Organizational Environment: Samsung's Analysis, Theories, and Impact

This report provides a comprehensive analysis of Samsung's organizational environment. It begins with an introduction to the company, outlining its nature and purpose, and compares it with Toyota. The core of the report examines the impact of micro and macro environmental factors on Samsung, using SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. Finally, the report explores organizational theories, specifically contingency and systems theory, and how Samsung applies these theories to manage its operations, enhance productivity, and achieve its objectives. The report highlights Samsung's focus on innovation, market expansion, and its commitment to adapting to the changing business landscape.

The organisational
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Nature and purpose of Samsung and difference between Samsung and Toyota.....................1
2. Impact of micro and macro environmental factors on Samsung and its ability to achieve its
corporate objectives....................................................................................................................3
3.Organisational theories that Samsung practices ......................................................................6
CONCLUSION...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Organisational environment means that surrounding of a company which affects its
overall performance, growth and operations. All those factor comes under environment which
affects an organisation in directly or indirectly. In this present assignment Samsung company has
been chosen for assessment. Samsung is a south Korean multinational company of electronic
products. It is a multinational conglomerate which also deals in medical equipments and home
appliances. Revenue of organisation is US $305 billion. In this present report Nature and
purpose of range of organisational types will be covered. In addition to this, all micro and macro
environmental factors that affects an organisation will be described briefly. Furthermore, this
report will also analyse the changes in internal and external factors with the help of SWOT and
PESTLE model.
1.Nature and purpose of Samsung and difference between Samsung and Toyota.
Nature:
Samsung is a south Korean multinational company whose headquarter is in Samsung
Town, Seoul. Company has many subsidiaries but after entering in to many fields it has majorly
focused on electronic items and mobile phones is its main source of income.(Sousa, Krot and
Rodrigues, 2018). It is a multinational conglomerate which also deals in medical equipments
and home appliances. Samsung group has always focused on taking the world in to an innovative
direction.
Samsung is one of those companies which has the highest manufacturing range of mobile
phones and TV. It has around more than 400000 employees around the world. Its major
competitor in mobile phones is Apple and Nokia. Whereas, in other electronic items SONY,
whirlpool and LG also gives a tough competition to Samsung.
Samsung is a big multinational group which have offices in six of the seven continents
across many countries.
Purpose: Major purpose of company is to attain wide market in electronic industry. Currently,
organisation has second position in mobile market, it faces major competition with Apple.
Samsung has always focused on delivering high quality products and availing the latest
technology to its consumers. In terms of brand loyalty, company has attained major of its
customers base.
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Samsung is now focusing on creating a better world with full of digital experiences
through its products which are made after using high innovating technology. In addition to this,
New opportunities and challenges are always welcomed by Samsung corporation in order to
attain higher success. Products in which Samsung deals in are very innovative in nature due to its
high focus on new technology and its implementation. High quality products and leadership
position in industry is the major objective of company. Like, every other company Samsung also
aims to cover maximum possible market and increase in its sales so that profits of the
organisation can be maximised.
Toyota
Toyota has been chosen here comparison which is a Japanese automatise multinational
manufacturer. It is world's largest company who has the highest sales in hybrid electric vehicles.
Luxury and commercial vehicles are the major products in which company trades in (Smith,
Morin and Lake, 2018). Toyota has their own engine which are being used while making a new
vehicle.
Comparison between Samsung and Toyota
Basis Samsung Toyota
Industry Samsung is working as a
conglomerate industry.
Toyota falls under the category
of automotive industry.
Objectives High quality and leadership in
electronic world in the major
objective of Samsung.
To enhance satisfaction of
consumers by giving high
quality products and value of
money. Furthermore, It also
has an objective of upliftment
of society and living standard
of people by its using its
products.
Number of employees Samsung has higher number of
employees that is around
489000 in the entire world.
People working for Toyota are
comparatively less, i.e. around
369000 in the whole world.
Products Samsung deals in electronic Toyota trades and
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items, home appliances and
telecommunication items like
mobile phones. Samsung has
made great expansion in TV
and mobile phones.
manufacturers in automotive,
luxury and commercial
vehicles.
