Kensington College Strategic Management Plan for Samsung Report

This report presents a strategic management plan for Samsung, analyzing its macro and internal environments. It begins with an introduction to strategic management and its application to Samsung, a multinational conglomerate. The report then delves into the PESTLE analysis, examining political, environmental, social, technological, legal, and economic factors impacting Samsung's operations. Following this, a SWOT analysis is conducted to evaluate Samsung's strengths, weaknesses, opportunities, and threats. The report further applies Porter's Five Forces model to assess the competitive forces within Samsung's market sector, including the bargaining power of suppliers and buyers, the threat of new entrants and substitutes, and competitive rivalry. Finally, the report synthesizes these analyses to interpret and devise strategic planning recommendations for Samsung, considering various theories, concepts, and models to enhance its market position and profitability. The conclusion summarizes the key findings, and a list of references is provided.

Strategic management
Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................4
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................4
TASK 2 ...........................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................5
TASK 3 ...........................................................................................................................................7
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................7
TASK 4 ...........................................................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
Strategic management plan is defined as the organisational management activity which is
used for setting priorities, focusing energy and resources and ensuring that employees as well as
stakeholders are all working together effectively and having a common goal. A strategic plan is a
document used for communicating with the company and achieving the organisational goals.
This plan includes all the tactics and strategies that a company can adopt for improvising the
business sales and profit (Andersen and Sax, 2019). The strategic management is known as
comprehensive collection of all the present activities and processes which are used by the
company for achieving it's vision and mission. The company which is considered for analysing
the concept of strategic marketing is Samsung. This is a South Korean multinational
conglomerate which has headquarters in Samsung Town, Seoul. The founder of this organisation
is Lee Byung-chul. The following report provides explanation on PESTLE, SWOT, Porter's Five
Forces and Porter's generic strategy. The main aim of this file is to analyse the strategy which
Samsung can choose for enhancing profit and sales.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies
The macro environment which affects functioning of any organisation includes political,
environmental, social, technological, legal and economical factors. It is essential for business
organisations to analyse what are the ways by which an organisation is affected more. This
includes managing all the factors in effective manner and attaining organisational goals.
Samsung is a conglomerate and it is operating in the white goods market or the market for
consumer gadgets and appliances. The external drivers of business environment that affects
operations of Samsung have impact on strategies of the company. The PESTEL analysis of
Samsung is discussed below -
Political – The countries in which Samsung operates are having conductive environment
for it's operations. But there few companies in which it has faced some political issues. Samsung
is operating in those markets in which political elements are benign. Within South Korea,
Samsung has faced political headwinds as there was political instability. This company has also

faced problem in African and Latin American countries in which the political environment is
unstable.
Environmental – Samsung is an organisation that deals in consumer oriented products
and thus it is very important for this company to analyse the needs and demands of organisation
for enhancing profits and sales (Ansoff and et. al., 2018). There has been increase in ethical
consumer and they want to source their brands and make the products socially as well as
environmentally responsible. Samsung must be aware about the needs and demands of the
products that an individual requires. According to this, it is ensured that Samsung is not
compromising on the working conditions and wages that are paid to the labour who are making
the final product.
Social – Samsung is a South Korean company and the owner of this company is whole
family. This company is operating from the core as a Korean company. This company is known
for effective global working. The main factor which helps this company to be successful in
different international markets is it's adaptability to the local market. Samsung adopts glocal
strategy which is used while operating in global market and and adopting the strategies to
capture local markets (Baumgartner and Rauter, 2017). On the other hand, Samsung is a global
company that tailors the product according the changing preferences of the customers. This
organisation operates in a niche market and this is strongly affected by the life style of
consumers.
Technological – Samsung is one of the leading innovative companies of the world. This
company will get advantage by suing new and latest technology in it's products. Samsung has
mission to attract a lot of customers by providing them innovative and latest technology items. In
context of Samsung mobiles, it applies all the latest software and applications so that customers
will buy them.
Economical- This is a crucial factor of this company and it has opportunities to expand
it's market share in new markets. Samsung has the ability to manage it's operations and activities
at global level effectively. While operating in global markets, it is essential to analyse the
inflation, deflation, economic rates, before providing services and products in any marketplace.
Legal – It is important for Samsung to analyse all the regulations and rules given by law.
As Samsung is a electric gadget company, it is seen that it operating in different countries and
follow the legal rules given by that country. The consumer laws of international markets is not

