Global Business Report

This report analyzes the impact of contemporary global business issues on Apple and Samsung in the smartphone industry. It discusses trends, challenges, and strategies in the global smartphone market.

Running head: GLOBAL BUSINESS REPORT.
GLOBAL BUSINESS REPORT
Name of Student
Name of University
Author Note

GLOBAL BUSINESS REPORT 1
Table of Contents
Introduction................................................................................................................................2
Company overview – Samsung..................................................................................................2
Company overview - Apple.......................................................................................................3
Discussion..................................................................................................................................4
Trends in the smart phone sectors..........................................................................................4
Global Issues faced by the Smartphone companies...............................................................5
How Contemporary Global Business Issues Influenced Apple.............................................6
Gradual Enhancement of Leadership Qualities and Competencies.....................................10
Response to the issues faced by the companies.......................................................................11
Samsung...............................................................................................................................11
How Contemporary Global Business Issues Influenced Samsung......................................12
Gradual Enhancement of Leadership Qualities and Competencies.....................................15
Response to the issues faced by the companies.......................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................18
Appendices...............................................................................................................................23

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Introduction
Globalisation refers to the expansion or the spreading of the people, information,
product, technology as well as the employment across the national border. From the
economic aspect, it describes the interdependence of the nations around the whole world
nurtured through free trade (Narula 2014). It is the integration or interconnections of people,
entities as well as the governments around the globe. It is helpful both in raising the standard
of living of the poor developing countries while on contrary decrease the opportunities of the
developed countries (Sonnenfeld 2013). This paper aims to analyse these issues as well as the
impact of these on distinct globally operating business entity’s process and procedures. To
this end, two globally operating leader organisations are chosen; one of which is Apple and
the other one is Samsung form the smartphone industry.
Company overview – Samsung
Samsung is a South Korean multinational company which is headquartered in
Samsung Town Seoul. The company is known to comprise with a very big affiliated business
organizations under the brand name of Samsung. The company was founded by Lee Byung
Chul in the year 1939 as very first trading company that was popularly known for trading
various types of goods and food products all around the world. In the year 196 the company
engaged itself with the electronic industry that was rising in the time (Horwitz 2019). With
this in the year 1970 the company diversified into building and construction industries
further.
Company overview - Apple
Apple is an American multinational company that has its headquarters in California.
The company is known to deal with various kinds of products and services which include

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designing and developing consumer electronic goods, computer software, mobile phones,
tablets, music system and online services. According to the survey in the year 2018 Apple
Company is considered as the fourth largest tech companies just after Google, Facebook, and
Amazon. The hardware products of the company includes the making of iPhones, iPads,
iPods, Mac personal computers and laptops, Airpods, Apple watch and many more in the list.
At that time the first product that was designed by the company was the Apple 1 a personal
computer device. With gaining popularity in the local market of US, the company also was
gaining popularity in the outer market such as the international countries. With this in mind
the company developed the Apple II in the year 1980 and the company decided top ship
many of its products to the Asian countries and other countries.
In the present date the company is well known for its revenues earned and the diverse
products made available to the customers. However it has gained craze for its premium
products and got placed in the third position of largest mobile manufacturer after Samsung
and Huawei.
Discussion
The global smartphone industry is the largest as well as the rapidly growing industry
with more enhanced computing capabilities as well as connectivity. Innovations in mobile,
distinct business models, as well as technologies, are changing every adjoining market.
Mobile devices and their services becomes the central hub for the entertainment of people as
well as business interaction. Smartphone has replaced even PC being established itself as the
most critical device connected smartly. The installation of smartphone in international base is
going to increase to 6 billion devices totalling $355 billion in revenues by 50% in the coming
four years according to a new study.