Competitors Samsung has its major
competition with Apple in
mobile industry. Whereas,
Sony, LG and Whirlpool are
its competitor in all other
electronic equipments like TV,
refrigerator and washing
machine.
Toyota deals in vehicles so its
major competitors are Ford,
Honda, Nissan and Maruti
Suzuki.
Vision The Vision 2020 is at the core
of company's commitment to
create a better world full of
richer digital experiences,
through innovative technology
and products.
To be the most reputable and
successful enterprise, please
customers with a wide variety
of products and solutions in
the automotive industry with
the best innovative technology.
2. Impact of micro and macro environmental factors on Samsung and its ability to achieve its
corporate objectives.
SWOT analysis of Samsung
It helps in knowing about all the internal factors that affects the growth and failures of a
company. It is a tool that is used to determine all those areas where organisation is good and bad
at.
Strengths:
Large product portfolio: Samsung company has the biggest strength of product which
makes a large portfolio. It majorly deals in mobile phones, TV, camera, memory card etc. Even
Samsung has nice line of Laptops and desktops and printers too.
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Brand Image: Samsung has a good brand image in market which makes it really easy
for the company to launch new product. Customers buy new products because of already existing
brand name of company (SWOT Analysis, 2018). Samsung ranks among the top brands in the
product it deals and it has a great branding strategy which took company's growth to next level.
Weaknesses:
Weak position in Computer's market: Major market of PC is covered by Dell and
Apple. Samsung has not higher coverage in market of Computer's. Samsung lacks it sale in
computers which is its biggest weakness.
Higher dependence on the American markets: Samsung is highly dependant on
markets of America. It results in declining of its revenue and growth. Too much dependency on
single market leads to higher pressure which affects on the performance of the organisation.
Opportunities:
Innovation: Samsung deals in electronic products which can always be upgraded with
higher technology. It is a great opportunity for company to take their company and products to
next level by using high innovations (Nemer, and Vieira, 2018.) In addition to this, it will help in
dealing with competitors and growing business faster.
Market in Developing countries: In today's world, people of developing countries are
more focusing on buying smart phones and LED TV. It results in a great opportunity for
company to expand its products in such market. Like sale of smart phones took over the
traditional phone markets.
Threats:
Facing high competition: Nokia and apple are considered to be the most preferable
product in terms of ease of use and resale value. Higher competition gives lots of pressure to the
company and it affects the finances as well. Along with this, prices competition is very high
which is a big threat for Samsung.
Increasing raw material and labour cost: Day by day raw material and labour cost are
rising which results in higher operating cost for the company. Due to this, price get increased and
that will be a big threat for Samsung in terms of competition.
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PESTLE Analysis :
Political factors
Political factors have direct or sometimes indirect impact on every business running in
the country. But Samsung is not much involved in political scenario of the nation where it is
operating. Whereas, high political pressure is also faced in some countries where they have
political instability.
Economic factors
Samsung is a multinational company, So it faces many ups and downs in different
economies like if in any nation GDP is good than it proves that country has more people who are
likely to buy innovative latest products of Samsung (Hladchenko, Westerheijden and de Boer,
2018). Whereas, some nations are facing economic crisis which reduces sales of organisation and
made the establishment to change its strategies accordingly.
The situation has changed to a great extent since the recession and the level of
employment and economic activity around the world has gone up. Samsung has always taken it
as a positive sign. When there are jobs with people and their income is high and people have
enough extra income, they expend on electronics and entertainment (PESTLE Analysis,2017). In
this way, rising economic activity can be highly profitable for businesses like Samsung and
falling economic activity bad.
Social factors
Samsung is a South Korean multinational company which follows social beliefs of its
nation (Durkheim, 2018). But as now its being a global organisation it has to adopt socio cultures
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Illustration 1: PESTLE Analysis
Source: (PESTLE Analysis,2017)

of every nation where it is operating. Furthermore, the major reason behind accepting all the
customs is that it has such products which strong influence lifestyle of people.
Technological factors
It is one of the biggest leading technological company who has a good brand image in
market which makes it really easy for the company to launch new product which deals in all
such products which are connected with innovation. Its mission is to change the world by its
innovative products and new ideas.