same and it varies from country to country. Samsung faced heavy penalties for alleged imitation
of iPad (Apple) as well as iPhone. This includes how the market is seen on how an organisation
will manage legal maze.
From the above PESTEL analysis of Samsung, it is concluded that this company has
good strategies for entering in international markets (Bolisani, and Bratianu, 2017). There are
various opportunities that Samsung can work upon for increasing the market share of the
company in different global markets. The stakes of Samsung must be high in era of recession to
capture success in global markets. After using the PESTEL analysis, it is clear that all the things
that are to be analysed by Samsung for maintaining its goodwill and reputation within market.
TASK 2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
In business world, all those factors of internal environment like workers, standards, laws,
business happening have a major impact on the organisation strategies. Thus, companies are
required to prepare a strong and effective policy to manage and handle business operation and
determine the reasons that which can improve overall performance. In Samsung the manager of
corporate strategy maker have implemented the SWOT evaluation that is useful in defining the
way to run business task in most suitable and profitable manner (Bondarenko and et. al., 2017).
The same is discussed underneath:
SWOT analysis model: It is a method that organizations use to obtain links to various
factors that are their strengths, weak points, opportunities and challenges. This study of Samsung
SWOT shows how well the second biggest technology company has taken benefit of its
competitive advantage to influence and become the leading company in consumer products,
household appliances and microprocessor sectors. The Business strategy Director of Samsung
analyses all the components thereof and presents the following description:
Strengths:
 Innovative fundamental research was always the focus of Samsung. The company has a
wide variety of products between its rivals at the expense of those divisions. It includes
smartphones, videos and audio devices, cameras, mobile telephones, TVs and video
players, computers and other gadgets. They include 34 R&D institutions (R&D) working

worldwide and have invested $14,857 billion in 2017 which help in developing most
suitable mobile phone for large number of customer across all nations.
 In Emerging Asian markets, Samsung maintains a stronghold, especially in India as well
as China. The company opportunities of both India and China were increasing
significantly, that's why Samsung took benefit and thus enabled them become the world’s
number one marketer of cell phones with about 21.4% covering the world’s biggest
market share in 2nd quarter of 2015.
 Company has improved its image as brand by its ecological developments. It was rated
9th throughout the EPO's 2016 Green Power Partner list of top 30 Technology and
Telecommunications companies.
Weaknesses:
 The biggest weaknesses of Samsung is that it is highly depended upon American market
and around 70.8% of their cell phone are sold in America. As American economy is not
easily predictable and any recession in recent time can hit Samsung very badly impacting
its overall profit margin and capabilities to produce electronic devices.
 Since 2017, smartphone sales have fallen under Samsung due to increase sell of Chinese
Phone in various part of world. Chine use of provide useful electronic gadgets at lower
cost to which damages the profits of Samsung (Bryson, 2018). Moreover, Samsung has
tried to shift its emphasis somewhat, but that approach has not resulted in significant
market performance.
Opportunities:
 In present time if Samsung invest in the HR management then they can make a
impressive transformation which help to attain the desired results. This will not only
support to increase the sales but can help out to give competitive leverage over its
competition.
 This is important for Samsung to avoid the fault of being specific to only few market
which can reduce their overall sales. It not only calls for economic uncertainties but also
causes excessive divisiveness and negative press advertising. Which is why Samsung is
able to succeed on a market void in the economy of Asia and Europe. It must also
increase its number of clients.
Threats:

 All those companies dealing in consumer electronic products, computer devices and
smart phones give a tough competition to Samsung at a record high level which become a
major threat (Bryson, Edwards and Van Slyke, 2018). Technical rivals, such as Xiaomi,
Apple or Huawei, were the best software organization to handle and outperform. That
further raises stresses for Samsung in both trade and financing.
 In modern era, when world have become more technical and digitally focused, so
government have make number of laws and regulation which increase the legal thereat to
Samsung. This is mainly because different market have different laws and certain
guidelines create problems for company to operate different function as per their
requirement and convenient. If not complied with the standard of particular country a
total shutdown can even happen in Samsung's respective business.
TASK 3
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation
Porter's Five Forces Model
This can be defined as a simple and powerful tool which is used to understand about
competitiveness among the business environment in order to identify strategy's potential
profitability (Ginter, Duncan and Swayne, 2018). It was primarily developed by the great thinker
named M. Porter in the years around 1979 which helps to understand the impact of five key
competitive factors on an industry. It is a structure and framework that assists in determining the
level of competition in different business sectors. This concept is developed by Michael Porter to
monitor the competition in a particular industry so that a new business can effectively enter in a
new sector. This concept is useful fro understanding the strength of a company in existing
business atmosphere and the capability of a position that a firm may look top move into. In
context of Samsung, this model is crucial to understand the forces that shape and manage rivalry
in a sector. However, Samsung can be consider as a well known brand of electronics which is
much famous its smart phones and television.
Bargaining power of Suppliers – This includes the sources from where an organisation
gain raw materials in required amount to manufacture their product or services that is known as
suppliers. They are important and can be consider as an important force that has an ability to

