Business Strategy and Decision Making

This assignment delves into Samsung's business strategy by examining its perspectives on customers, finance, and learning & growth. It requires analyzing the company's objectives, measures taken, initiatives, and decision-making processes in relation to target groups, product features, and market competitiveness. The analysis should provide insights into how Samsung strategically positions itself within the market.

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PERFORMANCE OF MANUFACTURING COMPANY
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Table of Contents
Answer of Question 2 (b)................................................................................................................2
Answer of Question 3 (c).................................................................................................................3
Answer of Question 4 (d)................................................................................................................4
Answer of Question 4 (e).................................................................................................................6
References........................................................................................................................................7

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Answer of Question 2 (b)
Value chain analysis
Value chain analysis is a framework that helps to recognize business activities that can
generate value to the company and at the same time create competitive advantage (Gereffi and
Fernandez-Stark, 2016).
Figure 1: Value chain analysis
The above framework shows the value chain of Samsung, here it can be observed with
respect to inbound logistics: Samsung mainly supplies in Asia, followed by America, Europe and
other places. A number of logistics firms are owned by Samsung as it subsidiaries. Company
currently has 540 employees and 8600 partner employees around the globe. Now with respect to

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the operations it can be observed that company maintained 213 operations hubs globally and this
includes subsidiaries, design and research centers. Company mainly depends upon methodology
names Six sigma in its operations. Outbound logistics of the company shows that Samsung
launch its product in a short span of time to competes with other firms. Thus effective outbound
logistics system plays a significant role. Now marketing and sales of company shows that
primary activities aim to target buyer section to the competitive advantage of the brand that is
linked with high quality and developed functions of products. Finally with respect to service of
the company, Samsung delivers its customer services with highest standards. Survey methods are
also conducted by the company (Seleznev,2012).
Answer of Question 3 (c)
Planning of manufacturing company
Successful strategic planning requires three steps that should be followed by companies
to increase growth. These steps involve: Focus, Divergence and Compelling tagline.
1) Samsung mainly follows a focus differentiation strategy, broad differentiation strategy
and product differentiation strategy (Song, 2013).
2) Samsung by following the three strategies position itself from other competitors.
Company offers customer products that are personalized to their requirements. The key purpose
of strategies followed by the company is to do perform better compared to other firms. The buyer
they provide has an individual preference and exclusive requirements and Samsung always
concentrate on these exclusive needs by developing the product that they want. Samsung also
follows strategy of diversification with respect to product differentiation. Samsung differentiates

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their products in terms of attributes, firm linkages and customer relationships. Samsung follows
different strategies for different market, for developed market it develops high end carrier
specific models and for emerging market, company develops mass market models. Samsung
utilizes the product differentiation strategy to expand their operating system. The tagline of the
company shows that Samsung plan to leverage its design advantage that turn out to be ecological
one.
3) According to the strategies followed by Samsung, it is aiming to develop ecological
products that help to trim down global warming and for this company requires information
regarding research and development (Shah, 2012). Company also requires information about the
market that are related to advancement of the product so that company’s desired level goal can
be achieved. Information regarding the strategies followed by other competitive firm is also
required by the company as this information will help the company to proceed by saving more on
production and obtaining more output (Pyo,2017).
Answer of Question 4 (d)
Controlling of manufacturing company
1)Samsung a large multinational company has numerous subsidiaries companies with thousands
of skilled workers and advanced machines, huge factories and buildings. But this infrastructure
does not help the company to monitor its manufacturing units in a proper manner so in order to
survive in the competitive market company must follow a controlling process. Thus proper
monitoring required and this can be achieved by following different steps. One of the methods
followed by company is the interlock system. The routine interlock system is used throughout
the manufacturing procedure where it monitors and controls the goods and processes. There are

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three stages involved in this system. The first step is the Process Recipe Interlock’ which
basically shows control of the inward materials and recipe check (Kent,2012). The next stage is
the Equipment Parameter Interlock and final step is the Process Output Interlock where it
prevents wrong practice or any probable harm to the procedure or the equipment itself. The other
method would be Statistical Process Control.
2)Balanced Scorecard monitors the performance of all part of an organization; it is mainly used
to align business activities (Grigoroudis, Orfanoudaki and Zopounidis, 2012). It basically
provides framework and helps planners to identify what should be done and how it should be
measured. It is mainly implemented by following four strategies which are – financial, customer
process learning and growth.
From financial perspective the company sets the objective of the company is to
maximize return of the shareholders, measurement of financial part is done by considering
internal rate of return and return on investment capital. Company mainly invest more on product
R & D thus in this way investing capital helps shareholders to earn money.
From customer Perspective Company sets objective which involves accessibility to new
and innovative products. Measures taken by company are to focus on groups and customers
surveying and reviews and customer retention. For reporting purpose customer reviews should
be tracked regularly and reviewed annually. Initiatives thus taken by company are differentiating
and advantages over competing substitutes.
Finally from learning and growth Perspective Company set the objectives which involve
research and developments, new entrants, recognition of current corporate culture, increase in
existing shares and brand value. Measures thus taken from company in this perspective are

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benchmarking, new product percentage and projection of sale. Initiatives thus taken by company
are researching new market segments, competitor analysis and increased competitiveness in the
market.
Answer of Question 4 (e)
Decision making of manufacturing company
Decision making is a very important aspect of any business (Zionts, 2012). This is
because it helps to achieve growth more quickly. Development can be accomplished by any
company if right decisions are taken at right time. With respect to Samsung, two decision
making process that are visible are the target groups and the product features.
Target group is set by the company as it mainly focus on the people who are keen to use
the product as per their requirement and at the same time with who are keen to try new features
that are introduced by the company. Specific group mainly consists of working population and
young population those are very keen to try new products at a reasonable prices.
The company also set decision with respect features of the product. Samsung always have
the tendency to include latest technology in its products and for including these features
company heavily invests on R & D. Thus company makes decision process to launching new
features of the product makes it different from the potential competitors that it faces in the
market.

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References
Gereffi, G. and Fernandez-Stark, K., 2016. Global value chain analysis: a primer.
Grigoroudis, E., Orfanoudaki, E. and Zopounidis, C., 2012. Strategic performance measurement
in a healthcare organisation: A multiple criteria approach based on balanced
scorecard. Omega, 40(1), pp.104-119.
Kent, R.J., Fabworx Solutions, Inc., 2012. Hub assembly for robotic arm having pin spacers.
U.S. Patent 8,336,419.
Pyo, J.S., Samsung Electronics Co., Ltd., 2017. Method and system for supporting an electronic
book application service, and mobile device adapted to the method. U.S. Patent 9,690,758.
Seleznev, S.N. and Lee, B.R., Samsung Electronics Co., Ltd., 2012. Method and apparatus for
providing cloud-based digital rights management service and system thereof. U.S. Patent
Application 13/724,419.
Shah, R., 2012. Eco-Friendly IT: Greener Approach to IT. Journal Of Management & Business
Research, 2(2).
Song, K.B., Chen, E. and Lim, H.L., Hewlett-Packard Development Company, LP, 2013. Tablet
computer. U.S. Patent D689,481.
Zionts, S., 2012, December. MULTIPLE CRTTERTA DECISION MAKING”. In Multiple
Criteria Decision Making Theory and Application: Proceedings of the Third Conference
Hagen/Königswinter, West Germany, August 20–24, 1979(Vol. 177, p. 150). Springer Science &
Business Media.

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