Contemporary Business Environment Analysis: Samsung's Report

This report provides a comprehensive analysis of Samsung's business environment, focusing on both internal and external factors. It begins with an introduction to the concept of the business environment and its impact on business decisions, followed by a discussion of Samsung's operations and market position. The main body of the report delves into a detailed PEST analysis, examining the political, economic, social, technological, legal, and environmental factors influencing Samsung's business. This is followed by a SWOT analysis, identifying Samsung's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of key findings and their implications for Samsung's strategic decision-making, offering valuable insights into the company's competitive landscape and future prospects. The report is designed to meet the requirements of a Level 4 BA Business module, offering a practical application of business environment concepts.

Contemporary Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PEST ANALYSIS ..........................................................................................................................4
SWOT ANALYSIS ........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
INTRODUCTION...........................................................................................................................1
CONCLUSION................................................................................................................................1

INTRODUCTION
Business environment is a combination of sum total of all the internal and external forces
that significantly impacts upon business. All these factors somehow negatively and positively
impact upon functioning of business organisation in direct and indirect manner. This make
important for company to effectively undertake these factors as these can impact upon business
decisions (Boone and et.al., 2019). Present report has been conducted on Samsung. Company
was established in the year 1938 as was established by Lee Byung Chul. Organisation
headquartered in Seoul, South Korea and engage in the offering of products like, communication
technology, retail, information, advertising, health care services and more. In this report,
formative discussions has been made on concept of business environment along with its factors.
In addition with this, internal and external business environment along with its impact on
business environment is being discussed in this report. Along with this, the manner in which
macro and micro business environment influence business is also being get discussed in this
report.

MAIN BODY
There are numerous form of elements within business environment which is essential for
business organisation to effectively understand in order to effectively engage in the process of
decision making. Business environment is mainly segregated into two diverse segment namely
macro and micro business environment.
Factors within these have impact upon functioning upon business environment. All these factors
are required to be effectively evaluated by business organisation as to gain more competitive
advantages as compared to other competitors (Raziq and Maulabakhsh, 2015). With the help of
this organisation can effectively able to gain high share. With the effective evaluation of all the
factors that are prevailing in within micro and macro business environment Samsung can
effectively able to operate their daily basis operations and activities in best effective manner.
This will significantly allow organisation to undertake formative strategies to overcome negative
impact of market trends, clients, customers, owners, change in market areas, technology and
more. With the help of this company can improve efficiency of their functions that further aid
them to fulfil their goals and objectives in well defined manner. It has been identified that
external business environment have factors that are outside of business organisation and have
significant impact on organisational operations. It has been further identified that these external
factors are hard to control and success of these are majorly depend on these factors. Thus, in
order to evaluate these factors PESTLE analysis has been undertaken in order to analyse factors
within macro environment along with their positive as well a negative impact upon business
functioning.
PEST ANALYSIS
Political factor influence rules as well as regulations that are framed by government
which is required to be abide by each and every business organisation as to sustain in
marketplace. It has been identified that Samsung deal in electronics segment and are required to
abide all the pre-existing as well as new governmental regulations. In addition with this, as
company operate their business at international markets thus negligence of these rules and
regulations may lead company to face devastating consequences that further affect their long
terms profitability and productivity.
 Positive impact – It has been determined that UK have stable political government that
significantly aid them to gain more political advantages. This will significantly allow

