Strategic Analysis and Implementation Plan for Samsung Electronics

This report provides a comprehensive analysis of Samsung Electronics' business strategy, including its mission, vision, goals, and core competencies. It examines factors influencing strategic planning, such as pricing, finance, environmental scanning, and communication. The report evaluates the effectiveness of techniques like the BCG matrix for developing business plans and explores alternative strategies for Samsung, including market entry, substantive growth, and limited growth. It also discusses the roles and responsibilities of personnel in strategy implementation, resource requirements, and the contribution of SMART targets to achieving strategic goals. The analysis considers strategies like franchisee expansion, product development, and innovation, as well as retrenchment strategies such as cost and asset reduction. Ultimately, the report aims to provide insights into how Samsung can improve its market share, brand image, sales, and productivity through effective strategic planning and implementation.

BUSINESS
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Mission, vision, goals and core competencies .....................................................................1
1.2 Factors to be considered while developing strategic plan ....................................................2
1.3 Evaluating the effectiveness of techniques while developing business plan .......................3
TASK 2............................................................................................................................................4
Covered in PPT ..........................................................................................................................4
TASK 3............................................................................................................................................4
3.1 Alternative strategy for Samsung .........................................................................................4
3.2 Selection of new strategy .....................................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel in implementation of strategy ................................7
4.2 Resource required for new strategy implementation ...........................................................8
4.3 Contribution of SMART targets for achieving strategy implementation .............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy can be defined as a strategy which is adopted by business enterprises in
order to achieve their set goals and objectives. Further, it can be also defined as a process of
stating the organization vision, mission, short term as well as long term objectives. Company's
long term business plan can cover a period of 3-4 years or even more than that (Teece, 2010).
Moreover, strategies set priorities for venture and management team and after setting up these
priorities, organization look for talented personnel which will help the business venture to
achieve their aim in precised manner. In relation to the above scenario, this present report has
been prepared on Samsung electronics which is a global brand who manufactures mobile phones,
smart phones, tablets and serves these products in 80 different countries. Further, the cited firm
also employs almost 370,000 employees.
This present study is based on understanding the factors which organization have to
consider before formulating the business plan. This report will also emphasize on assessing the
role and responsibilities of personnel who are charged with the strategy implementation.
TASK 1
1.1 Mission, vision, goals and core competencies Organization profile: Samsung is a public limited company and it is considered as
world's second largest Information Technology (IT) company in terms of revenue.
Further, this industry deals in consumer electronics, telecom equipments, semi
conductors, home appliances, etc (Olson, Slater and Hult, 2005). Further, the cited firm is
also the largest manufacturer of the mobile and smart phones. Mentioned organization is
also the largest producer of LCD panels and television manufactures. However, even
after all this success, Samsung gets stiff competition from their major competitors like
Apple, Sony, Panasonic. Mission and vision statement: Mission of Samsung is to be the best digital company.
Organization is generally growing into global operations and venture giving all this credit
to their dedicated and hard-working employees. Further, the company's mission is
“Economic contribution to nation” and “Priority to the human resource”. The vision of
Samsung for year 2020 is “Inspire the world and create the future”. This vision shows
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that the organization is focusing on developing their three key strengths and these are
new technology, innovative products and the creative solutions (Vision 2020 Inspire the
World, Create the Future. 2016). Goals and objectives: Samsung aim is to give their customers the best quality of
electronics products which satisfy their needs and demands in significant manner.
Further, the cited firm also focuses on producing the best quality of products at an
affordable price which results into increase in customer base along with revenue and
profits.
 Core competencies: Core competency of Samsung is there service quality and product
image. Moreover, the cited firm is famous for their constant development in the
smartphone range and they develop new phones constantly which attracts more of the
customer towards it (core competency. 2016). Further, they also have strong marketing
extant along with the strong quality control. Organization also tends to take the feedback
from the customer's which generally helps them to know that what changes customers
needs which will lead them to achieve their goals and objectives.
