The problems faced by Samsung China in this particular case study are not considered serious as Samsung has established itself as a reputable organization both locally and internationally. The political environment may seem to be uncontrollable but will significantly improve after China gains full membership with the WTO and China welcoming FDI. The rest of the PEST analysis such as economical, social and technological components is all favorable for Samsung to change its multiple business units’ strategies to a single focused business strategy. However, the only crucial factor will be the time duration and the possible resistance for the changes to take place.
A few assumptions have been made
There are no major human resource related issues and problems 2) SCH marketing director, Mr Hyun Young-Koo is a capable marketing director and is deemed to be the best suited person for restructuring Samsung’s business system in China.
3) Resistance from Samsung’s business units are kept minimal.
4) While Samsung is advancing with its proposal in China, there are no major changes or counter reaction from its competitors.
1) Too many separate business strategies adopted by too many Samsung’s individual business units (lack of focus).
2) The China market can be very complex for Samsung as a foreign investor.
3) Unclear market segment and product line.