Samsung's Strategic Management: A Comprehensive Analysis

BUSINESS STRATEGY

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given organisation and its strategies...............................................................2
M1 critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................4
LO2..................................................................................................................................................7
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................7
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................9
LO 3...............................................................................................................................................11
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation...........................................................................................................11
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................13
LO 4...............................................................................................................................................16
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................16
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................17
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

LIST OF FIGURES
Figure 1: Pestle analysis framework................................................................................................4
Figure 2: Macro environment analysis and strategy implementation..............................................6
Figure 3: Swot analysis framework.................................................................................................9
Figure 4: VRIO model...................................................................................................................10
Figure 5: Porters five force analysis..............................................................................................13
Figure 6: Strategic planning process..............................................................................................17

LIST OF TABLES
Table 1: Strategic management with macro environmental analysis..............................................4
Table 2: Strategic plan...................................................................................................................17

Introduction
With growing technology, there are different changes in business to meet with strategic
objectives of the business. Business strategy is concerned with designing suitable strategy that
will lead to achieve optimised growth and efficiency in the business. Current report will consider
the case study of Samsung that is one of the leading organisations that manufactures and sells
electronic items such as mobiles, telecommunication devices and also provides services such as
entertainment, advertisements, etc. Report will also illustrate about macro environmental factors
that impact on achieving organisational objectives. In addition, different strategies are necessary
for business to take that will lead to influence on achieving organisational aims and objectives.
Different models and theories will be evaluated within the study that will be applied in the
framework of Samsung for achieving the competitive advantage. At last, report will conclude
effective use of strategic planning concept along with application of different tactics for
achieving organisational objectives.
1

LO1
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given organisation and its strategies
Samsung is one of the global businesses that manufactures and designs consumer appliances and
gadgets market. It continues success with having strategies of using innovation to produce
world’s best technology to consumers. Samsung continuous success is based on effective
strategies along with bringing improvement in management structure and application of different
philosophies by creating well innovated products and services (Ying, 2016). Macro environment
is concerned with impact of all external forces that are uncontrollable having critical impact on
performance of the organisation. Some of the factors are explained below that includes:
Political factors: There are some of the markets that are favourable to Samsung operations. India
being a developing country has supported Samsung to sustain its growth and sales. Another
country includes disputes between North and South Korea has lowered down its performance.
Still Samsung is worried about the war that might occur in Korea that will impact on supply of
manufacturing products and provision of services (Newton, 2014). Political environment is
concerned of suitable government types and country’s policies that are impact on trade of
products from one country to another. Some of the countries support favourable sales but Apple
being a huge competitor can influence to greater extent. Suitable example to analyse the impact
include when Samsung was stopped to operate in South Koreas due to political differences.
Economical factors: It includes the economic conditions of the countries that include changes in
rate of inflation, tax rates, currency rates, etc. Samsung currently operates in favourable
economic conditions in developing markets where purchasing power of buyers had been reduced
that leaded to possess favourable solutions. But to avoid future circumstances, Samsung need to
keep designing its strategies. Strategic decisions to expand in developing markets had supported
to gain lot of business from the developed world. For example, South Africa supported Samsung
as it has favourable economic conditions and employment opportunities (Cardoso, 2017).
Social factors: being a Korean multinational, Samsung has adopted strategies of operating in
local conditions (Samsung PESTLE analysis, 2018). However, for expanding in global markets it
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