Detailed Report: Analyzing Samsung's Business Environment and Factors

This report provides a comprehensive analysis of Samsung's contemporary business environment. It begins with an introduction to the concept of business environment and its significance, followed by an overview of Samsung as a company. The main body of the report delves into the micro and macro factors influencing Samsung's operations, including a detailed PESTEL analysis of external factors such as political, economic, social, technological, legal, and environmental influences. The report examines the positive and negative impacts of these factors on Samsung's business strategies and performance, and the importance of understanding these environments for better decision-making and achieving a competitive advantage. The report concludes with a summary of the key findings and insights from the analysis, highlighting the importance of adaptability and strategic planning in the face of a dynamic business landscape.

Contemporary Business
Environment

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment can be describe as a all those factor which is surrounded to business.
There are various factors in business environment which can have negative as well as positive
impact over organisation (Boone and et.al., 2019). It is essential for a company to carefully
evaluate as well as analyse all of these factors in order to take better business decisions. Business
environment refers to the total sum of internal and external factors. These factors will have huge
includes over business as well as its operations. Company chosen for this report if Samsung. This
is one of the well known company which is performing its activities in electronic market area.
Samsung company is offering its products and services at conglomerate industry as it is
providing different types of products and services to customers. this organisation was
established in 1938 and founder of Samsung company is Lee Byung Chul. Headquarter of this
organisation is located at Seoul, South Korea and its is offering its products and services in
different parts of the world. This report includes as detail study of business environment as well
as its factors. This includes analysing and evaluating external as well as internal business
environment and their impact on business. This report examine how and why micro and macro
business environment influence business as well as insight of micro economic environment.
MAIN BODY
There are different types of factors in business environment and it is very important for company
to understand these environment and take better business decisions. Business environment is
majorly divided into two main categories such as micro and macro business environment. These
factors will have major impact on respective company. It is essential for a company which is
dealing in highly competitive market area to analyse and evaluated each and every factor. This
will help company is taking better business decisions as well as gain competitive advantage over
other rival companies (Beynon-Davies, 2013). Business environment is considered as a sum of
internal as well as external factors which will have influence over business of Samsung. All
factors of business environment will have direct as well as indirect influence over company. It is
essential to identify these factors in order to develop strong business strategies as well as perform
business operations in effective and efficient manner. Factors of business environment consist of
customers, employees, market trends, supply chain and demand, clients, owners, technology,
government, changes in market area and many more. All of these factors will have huge
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influence over decision making as well as development of strategies. Respective company to
analyse these factors as well as their impact on business in order perform business activities in
better manner. This will be very helpful in achieving desired goal as well as objectives.
External business environment includes all those factors which is outside the organisation
and this will have impact on its operations. These factors can not be control by organisation and
success of organisation is majorly dependent on these factors. In order to analyse all of these
factors PESTEL analysis models has been used (Namada, 2018). This is an effective model for
analysing all factors of macro environment with their positive and negative impact on
organisations and decision making. Political factor – This factor includes all the rules and
regulation that is developed by government in order to provide guidelines for their work.
Political factor consist of different policies, restrictions which will have major impact on
business. There are different political factors that needs to be consider by respective company in
order to perform its business activities in better and effective manner. It includes stability or
instability of political party, political ideologies, taxation policies, regulatory practices, trade
rules and restrictions and many other factors. Samsung company is providing its products and
services in different parts of the world so it is essential for this company to evaluate and identify
the impact of political factor on business. This factor will have positive as well as negative
impact over business and its operations. Positive impact – UK country has stable political and
government party which will have positive factor on respective company. This will help
Samsung company to perform its business operations as well as conducting its activities in
effective manner. This company to follow all rules and regulation which is developed by
government of UK. So that Samsung company can perform business activities in better
way.Negative impact – There are various strict rule and regulation developed by political party
of UK for companies. These policies which affect the business and will have negative impact
over organisation. Trade restriction and policies will affect the overall performance of respective
organisations and have negative impact over its productivity and performance.
Economical factor – This factor will have direct influence over business as well as its
success and it is very important for respective company to analyse as well as evaluate
economical factor for smooth running of organisation (Hilton and Platt, 2013). This factor
includes economic situations, inflation rate, unemployment rates, consumer buying potential,
interest rate, economic rate, GDP and many other factors. All of these factor will influence the
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business operations and its activities as it influences purchasing power of UK customers.
