The external business environment consists of a set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors amongst others, which are not controllable in nature and affects the business decisions of a firm. Web. According to Michelle (2010), this has been seen in the development of super products to effectively compete with substitutes from other companies. Moreover, Samsung is proved faster in launching new technology products as compared to its main rival, Apple. Web. The other weakness in the company is the fact that the company produces products that are not user friendly. Samsung Electronics holds Eco-Council and working-level committees, whereby environmental experts and managers gather to share ideas about technological and regulatory trends for developing highly energy-efficient products. It also comes up with ways of coming up with funding for projects, enhancing in any opportunities while reducing on expenses. Even now Samsung is trying to give a head to head competition with its new Note series. It is an established company almost all around the world. The corporation's success is a result of strategic management that exploits opportunities and protects the business from threats in the consumer electronics and information technology services industries. Internal environment is the environment that is directly connected with the organization. In February 2015, the company reportedly had revenue of $74.6 billion with $18 billion in profits for a single quarter. Inc. Internal External Matrix IE Matrix is a tool to plot the organization division in a schematic diagram . The capabilities and core competencies of the company include wide range of products, high brand value, strong infrastructure, competent employees, vibrant management, financial strength, technological innovation, high investment in research and development, impressive salaries and a higher yield among others. Regardless of what website we are looking at, all of the websites are offering the same thing, which is a cloud service. Industry leadership in most of the markets the company operates. 2. For the system to work successfully, it requires the support of both internal and external stakeholders. Apart from transferring the companys novelty techniques, supporting the access to the foreign market, and setting up IT infrastructure, Samsung Company also implemented suppliers innovative capability. Therefore, as a global player, the leading Korean conglomerate is focused on building an integrated business system of designs that are distributed through the key markets. In terms on inbound logistics, Samsung employees should synchronize the current control of inventory and process of scheduling without slowing down the manufacturing process. 3. (2019). This is the quote that I found that help me to understand what exactly shareholder value is The value delivered to shareholders because of management 's ability to grow earnings, dividends and share price. Review THE EXTERNAL ENVIRONMENT (STRATEGIC MANAGEMENT) A host of external factors influence a firm's choice of direction and action, ultimately its organizational structure and internal factors. This would reinforce positive consumer perceptions towards the company and its products. The multinational also manufactures a wide variety of products for the middle-class. By 2012 revenues, the company was the worlds information technology company. When your cash resources are too limited, it affects the number of. As of today, Samsung Electronics positions itself as the worlds largest smartphone and mobile phone manufacturer. To reach such international recognition and become a leading multinational manufacturer, the company employs and enhances its key resources that help achieve successful strategic business outcomes. As such, the potential set of critical resources that the company obtains, including human resources, technology, marketing manufacturing, and design departments, dramatically increased their significance as competitive resources, more than ever before. The first one is that of replication. 133-142. Within international market research, Knpfle (2016) defines the main reasons for how Samsung adds value to its marketing process. Facebook faces three major external threats that might disorient its business performance. Business environment factors include internal and external factors that impact how a company does business. events or situations can have either a positive or a negative impact on a business. BusinessEssay. The company is also influential in its human resources talent, including more than 50,000 research scientists, engineers and product designers, which is 16% of the personnel (Razdan, 2017, p. 6). Custom Samsung External and Internal Environment Analysis essay writing service. In 2009, Samsung Electronics has reached $ 110.2 billion market capitalization, for the first time beyond Intel, the world's largest semiconductor manufacturer revenue, Samsung in 2009 to $ 117.8 billion in annual sales, revenue has surpassed HP as the world's largest electronics company, is the world's first two big chip plant, second in size Samsung Electronics, one of Samsung subsidiaries is the leading information technology company according to a report released in 2012 based on the revenues of the company. The external environment includes opportunities and threats which can impact on the marketing strategy of Huawei. In fact, a proper understanding of these factors helps organizations to identify potential business opportunities and threats in the international market (Baines et al., 2011). Economic segment are economic condition which are in existence while technological segment, involves technological changes within and outside the firm which directly or indirectly affects, the industry. The company is a biggest manufacturer of electronic elements like semiconductors, chips, and hard drive devices. Moreover, the internal environment is also . Internal environmental factors. By using this model, an evaluation of their current position will highlight which of the five forces are affecting the intensity of competition in an industry and its profitability level (Jurevicius, 2013). However, there exists a differential weight in which these factors affect companies in different in industries. Depending on the nature of the change, these effects may be either positive or negative. Johnson, G., Whittington, R. and Scholes, K. (2011) Exploring strategy: text & cases. (2015) Supplier partnership strategy and global competitiveness: a case of Samsung Electronics, Eurasian Journal of Business and Management, 3(4), pp. However, the company continually learns from its main competitors in the market. Samsung Electronics started as one of the biggest suppliers of international high-tech companies producing chip, battery and memory. The company has about 350,000 employees word wide. Within the current