Samsung's PESTLE Analysis and Sustainability Efforts

This report provides a comprehensive overview of Samsung's business operations and sustainability efforts. It includes a PESTLE analysis, highlighting the company's response to globalization, technological advancements, demographic changes, economic conditions, social trends, and environmental concerns. The report also focuses on Samsung's initiatives in reducing carbon emissions through product design, supply chain management, and digital marketing strategies.

EFFECTIVENESS IN
BUSINESS

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1 a) Nature, background and history of Samsung.................................................................3
1 b) Ways in which PESTLE be useful in helping Samsung to meet their objectives..........3
2 a) Ways in which globalization has affected Samsung......................................................4
2 b) Improved technology has helped Samsung to succeed in their daily operations...........4
3 a) Identify targeted customers of Samsung and their importance for the business............4
3 b) Ways in which Samsung can target and attract more customers...................................5
4 b) How Samsung’s business is combating carbon emission and reducing CO2. .............5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
Effectiveness is a degree to which goals can be achieved and extent to which problems
can be solved. Effectiveness in business is important to see the quality level with which any
process or task is being carried out. In this report brief description about Samsung is given,
different ways in which PESTLE is helpful for them to meet their objectives, ways in which
globalization has affected the company, improved technology has helped the organization to
succeed in their daily operations,different segmet customers of Samsung and different strategy
through which they can attract more customers, role of ethics and at last contribution of the
company to reduce carbon emission will be explained.
MAIN BODY
1 A) Nature, Background And History Of Samsung
Samsung is world’s one of the largest producers of electronic devices. They produce
variety of electronic devices including digital devices, appliances, memory chips,
semiconductors, mobile, integral systems etc for both customers and industry. It is one of the
most recognizable name in technology in the world. Samsung was founded in 1938 as a grocery
store. After Korean war they expanded their business in textiles and woollen mill. In 1969 they
first time entered in electronic industry by producing their first black and white television. In
1970 they exported for the first-time electronic products overseas. They expanded worldwide in
1970 and 80’s. Till 1990 they continued to expand globally(Dasgupta and Sengupta., 2016). In
2000 Samsung launched Samsung galaxy smartphones which were a great success and within a
short period it frequently topped the list. In 2010 they continued to expand and making tablets,
computers etc i.e. mostly in technological sector.
1 B) Ways In Which Pestle Be Useful In Helping Samsung To Meet Their Objectives.
PESTLE is useful for Samsung in many ways to meet their objectives few of them are
explained here.
 Political: Political factors indirectly or directly impact the business of a company.
Political environmental in many markets is favourable for Samsung’s operations. Like in
Poland government is supporting foreign direct investment with big companies like

Samsung. So, this will help the company to accomplish their objective i.e. to deliver their
products globally.
 Economical: Economical factors have a direct impact on a business of an organization.
Opening up in many developing countries had made them to rethink of the economic
factors so that company can expand their footprints globally which will help Samsung to
grow in the emerging market and increase their revenues to achieve.
 Social: Samsung still operates from their native country. They being a global company
need to adapt global strategy in many emerging markets. As they operate in a market that
is strongly influenced by socio culture lifestyle and which is different for all countries, so
they need to reorient themselves according to the market. According to Samsng's new
object to develop products which can reduce green house gases this object can be
achieved through this.
 Technological: Samsung can be considered as one of the largest technologically
innovative company. They have an advantage of technology power which always bring
new innovation in their products which is the main factor because of which they lead in
the competition like they are the first company to support 5G technology in their mobiles.
 Environmental: Nowadays as ethical consumers are rising, they want that their brand
should produce products in a very environmentally and socially responsible manner. So
Samsung has taken few steps to ensure that their products do not compromise their
company ethics which is in favour of their company like they have made a pollutant
management program in which they are trying to reduce indirect emmision from
logistics, suppliers and use of products etc. program named as GHG protocols(Gardere,
Sharir and Maman., 2018).
2 A) Ways In Which Globalization Has Affected Samsung.
Globalization can be described as a process by which regional or national cultures,
societies and economies which has became integrated through global network of communication,
trade, transportation and immigration. Samsung took the first step in globalization through its
logo in which Samsung is written in white in blue colour to represent warmth, stability and
reliability. Samsung delivers three key messages to world i.e. innovative products, new
technology and creative solutions. Samsung’s entrance into global market was a big threat to

Apple as they stated to make the lightest mobile phones in the era. They gave a tough
competition to other brands who were already present in the global market. They had a
advantage of advancement in technology and because of which globalization lead to technology
exchange as Samsung network spread globally. They even won 32 design and innovation
awards(McElroy., 2014). In a very short spam they had spread their network globally in approx.
61 countries. Nowadays service and techniques provision is available almost anywhere which
gave them advantage of low cost labour and other resources advantage. In short globalization has
helped Samsung advantage of low cost and increase profit margin and helped them to increase
their sales.
2 B) Improved Technology Has Helped Samsung To Succeed In Their Daily Operations.
Innovation has always been Samsung’s advantage, so improvement in technology has
always helped Samsung to succeed in their daily operations. Improved technology has improved
Samsung’s business in many ways such as: In decision making, every organization need to go
through market research which is very important aspect in their business, so technology
improvement has enabled a business to do market survey in many ways like digitally, online
surveys etc. As Samsung is in technology field their biggest concern and daily operation is data
security and data collection, big data and cloud computing has helped Samsung in data collection
and data security.
Today’s improved technology has helped Samsung to create C-Labs (Creative Labs)
which has helped Samsung’s employees to nourish their own ideas and give them time, tool and
support to become a full fleshed business. C-Labs has also helped Samsung’s employees to
dedicate themselves in projects to give their 100%. C-Labs has also helped Samsung to manage
and organize their employees and work collaboratively to achieve target and meet project
deadlines(Ottman., 2017) For example recently they are working on project sound ray (S-Ray) in
which they are working on portable direct speakers which customers can carry any where.
3 A) Identify Targeted Customers Of Samsung And Their Importance For The Business
Samsung’s targeted customers are of wide range depending upon their usage of devices.
Their main target customers are of age between 20 to 50 or even older until and unless they have
the ability to purchase their products. Age group between 15 to 25 are customers who mainly