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Trends in the smart phone sectors
Trends in the smart phone sectors mainly include the new generation along with the
era of 5G. The involvement of the 5G technology has been talked on for the last 5 years
which is still under improvement and development. Few of the most renowned companies are
trying to coming up with the new technology by investing huge amount of money in the
cellular industries. The latest development of the artificial intelligence is also in trends.
Companies are trying to provide the customer with various types of AI powered camera and
voice controlling devices.
The AI will help the customers to identify maps in new locations and help deliver
with appropriate usage of user statistics. Also in the present date the bigger the display the
more better they differentiate from the previous ones. The bigger display phones are now in
trends which help the customer to see various types of movies as well as it comes with more
mystery features Companies are trying to provide the customers with a bigger curved display
but at a lower price. In the year 2017 the notch display phones were in craze. With the
present trends of notch display the mobile phone manufacturers are coming up with water
drop notch display to help the consumers get full satisfaction from the device display. With
all these trends in mind the companies are trying to deliver their phones with a glass display
at the back that provides the customers with a premium feel for the device they are holding.
Though there are numerous smartphone organisations, only a few players are controlling
instead of ruling the global smartphone industry. Apple and Samsung are leading the market
of smart phone at present.
Global Issues faced by the Smartphone companies
Smartphone affected almost every aspects of human life. Specific areas where the
smartphone has left its intense impact include education, communication, health, business as

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well as the life leading socially. Technology dramatically has transformed the norms of
culture as well as individual behaviour. At one side, the smartphone is enabling the people to
connect along with gathering the knowledge and transform or create their micro-culture. On
the other hand, it is also allowing people to engage in activities, which are considered
harmful to society. Apart from its role in business, it is also creating some new dimensions in
the context of business such as it has generated a new sphere for corporations engaged in
mobile application development, internet service deliverer as well as some sectors is
exploring the different aspects of the smartphone to gain the competitive advantage.
The adaptation of the smartphone has been extremely large throughout entire the
world. In a survey, it has been observed that almost 80% population in the entire world utilise
these devices, as well as nearly 42% subscribers of mobile in US, generally utilise
smartphones (Xu and Li 2013). Historically, Apple is considered one of the most successful
companies. Even in the period of organisation’s struggle, it was fighting for bringing
innovation. An US-based technology organisation Apple Inc. headquartered in Cupertino
develops designs as well as sells electronic devices, computer software as well as online
services. In the late 1990s as well as 2000s, Apple started to arise to dominate the world of
technology, which established as the trendsetter in respect to mobile devices (Apple 2019).
The hardware products of the organisation include iPhone, iPad, tablet computer, iPod media
player, smart watches, mac personal computer as well as multiple others. Apple has kept
releasing several different or stylish products from the 1970s. However, the organisation
started journey humbly with the Apple II series of personal computers, the Macintosh.
According to the report, Apple has accumulated more than fifty per cent of the global
smartphone market. According to the strategy analytics, Apple gained the market share
almost of 48.5% in the fourth quarter of 2016 and ensured sales of nearly 46.9 million
according to the fourth quarter of 2018. The constant release of new and diverse products,

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operating systems, instigates the excitement among the customers, developers, as well as the
industry.
How Contemporary Global Business Issues Influenced Apple
Apple is operating globally by expanding the production unit in Europe as well as
Asia. It is renowned for bringing new tradition in industry of mobile phone through launching
the iPhone, MacBook and recently iPad in the market, which has enabled itself to achieve
great success. However, the global market scenario affects their strategy, policies and
practices. The several issues it confronted due to globalisation are discussed below.
Global Political Issues- Apple receives an essential proportion of sales from outside with
contribution amounting more than $113.8 compared to sales revenue in US totalling almost
$68.8 billion. Nevertheless, political instability in the operating country leaves a negative
impact on its progress. For example, several suicide cases against Foxconn, one of its
significant suppliers caused Apple to undergo intense political pressure (Xu and Li 2013).
Moreover, Apple facing multiple challenges because of political unrest within China being
hugely dependent on China, a lower labour cost country for product manufacturing. It is
unable to promote the building within China due to its imposed restriction on imports as well
as if it chooses to achieve an alternative for ensuring manufacturing in China along with
increasing the cost of product there is the tendency for losing the market share in China
because of growing nationalism. Apple can encounter the present political scenario with
increased volatility among the coalition of ruling as well as sagging popularity in government
and the risk of a terrorist attack. Even the public acceptance of homosexuality by Tim Cook,
CEO of Apple caused him to face the ban on visiting Russia by its lawmakers with a harsh
attitude towards gay culture (Wilkinson 2014).