Legal factors
Samsung has faced many issues of patents and copy rights from Apple. As, apple has
blamed the company for copying its ideas and technology designs etc. Even Samsung has faced
the problem of leakage of its innovative ideas by its employees.
Environmental factors
In today's world, consumer like those brands more who are socially active and
responsible. Samsung always pays well to the society by donations and keeping environment as
a big concern while manufacturing (Allen, 2018). Brand has also come up with a new chemical
substance management policy, so it can be said that Samsung group took many steps for
suitability.
Organisational theories that Samsung practices
Organisational theory are those approaches that are used by a company to solve its
problems and increasing its productivity and efficiency.
Samsung follows the following organisational theories in order to manage a proper working
environment. This theory helps in growth of the company and helps the organisation to practice
more work and new methods of working. High quality products and ability of work which helps
in attaining higher position in industry is the major objective of company. Like, every other
company Samsung also aims to cover maximum possible market and increase in its sales so that
profits of the organisation can be maximised. Theories are used for the same which are described
in brief.
Contingency theory: Samsung is a technological organisation which always gets change
with time, Samsung follows contingency theory because it says that there is no best method or
strategies to manage a company. Instead, actions are always taken according to the situations and
in a organisation where innovations are major concern than it can not follow a fix rule or method
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of working. There is no fix formula of taking decisions and managing the work culture of
company (Yoon, 2018). It results heavily on employees and workers who are working because
decisions are taken instantly which give high pressure to employees.
System theory: Under this theory entire company has been treated as a system, where,
organisation communicates with their environment In order to survive as called as system theory
approach (Tiwari and Lenka, 2018). It is followed by Samsung in which it receives input from
the environment by way of any information. Then system of company process entire input and
produces output accordingly.
Conclusion
From the above report it has been concluded that environment of an organisation helps in
determining its growth and success. Samsung has analysed its internal and external factors which
are affecting it in some or the other way. In addition to this, Strengths and opportunities allow
company to grow its share of market and that of customer and expanding its operation at higher
rate. Whereas, Weaknesses and threats has to be taken seriously and company should work on
them by applying more strategies and making proper policies regarding the same. Furthermore,
Contingency theory has been followed by Samsung which says that actions are always taken
according to the situations.
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REFERENCES
Books and journals
Smith, J.G., Morin, K.H. and Lake, E.T., 2018. Association of the nurse work environment
with nurse incivility in hospitals. Journal of nursing management, 26(2), pp.219-226.
Sousa, J.P., Krot, K. and Rodrigues, R.G., 2018. Internal marketing and organisational
performance of SMEs in the EDV industrial sector. Engineering Management in
Production and Services, 10(1), pp.55-64.
Durkheim, E., 2018. The division of labor in society. In Inequality (pp. 55-64). Routledge.
Allen, D., 2018. Translational Mobilisation Theory: A new paradigm for understanding the
organisational elements of nursing work. International journal of nursing studies, 79,
pp.36-42.
Yoon, S.J., 2018. The Organisational Culture of the Chaebol and Workplace Inequality:
Stunted Mobilities of Korean Chinese Employees in a Beijing Subsidiary. Journal of
Contemporary Asia, pp.1-26.
Hladchenko, M., Westerheijden, D.F. and de Boer, H.F., 2018. Means-ends decoupling at the
state level and managerial responses to multiple organisational identities in Ukrainian
research universities. Higher education research & development, 37(4), pp.744-757.
Tiwari, B. and Lenka, U., 2018. Engaging workforce in downsized firms: scenario of the
Indian IT/ITES sector. Industrial and Commercial Training, 50(1), pp.32-38.
Nemer, K. and Vieira, R.K., 2018. The relation between the traditional quality and the change
of organisational culture using as methodology the quality control circle. International
Journal of Productivity and Quality Management, 23(2), pp.163-186.
Online:
SWOT Analysis. 2018. [Online]. Accessed through: <https://www.marketing91.com/swot-
analysis-samsung/>.
PESTLE Analysis. 2017. [Online]. Accessed through: <http://marketingdawn.com/pestle-
analysis-of-samsung/>.
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