focus on Samsung smartphones. Age group between 26 to 50 are customers who has the ability
to purchase wide variety of Samsung products line Smartphones, television, Cameras etc.
3 b) Ways in which Samsung can target and attract more customers
Samsung can apply different marketing strategies to attract new customers like
 Digital Marketing: In today’s world marketers get different variety of devices, tools and
platform for marketing as nowadays customers are relaying greatly on digital devices for
their daily activities, so it is important for Samsung to target their customers through
digital media(Petrovski and Pestana., 2017). Digital marketing is a strategy to promote
products through electronic media. It also includes advertisement using digital
technology, like electronic posters or billboards. This marketing can target any age group
customers mostly between 15 to 50 as all the targeted customers can get in touch with
this marketing.
 Engagement/ Experimental Marketing: It is one of the most commonly use marketing
strategy. This strategy focuses on strong connection between customers and brand by
engaging them in active participation in interactions. Its main principle is for people to
not to believe in things they see in advertisements or things they hear about their products
from others. According to a survey 75% of people shows interest in new products
learning by experiencing first-hand experience. Customers want to have more deeper
knowledge about the company and its products first before they can get convinced to
become a loyal customer of that brand or buy any product of that company. For example:
Samsung did a engagement marketing in 2012 and set up Samsung studios in different
locations of London and invited customers to get in touch with its products and
experience their products by touching them, they were even allowed to use mobile
cameras to see its clarity so that they can actually understand the product more clearly.
Mostly young generation customers of age group between 20 to 40 were attracted
towards this marketing.
4 a) Role of ethics in Samsung.
Ethics basically mean an individual’s judgement about right or wrong. Ethics in
an organization is really important as decisions taken by a group or individual in an
organization influence an organization’s culture. Ethical behaviour is important in an
organization as it can bring many significant benefits to a business like attract more

customers, make employees to stay with the organization even more, also can attract
investors to incest in business and increase share price etc.
Role of ethics in Samsung is very important and they follow it very seriously as: they try
to keep transparent and fair corporate culture as they bring integrity in their day to day
operations to fulfil their responsibility and social role(Samsung reducing carbon
emission,2018). They follow all the regulations, ethics and rules of a country or community
they operate and keep fair competition based on their competence(Stagno., 2016). They
follow all the principles to keep their ethics, humanity, management, manners and etiquettes.
4 B) How Samsung’s Business Is Combating Carbon Emission And Reducing Co2.
Increasing green house gases is resulting in global warming which is affecting the entire
world. Samsung has acknowledged this crisis and therefore taking part in reducing these
greenhouses gases like CO2. As a green house council has been set which is held four times a
year in which different companies or organizations participate and share information on climate
change and set plans for achievements(Van Scheers and Prinsloo., 2014). Samsung has
established a process to reduce these greenhouse gasses throughout their product lifecycle,
production, use and distribution like they have set a icon on their websites for reduction of these
gases, put an icon on their managing suppliers (to monitor supplier of greenhouse gasses
emission) etc. They are also developing high energy efficient products, they are also managing
GHG emission in products logistics, business trips etc.
CONCLUSION
This report can be summarized as there are many factors of PESTLE which has helped
Samsung to achieve their goals or objectives, Globalization has affected Samsung in a positive
way and has helped them to move forward in the competition, improvement in technology has
only helped Samsung to perform their day to day operation in a way better method like creation
of C-Labs, different age group customers are their target audience and through digital marketing
and engagement marketing they can attract more customers, ethics pays a very important role in
function of Samsung and last they are taking different measurement in reducing carbon emission.

REFERENCES
Books and Journals
Dasgupta, S. and Sengupta, K., 2016. Analyzing consumer reviews with text mining approach: A
case study on Samsung Galaxy S3. Paradigm. 20(1). pp.56-68.
Gardere, J., Sharir, D. and Maman, Y., 2018. Consulting and Executive Coaching on Future
Trends: The Need for a Long Term Vision with Apple and Samsung. International
Journal of Business and Social Science. 9(3).
McElroy, R.W., 2014. Morality and American foreign policy: the role of ethics in international
affairs (Vol. 201). Princeton University Press.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Petrovski, D. and Pestana, J.P., 2017. The Importance of Target Audience Selection for Kano
Model Effectiveness: A Case Study of Klarna Group.
Stagno, B., 2016. Tropical architecture: critical regionalism in the age of
globalization. Globalization. 31. p.37.
Van Scheers, L. and Prinsloo, C., 2014. Investigating word of mouth as advertising tool for
mobile devices in South Africa. International Journal of Academic Research in
Business and Social Sciences. 4(11). pp.332-354.
Online
Samsung reducing carbon emission.2018.[Online].Available
through:-<https://www.samsung.com/levant/aboutsamsung/sustainability/environment/
climate-action/>