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Global Issues of Economic- Apple witnessed reduced economic progress in the year 2013 as
well as 2014, which in the recession period. Apple was the entity, which got affected most
during the time of recession. It caused decline in its revenue by only 16% in the 3rd quarter
of 2012 in comparison to its income in 2011 (Chan, Pun and Selden 2013). Moreover, the
increment in cost of labour in China affected negatively on the manufacturing the items of
Apple. Confirmation of the minimum wage within the country led to the rise in labour cost in
China. However according to the author in some of the areas like Northern Hubei Province
witnessed 22% whereas Southern Guangdong 5% to 17% in the increase of the wage which
in turn causes the increase in prices of Apple products(Chan, Pun and Selden 2013). Even the
rise in the amount of the US dollar or other currencies in European countries such as Euro
and Yuan resulted in increased cost of Apple products.
Global Social Issues- Some social factors like popularity as well as the exploration of virtual
world as well as the recent trend of style for leading life affected Apple massively. Apple is
well known as the premium brand in the world (Ntakyo, Mugisha and Elepu 2013). It has
become a status symbol to societal people across the globe with their unique selling and
marketing strategy, innovative design as well as straight and straightforward marketing and
segmenting strategy. In respect to its manufacturing process in China, many people may state
that it lacks social awareness as well as responsibilities because of its step to manufacture
products in China instead of the home country creating options for the job. All these factors
might work as an unethical factor to the societal people. The brand acquisition with Embark
Prime Sense as well as Topsy as well as alliance with Sony, Philips to attain customer
satisfaction through fulfilling their requirements in the best possible way played an essential
role in its success.
Global Technological Issues- Apple is one of those organisations, which has proven the
effectiveness of innovation from time to time. According to the report of Apple published in

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2015 that it spent more than $8.7 billion in R&D costing almost 3% of the company’s net sale
for comprehending the approach of customers. Apple is outsourcing quality products for
assimilating from foreign countries even sometimes from China through breaking the supply
chain efficiently (Grimes and Sun 2016). The quality technology that has been generated in
China provides a cost advantage compared to the same in the US. Apple beats high cost of
labour in the US through the implementation of technology with the help of skilled but low-
cost labour force. In China with the proper use of internationalisation strategy. Apart from all
these positive aspects, there are some negative aspects of internationalisation, which affected
the organisation. Google, as well as Samsung, played a vital role in terms of strongest
competitors (Jun and Sung Park 2013). Google making the app for payment such as Apple
has shown its capability to develop the exact product, service like Apple, which poses as the
threat to the organisation in the international market.
Global Legal Issues- The government policies on trade influence the complexity of supply
chain management as well as the outsourcing of the organisation. Apple input materials are
sourced from some of the unique enterprise zones of China, where much of the import duties,
as well as taxes, are outlawed in China. Thus utilising the scope of globalisation Apple has
ensured the outsourcing from the countries where there is little legal regulation and enable
maximising the profits incurring the lower cost or retaining the economics of scale. Through
establishing the unit in China and Ireland, they have taken advantage of both exchanges as
well as investment-friendly government policy, which helped itself to spread their product
worldwide. Instead of all these positive factors, there are some negative issues concerning the
government policies such as at a point of time it was forced to restore its imports or some
parts as it gat banned by the US government (Djurovic 2013). The production of intellectual
properties like software as well as music makes it venerable to piracy and litigation.
Moreover, its latest initiative to produce electric vehicles by 2020, creating massive pressure