affect the organisation. However, it has been evaluated that higher is the bargaining power of
suppliers then lower is the competitive strength of the company. In context of Samsung,
bargaining power of suppliers is very low because of several factors including small size & low
financial strength. They have a capability to easily switch from supplier to the another.
Bargaining power of Customers – It has been analysed that Samsung is responsible for
manufacturing variety of products such as television, mobile, home theatres, computing related
products and home appliances. The bargaining power of customers is low due to the reason of
producing different types of products by given company (Hartmann and Driessen, 2017). It is
observed that bargaining power of corporate clients and groups consumers is significant that
have led to rise in the same. Moreover, customers are capable to select the brand of their choice
which are available in the market then it is very important for an organisation to make their
product more attractive with innovative features to gain new clients along with retaining the
current ones for increasing profitability.
Threat from Substitutes – In case of Samsung, it has been identified that threat of
substitutes is moderately high for them because of having various local and international
competitive brands. The competitive firms offer competing products and services to customers in
market and switching cost for clients is low. Meanwhile, Samsung has various competitors
which provides similar products to people which encourage consumers to switch themselves to
the another brand. Moreover, it is required for Samsung to male their product different attractive
and innovative to attract fresh customers as well as retain present consumers to gain competitive
advantage in market.
Threat of New Entrants – In context of Samsung, it has been evaluated that threat of
new entrants is low in market. It has reason that company invest much to build such brands and
they also put funds for attracting talent along with building strong brand with the help of
marketing.
Level of Rivalry in the Industry – The competitive rivalry among Samsung and other
existing company in industry of electronics such as Apple, Microsoft, Philips, Toshiba, LG etc. It
is observed that the level of rivalry is very high because new brands find it very difficult in enter
the market.
From the above discussion, it is analysed that The management of Samsung has
implemented Porter's Five forces analysis with the motive of analysing competitive position of

firm in that sector in which it operate (Hill, 2017). As the rivalry for Samsung is high so
organisation is needed to frame effective plan of actions like launching new products in
marketplace. The bargaining power and threat of similar products is moderate in market that can
be minimised by focusing on quality of the product and making brand loyal customers.
TASK 4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation
Strategic planning requires the execution, for the benefit of the company as well as for
the development of plans that succeeds to growth. The Ansoff Matrix may allow management to
find options for the growth of the company when looking for the best plan for market execution.
Samsung Corporate Strategy Director have been using this approach to develop strategic
thinking.
Ansoff matrix: It is seen as a system that allows businesses to take the best idea to help
them achieve success. In the sense of Samsung four various elements are addressed below:
 Market Penetration: That approach offers companies the chance to grow by offering
ever more goods in new markets. In order to capture the opportunities and growing
number of consumers, Samsung should promote its goods throughout its existing market.
 Product development: In the current market, under this choice of growing companies
introduce a new item (Holloway, 2018). By providing a single or updated brand to
current customers, Samsung will also be able to boost sales and profits with the support
of this method.
 Market development: This allows companies to provide new market growth to their
current products. Samsung may implement it in order to improve the share of the market
and achieve the goal of growing the company at various locations.
 Diversification: This is the Ansoff's main approach, which allows businesses to start new
goods on a growing market. This is the most risky option as it help to increase the
additional funding. Samsung can used this to attract customers with such a spanking new
brand device from a new marketplace.
Porter's Model of generic strategies

