International Business Environment: Samsung in China Report

This report provides a comprehensive analysis of Samsung's international business environment, specifically focusing on the Chinese market. It begins with an introduction to international business and Samsung's global presence, highlighting the company's entry into the electronics field and its current position as a leading electronics manufacturer. The report then explores the background and business environment of the electronics industry in China, examining the characteristics of emerging markets and how they apply to Samsung's operations. Key opportunities in China, such as better manufacturing facilities, strong demand for Western products, and increasing urbanization, are discussed with examples. Furthermore, the report outlines the challenges Samsung faces, including dynamic regulatory requirements, the rise of electronic surgical products, evolving consumer preferences, and complex international supply chains. The report concludes with a personal learning statement and references, providing a holistic view of Samsung's strategic considerations in the Chinese market.

INTERNATIONAL BUSINESS ENVIRONMENT

Table of Contents
Introduction..........................................................................................................................................4
Background and Business Environment..........................................................................................4
Explain the characteristics of emerging markets.............................................................................5
Describe of key opportunities of China with using examples.........................................................6
Discussion of key challenges...........................................................................................................7
Personal Learning Statement...........................................................................................................8
Conclusion............................................................................................................................................9
References..........................................................................................................................................10

INTRODUCTION
International business can be explained as carrying national business actions out of nation in
the world. These activities generally considers exchanges of goods, capital, services as well as
international production of organization. It is also keep importance to earn more profit, increase the
sales of products along with provide better services for consumers in the world (Cuervo‐Cazurra,
2011). The present report is about challenges, opportunities and environment of emerging markets.
For this, China has been chosen as the country which can serve to be an emerging market for
Samsung. The present report introduces the business environment and background of electronics
industry and corporation. It also analyse challenges as well as opportunities for Samsung investors
to do business in the China. Further, it also explain the characteristics of emerging market of
country. It also covers reflective statement of international business environment.
Background and Business Environment
Samsung electronics is organization of South Korea. Firm is serving its products in many
countries like India, United Kingdom, USA, Mexico, France, Australia and Canada. Headquarter of
organization is established in Seoul. This corporation is opened by Lee Byung -Chul in 1938 as
trading firm. In the next thirty yeas, enterprise had entered in many diversified area like food
processing, textiles, insurance, securities as well as retail. Samsung took entry in the electronics
field in 1960 (Samsubng, 2015). Organization is also increased global operations in this field after
entry of this field. Generally mobile phone and semiconductors are most important source of firm to
earn its income in the world. Now, Samsung is leading company in electronics industry of world.
Corporation is also earning huge revenues by selling its products in the world. Current chairman of
firm Lee Kun Hee. Corporation is also manufacturing the consumer electronics, their components,
semiconductors, medical equipments as well as telecommunications equipment in the world.
Organization also provides its services in many areas like financial services, advertising,
information and communications technology, hospitality as well as medical and health care services
in the maximum countries. Samsung also utilizes extensive marketing strategies to sell its products
in all nations. Corporation also launches its products and services as per economic condition of
county. Organization also conduct various type of CSR (corporate social responsibilities) activities
to welfare of people in many countries which creates optimistic effect on the people. Government of
many countries also support the firm to establish its business in their nation.
China is also effective emerging market to establish its electronics business. Government of
this nation also support organization to increase its economy. There are many other electronic
competitors who is already entered in Chinese market like Apple, Sony and Nokia to do its
business. Samsung can also get good income on the basis of population density. Requirement of

people is also high as comparison of other countries. External factors like political, economic, social
as well as technological aspects also support this firm to increase its business operations in the
China. Organization can also get its raw material very easy in the country. So Samsung can also
reduce transportation and logistics cost which can give huge advantages to earn more profit in the
nation.
Explain the characteristics of emerging markets
There are many characteristics of emerging markets which impact on the firm to establish its
business in the China. It is described below the paragraph.
 Market and Culture- China is big market for electronics products in the world. It is highly
competitive market. There are many local companies which give perfect competition to firm
regarding doing its business in the nation (Popescu, 2013). People of nation also uses many
technological products to do their work. This thing can also increases sales of its products in
the country. So Chinese market can also support the Samsung to initiate its business
operations due to higher demand of this type of commodities in the China. Culture and
tradition of nation can also provide huge help to increase its sale because Chinese people has
good knowledge about the electronics technology. This process can also contribute role to
hire appropriate human resources in the nation (Clarke, Tamaschke and Liesch, 2013). These
things can help the Samsung to earn optimistic profit in the China.
 Population are youth people and growing- Youth ratio in China is not good as comparison
of other nations. Ratio of older is higher than other young people in the country. These
factors do not support the Samsung. This process can also affect the efficiency and
performance of organization in the nation because older people can not work with high
speed as comparison of young people (Zhou and Li, 2012). On the other side, manufacturing
capacity is very higher than many countries due to high density of population in the China.
 Rules and Regulations- It is very high to follow business operations in the China.
Corporation tax, tariff as well as other corporate rules are very strict as comparison of other
countries in the world. These rules and regulation can also affect profit and revenue of
Samsung electronics which can affect its market growth in the China (Kam Sing Wong and
Tong, 2012).
 Technology- This characteristics can also supports the organization to do its business in the
China. Government of China also provide effective technological infrastructure to manage
its business operations in the nation. People of this China has good information regarding
technology (Alabi, Bakare and et.al, 2012). This process can also help the Samsung to
increase its efficiency and performance in the nation.

