Samsung: Analyzing Internal and External Factors for Business Growth

This report provides a comprehensive analysis of Samsung's business operations, focusing on the interplay of internal and external factors that shape its performance. It begins with an introduction that highlights the significance of these factors and proceeds to assess the impact of both internal and external environments. The internal analysis explores Samsung's strengths, weaknesses, opportunities, and threats (SWOT), while the external analysis employs a PESTLE framework, examining political, economic, social, technological, legal, and environmental factors. The report also identifies how these external factors affect Samsung's growth, sustainability, and overall business operations. The conclusion summarizes the key findings and emphasizes the importance of strategic alignment with both internal capabilities and the external environment for the company's continued success.

Samsung company

Table of Contents
INTRODUCTION................................................................................................................................3
Assess how internal factors and external factor impact business....................................................3
Determine ways that impact external environment.........................................................................5
CONCLUSION....................................................................................................................................5
REFRENCES.......................................................................................................................................6

INTRODUCTION
Internal and external factors effect the overall performance of organisation. They have to
adopt the changes and first understand which factors impact the growth of company then accept
and respond according to changes in internal and external environment. Internal factors affect
within organisation and it is control by company whereas external factors affect factors outside and
organisation have no control.
Assess how internal factors and external factor impact business
Internal factors means a factors that defines the position of organisation and these can be
controlled by them. These factors include strength, weakness, opportunity and threats. Strength
indicate positive effect; weakness means factor that prevent growth of company whereas
opportunity is to find their weak areas and solve them (Hajizadeh, 2019). Samsung sell its product
in different countries and deal in electronics, telecom equipment, home appliances and
semiconductors. These internal factors of Samsung are discussed in detail:-
Strength of Samsung
They have strong brand image, this acquire to hold position and gain competition in market
because they are diversified in various business areas with different types of products such as
smartphones, TV's, home appliances and semiconductors etc. Secondly, they have strong customer
base as they truly trust on products and pay desired price to buy product. Samsung have their
presence globally in American, Asian and European markets. The main strength is research and
development they create Samsung pay and do new innovation to develop consumer products and
now they are focusing on Eco-friendly products.
Weakness of Samsung
Recently in 2019, the company is facing problem in declining sales of semiconductor by 19
percent. Second problem is that they are dependent on US economy because if there is uncertainty
this will affect position of company and its earnings. Very vast product portfolio that fail to
concentrate on a particular product and they are more depend upon consumer electronics then other
products.
Opportunities of Samsung
Nowadays, people are using smartphones as they are dependent on that so demand for
smartphones and tablets are increasing and is alternative of computers (Sarsby, 2016). They can
acquire strong position in market for long time. The best opportunity Samsung have their brand
image this leads to grow market share they can market their brands or products by digital marketing
or social media marketing, it can attract consumer or mid-class consumer and grow competitive to

take position.
Threats of Samsung
The major threat is increasing in number of competitor in the market like Apple, Xiaomi and
Lenovo whereas Chinese companies are selling their product at low rate and giving high quality. As
this leads to increase operating cost while company have to spend on research and development to
retain position in market. Another threat is regulations and regulatory threat that affect business.
External Factors means the factors that affect the company from outside environment,
organisation have to adjust their strategies according to changes by adapting external environment
(Hur, Shannon and Wolf, 2016). These factors include PESTLE analysis which are discussed
below:-
Political factor affecting Samsung
Major role to the achievement of organisation is political stability. If political is unstable
then it leads to change in government policies that affect business performance. The main drawback
for Samsung is where the company operate in south Korea have issue with North Korea whereas
they also face problem in America and Africa as they have instability in political environment so
there are frequent changes.
Economic factors affecting Samsung
There are open up with markers in different country, this also effect disposable income of
consumer. In stock market sue to constant fluctuation in stock market and exchange rates that
impact the financial health of Samsung. Due to economic conditions it also affect low level of
income so they will reduce to spend on products.
Social factors affecting Samsung
The difference in social culture which effect demand of goods or services, Samsung creates
their presence in global that will help them to successfully implement strategy. They have introduce
goods according to demand and need of local customers. Therefore, changing the needs of
consumer affect business positively and negatively so they have to focus on the marketing
strategies. Samsung have positively impact market by launching galaxy series.
Technological factor affecting Samsung
Samsung is considered as the world innovative company, they have advantage for their
business. They can compete with competitor or rivals to launch latest product first in market this
will help organisation to maintain relationship with customers.
Legal factors affecting Samsung
Samsung has been fined heavy penalty because limitation of iPhone and iPad that
organisation beat perception of public and approval on strategies of consumer..

Environmental factors affecting Samsung
Samsung ensure they do not bargain for work and pay fair wages to employees for making
product and make goods in environmental and socially responsible that improve performance of
company in effective manner.
Determine ways that impact external environment
External environment impact the business in different ways it means there are some situation
that organisation cannot control. There are many ways that influence growth, sustainability and
operations of business (Perera, 2017). If organisation ignore it will damage the success of
organisation. Economic conditions include interest rate, disposable income of consumer affect
business. Technological factors includes the changes of technology their use and how consumer buy
goods and services. Socio-culture factors means Samsung have positive impact of social factors of
online purchase whereas political factor also affect external environment of Samsung as the
consumer compare products research and take information about goods because they have
alternative sources to purchase. In external environment affect by economic like rate of inflation
and exchanging rate.

CONCLUSION
The internal and external factors should review by Samsung to implement the strategies and
when determining policies in order to solve the problem of company effectively. If they want to
smoothly run their operation these factors is important for the business. Internal factors affect
business internally by identifying strength, weakness, opportunity and threats whereas these
external factors also impact the environment of business such as political, economic, social,
technological, legal and environment.

REFRENCES
Books and Journal
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering, 176, pp.661-663.
Hur, J.W., Shannon, D. and Wolf, S., 2016. An investigation of relationships between internal and
external factors affecting technology integration in classrooms. Journal of Digital Learning
in Teacher Education, 32(3), pp.105-114.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.