Business Strategy

Submission Front Sheet
Unit Title and Number: Business Strategy (Unit 32)
Project title Business Strategy Project
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Project Brief Code
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I certify that the work submitted for this assignment is my own. Where the work of others has been used to
support my work then credit has been acknowledged. I have identified and acknowledged all sources used
in this assignment and have referenced according to the Harvard referencing system. I have read and
understood the Plagiarism and Collusion section provided with the assignment brief and understood the
consequences of plagiarising.
Signature: Date: September 2020
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Business strategy September 2020
TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3
Effect of macro and micro environment on Samsung......................................................................4
Internal environment of Samsung with its capabilities....................................................................7
McKinsey 7s Model.....................................................................................................................8
VRIO model...............................................................................................................................10
Value chain analysis.................................................................................................................11
SWOT........................................................................................................................................13
Porter’s five forces model.........................................................................................................14
Potential Strategic Directions and Recommendation....................................................................17
Theories, models, concepts and strategic planning.......................................................................17
Ansoff matrix............................................................................................................................17
Porter’s generic strategies........................................................................................................18
Bowman’s strategy clock..........................................................................................................19
TOWS framework.....................................................................................................................20
Strategic management plan......................................................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
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Business strategy September 2020
EXECUTIVE SUMMARY
The main purpose of the investigation is to analyse the business strategy of Samsung. It is
a South Korean company of multinational electronic consumer goods, and the registered office is
in Seoul, South Korea. Samsung objective is to modify the base of cost by taking the benefits of
new technologies digitally. Samsung is concentrated on the determination of the value of the
environment. The entity looks that correct factors of climate are maintained. Samsung financial
resources are highly valuable because these supports in investing in external change that take
place (Calabrese, 2018). The loyalty of an organization helps the management with operations
and attains competitive positions over players.
Impact of Macro and Micro environment on Samsung’s performance and its development
of organizational strategies has been analysed in this report. With the impact of internal
organizational environment on company's performance has also been evaluated by efficiently
evaluating all the required criteria. Samsung customer’s perception is large as of the cost price of
electronic goods products. It is suggested to the firm to focus on pricing of its services, improve
service line and focus on developing customer service tactics for delivering remarkable
experience to the target market. Implementation of Porter five forces has also been done in this
report and with that effectiveness and implementation of theories and concepts is interpretation
for strategic directions.
Evaluation of Samsung's business strategy is done in this report with the implementation
of theoretical models through which future working strategies can be developed. With that it is
also recommended that Samsung has to increase its involvement in providing high end smart
gadgets through which it can make sure that organization is able to attract new and trendy crowd
towards the organization and also maintaining loyalty of existing customers.
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Business strategy September 2020
INTRODUCTION
Business strategy is basically a way of companies or organization for running their
different operations in effective manner. Currently top-level management within most companies
has focused on making their business strategies very effective to gain long term profit in market
place. Currently those businesses are gaining huge competitive advantage in market place which
has excellent and well-developed strategies of business. This report discusses business strategy
of Samsung. Basically, Samsung is a multinational electronic gadget manufacturing company,
headquartered in Seoul, South Korea. This organisation was established in year 1938 (82 years
ago) (Samsung. 2021). The company mainly knows for its smart phones, because the brand is
highly successful in gaining large customer base in the international smart phone industry
(Gnanakumar, 2017). However, Samsung serves many other products as well, like; consumer
electronics, home appliances, TVs, refrigerator etc. The company’s unique selling proposition is
that Samsung always use competitive bases pricing strategy to sell its products and services in
market place in the high quantity (Park and Mithas, 2020). The main mission of company is to
increases its market share by 10%, and the vision of company is to achieve a large base of loyal
customers by providing quality products.
Currently this company has very large market share in the international smart phone
industry. It generally provides all ranges of products, like; budget products and premium
products etc. The report discusses different factors of Samsung’s macro environment by using
PETSLE analysis model. Internal environment and capabilities of this company also has been
included in this report. The porter’s five forces model is used here to analyse key competitive
forces. At the end, an effective strategic management plan also has been created in this report for
the Samsung. This strategic management plan includes some effective business strategies which
can positively affect to Samsung in market place.
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Business strategy September 2020
Effect of macro and micro environment on Samsung
Macro environment or external business factors have a direct impact on the performance
and decisions of organization. Thus organization uses various models or frameworks such as
PESTEL to analyse the impact of these elements on organizational performance (Iamratanakul,
2018). The influence of theses macro elements on Samsung is as follows.
Political: The entity performed generated good growth and revenues in the U.K., South
Korea, Europe and Asia. Company performance was offset by a reduction in profit margin in
non-Asian market. Currently decisions are taken as per global political stability and Korea
relation with other nations. Regulation of data sharing and taxation policies of South Korea are
being followed. In global branches as per different nations political conditions the decision are
taken. Despite the issues, Samsung maintained its decision making as per stability of South
Korea political conditions (Lestari, S.D. et al. 2020).
Economic: Samsung objective is to modify the base of cost by taking the benefits of new
technologies digitally. Currently South Koran economic conditions are stable and company is
attaining better opportunity. Global economic factors are also good and it is also allowing
Samsung to have adequate growth and expansion. South Korea GDP is 1.65 trillion U.S. dollars
and it is also supporting entity to have easy access to resources (Statista, 2020).
Social: The change in preferences and lifestyle of the customer directly influences the
company's financial health. The demand growth for the internet has been beneficial for both
work aim and entertainment. The difference in the marketer’s educational background and target
market make obstacles to significant information flow. For example, Samsung introduce new
phones and TV according to need of customers, such as, S21 5G according to future demand of
phone market.
Technological: The entity has leverage over its players regarding the infrastructure and
assets but is more emphasized on optimum assets with sustained leader by maintaining the smart
capital infrastructure partnership and have 5g market lead. Use of new tools is being considered
by entity through having focus on different technological resources in global market (Liu, et al.
2019).
Environmental: Samsung realizes the reality that accesses to the future digitally is an
opportunity that must be distributed equally so that the most vulnerable are not left behind. To
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Business strategy September 2020
decline the footprint, the firm has decided to concentrate on switching to the renewable energy
source for vital supply.
Legal: Samsung focuses on the legal aspects and policies regarding environmental
protection and other actions are necessary. Avoidance of legal policies are creating problems and
impacting the working measures. As the firm is incorporated and formed in Korea so while
having operations in India the income tax department regulations should be followed else issues
can be faced.
External Factors Internal Factors Opportunity or
Threat
Reason for being
opportunity or
threat
Political
 Political
instability of
UK is making
changes in
legal
legislations
due to which
Samsung also
has to make
changes in its
working
strategy.
 Events of
Brexit, is one
example in
which
company's
geographic
reach was
affected.
Expenditures have
increased because
new development
requires high
investments which
will make negative
impact on
Samsung's economic
growth.
Threat
It has affected
Samsung's
market share in
negative way.
Brexit's uncertainty
has increased the
expenditures for
Samsung, because
the company now
may have to pay
taxes at areas
which were freely
available before
events of Brexit
(Robinson and
Choi, 2020).
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