in every possible location of the globe.Mission: The core purpose of mission statement of Samsung is to enhance wealth andprofitability of its shareholders. Thereafter, company is to provide unique, innovative andhighly valued products and services to customer with combined efforts of its committedand loyal staff (About us, 2015). Objectives and goals: The main objective of the company is to provide ethical productsto its target customers. Desire of the organization is to attain core competence in itsbusiness by designing unique products. The key objective of Samsung is to inspirecommunities in which they serve by focusing on its core strength, technology, innovationand creative solution. Core competence: The core competencies help Samsung to stay a step ahead of itsrivals. The major core strength of company is to be creative and competent staff.4Illustration 1: Dedicated store of Samsung(Source: About us, 2015)
Thereafter, technology leadership helps in creating superior quality products. In additionto this, company has competence to produce different types of products with variousconfigurations. Thereafter, global brand image and companies strength in building valueto customers and innovative culture within organization are some core competence ofSamsung. 1.2 Factors that should be considered while formulating strategyStrategic planning is important function that helps Samsung in designing effective andbest suited business strategy. Strategic planning refers to well defined procedures which are usedfor developing strategies that further give overall direction to the company (Ferrel, 2012). Thisfurther help in attaining set goals and objectives aligned with the vision and mission of Samsung.However, there are certain internal and external factors which impact the strategic planning ofthe company. They are described as follows:Internal factors:Human resources: It is significant for Samsung to maintain inventory of competent andqualified personnel within the organization. In order to ensure success of strategy it isimportant for the company to ensure engagement of all level of staff throughout theenterprise. It is the responsibility of employee to implement strategy within organizationso that they must be involved in the strategic decision making (Factors affectingstrategic planning, 2014). However, the skills, knowledge, potential etc of workforce isalso an important role in formulating strategy. Organization culture: The positive working environment within Samsung is verycrucial for facing different business challenges, adapting changes and attains the goalsand objectives of organization. Therefore, the culture is significant factor which facilitatein formulating strategy and implementation. Organization structure: The strategies are developed at different levels; business,corporate and functional. The top level executives formulate corporate strategy whilemiddle level managers design business strategy (Reich and Benbasat, 2013). Thereafter,supervisors or line managers formulate functional level strategy. Therefore, for effectiveformulation of strategy at various levels it is important for Samsung to have well definedorganization structure.5
External factors:Technology: With the fast changing technology it is crucial for Samsung to upgrade itscurrent technology. There are various strategic plans which involve designing newproduct, adding new attributes in existing product etc where technologies act as a keyfactor. Therefore, to formulate such kinds of strategy it is important for company toupgrade its technology and do market research to find innovative techniques (Lafley andMartin, 2013). Market rivals: The ability of the company to perform in market also depends upon theextent of market rivalry. Therefore, while developing new strategy it is important forSamsung to consider strategy of market rivals. This will also assist the organization insustaining intense market competition.1.3 Effectiveness of techniques used while developing business planSamsung uses different tools and techniques for developing business plan. To ensuresuccess in strategic planning and formulation the company uses various tools such as, SWOTanalysis, competitor and Pestle analysis. They are further explained as follows: SWOT stands for strength, weakness, opportunity or threat. It is important tool which isused by Samsung to understand its capabilities, drawbacks. Further, company utilizes itsstrengths to take benefit of future coming opportunities (Andersson, 2011). It also helps inidentifying the way in which company uses its strengths in overcoming its weaknesses.Thereafter, company use SWOT analysis to identify future threats and take measures tominimize their adverse impact. Therefore, on the basis of this analysis strategic formulation isdone, business decisions are taken etc. PESTEL analysis is important tool used by the company to study the impact of political,economical, social, technological, environmental and legal factors on the operations of Samsungin different markets. This analysis further helps the organization in making important decision.Further, it assists the company in taking action which is important for the survival of business.These evaluation further aids in taking measures that determine future success of theorganization (Muller, 2011). 6
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