Micro Environment Analysis of Samsung
Added on 2020-10-23
13 Pages4041 Words320 Views
Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Influence of macro environment on Samsung Electronics Organization..............................3TASK 2............................................................................................................................................5P2. Analysis of the internal environment of Samsung Electronics Company.............................5TASK 3............................................................................................................................................6P3. Using Porter’s Five forces model evaluate the competitive forces of the market served bySamsung.......................................................................................................................................6TASK 4 ...........................................................................................................................................8P4) Applying a range of theories, concepts and models, interpret and devise strategic planningfor Samsung.................................................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONBusiness strategy can be defined as the course of action which helps the entrepreneurs inaccomplishing specific organization objectives. In this assignment the company which has beentaken into consideration is Samsung electronics limited(Rothaermel, 2015.). It is one the SouthKorean multinational electronics company. This presented report gives the brief analysis of theimpact and influence which the macro environment has on an organization and its businessstrategy. In addition to this brief analysis of an organization internal environment has also beendone in this project. Apart from this Porter’s Five Forces is being applied in order to evaluate thecompetitive forces of a given market sector for an organization. Lastly, this assignment willexplains about the different range of theories, concept and models are being applied in order tointerpret and device strategic planning for a given organization. TASK 1P1. Influence of macro environment on Samsung Electronics OrganizationTo ,The line mangerBusiness strategy can be defined as set of decisions which assist the manager of thecompany in achieving specific business aims and objectives. In addition to this it is refers to as amaster plan which is used by the Samsung electronics company to secure the competitiveposition in a market place and to achieve desired target of an organization. In order to carry outbusiness effectively manager of Samsung Electronics Company uses PESTLE analysis so as toanalysis influence of external macro environment of an organization. Political:The macro environment factors such as political and its other aspects can putnegative emphasizes on the business and manufacturing process of the Samsung. In somecountries where politics have big influence, various multinational companies are suffering a lotsuch as process function, production aspects, supplies and other distribution aspects. Samsunghas been operating in different countries such as UK, USA, Australia etc. Different nation havecritical and typical environmental influence or negative forces which can affect the financialsuitability and their customer image and loyalty. This has affected Samsung to take away theirbusiness or has suffered with financial losses. The impact on strategic formulation is that severe
losses from nation such as African countries has put burden on formulation of the furtherstrategies and plans to rebuild market attractiveness and suitability for in-future manufacturingprocess. Economical: One of the economic factors that have proved to be detrimental impact onSamsung revenue is strong Korean currency. It was founded that main reason for the decrease ofsecond quarterly profit by 25% of Samsung Electronics Company was Won appreciation. Inaddition to this, other economic factor which can influence Samsung includes interest rates,inflation rate, level of taxation and change in cost of labour. Tax rate have direct effect on thefinancial performance of Samsung Company.The effect of same is that financial support hasaffected, which may lead to reduction in the strategic formulation, till company could gain theirfinancial necessities.If the economic conditions of the country is good enough then it will bebeneficial for the Samsung organization in the form of financial performance of the company. Social: In South Africa social trends environment is constantly changing due to theadvancement in technology and services which have impacted on the needs and the wants ofSouth African society. It was founded that there is an increase attraction towards updatedtechnology especially in a means of communication. One of the challenge is that individualsliving in a society do not even know how to use Samsung products in a proper way specificallythe new tablets phone. If the Samsung company will take into consideration the changes takingplaces in the needs and preferences of the society toward the types of standard phone they areuse then they will helps in attracting large number of customers toward their products andservices. Thus, it will helps in increasing the profitability ratio of the company.Technological: It has been founded that advancement and rapid growth of technology istaking place in the applications in UK.This has brought a great impact on Samsung Company. Inaddition to this advancement in technology has also changed the way business is carried out associal media is one of the essential technology which plays crucial role in developingsustainability business strategy. So, Samsung Company has founded to carry out business out ofthe building structure. If the Samsung company will mould its strategy as per the advancementtaking place in the technology like introduction of galaxy note 2 which is more like a tablet thenit will helps in achieving maximum profitability for the company(Hart, 2015). Legal: The government of South African has brought up the consumer protection act. 68,into operation which have negatively Influences on the strategy formulation of the Samsung
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