 Distribution- Generally, transportation facility is also effective for the effective business in
China. This process can also help the Samsung for the transaction of goods from one place
to another in the country. This characteristics can also provide good reliability to handle its
business operations in the nation (Hoekman and Meagher, 2014). Government of China can
also support the firm by giving effective resources like trains, trucks as well as planes which
help Samsung to sell its electronics products in the country. Fuel cost is not high which can
also aid the firm to reduce the transportation and logistics cost in nation. This way,
organization can get huge help to earn more profit by providing effective services to
consumers in the China (Chan and Wong, 2013).
Describe of key opportunities of China with using examples
There are many key opportunities in the China which provides many benefits to enter in the
Chinese market.
 Better Manufacturing Facilities- Government of China can also provide better production
facilities to foreign investors to establish its business. This country comes under world best
manufacturing places because companies get resources very easily for these thing. For
example, there are western organizations like apple, Dell as well as HP which manufacture
its products in the China for better quality and process. There is also reason to give whole
production to this nation because labour cost is so cheap (Nicholas, 2015). For example,
Samsung can be also supported by Chinese government to establishes its business. These
things also provides optimistic support to organization in this nation. Corporation can also
get various type of raw material from this market. Further, firm can achieve also many
quality products in the nation which provides huge reliability regarding serving the
consumers (Long, 2013). This process can also help Samsung to increase efficiency and
performance in the China. In addition, it can also reduces cost of firm by decreasing various
type of import duties, taxes and tariffs. Chinese government can also provide better
infrastructure facilities to Samsung. This process also help the firm to manage its business
operations in the country. This nation also get huge aid to increase employment
opportunities to its citizens in the China (Ou and Chan, 2014). On the other side,
organization has to consider some policies to secure its product in the nation. For example,
Samsung has to patent its products in the China. This process can also help the organization
to secure design of product as well as its sales in the nation. Other wise, there are many
local manufacturing companies who can copy the design of electronics commodities of
Samsung to earn profit in the Chinese market (Wei, 2013). These organizations can also sell
these smart phone and other things in less price as comparison of parent firm. This type of

things can also decrease the sales of corporation in the country. This way, It can also the
decrease profit of organization in the China.
 Strong demand of western products- There is also requirement of western products in the
China because local Chinese companies does not manufacture high quality products for its
people in the nation (Wei, 2012). But global firms also make these type of products to attract
middle, elite as well as premium class people in the China. For example, Samsung can take
better advantages of this thing to increase its sales of electronics in the nation. Citizens of
China can prefer western products rather local product for durability and quality of
electronics products.
 Increasing Urbanization- In the nation, government is emphasizing on many factors like
education to increase economy of nation (Wild, Wild and Han, 2014). This process is also
enhancing urbanization process in the country. This procedures is increasing awareness
about the technology in the China. For example, Samsung can also get effective workforce
to manage its operations in the China. Organization can get profit and revenues from the
Chinese people in the nation. In addition, it is also increasing emerging market opportunities
in the country. Due to this efforts, this nation has become second largest economy of word
which provide huge chances for firms to earn more profit in the Chinese market (Hamilton
and Webster, 2015).
Discussion of key challenges
The electronics industry in China market, possibly is fast changing industry than any other.
The change is the only constant. Whether it is a smart phones, tablets, medical devices, computers,
or other user electronics, the one daily happening is change. Characteristic and roles are altered,
which modify cost and impacts acceptance and distribution (Dunning, 2012). The key challenges
that Samsung will be facing are:
 Dynamic Regulatory Requirements- As most electronics businesses know, in China,
regulatory demand change from one part of the world to another. For example: China
regulatory demands are different from that of European Union (EU) demands and so on. The
dynamic culture of China will be the most challenging environment that Samsung can face.
Whether it is a smart phones, tablets, medical devices, computers, or other user electronics.
In China electronic industry knows the taste and preferences of their people which is the
biggest challenge that Samsung can face in China (Forsgren and Johanson, 2014).
 The Coming of Electronic Surgical Products- The future wireless health area has move to an
entirely new category of electronic devices in China. Their the products are the combination
of wireless and medical functions for a variety of health, wellness, and clinical applications.