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on its key people likes Tim Cook, the CEO from shareholders for returning the money. Even
the legal case filed against the organisation stating that the organisation is rushing to launch
such kinds of product in 2020, which requires at least ten years.
Global Environmental Issues- Disposing the non-functioning electronic devices in terms of
junk such as lithium contained batteries in electronic items causing the massive hurdles for
the organisation as it is harmful to the environment (Clarke and Boersma 2017). The recent
initiative of China in reducing the use of fossil fuel due to minimising the greenhouse effect
as well as the increase of electricity cost creating a problem for Apple because of its intense
dependency on data centres as well as internet infrastructure.
Global Ethical Issues- Recently the increased consciousness of the consumers regarding the
ethical conduct of their chosen organisation forced Apple to take initiatives through going
greener, along with this approach Apple is trying to build its product with materials, which
are suitable for recycling and encouraging people to recycle through conducting the
programs. It has eliminated cathode-ray-tubes containing lead as well as reducing the toxic
chemicals in its products (Wacyk 2016). Moreover, it is striving for ensuring the quality
product along with friendly working culture and opportunities of development for its
employees, Siri, a helping app for reservation, get direction as well as performing other
actions like sending text messages. Beats Electronics, Next Inc., Anobit Technologies,
PrimeSense and multiple other merger acquisition took place in Apple for enhancement its
feature as well as competencies in its products and services (Sadun and Sande 2013).
Merger & Acquisition
According to the ChurchBase report, Apple has made almost 106 different
acquisitions. Some of which include Shazam the music is identifying the app, Emagic, a

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German company in 2002 for developing digital audio workstation software (Hong,
Bhattacharyya and Geis 2012).
Thus from the above analysis, it can be concluded that despite multiple challenges
aroused due to its global presence through innovating some useful strategies to address the
threats as well as weaknesses it is confronting at present can retain its leading position. It
could grow in the industry of electronic device with its unique competence, design as well as
a competitive advantage.
Gradual Enhancement of Leadership Qualities and Competencies
In the time of the Steve Jobs, founder of Apple, i.e. in the period from 1997 to 2011
leadership style was autocratic with Jobs’ micro-managing a more extensive range of
business operations. It has been heard that when Steve Jobs was in charge of everything
happened according to his decision. Recently it has changed drastically under the leadership
of Tim Cook. He is recognised as the most excellent leader according to Fortune Magazine
(Rubin 2013). He proved to the effective leader from various aspects. The employees praised
him for his inspirational leadership as well as supporting his subordinates to be good human
beings.
Response to the issues faced by the companies
Apple thus first cultured the autocratic leadership style adopted by Steve Jobs. He
created a culture of no-compromise in terms of being the best whatever it does. According to
some people, Job was erratic (Sonnenfeld 2013). His expectations always were articulated
clearly rather viciously to the employees and rebuked when they did not obey that. He was
open and straight in his approach with clarity and without leaving anyone in the bush. In
contrary to this approach democratic leadership style, Tim Cook has taken the democratic

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leadership style that enabled members of organisation to perform a participative role in the
procedure of decision-making (Perry 2016).
He built a general agreement among the senior management in respect to strategic
decision for business even Cook permitted the increased autonomy for facilitating the
procedure of new product development. Moreover, Tim Cook also exercised as well as is
praised for quiet leadership style, which is proved effective (Rauf 2014). Cook eventually is
criticised by several analysts for lack of vigour or ambition like predecessor Steve. Apple Inc.
is facing now some significant leadership challenges such as lack of diversity in team
members along with the lousy decision-making. Cook has set a standard regarding financial
performance, which is so high that it is not possible to meet. Thus, it has changed its
leadership style form from time to time.
Samsung
South Korean company, Samsung that is recognised as one of the renowned
manufacturer of electronic devices (Samsung Electronics America 2019). Samsung
specialised in manufacturing a variety of consumer as well as industrial electronic devices
including the appliances, semiconductors, digital media devices, memory chips as well as the
integrated systems. It was founded as a grocery trading store, therefore, expanded into textile,
thus, and introduced the black-and-white T.V with several electronic focused divisions. In the
initial stage, Samsung observed the rapid growth in its technological business sphere (Glowik
2016). In 2000s organisation get praised, or demanding product took birth, i.e. Samsung’s
Galaxy series, which enabled it to exist in top in the list of the best-selling smartphones
worldwide. Therefore, in 2010, Galaxy series expanded its sphere in tablet computers with
the introduction of the Galaxy Tab (Lee and Jung 2015).

