Strategic Management Plan for Samsung: Analysis & Recommendations

This report provides a comprehensive analysis of Samsung's business strategy, focusing on the impact of the macro environment and the internal capabilities of the organization. It employs frameworks such as PESTLE and SWOT to evaluate external factors like political, economic, social, technological, legal, and environmental influences, as well as internal strengths and weaknesses. The report also utilizes Porter's Five Forces model to assess the competitive landscape of Samsung's market sector and suggests strategies to improve its competitive edge and market position. Furthermore, it interprets and devises strategic planning for Samsung, outlining tangible strategic priorities and objectives, and concludes with a strategic management plan that integrates tactical approaches for achieving organizational goals. This detailed analysis aims to provide insights into Samsung's strategic decision-making process and its approach to maintaining a competitive advantage in the global market. Desklib provides similar solved assignments and past papers for students.

BUSINESS STRATEGY

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given organisation and its strategies...............................................................2
M1 critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................4
LO2..................................................................................................................................................7
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................7
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................9
LO 3...............................................................................................................................................11
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation...........................................................................................................11
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes..............................................................................................................................13
LO 4...............................................................................................................................................16
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................16
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................17
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

LIST OF FIGURES
Figure 1: Pestle analysis framework................................................................................................4
Figure 2: Macro environment analysis and strategy implementation..............................................6
Figure 3: Swot analysis framework.................................................................................................9
Figure 4: VRIO model...................................................................................................................10
Figure 5: Porters five force analysis..............................................................................................13
Figure 6: Strategic planning process..............................................................................................17

LIST OF TABLES
Table 1: Strategic management with macro environmental analysis..............................................4
Table 2: Strategic plan...................................................................................................................17

Introduction
With growing technology, there are different changes in business to meet with strategic
objectives of the business. Business strategy is concerned with designing suitable strategy that
will lead to achieve optimised growth and efficiency in the business. Current report will consider
the case study of Samsung that is one of the leading organisations that manufactures and sells
electronic items such as mobiles, telecommunication devices and also provides services such as
entertainment, advertisements, etc. Report will also illustrate about macro environmental factors
that impact on achieving organisational objectives. In addition, different strategies are necessary
for business to take that will lead to influence on achieving organisational aims and objectives.
Different models and theories will be evaluated within the study that will be applied in the
framework of Samsung for achieving the competitive advantage. At last, report will conclude
effective use of strategic planning concept along with application of different tactics for
achieving organisational objectives.
1

LO1
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given organisation and its strategies
Samsung is one of the global businesses that manufactures and designs consumer appliances and
gadgets market. It continues success with having strategies of using innovation to produce
world’s best technology to consumers. Samsung continuous success is based on effective
strategies along with bringing improvement in management structure and application of different
philosophies by creating well innovated products and services (Ying, 2016). Macro environment
is concerned with impact of all external forces that are uncontrollable having critical impact on
performance of the organisation. Some of the factors are explained below that includes:
Political factors: There are some of the markets that are favourable to Samsung operations. India
being a developing country has supported Samsung to sustain its growth and sales. Another
country includes disputes between North and South Korea has lowered down its performance.
Still Samsung is worried about the war that might occur in Korea that will impact on supply of
manufacturing products and provision of services (Newton, 2014). Political environment is
concerned of suitable government types and country’s policies that are impact on trade of
products from one country to another. Some of the countries support favourable sales but Apple
being a huge competitor can influence to greater extent. Suitable example to analyse the impact
include when Samsung was stopped to operate in South Koreas due to political differences.
Economical factors: It includes the economic conditions of the countries that include changes in
rate of inflation, tax rates, currency rates, etc. Samsung currently operates in favourable
economic conditions in developing markets where purchasing power of buyers had been reduced
that leaded to possess favourable solutions. But to avoid future circumstances, Samsung need to
keep designing its strategies. Strategic decisions to expand in developing markets had supported
to gain lot of business from the developed world. For example, South Africa supported Samsung
as it has favourable economic conditions and employment opportunities (Cardoso, 2017).
Social factors: being a Korean multinational, Samsung has adopted strategies of operating in
local conditions (Samsung PESTLE analysis, 2018). However, for expanding in global markets it
2

is important for Samsung to have local marketing strategy along with expansion strategy.
Samsung had faced severe challenges that are concerned changes in consumer preferences due to
several reasons of due to increasing competition (Ying, 2016.). For example, to balance the sale
Samsung has performed in niche markets getting influence by lifestyles of consumers. Moreover,
Samsung need to enhance the mode of providing education with using devices as some of the
people are still not aware of usage of Samsung product.
Technological: Samsung is one of the world leading innovative businesses that had gained lot of
advantage with using technology to meet with customer expectations. Strategies are always
planned to lead towards innovation with use of technology (Cardoso, 2017). Such strategy is
effectively used to dominate the competitors by providing advanced products. Challenges only
are faced by Apple as it is much forward with designing of products. Moreover, strategy of
business is still based on doing business in right manner that is keys to success.
Legal: Case of Samsung was observed in Apple because of having the tendency to dumping their
low quality products to maximise the profits in parts of India. Also Samsung had to pay penalties
for acquisition of designing of Apple Iphone. Legal policies and regulations affect business
strategies and reputations (Samsung PESTLE analysis, 2018). It is necessary for Samsung team
to consider different regulations and laws for expansion into different countries.
Environmental factors: These factors include waste consumption and pollution that affect on
conditions of the society. Samsung need to consider pollution and waste in mind towards
environmental protection. It is necessary for Samsung to consider environment friendly
production that optimise the whole process of raw materials, production, transportation along
with designing and maintaining quality of products and services.
However, analysis of the above factors it can be illustrated that each factors plays effective and
important roles in optimising profits of the business and efficiency. Samsung need to take
effective decisions while making and planning towards strategies and expansion of business.
Regular research need to be conducted by team Samsung regarding such factors for achieving
organisational objectives in optimised manner.
3