This innovative industry is already flourishing and it is expected to become vast and
international in range (Dunning, 2013). For example, Samsung manufacturers designing to
produce wireless connected medical and personal health devices, competition will be
furious.
 The Rejuvenating Consumer- In China where the population is at its peak, the Western
world’s citizens are clutching on pro-environmental lifestyles. Nowadays consumers are
aware of the CSR activities and not all companies are getting commencement certificate.
This in turn makes it challenging for Samsung to face those customers (Beamish, 2013).
 Tangled International Supply-Chain- More and more, China companies have to work on its
internal and external resources while staying within international standards. Challenges such
as traceability and compliance are increasing functional burdens. It will be tough for
Samsung to embark on a journey that touches three or more continents before reaching the
end-consumer.
 Aid and Assurance Management- leveraging the planetary supply-chain is putting more
centring on supplier quality management, especially in China. Samsung having a strong
quality and traceability system directly affects warranty reserve and post-production service
hours.
 Brief Commodity Life cycles- With large population and quickly changing consumer tastes
and preferences, Samsung company and contract manufacturers need to have effective New
Product Introduction processes in place (Jenkins, 2013). Closed-loop communication
between sales, manufacturing, and engineering is vital to ensure product launches hit time
and quality targets.
 China contribution - China made contributions to the world down through the ages, but for
a long time conditions have been at a standstill in China and development has been slow.
Now it is time for us to learn from the advanced countries. China cannot develop by closing
its door, sticking to the beaten track and being self-complacent. You ask us whether it runs
counter to our past traditions to implement the policy of opening to the outside world. Our
approach is to define new policies according to new circumstances, while retaining our best
traditions.
Personal Learning Statement
From this research of international business environment, I have learnt about global
organization development as a researcher in the world. This process is also taught me about
government policies of various countries. It is helping me to understand business expansion

operations in the new countries. Business environment of China also learns me to identify various
factors like economic, political, social as well as technological which is aiding to make strategies
and policies of Samsung according to them in the market. This findings help me to find strategies
required for firm to deal with local competitors of the Chinese market. I also learnt about designing
better marketing and competitive strategies of Samsung to increase sales in the nation. These things
are also helping firm to beat local competitors by providing better quality products to consumers in
the nation.
Characteristic of emerging market also aids me to select China on the base of some aspects.
In addition, there are many factors like market, culture, technologies, better resources as well as
distribution network in the nation. As a researcher, this process also helps me to understand these
elements very deeply which is also helping to establish business of Samsung in China. These
characteristic also guide me to design the various policies for firm which is giving effective
reliability to manage my business operations in the nation. I have learnt many things from my
challenges in this country. These complexities also teach me to follow proper rule and regulations of
China which is necessary to take proper government support for Samsung. As a researcher, My
challenges also learns me to follow regular innovation to increase the demand of technological
products of firm to increase percentage of sustainability in the market of China. Opportunities also
teach me lot of things such as to earn profit by increasing increasing sales of Samsung in the
Chinese market. These things also help me to learn management of human as well as other
resources in effective manner which providing to huge reliability to increase efficiency and
performance of Samsung in the nation. It also helps me learn about ways of increasing market
growth and image of organization in the China. As a learner, there are many things which is
remaining for learning purpose to enhance my knowledge in international market. I am trying to
learn these factor for better understanding.
CONCLUSION
From the report, it is found that business environment of China also helps the Samsung
electronics to understand the Chinese market. Characteristic of emerging market also contributes
effective role to take entry in the China. It also encourages the organization to do effective business
in the nation. In addition, dynamic regulations as well as innovations are affecting growth of
Samsung in the country. It can be concluded that opportunities of this nation also aid firm to earn
better profit in the market. Further, it is also helping the firm to handle its managerial work by
effective work force in China.
REFERENCES
Journals

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health risk assessment of PCDD/Fs at two typical electronic waste recycling sites in China.
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Books
Beamish, P., 2013. Multinational Joint Ventures in Developing Countries. Routledge.
Dunning, J. H., 2012. International Production and the Multinational Enterprise
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Dunning, J. H., 2013. Multinationals, Technology & Competitiveness (RLE International Business)
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Press.
Jenkins, R., 2013. Transnational Corporations and Uneven Development and Internationalization
of Capital and the Third World. Routledge.
Wild, J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education Limited.
Online

Nicholas, M., 2015. Strategies to Enter Into the Global Market. [Online]. Available
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25th November 2015].
Samsung, 2015. About Samsung. [Online]. Available
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