1.2 Factors to be considered while developing strategic plan
For developing a suitable strategic plan, there exists different elements which impact the
strategic planning. Moreover, these factors impacts the goals and objectives, mission and vision
statement of the cited company as well. Elements which Samsung has to consider before
planning or implementing the strategic plan. It includes factors both internal and external factors
and these are discussed briefly down under: Price: Price of their electronic products plays a significant role and cited firm have to
produce all the goods and services at an affordable price in order to attract all groups of
customers. If the price range of products tends to be high then it will attract only the
upper class segment of the customer's. However, organization motive is to attract the
middle class and lower class individuals upto a great extent which will help them in
increasing their brand image and profitability. Moreover, cited firm also need to compare
the price of their products with that of their competitors and need to give the best
specifications in the products to satisfy the customer's needs.
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 Finance: Finance is an internal barrier and organization usually require good amount of
finance in order to operate their business operations efficiently and effectively. Further,
Samsung having a good amount of revenue along with the reserve but they have to use
this cash properly if they are planning to set their new franchisee in any of the country
around the world (Augier and Teece, 2009). If the investment goes wrong then firm will
face huge loss and it will pamper their business operations subsequently. In order to meet
this, Samsung has to efficiently manager their cash inflow and outflow for their better
function. Scanning of environment: Samsung has to scan the external environment property
before conducting any of their business operations. Further, organization also need to
identify the factors which individuals expect from the business venture which lead into
achievement of organization goals and objectives. Being a global recognized brand,
mentioned company has its operations throughout the world and they are planning to
extend their business units year by year.
 Communication: In the strategic planning process, mentioned business organization
have to opt downward communication process so that their plan will be easily
communicated to all the staff working in the enterprise. Along with it, HR manager also
consider democratic style of decision making where they involve employee’s so that
they will be able to take valuable suggestion from their multi skilled workers.
1.3 Evaluating the effectiveness of techniques while developing business plan
Impressive business plans will surely help Samsung in developing good marketing
strategies for their different products in the electronic market which will also give them a
competitive edge over their potential competitors (Montgomery, 2011). Further, cited firm can
implement various strategies in order to increase their market share and brand image. They can
implement BCG matrix in order to promote their existing electronics gadgets in new market.
Moreover, this matrix is also based on the product cycle concept and it has two major elements
i.e. market share and market growth. BCG matrix for Samsung has been discussed down under: Stars: Star elaborates that one has high growth and market share in the market.
Generally, Samsung is a part of this industry as they are the leading organization in IT
sector as well in producing new mobile and smartphones. Further, organization having a
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large base of their loyal customer's and they are significantly doing their best in
satisfying their needs and demands. Moreover, theses star shows the best growth
opportunity and explains that firm is in its growing phase. Cash Cows: Cash cow having low growth rate but high market share. This explains that
Samsung faces tough competition from their major competitors like Apple, Sony, Dell,
etc. however, due to their immense goodwill throughout the globe the share price of
organization is at higher level which generally an advantage for business organization
(BCG Growth Share Matrix. 2015). Dogs: Dogs shows low growth rate with significantly low market share. This position is
considered as worst position for the business venture and it is treated as a declining
stage. This category also explains that the business might have small future ahead and it
will significantly lead towards the loss of capital from the business venture. Along with
it products also not having any future scope as the competitors of business ventures are
producing best of the products for customer's at cheap and affordable price.
 Question marks: This category shows high growth with the low market share. However,
if the share in the marketplace is unchanged then the business venture will absorb these
shares and they will focus on bringing huge amount of cash into the enterprise.
Above explained BCG matrix clearly elaborates that the currently their firm is in the first
category, i.e. in Stars as Samsung having both high growth as well as high market share. Further,
this will also lead into the development of business venture as Samsung will constantly get
engaged in new innovations and developing new products which will immensely satisfy the
demands for large customers.
TASK 2
Covered in PPT
TASK 3
3.1 Alternative strategy for Samsung
 Market entry- Market entry strategy is considered as a planned method of delivering
products to a new target market. This will lead into establishment of new franchisee in
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the foreign country and it will also lead into developing of contracts. As like Samsung,
there are different organizations who also operates in the niche market (Lahiri, 2005).