Positive impact – UK market area has one of the growing economic rate and this can be
consider as a advantage for respective company. Customers of UK country are able to purchase
high quality products and services offered by Samsung company. This will lead to increase in
probability of company. Negative impact – There is high interest rate charges by government of
UK which can have negative impact over business (Haider, 2014). Increase in interest rates
which lead to directly higher the prices of Samsung company products and this can have
negative impact over the performance of company. Social factor – There are various social
factor which can have positive as well as negative impact over business. Social factor includes
demographics, consumer buying behaviour, religious and cultural factors, attitude of employees,
occupation interest, lifestyle trends and many other social factors. It is very important for
respective company to analyse as well as evaluate need and wants of customers. This will help in
develop correct and accurate product as per need and wants of customers. By identifying each
and very factor Samsung company will be able to full fill requirement of customers and
satisfying their needs. Positive and negative impact of social factor on Samsung company is
mentioned. Positive impact - Customers of UK market area have positive attitude towards
products develop as well as offered by Samsung company. This company is providing high
quality products and services in order to satisfy needs and wants of customers (Schoenberg,
Collier, and Bowman, 2013). This will have attracting more and more customers towards
business and help in achieving desired goals. Negative impact – The negative impact on social
factor on Samsung company is that customer needs and requirement are continuously changes.
There are different types of customers with different needs and their need and changing as per
change in market trends. This will have negative impact over Samsung business as it is very
difficult for company to understand requirement of customer as well as full fill their requirement.
Technological factor – This factor will have direct impact over productivity and
performance of organisations. UK country has one of the advance technology in the world which
will influences business functions (Grant, 2016). It is very important for Samsung company to
use new and innovative technology in its business operation in order to perform activities in
effective and efficient manner. This will help company to enhance its productivity and achieve
desired goals and objectives. Technological factor play a crucial role in overall growth and
development of organisation. This will help in increase business performance and conducting
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task in better manner. This will lead to gaining competitive advantages over other rival company
and help in achieving set goals. Positive impact - This company can take advantage of
technological factor as this will help in conducting business operation is batter manner
(Rosenbach, 2018). By using new and updated technology in its business process Samsung
company will be able to enhance its productivity as well as business performance. This will have
positive impact on respective organisation as it will directly lead to achieving desired goals in
effective manner. Technological factor will help Samsung company to gain competitive
advantage over other rival companies. Negative impact – Technological factor will have
negative impact on Samsung business. It is essential for this company to use new and high
technology in its business operations. Use of innovative technology is very costly for business
and this will affect the financial budget of company In order to use updated and modified
technology respective company needs to train its employee. For this company will need to
conduct training and development in order to enhance its business performance. This will
required huge amount of money for enhancing skills of employees in order to use new
technology. Legal factor – There are various laws and legislations that is developed by
government of UK and this will have huge impact over organisational activities. It is very
important for Samsung company on follow all rules and laws that is developed by government.
This will lead to smooth functioning of business operations as well as achievement of
organisational goals. Legal factor includes safety and security of customers, employment laws,
patents, copyrights and various other factors (Raziq and Maulabakhsh, 2015). This company
should provide products and services which does not have any harm to customers. This will help
in developing positive and strong brand image in market area. Positive impact – Samsung
company is providing high quality products and legal factor will lead to provide protection to its
manufactured products. This company is using new and innovative technology in its business
process which should be secured as well as protected from rival companies. Samsung company
take advantage of copy rights and patent in order to keep its products safe from other company.
This will help to offering unique products to targeted customers. By this company will be able to
develop and create strong brand image in market place. Negative impact – There are different
rules and laws that is developed by company and these factors will have negative impact over
business. UK government has strict laws related to employment. It is very important for
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respective company to follow all of these rules. There are increase in wages and salary of
employees
Environmental factor –This factor includes all those factors which in related to ecological
system. Environmental factor includes climate, weather, pollution, ecological system and many
more (Greenhaus and Kossek, 2014). All of these factors will have direct as well as indirect
impact over company and help in conducting business operations in more effective and efficient
manner. It is very important for Samsung company to consider environmental factor in its
business operations as it will have huge impact on business. Positive impact – Respective
company is following all rules and regulation in more to maintain the perform its business
operations in smooth manner. This company is conducting different corporate social activities in
order to protect the environment. This will lead to develop strong and positive image of company
market area as well as attract more and more customers towards business. Negative impact -
Changes in global environment will have huge negative impact over business. There are various
strict rules and regulations developed for all those company which is performing in electronic
media. This company needs to use new and innovative business strategies in order to overcome
the negative impact of environmental factors of business.