Samsung to operate their business functioning in more effective manner and can further
ensure more economic advantages.
 Negative impact – There are numerous form of new rules and regulations that are
farmed by government for those companies who are dealing in electronic sector. With
the newly implement trade laws and policies Samsung may face number of threats that
may further affect their smooth efficiency. This will significant affect organisation
overall productivity and profitability.
Economical factor – It mainly include factors related yo GDP, economic rate,
unemployment rates, consumer buying potential and economic situations. In order to gain more
economic advantages Samsung have chances to effectively develop their dimensions along with
new units in developed zones. In this, it is essential for company to analyse those countries who
have good GDP as countries those who have high GDP states that income level of individuals are
more. This will allow company to increase their profitability in best effective manner. Further it
has been analysed that company can expand their business globally that further allow Samsung
to gain more customer share holding and probability.
 Positive impact – Samsung can effectively enlarge their business units in UK provinces,
as country have strong economic stability. This will allow company to increase their
overall profitability and productivity in best effective manner. In addition with this, it has
been signified that individuals within UK have high earnings that makes them to
purchase higher quality of products that allow Samsung to increase their market share.
 Negative impact – Due to economic crises which is currently prevailing globally affect
operations of Samsung in many different ways as company conduct their business
internationally. Global uncertainty impact upon Samsung functioning directly that further
impact upon profit earning capacity of organisation.
Social factor – This factor mainly depend upon local beliefs as well as culture that
individuals posses in which an organisation operate their business. These factors are dynamic
thus, it is essential for Samsung to frame their strategies flexibly by undertaking local culture of
region in which they operate their functioning. As Samsung is mainly a pure Korean organisation
thus company is required to effectively change their preferences and further develop their
policies as per according to local social factors in order to effectively satisfy customers at its
best. With the effective evaluation of needs and wants of individuals attitude, cultural factors,

customer buying behaviour, demographics and lifestyle trends and other various factors as to
effectively satisfy needs and demand if consumer in best effective manner. With the proper
evaluation of all these factors Samsung can effectively able to serve society at best while further
ensuring more satisfaction and loyalty from individuals.
 Positive impact - Customers of UK market area have positive attitude towards products
develop as well as offered by Samsung company. This company is providing high quality
products and services in order to satisfy needs and wants of customers. This will have
attracting more and more customers towards business and help in achieving desired
goals.
 Negative impact – It has been identified that needs and preferences of customers now a
days are constantly changing that further affect Samsung to frame strategies accordingly
in order to fulfil their needs and demand in best effective manner. In addition with this, it
has been signified that Samsung operate their operations at internal marketplace thus, it
becomes hard for company to identify needs and demand of customer at different
geographical locations accurately. This further lead towards impacting on their business
in negative manner.
Technological factor – It directly impact upon functioning of business organisation as it
has been ascertained that now a days technology continuously keeps on evaluating. Thus, it
become essential for business organisation to implement every technological upgrade within
their work culture as in order to effectively satisfy needs and wants of customers in best effective
manner. Samsung is considered as world's leading innovative organisation. Thus, it is essential
for company to effectively harness this power as to successfully drive innovation within their
work structure as to further ensure long term sustainability. This, further allow company to gain
more competitive advantages as per compared to their competitors.
 Positive impact – As Samsung is counted among technological giant organisation. This
position allow company to effectively enlarge their market share holding by further
increasing their profitability and productivity. In addition with this, with the continuous
implementation of new and advanced technology Samsung can effectively able to
increase their probability and productivity in best effective manner. It further help
company to increase their market share holding while further fulfilling goals and
objectives in well defined manner.

 Negative impact – Technology is constantly evolving which is required to be be
implemented by organisation as to ensure long term sustainability and probability. As due
negligence of this affect Samsung in many different ways. It has been identified that in
order to implement every possible and necessary upgrade Samsung need high cost that
may further affect their financial budget. In addition with this, company is also required
to offer adequate training to their employees as to adopt these technological
advancements that further require large base of fund.
Legal factor – There are numerous form of rules legislations and laws which is essential for an
organisation to effectively abide as these have large impact upon organisational functioning. As
Samsung operate their business globally it is essential form them to abide all the relevant rules
and legislations as to save guard themselves from any form of issues like pirated issues. With the
proper implementation of these regulations Samsung can effectively able to maximise their
customer base while ensuring their profitability along with maintaining positive image within
marketplace. This ensure company to effectively increase their overall profitability and
productivity in best effective manner.
 Positive impact- Samsung offer highly qualitative products and services to their
customers while ensuring their protection. In addition with this it has been identified that
company abide all necessary legal laws and regulations as to ensure long term
sustainability and profitability. It further allow company to gain loyalty from their
customers that further lead towards generating more market share holding.
 Negative impact- There are numerous laws and legislations that are farmed by
government and are mandatory for organisation to abide as to safeguard themselves from
being get trapped into any legal issues (Grant, 2016). This create confusion within
organisational structure of Samsung as company operate their business globally and
every government have different law which is required to be adopt by company in order
to effectively execute their operations. Due negligence of these may lead company to face
heavy penalties and fined that further impact on their global image.
Environmental factor – With the increase in globalisation individuals are now more
tend towards ethics and ethical oriented. It has been signified that customer always have
expectations from their favourite brand. In addition with this, it has been signified that consumer
want their brand to play significant and vital role towards effective betterment of society as