Figure 1: Pestle analysis framework
(Source: Author. 2018)
M1 critically analyse the macro environment to determine and inform strategic management
decisions
Table 1: Strategic management with macro environmental analysis
Factors Analysis of macro environment Strategic management
Political There are different implications of
political environment that is faced by
the Samsung. For example, the fear of
War in Korea and also changes in the
policy making in different countries.
Samsung needs to be preparing of such cases
with targeting people of other countries that
can generate effective income and revenues for
covering the losses that are faced from other
countries. It is needed for making the strategy
of maintaining balance between supply and
demands of different countries for achieving
global advantage (Hill et.al. 2014).
Economical It includes changes in the economic
conditions of the country such as rate
It is necessary for Samsung to have dedicated
and strict supervisor that will analyse about the
4

of inflations, labour and energy cost,
etc.
trend in the economy. In some cases of
inflation, prices are kept high with lowering
the amount of profit margins. More marketing
and expansion needed to be promoted when
there is stable rate of employment and labour
cost are generally low for effective expansion
of the business and achieving profitability.
Social This includes influence of changes in
social class, lifestyle, demands and
preferences of the consumers. This
effect on supply of products and
decreasing demand and people might
shift towards substitutes (Frynas and
Mellahi, 2015).
Samsung needs to plan strategies that are based
on identifying recent consumer and market
trends. Products designing and features are
changed for effective expansion of the business
and meeting with different expectations of the
consumers. Sometimes for this price policy is
needed to be altered to increase sales and
customer satisfaction.
Technological It acts as one of the important tool that
helps in bringing innovation and
creativity within the products and
services of the business. This factor
leave positive influence on
productivity but challenges are faced
regarding increase in technological
crimes, security, etc.
Samsung being a reputed entity needs to take
specific steps regarding appointed skilled and
qualified workforce that will handle the
responsibility of handling technology in
effective manner. Issues of security and data
are needed to be supervised with having
support of skilled staff. Training and
development programs are organised to
increase the level of skills among the staff and
help to bring innovation in products (De Villa
et.al. 2015). For example, management can
involve employees in process of decision
making as it will bring new ideas and
suggestions that can be implemented as
strategy for bringing change in business.
Legal It involves considerations of quality
standards and regulations for
maintaining reputation and image.
Samsung have different strategies to expand in
countries. It is necessary for team to have
information about current laws followed in the
country. Samsung need to consider legal
5

policies and regulation for quality standards of
the product and also prohibited the use of
design and technology that is used by other
design (Newton et.al.2015).
Environmenta
l
Such factors include providing
protection to the environment with
optimum use of organisational
resources.
Samsung need to take initiative towards
protection of the environment by planning to
make production system cost and energy
effective. Along with taking actions to save
resources with waste and recycle management.
Figure 2: Macro environment analysis and strategy implementation
(Source: whatmakesagoodleader.com, 2018)
6

LO2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
Internal environment is concerned with factors that are internal factors from within the
organisation impacting on capabilities of the business to attain objectives. These factors are
controllable that can be identified by the government with taking accurate decisions. To assess
the internal capabilities of the organisation SWOT analysis is being conducted that is:
Strength:
 Samsung is one of the leading brands that are well known to its customers with having
effective brand reputation in the competitive market (SWOT of Samsung, 2018). This
strength enhances the capability of gaining competitive advantage and also developing
huge base of customers.
 It acts as best brand to utilise technology as the useful resource for bringing innovation
within the framework of the business (Grant, 2016). Also it has the capability of offering
wide range of products that differentiate it from substitutes with gaining optimised brand
value.
 Effective designing and offering products according to the value has helped to gain
profitable advantage in future. Designing is up to mark and is attractive and stylish that is
helping to grow the volume of sales.
Weakness:
 Keeping the prices lowers in terms of increasing sales lowers down the value of products
into different markets. Samsung has suitable strategy to bring regular modifications in
products that can cause confusions among customers to buy products.
 In comparison with Apple, it has less effective software and packages in terms of
providing security in phones and devices (Yang et.al. 2016). This lead customer to face
issues regarding protection of data. Thus such barriers can lead to reduce sales and
decrease the amount of reputation.
7

 Samsung has faced challenge of paying penalties for stealing ideas of the Apple in terms
of software and design that has lowered down the brand value.
 Samsung is leading in sections of Hardware but customer still face problems in using
software that are inbuilt within the devices. This hinders the capability of achieving
customer satisfaction (Sammut‐Bonnici and Galea, 2015).
Opportunities:
 Have potential opportunity to expand in different markets by introducing user friendly
products. This can be done by performing market research regarding analysing the trends
and preferences of the consumers. South Africa is one of the effective platforms for planning expansion strategy as market
is huge (Salah, 2015). For overcoming the problem of uneducated people, Samsung need
to invest in providing education to customer regarding usage of products and about the
brand. Apple has lowered down Samsung sales but management can take opportunity to target
the commercial and lower section market by offering high featured products at reasonable
costing.
Threat:
 Competition is one of the biggest threat that includes high costing products such as Apple
and lower costing products that are manufactured in China. Higher turnover of employees due to any reason can reduce the potential of staff to
achieve organisational aims and objectives (SWOT of Samsung, 2018). Apple has amalgamated with Nokia to provide more featured and designable products
that act as threat for business that can lower down business sales.
However, with internal analysis of the Samsung, it is necessary for management to take effective
advantage of strength to overcome the weakness. Also opportunities act as chance for business to
enhance capabilities. Moreover, accurate strategic planning and business decisions along with
support of professional staff will help to overcome the business threat.
8