Further, by entering into new market, some venture get a very good attraction of
customers which increase their brand awareness along with the sale. It involves merger
and acquisition which generally leads to growth of electronic products. Substantive growth- Substantive growth for Samsung involves diversification as they
focus on launching their newly launched product to a brand new market. Under this
strategy, firm can focus on:
◦ Franchisee: This strategy is widely used by Samsung in order to increase their market
share and goodwill. Further, organization makes the franchisee agreement throughout
the globe. Further, in the franchisee contract, organization do not have to make much
investment and also the opposite party enjoys the goodwill of the firm. Limited growth- This strategy comes into play due to product or market development.
Organization can focus on developing new product or new market which will increase
their goodwill along with increase in revenue and profit. This strategy also have different
components:
◦ Doing nothing alternative- Under this, Samsung not focusing on doing anything new
and they are happy the way things are going. This strategy is generally used to retain
the existing market share (Wang and Shyu, 2008).
◦ Development of product- Under this, cited firm focuses on modifying their existing or
develop new product to increase their market penetration.
◦ Innovation- Samsung innovates new technology in all their electronic components Retrenchment- This strategy is most ugly strategy which at times lead towards the
closure of business enterprise. For instance, if Samsung focuses on opening their retail
outlet at a place where exist recession. Then customer's have tendency to buy that product
but due to their low income they will not be able to purchase that product and due to this,
it will lead into closure of the business venture in that particular area. In order to improve
this, cited firm can focus on cost reduction, asset reduction and generation of revenue
techniques which will surely help the business venture to working their tough times
(Verbeke, 2013). Samsung can implement these techniques when they feel their sales is
decreasing upto a great margin:
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◦ Reduction in cost: If Samsung feels that their product is not accepted by the
customers, then they can significantly decrease the price of their product which will
genuinely boost up the profit. Therefore, reduction in cost will lead to increase in
profit and it will help the business venture to develop their lost image.
◦ Reduction in asset: Organization can sale their asset if they are not important for the
venture.
The above explained strategy shows that how business venture will run their operations
in the unidentified future scenarios for ruling the market.
3.2 Selection of new strategy
Samsung in order to improve their market share, brand image, sales and productivity can
focus on market entry strategy. In this, organization will focus on tapping new market with their
existing products. Further, organization can earn more of the profit by investing less and also by
getting involved in the franchisee agreement (Dong-Hun, 2010). This will significantly lead into
more sales network and with that firm will be able to increase the base of their loyal customers as
well.
Moreover, with the implementation of this strategy, firm will be able to sell their existing
products worldwide with low investment. Moreover, this strategy also give job opportunities to
individuals and with help of it they will be also able to contribute in the national growth of the
country. Further, with more franchisee contracts, there will be more goodwill and revenue
generation. Apart from it, cited firm can also focus on merger and acquisition concept in order to
tap the new market with best of their products. Merger and acquisition concept is much common
and it also involves less cost like franchisee. In the merger and acquisition, cited firm can come
into contact with them and can tell them to sell their products and services with their brand name.
Samsung can implement this policy throughout the globe and it will significantly increase their
goodwill as well as market share.
However, there are still many countries around the globe who are not aware of Samsung
products (Yasuda and Iijima, 2005). They can tap the African areas like Zimbabwe, Kenya to
expand their product sale. By getting the best quality of products at an affordable price, they will
become loyal customer base for the business organization.
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TASK 4
4.1 Roles and responsibilities of personnel in implementation of strategy
In order to implement a successful strategy, managers along with employees play a
crucial role as a single individual cannot implement a strategy in a proper and successful manner.
The top management plays a crucial role of implementation of the strategy. They generally set
long term goals and motivated middle level as well as lower management to achieve it efficiently
and effectively. Middle level management generally shows their strategic views and discuss the
same with the top level management (Baloh, Uthicke and Moon, 2008). Further, they also set
middle terms strategies in order to achieve these long term goals and objectives. On the other
side, lower level also have their major contribution as they set operations of the enterprise in
such a way that it eventually supports the strategies which is formed by the top level as well as
middle level management.