There are different concept, models and theories that can be adopt by a company to make
development and growth in the business of a firm. Porter's generic is a model that can be
implemented by organisations like Samsung with the motive of monitoring development plan of
action (Jones and et. al., 2018). The brief description of this concept is mentioned as under in
reference to respective company:
Cost leadership- This strategy is defined that by adopting lowest pricing strategy for the
goods and services of the company the firm can make evolution in it business. In context of
Samsung, if the administration of this firm implement this approach then the company can get
attention of number of consumers by setting low process of products.
Differentiation- This strategy of respective model leads that by adopting it, organisations
can launch unique products in business sector that are different form others commodities that are
available in industry. By accepting it, Samsung can target new clients in current market to
improve the profitability and market share.
Cost focus- Within it, a business enterprise set low cost of its products in term of getting
attention of number of customers to make increment in its customer base (Kerzner, 2019). In
reference to Samsung, the management of this company can implement this strategy and can try
to become lower cost manufacturer in a small market place to be a market leader by setting low
cost to its products for niche market.
Differentiation focus- this growth approach leads companies to launch unique goods in
small market place so that the feedback and response of consumers can be monitored regarding
new product. Samsung can chose this option to analyse the attraction and attention of customer
regarding new product that will be launched in existing market.
Strategic Plan
As per both explained concept and model, Corporate strategy manager of Samsung
should make concentration on Ansoff Matrix and chose the strategy of product development.
This suggestion can be provided to the firm because with the assistance of this, firm can get
attention of numerous individuals fro its current marketplace. In this approach, risk is low
because the administration of the company also familiar with market trends and behaviour of
consumers.
On the basis of preceding suggestion a strategic management plan for Samsung is being
developed that describes objectives, tactics and strategies in context of product development

option. With the assistance of it, the employees examine the details about forthcoming time aims
and objectives and operate business of the company in term of accomplishing them (Lasserre,
2017). The company make innovation in its products in term of launching “Holographic Phone”
that are foldable and easy to carry. The components of this plan is described as under:
Objective- The smart objective of this strategic engagement plan are mentioned as under:
 Samsung is adopting product development option to maximise the sales of the company
by 8% within 1 years.
 The company is trying to improve sales and customer base by by launching its new
product “ Holographic Phone” in its present market.
Strategies- At the time of launching a new product in marketplace, it is crucial for the firm to
frame effective plan of actions. So that set aims and objectives can be accomplish in successful
manner. The strategies that are considered by Corporate strategy manager of the firm are
mentioned as :
Market research- During the time of launching new product in the marketplace, it most
essential to conduct market analysis to get and collect information about the needs, demands of
customers (Madsen and et. al., 2017). With the assistance of aggregated information new product
can be developed in crucial way.
Publicity activities- When a firm launched a new commodity in market then it is essential
to the firm to use effective tools and techniques of promotion to create awareness about new
product. By using different marketing channels like social media, web advertisement, TV, news
paper and others. The firm can familiar number of customers about its new production.
Tactics-It refers to those plan of actions and plan that are used and implement by administration
of organisation in context of resolving them. Some of them are defined as follow that are highly
focused by Samsung:
Focus on technology- In reference to launch a new good and commodity in market, the
corporate strategy administrator of Samsung has determined that latest and effective techniques
will be focused to devise a product attractive. It will assist to accomplish the set goals of
accomplishment of growth and development.
Gathering finance- It most crucial to arrange and manage monetary value for new
products that are launched in its current marketplace. There are several sources of funds like

bank loan, angle investors, crowdfunding and many more that can be chosen by Samsung to raise
fund in term of manufacturing new product.
When a company is want to make development and growth in its business then it is
crucial to utilise and implement different tools and techniques like PESTEL, SWOT, Porter's five
force, VRIO etc (McKiernan, 2017). all these conceptions and models assist in identifying the
way to perform the business activities and operations. By implementing all of them a strategic
management plan is being developed by Corporate strategy manager of Samsung. The major
purpose of it are accomplishing growth and maximising profit margins. The plan of action that
can be used uin this plan are market investigation and promotions. Tactics that are determined by
the firm are gathering finance and technology.
CONCLUSION
From the above discussion, it is analysed that strategic management is an important part
of the company and it is also essential for managers to have strong strategies so that goals and
objectives of the company are attained in short period of time. There are different models used
for analysing the internal and external factors that are affecting business of an organisation.
PESTLE and SWOT are used for analysing the capability of an organisation while working.
Porter’s Five Forces model is used for knowing what are the factors within market which have
impact on business operations and activities. There are some theories for managing the strategic
management within an organisation.