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How Contemporary Global Business Issues Influenced Samsung
Samsung is an international conglomerate, which runs within the market of white
goods or appliances of consumers as well as gadgets. This South Korean family-owned
business with global aspirations expanded it into the new markets. Samsung did not get
satiated for operating in few markets in the world rather aims to explore as many as possible.
In respect to this approach, there are specific issues it is confronting due to globalisation,
some of which are mentioned below.
Global Political Issues- In most of the operating markets where Samsung pose little irritants.
However recently it is confronting the political unrests in its own home country due to
country’s opposition with North Korea where the organisation requires considering the
political volatility along with the threat of possibility of war break out in Korean Peninsula
(Kim and Martin-Hermosillo 2013). Additionally, it is also experiencing the political
pressures in various African, as well as American countries where the political scenario is
unstable instead tend to face continuous changes in governing strategies.
Global Issues of Economy- The macroeconomic environment where Samsung is operating is
occupied with the uncertainty forcing the organisation to restructure its strategies
accordingly. The economic crisis in global context detrimentally affecting the purchasing
power of the consumers specially developed a market which causing it to concentrate on the
emerging market. Moreover, concerning the Asian financial crisis around 1998, Samsung was
immensely threatened to become insolvent (Zhao, Jiang and Li 2015). At present, it is
combining the almost one-fourth of all Korean exports through its restructuring as well as
changing its marketing strategy.
Global Socio-cultural Issues- Samsung is a family-owned MNC, and in spite of its global
presence, it is still operating as a Korean organisation from the inside (Lee et al. 2019). To

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run smoothly throughout the world, it requires adapting itself to the local market scenario
means it has to accept a strategy, which will be globally effective in multiple emerging
markets as Samsung operates in a market niche, which is immense, influenced by the lifestyle
as well as the preferences of consumers (Wambui 2013). Therefore, Samsung is gradually
striving to design its product according to the changing preferences of the consumers as well
as cope up with the diverse socio-cultural scenario in different countries.
Global Technological Issues- Samsung is observed as one of the world’s most innovative
organisation within the industry. It aims to stay always ahead concerning the technology as
well as the innovation curve. They aim to offer the customer with the latest technologically
improved product to achieve a sustainable business advantage and dominate the competitors
(Song, Lee and Khanna 2016). The company has the capability of utilising the power of
technology through this aspect had caused it to confront some problems related to the legal as
well as regulatory security in a time when Apple accused it of imitating the product designs.
In spite of the general risk avoidance of Koreans, Samsung is investing more in its R&D to
retain its market position.
Global Legal Issues- Samsung taking advantage of globalisation tried to capture the market
share through imitating the product design of its legendary competitor Apple and faced the
vast penalties (Menon 2014). This accusation initially caused the public perception to worsen
about the organisation (Jie and Hasan 2017). The consumer approval of its strategies also gets
affected due to this issue. However, somehow, it became the reason for the organisation's
expansion in the new market.
Global Environmental Aspects- With the gradually increased consciousness of the ethical
consumers in respect to the welfare of both environment as well as human beings Samsung