There are different internal factors which will have impact over business as well as help
in conducting organisational activities in effective and efficient manner. Factor of micro business
are controllable by respective organisation as well as major impact on its performance. For
identifying as well as evaluating each and every factors of Samsung company. Its is essential for
this company to analyse its internal capabilities for developing better business strategies
(Belyaeva, 2018). This will help company to enhance its business performance and accomplished
desired goals and objectives. For this Samsung company needs to conduct SWOT analysis as this
will help in determining the strengths, weakness as well as opportunity and threat. This will help
in identifying all internal strengths that will lead to achievement of set targets. By analysing
weakness respective company will be able to develop better strategies which will help in
reducing organisation weakness. This will also help in understanding the opportunities as well as
threats that will have major impact on organisations. Samsung company needs to achieving
maximum opportunities and try to overcome all threats. SWOT analysis will be very effective
tool for company as it will help in develop better strategies after understanding internal business
environment. Strengths – Samsung is a well known company which is providing its products
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and services to different parts of the world. This company is offering wide range of products and
services which is as per need and wants of customers. respective company is analysing market
trends as well as needs of customers in order to develop high quality product. Samsung company
holds a significant position in market area which can be consider as its strengths. This company
has developed its strong and positive image in market area by providing high quality products to
customers (Popescu, 2018). this has helped in gain trust as well as loyalty from customers and it
increase the customer base of respective organisations. Weakness - There are some weakness
also of Samsung company which will have negative impact over organisation. It is very
important for this company to identify as well as evaluate weakness of respective company. This
company is lacking in financial plan. This is have negative impact over company as it will not be
able to use its financial resources in correct manner. Employees skills and capabilities can be
consider as major factor for this weakness as they are not able to perform as per requirement of
customers. This will have direct negative impact over business performance as well as its
productivity. Opportunities – There are several opportunities available in market area for
Samsung company. This company to grab various opportunities in order to enhance its
performance as well as productivity. This company should use new and innovative technology in
its business process so that Samsung can develop better and high quality products to customers.
this will lead to gain competitive advantage over other rival companies (Gómez. and Titi, 2016).
It is essential for this company to provide proper training to its employees so that they can
perform business task in effective and efficient manner. By enhancing skills and capabilities of
employees respective company will be able to enhance its sales and profits of this company. This
company needs to expand its business operations in new market area. This will lead to have
positive impact over business as well as enhance the customer bases. Threat – This company is
dealing in highly competitive environment which will lead to have major negative impact on
business. Samsung company has major threat from its rival companies such as Apple, Huawei
and many other. Any changes in strategies of rival company will have direct impact over
business (Kolk, 2016). This will increase the pressure on respective company and affect its
productivity. there are various strict rules and regulation developed by government and this will
affect business decisions as well as strategies.
By understanding the business environment as well as evaluating each and every factor in
effective and efficient manner company will be able to perform business task in effective
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manner. It is been analysed that all of the factors are helpful in continuous learning. This
company will be able to understand more able to dynamic environment in which company is
performing its task. This is help in enhancing skills and ability of employee in order to motivate
them. By determining internal and external factors Samsung company will be able to understand
about the need of changes for company. By this respective company will be able to identify its
position in market area and prepare organisation to meet with unexpected changes also. This is
also important for providing complete direction to Samsung company for their growth. This
company will be able to identify various opportunities that is available in market area. By this
respective company can identify its internal capabilities and strengths in order to grab these
opportunities that is available in market area. Samsung company will be able to develop strong
and positive image in market area by improving its business performance. Internal and external
business environment is helpful in gaining with competitive advantage over other rival
company. As through this analyse respective company will be able to identify and understand its
major competitors. This will help in performing business operations in better manner as compare
to the existing rival companies in market area.
CONCLUSION
From the above report it can be concluded that there are various factors in business
environment which will have huge impact over organisation. It is essential for company to
analyse as well as evaluate all these factors in effective and efficient manner. This will help in
understanding the business environment as well as market area to develop better and strong
business strategies. It includes internal as well as external business environment which will lead
to identify all factors. For analysing macro environment company needs to use PESTEL model
and SWOT analysis will be very effective for micro business environment. By this company will
be able to formulate effective business strategies and help in gaining competitive advantage over
other rival companies.
REFERENCES
Books and Journal
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Beynon-Davies, P., 2013. Business information systems. Macmillan International Higher
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Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
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Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Haider, A. ed., 2014. Business technologies in contemporary organizations: adoption,
assimilation, and institutionalization: adoption, assimilation, and institutionalization.
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Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Raziq, A. and Maulabakhsh, R., 2015. Impact of working environment on job
satisfaction. Procedia Economics and Finance, 23, pp.717-725.
Greenhaus, J.H. and Kossek, E.E., 2014. The contemporary career: A work–home
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Belyaeva, Z., 2018. Business Environment Challenges and Trends for Contemporary SMEs in
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Popescu, D., 2018. Contemporary approaches and challenges of tourism
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