Assignment On International Business Issues and Practice(Samsung)

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Student ID:
Word Count:
4000
Unit Title:
International Business issues and practice
Unit Code:
MAN133
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TABLE OF CONTENTS
Executive Summary.......................................................................4
Global Risks Report....................................................................4
Introduction................................................................................6
Internal and External Analysis for Samsung...........................................7
PESTEL Analysis for Samsung............................................................7
Political Factors........................................................................8
Economic Factors......................................................................8
Social Factors...........................................................................9
Technological Factors................................................................10
Economic Factors.....................................................................10
Legal Factors..........................................................................11
PESTLE link to WEF Report.............................................................11
Competitive Analysis....................................................................12
Sources of Competitive advantage.................................................13
Samsung Generic Strategy for Competitive Advantage.........................14
Competitive strategies linked to the World Economic Forum....................16
SWOT analysis for Samsung............................................................17
Strengths...............................................................................18
Weaknesses............................................................................20
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Opportunities..........................................................................21
Threats.................................................................................21
Strategic decisions to tackle World economic forum challenges..............22
Recommendations.......................................................................24
Conclusion................................................................................24
References................................................................................25
Appendix..................................................................................28
Appendix 1 – Key Facts About Samsung...........................................28
Appendix 2 – Corporate Tax For Samsung.........................................28
Appendix 3 – Samsung Revenue from Diversification............................29
Appendix 4 – Samsung expenditure on Research and development for
marketing and sales growth.........................................................30
Appendix 5 – Brand Loyalty Samsung..............................................31
Appendix 6- The diversification of Samsung Products..........................31
Appendix 7: Market share for Samsung leading along with its biggest
competitor Apple.....................................................................32
Appendix 9 – Samsung Electronics Sales Dip in Semiconductors against its
competitors-Intel.....................................................................33
Appendix 10- Decline of sales for smartphone industry due to Coronavirus
Pandemic effect......................................................................34
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Executive Summary
Samsung Company has its origin in South Korea. The headquarters is located in
Samsung Town, Seoul, which is found by Lee Byung Chull. Samsung initially
started as a trading company in the year 1938 (Chang., Zhang and Xiong
2019). It deals primarily with designing, manufacturing, and marketing of
tablets, smartphones, laptops, washing machines, television, and microchips.
Its immense success and market domination over the years has helped
Samsung gain a big business empire. Samsung holds various subsidiaries, which
include Samsung heavy industry and Samsung Electronics, among others. It is
one of the leading electronic dealers ranking at the 5th position on the global
scale.
Samsung operates in more than 73 countries globally, including the U.K, China
and U.S.A Its primary computers is Apple, which holds significant shares in the
electronics market, giving a fierce competition to Samsung. As per 2017
statists, Samsung electronics recorded a global revenue increment from
$187.74 billion to $222.82 billion.
Global Risks Report
The global risks report (2019) was drafted to analyze the risks that global
decision-makers view, which influences national and organizational strategy.
The clear risks which emerged from the analysis are:
Geopolitical breakdown
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The co-operation between the countries shows a decline from wars in trade to
the dissolution of the weapon treaties. The primary concern of worry is the
different geographical climate, which will hinder the progress of critical
global changes (Guisan 2019).
Technological instability
As the influence of technology grows into the modern era, there is an
increased risk of cyber-attacks and technological safety, which is a grave
matter of concern.
Economic vulnerabilities
There have been increased debts in corporate work, along with increased
financial risks. The creditworthiness of borrowers has also declined. Tightened
financial conditions is a matter of great concern.
Societal and political strains
Political instabilities is a significant concern for the world economic forum.
The increased polarization of societies is a significant driver of developments
in the global risk landscape. Polarisation and weak governance raise serious
questions and concerns about the political health of various governments. A
vicious circle develops, diminishing social cohesion, straining the political
institutions, and responding to changes in society.
Environmental Fragilities
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The environmental risks dominate the global risk perception as top priorities
to be taken into account as a risk factor. There is increased worry and
concern about environmental, political failure and its potential impact.
The report will focus on how the World economic forum's challenges,
especially societal and political concerns, and economic challenges will affect
Samsung and its efforts to combat these strategies with an in-depth analysis
of the various strategies that Samsung has implemented to for sustaining itself
in the fierce competition that exists.
Introduction
Samsung Electronics ranks in the second position as the largest technology
company that designs, manufactures, and markets electronic equipment,
including electronics, home appliances, telecommunications, and
semiconductors. The Samsung tech industry is the world’s largest smartphone
and mobile phone manufacturers. It offers its consumers over a hundred
products of a different variety. Samsung has its operation branches in more
than 79 countries around the globe.
Samsung has been able to sustain its brand status till date in the world of
technology. It possesses skilled, talented and experienced workforce who
strives to attain excellence and constant improvement to gain a competitive
edge (Bajaj 2017).
The aim of the report focuses on Samsung's efforts to deal with the main
issues drafted by the World Economic Forum report (2019) on societal and
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political strains and economic vulnerabilities. There has been increasing
concern over the political and social conditions, along with tightened financial
circumstances affecting not only national objectives but also organizational
goals. An external and internal analysis of Samsung is also a part of the report
to understand the strategies which Samsung uses to survive strongly in the
highly competitive domain.
Internal and External Analysis for Samsung
Samsung is a technological amalagam which has gained immense popularity
and brand loyalty among a large consumer base for its products. A PESTLE
analysis Samsung is used to analyze and study the external factors for
Samsung. The SWOT analysis is useful to study the internal analysis of the
company. It identifies the strengths and weaknesses of Samsung which has an
effect on the business development and standing of the company in
comparison to its competitors (Strategy and Verma 2016). The internal and
external factors analysis relates to Samsung's strategies to stay on top of the
competitors and gain a significant market share in the multinational industry
environment.
PESTEL Analysis for Samsung
PESTEL stands for Political, Economic, Social, and Technological, Economic
factors and Legal Factors. The PESTEL analysis divulges into the external
factors that influence the organization and not within its control. PESTLE
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analysis helps the companies to pertain to various issues in the political and
legal domain, which changes at a rapid pace. Companies use PESTE analysis to
avail of the opportunities and deal suitable with the threats to its existence
and sustainability.
Political Factors
Politics is a substantial and primary driver of any business. Most of the market
domains where Samsung is operational, the political environment plays a
crucial role in its business operations (Buchanan and Badham 2020). However,
minor irritants have emerged in foreign markets like India, where political
factors are friendly and conducive to business growth. Political pressures from
Africa and Latin America due to instability and frequent changes in
government structures also affected Samsung operations.
Countries like the U.S.A and U.K have cut down on their corporate taxes to
stimulate growth. Trump’s tax and cut jobs Act, enforced corporate taxes to
be reduced from 35% to 21%. The UK federal government also proposed a
decrease in corporate taxes drops 19% to 17%. The president of South Korea
adopted a different approach. President Moon-Jae increased the corporate
taxes by 3% on taxable incomes. The tax increment affected its home brand
Samsung, which had to pay an additional $1.19 billion corporate taxed in
2018, affecting its profit margins largely.
Economic Factors
Economics is a vital factor that affects Samsung's performance in the market
and profit margins. The economic driver of all countries seems uncertain due
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