fast-growing business environment, it is crucial to examine the fundamental role of the strategy that serves as the determining factor regarding the future of a particular organisation. Producing/updating technical documentation, presentations, and other content. More specifically, this analysis reviews the external market within four significant sectors that define Samsungs position in a global arena in the electronics business. Internal Analysis and Strategy Assessment Samsung ElectronicsTim Lewis BUS 450April 10, 2016 Resources, Capabilities, and Competencies Resources Resources are key to superior firm performance. Therefore, for the more comprehensive view on the strategic development and management of an organisation, the large international company, Samsung Electronics Co. Ltd, is chosen for the following in-depth strategic analysis. Analysis the market of Samsung Company This part used the SWOT method to analysis the market of Samsung Company, concludes its external and internal factors to analyze its strengths, weakness, and opportunities, and threatens (Hill and Westbrook, 1997). Researching, organizing, and managing technical documentation. The purpose of the study is to develop an understanding of strategic management in the context of Samsung company. History of Present Illness, QUESTION 61 1. This can be variously justified. Sensitive market to these kinds of products are commercial line and offices those has to get technological interface to attain day to day tasks. Strengths. The goal of this study is to assess the prospects of Samsung. The organizational environment is always dynamic and ever-changing. It is one of the world largest electronic manufactures with, more than 70 assembly plants in different part of the world. Verizon kept coming up short when it came to capturing the number one spot of Training Top 125 but in 2012 they finally succeeded in getting that number one spot (Kinicki & Williams, 2013. This led to achievement of operating profits of 8.3 billion U.S. dollars. "Strategic Analysis of Samsung Electronics Co. Ltd." January 10, 2023. https://business-essay.com/strategic-analysis-of-samsung-electronics-co-ltd/. Due to its most profitable product lines and segments, the company has continued to increase its profits and revenues. And this is a great example of competitive advantage created through advanced technology that makes the production process extremely cost-effective in response to customer needs. To analyze the general external environment, there is a need to use PESTEL. For instance, the development of the touch-screen technology on a global scale has led to the manufacture of Samsung Galaxy (Michell, 2010). As such the impact of the external business environment factors on Huaweis marketing strategy are explained by the PESTEL Model as follows: The process strategies, for such a large manufacturing company, would need to be varied. It has been largest IT Company in the world since 2009. Samples, help Introduction Samsung is a Seoul-based electronics company that deals with television sets, cameras, personal computer items, print solutions, cell phones, home appliances and other accessories. By intertwining these two approaches, Samsung Electronics adopts horizontal diversification and vertical integration. A successful human resources strategy complements a company's mission and goals and are unique to each business. These are suppliers, customers, competitors, trends affecting your industry, macro and microeconomic variables. INTERNAL ENVIRONMENT I. SAMSUNG ELECTRONIC BACKGROUND Samsung Electronic is one of the biggest electronics company in South Korea. Samsung is a global company in the consumer appliances and gadgets market. Moreover, Samsung Corporation aimed for achieving stability in managing its partners by organizing training and seminars for the personnel and future managers. It includes all those factors, conditions and events that are present within the organization and are capable of directly influencing the strategic decisions and operations of the organization. Lee, J., Lee, K., and Heo, J. The plan applies external environments like the industrial environment and the economy. Therefore, the successful strategic actions towards strengthening supplier partnership resulted in the incorporation of subparts group and process technology. Language coding is also important in product design: most consumers may not understand Korean languages if they are used to write user manuals or operating systems. However, they should try to understand the changes in the external environment and assess the impact of those changes on the target market. (2023, January 10). Samsung Electronics today announced the 2022 sustainability initiatives that will accelerate the development of eco-conscious home appliances. Perhaps, any technology cannot be so specified about the needs and wants. However, such attitude is considered to be as a massive cost advantage over other firms that make such product. SWOT Analysis The value of the company's worth is $1.25 trillion with a stock price of $728.35 billion. Sony) in the global market. BusinessEssay. In January 2015, the company had a total assets worth $ 208.19 billion. In the context of Samsung, threats arise from political, social, economic, technological, legal and environmental fronts. As a result, SECs Chairman, Kun Hee Lee, launched the new management initiative in 1993 to shift the companys emphasis from providing low-end commodities to high-end premium. In order to deal with this threat, there is a need for the company to produce low-cost products. Despite the stabilized industry production growth, which demonstrates that it is on the point of reaching maturity, this sector still faces high turbulence because of technological advances, including OLED (Organic LED) display panels. Internal Analysis: Understanding a business in depth is the goal of internal analysis. External Factor: Customers. It is one of the biggest manufacturers of smart phones and mobile phones. Weaknesses. 3). This has been enabled by their large capital base from, shareholders and huge profits from the sales of their products. BusinessEssay. (2019, p. 12), such a business environment implies increasing velocity of change, which serves as a potential challenge for modern enterprises. First of all, the company has already made handsome profits from the sale of Galaxies. Thus, a strategic leader takes a dominating position over the strategy development process. In terms of environmental protection, Samsung South Africa has already launched a 49 million power initiative that would lead to environmental conservation (Samsung, 2013). Furthermore, its key competence implies the brand value of Samsung as a superior company, with a valuation of US$ 51.81 million and 7th position at the world level in 2016. 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