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facing the challenges in ensuring the well-working condition, wage payment as well as the
production process in an ethically approved manner.
Global Ethical Issues- Samsung has proved its ethical business conduct through showing its
commitment to environmental welfare with introducing the eco-friendly product like Galaxy
Young 2, a smartphone with biodegradable plastic packaging and other green materials
(Medappa and Srivastava 2017). Samsung tried to minimise the detrimental effect of its
product on the environment whenever possible and confront the environmental problems. Its
philosophy of Eco-Management has contributed to the development of human lives and
society as expressed in its famous slogan planet first (Chen et al. 2015). Samsung is criticised
for employing the child though it has denied such claim with an explanation that child labour
is not approved in any of its production unit (Nodoushani 2013).
Merger & Acquisition
Taking advantage of globalisation Samsung acquired multiple organisations in
different countries, contributing to its effective operations. It first acquired Harman
International Industries for manufacturing, developing as well as increasing the marketing of
audio products (Chun, Nhung and Lee 2019). Therefore, it acquired AdGear to improve the
advertising approach, then Joynet to support cloud-based software. It also acquired LoopPay,
Nexus, Novaled, Proximal Data, and Simpress to enhance its performance as well as eco-
friendly production with the passing time accordingly (Lee, Kim and Park 2015).
Thus in respect to all these issues, it can be stated that Samsung likes any other
organisation confronting the various challenges for operating effectively in a global
environment. Due to the changing concern, scenario as well as the preferences of the people
and society like any other MNC, Samsung also compelled to change or modify its business
strategies and policies.

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Gradual Enhancement of Leadership Qualities and Competencies
Although Samsung has cultured the bureaucratic system at past with confining the
power within the hands of owner management after CEO Jong-Yong Yun’s strategy of
empowering the employees ensured the better innovation as well as the success of the
organisation. Directors of board in Samsung consists four executive directors as well as five
independent directors representing hierarchical corporate culture (Rani et al. 2016). These
independent directors separately come together in order to promote the free exchange of ideas
in every aspect of organisational management. Samsung develops the development program
on leadership, which comprise five basic levels (Dudovskiy 2019).
Response to the issues faced by the companies
Samsung has swept its leadership slate clean as well as appointed a group of new
bosses announcing the reshuffle of its executive team in order to tackle with gradual changing
business in IT industry (Horwitz 2019). After Lee Jae-young being sentenced for the
imprisonment for five years because of bribery in August taken the position of Samsung’s top
executive who called for introducing a ‘new spirit and young leadership’ to tackle with the
newly arising challenges due to rapid changes in IT industry (Narula 2014). Here new spirit
refers long-time serving men to the organisation where the word young relates to men in late
50s (Choi 2016).
Thus, Samsung is trying to enhance its leadership style as well as the competency
level through changing its leadership and improvement of the product quality as well as
innovation. Through implementing the strategic direction, it has ensured its success and
competitive advantage in its operating industry. First, one is pushing for results or innovation,
therefore, ensures the creative intelligence through promoting the culture of sharing the ideas
among the people. Therefore, navigate the organisation in terms of removal of obstacles,

16GLOBAL BUSINESS REPORT
which might exist within the policies as well as procedures with the improvement of changes.
Thus, it appears the responsibility of building the best teams with committed efficient people
with the common objective (Lynn and Kalay 2015). The last one is ensuring the inspiration
on others to contribute more as per the changing demand creating a culture of success and
innovation.
Conclusion
Thus from the above observation, it can be concluded that globalisation comes with
multiple opportunities as well as the challenges especially in respect to the business.
Especially the IT industry, which includes the operations in the virtual world, requires
keeping updated with the changing trend or requirements of people and their consciousness.
Both the entities in this paper, i.e. Samsung, as well as Apple, are the large organisations in
the IT sector especially the leader in the smartphone industry. There is the requirement for
both of these leading giant to be more conscious about the emerging problems and ready to
confront these by introducing distinct effective business practices or policies. Therefore,
detect the customer pain point and come with solution before other competitors.

17GLOBAL BUSINESS REPORT
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22GLOBAL BUSINESS REPORT
Appendices
Country 2011 -
2012
2012 -
2013
The
United
States of
America
50% 9%
Europe 31% 4%
China 78% 13%