The role of manager is more important as he/she is the one who regulates all the
important operation of their department. The contribution of managers in Samsung has been
discussed down under: Operational manager: Operational manager generally evaluates the detailed procedure
with the proper paper work in order to implement the strategy. Operational manager also
assures the top management that venture will get the best of the outcomes in coming time
period. Finance manager: Finance manager role is to prepare the budget and he generally
evaluates that the mentioned strategy will be completed within the set budget. Finance
manager coordinates with the operational manager and also controls the inflow and
outflow of the cash (Lee, 2006).
 HR manager: Role of HR manager is to recruit the candidate for the new establishment
in order to carry their operational activities in proper manner. HR manager will
coordinate the operational manager regarding the requirement of individual for a specific
field and manager will prepare the job description and job specification statements
accordingly.
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4.2 Resource required for new strategy implementation
Implementation of strategy requires some of the major resources and few of them has
been discussed down under: Finance resource: Planned strategy shows the budget that how much resource will be
required in order to implement a planned strategy. Under this, the set budget is either
fulfilled with the help of investing their own profits in the development process or by
taking loan from the financial institutions or by taking help of their corporate friends
(Park and Gil, 2006). Organization resource: Organization structure have to be consistent with the strategy
and there should not be any changes with the change in the strategy. Samsung has to
adopt the same structure which they have been following in order to run their business
operations. This will result into proper functioning of the cited company. Human resource: This strategy plays a crucial role in the implementation of the strategy
and the HR manager will be in need of multi skilled and talented personnel who can give
their best in order to perform the business operations efficiently and effectively. Further,
employees should have different competencies in order to complete their task and duties
and their better performance will lead their way to get better appraisal and incentives
(Galpin and Whittington, 2012). Further, HR manager first priority is to develop skilled
personnel for the implementation of the strategy.
 External environment: The environment in which organization planning to operate have
to be efficiently scanned and the environment should be supportive in order to implement
the strategy. However, with the change in the environment, Samsung has to change their
polices and strategies and need to compete with those going in the arena. This will
certainly help them to achieve their goals and objective in better and precised manner.
4.3 Contribution of SMART targets for achieving strategy implementation
Samsung has to form SMART targets in order to see the success of developed strategy as
whether it is benefiting them or increasing their cost in every quarter or so (Zott, C., Amit, R. and
Massa, 2011). Further, in order to monitor the successful implementation of strategy, cited firm
have to do continuous monitoring and need to have total control on their operations. Some major
points which mentioned firm has to consider have been discussed down under:
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 Samsung need to measure the market size every month in order to see the success of
newly established market.
 They need to evaluate the return which is so generate from the new market.
 Mentioned firm also has to see the impact of market development on their existing
market (Winroth and Johansson, 2010).
Apart from it, Samsung need to develop the SMART targets precisely so that they will be
able to see that how much development has been taken place. Specific: Samsung is planning to tap the African market and with that they will be able to
increase their market share and also will be able to develop more of the goodwill. Measurable: The major objective of M&S is to increase their share price and sale of the
product in the areas where they getting low revenue and profits. Further, organization
emphasizing on increasing their market share by approx. 5% and sale of their gadgets
upto 10-15% Achievable: In order to meet the set target, Samsung will be in need of skilled and
talented employees who will help the venture to achieve the set target for an year. Realistic: The set objectives are genuine and realistic and business venture plays crucial
role in order to achieve the goals and objectives within the set time period.
 Time-bound: Organization have to follow the set time scale and the targets which are
given to employees need to be completed within the set time period.
CONCLUSION
From the above report it is clearly inferred that the Samsung is a global brand and has
expanded their operations throughout the globe. Further, this present report shows that
organization is focusing on to their vision 2020 and working on that precisely. Moreover, this
report also showcase that Samsung is focusing on implementing new strategy i.e. market entry
strategy as this will help firm to increase the sale of their existing product with the increase in
profit. Further, BCG matrix has been done in order to identify the position of the cited firm as
compared with that of their competitors.
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REFERENCES
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Wang, D.S. and Shyu, C.L., 2008. Will the strategic fit between business and HRM strategy
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Winroth, M. and Johansson, G., 2010. Introducing environmental concern in manufacturing
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[Accessed on 23rd February 2016].
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