whole. Thus, it is essential for company Samsung to effectively play key essential towards
society. This makes them to attract customers in best effective manner while ensuring their
loyalty towards organisation.
 Positive impact- Samsung continuously engage in offering satisfaction of society. Along
with this they conduct CSR activities on continuous base. It effectively aid company to
increase their profitability and productivity along with ensuring long term sustainability
in marketplace.
 Negative impact- Globalisation made wide changes within global environment that
significantly impact upon functioning of business in many different ways. It has been
signified that people now a days are tend towards nature sustainability which make
essential for Samsung to reduce overall amount of wastage that further require large
amount of cost.
SWOT ANALYSIS
There are number of factors that significantly impacts on functioning of business
environment and further influence their decision making process. Thus, it is essential for
company to have proper from evaluation in order to effectively fulfil their goals and objectives in
best effective manner while ensuring long term sustainability and probability. It has been
signified that with due presence of factors within micro environment organisation can effectively
have significant control on these factors as to ensure effective advancements. Thus, it is essential
for Samsung to have proper understanding of these factors as to significantly execute their
functions. Mentioned below SWOT analysis of company is being defined below with the proper
consideration of which organisation can effectively able to identify their strength, weakness,
threat as well as opportunities in order to gain more competitive advancements. This further help
company to satisfy their customers in best effective manner while ensuring more profitable
advancements:
Strengths:
Samsung have strong market share holding along with this company are well known for
their high quality products and services. Further it has been identified that organisation perform
their business globally this make them to earn more profitability and productivity. In addition
with this, it has been analysed that Samsung is one of the second biggest telecommunication
industry that offer innovative smartphone all around the world. Along with this, it has been

signified that organisation have large base of products that include Tv's Cameras, Cell phones,
laptop, Tables etc. Further it has been identified that company offer attractive and stylish
products to customers that acts as major factors through which company gained high success in
marketplace.
Weakness:
There are wide number of factors that acts as major source of weakness for company.
Thus, it is essential for company to effectively identify their weakness in order to further make
strategies as to overcome them in best effective manner. It has been signified that poor creativity
in terms of their software is the main weakness for company. Thus, it is essential for company to
overcome this factor with the implementation of different strategies and measures as to
effectively overcome this as to ensure more positive end outcomes.
Threat:
It has been identified that low cost competitors from Chinese market create numerous form of
threat situations for company. Further it has been identified that Samsung competitors mainly
purchase their spare products from Chinese market that lead towards failure for company. In
addition with this, it has been identified that Samsung has been banned from making import for
their products in Euro Zone.
Opportunities:
Samsung by providing user friendly products can effectively able to gain more market
share holding along with wide customer base. In addition with this, by making more
diversification in their geographical location company can effectively able to serve their
customers in best effective manner (Namada, 2018).
CONCLUSION
As per the above mentioned report it has been concluded that business environment is a
formative combination of all internal and external forces that significantly impact upon
functioning of business environment. In this organisation is required to ascertain these factors
with the help of various tools and technological measures as to gain more market share holding.
In this report SWOT analysis has been covered with the help of which company can effectively
able to identify their strength and weakness and can further frame strategies as to effectively
increase their profitability and productivity in best effective manner. In addition with this with

the proper execution of these factors allow organisation to increase their customer holding base
significantly.
REFERENCES
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INTRODUCTION
CONCLUSION
1