Samung Strategic Management

Table of Contents Task 1a 2 Task 1b 4 Task 1c 7 Task 2a 14 Task3 18 Task 4 19 References 23

Task 1a
Business & strategy There is an old and famous story about an airplane in which the pilot came to the passenger in the flight and said there are two news that I want to announce. One is good and the other is bad which one I should tell first. Everybody in the flight said good news; pilot announced that they are ahead of schedule than people asked what about the bad news. He stood up and replied I do not know where we are going. It sounds ridiculous for a pilot but this is a fact and in many organizations, this is a critical problem. Many times an organization and its entire people are hard working but they do not know what to hard work for.
There are many task with an organization that have take place in order for it to survive but to determine what are the most critical task is the most crucial phenomena. Often invisible, this idea is called as context and this fact alone is the cause of organization complexity. This idea is based on the concept of aligning your entire organizational task and figuring out what is the most important and crucial task. The basic idea behind this concept is to determine the critical and non-critical task. There are two types with an organization one is called core task, which is controlled by core strategy, and the other type is context task, which are controlled by context business strategy (Pimentel, 2005).
The core strategy is responsible for handling all the organizational activities, which are based on core competency or the main function of the organization. In other words, we can also explain this idea s the profit generating departments and their respective activities. The contextual business strategy is based on all the activities, processes, and function, which are required to run an organization but are not the part of profit generation. The most crucial point is to decide which activities to keep and which to rectify and change. Many organizations is the world who have good business idea and plan stand out because of that but fail when it comes to managing resources with respect to time. The whole idea of context business strategy is utilization of resources with respect to time management and how to act in significant time. Organizations all around the world are using think tank techniques to solve this dilemma of time management with respect to strategic perspective (Pickling, 1991). In the current analysis of strategic environment, Samsung is a company, which is doing very good. The concept of strategic management is to outline the current strategy of the company and see its fit with the external environment. Samsung operates in very unstable and uncertain environment where change is a constant terminology and every company in this industry has to act with respect to the changes. In this section of the paper, we will discuss the strategies implemented by Samsung as their own patented strategies. In of the most interesting concept of Samsung’s recent success is that they have made a custom-made strategy of their own. Business schools and leaders are learning from Samsung and their strategy. The strategy of Samsung is focused on many factors that will be discussed in this section of the paper (Pimentel, 2005). Samsung is called as the ultimate follower in the business world. They waited and waited for years not because they did not have anything to do but actually, they are observing competition and did not launch any new product until they had the best technology of them all. If you look at recent events, you will know Samsung achieved success in the world by emerging a new concept of cell phones, which is called as phablet. It is a combination of cell phone and tablet and Samsung was the first company who introduced this idea. The company and its business strategies are first focused on innovation. Their primary strategic focus is on innovation, which makes total sense especially in the industry they work in. Samsung is the largest technological enterprise in the world and the main reason for it is their primary focused strategy, which is innovation.
Task 1b
Key stakeholders Samsung is one of the most famous companies in the world and it strives in this changing market to be the leader in its own industry. Samsung also encourages to distribute the value created through its value chain all of their stakeholders. The focus of the company is to grow via the exchange of value using all the factors including economic, social, and governmental factors. Major stakeholders are identified through the annual stakeholder status survey, which is conducted by each department related to each business unit. The major stakeholders of the company are as follow(Pickling, 1991).

Customer
Samsung believes in providing high quality products that enhances the value level of the most important stakeholder. Through customers belief in the company and the value the company provides, Samsung generate sales. Samsung continues its sustainable growth through active communication and enhancing the value level of customers every step of the way.

Employees Employees are the most important asset of any organization with respect to output and value chain process. Samsung believes in rewarding its employees for all the hard work and belief they have in the company’s value. The company also believes in improving the quality fo life of their employees as they consider them important. Shareholders & Investors Shareholders provide the basic operating capital to perform all the business activities in any company. The shareholders have the key hand in the success of any company because of their firm belief in the company. Samsung has also managed to keep their shareholder and investors satisfied with respect to capital gain and value provided. Community Samsung has always brought he profits to the community. For the company community means all the people who live in the same area, which is also the country. Samsung has brought major change and innovations in the country it operates inn.

Government The government provides stability to an economy and in return, it is a job of company to provide to economic value to the GDP. Samsung beliefs in providing and support and economic growth to the economies it operates in and ensures sustainability. As a part of the government Samsung, follows are the rules and regulations and is a proper taxpayer company.

Industry associations / Research institutes / Civic groups
Samsung being the industry leader participates in the industry as the most active member in the industry. Samsung is involved in many projects, which are related to industry, and these projects will help the industry grow with respect to research and development.
Suppliers
The products and all the goods that Samsung manufactures come from sources, which are known as suppliers. Samsung is famous for keeping a good relationship with their suppliers. All of the supplier-based decision is very significant as its gives the end result of how the product quality is made.

Source: http://www.samsungsdi.com/sustain/s2_1.jsp

Stakeholder Analysis
The core-essence of stakeholder engagement is conveyance through which we follow the objective of imparting different sorts of work and development together with our stakeholders. This factor also includes research and development. Samsung normally imparts through different stakeholder channels, and is dependable when it comes to listening to its stakeholders ' voices through the websites and customer feedback framework, which is open to everybody. As far as manageability issues, Samsung works on sustainability using the websites and technology and in addition conducts a listening to you study by which it endures that whatever the company is providing is based on hundred percent customer feedback. Sustainability Management Office actively reacts to analyses and overview about the industry and the changes occurring in the industry. Stakeholders ' sentiments and requirements are reflected in the annual report through reviews directed every year. Moreover, satisfactory issues carried up throughout operations and stakeholder engagements are followed all through the year through consistent assessment of relevant divisions. The outcomes of conveyance and engagement with stakeholders are considerably reflected on all major and crucial operations through inside offering and showing up for the official level (Pickling, 1991).

Task 1c
SWOT Analysis
Strengths
Samsung is concentrated on handling and producing handheld gadgets, which could be mixed with the majority of the programming and Operating Systems. This gives Samsung items an edge over Apple 's mechanisms, in particular as Android and other operating systems are adding on piece of the pie when apple operating software and windows mobile are losing it. Samsung is centered towards excellence in de and handling equipment parts and purchaser gadgets. Samsung is the number one by piece of the pie in TVs and portable telephones bargains and a portion of the fittings parts like processors and memory chips. This was extensively realized because of magnificence in designing and both proficient and enough preparation.
The Innovation and outline element of the association is wonderful. Respectfully Samsung was stacked up second on the record of US top patent companies. More patents reinforce Samsung position around its contestants. The firm additionally won numerous recompenses for the configuration of its items, demonstrating the better advantage over the contestants (Pickling, 1991).
The company has a very good focus on the environment. Samsung concentrates on handling environment friendly items that are free from all the material and process which are potential harm to the environment. It advances different recycling systems that ensure the success and growth of the company through its eco friendly name. In short, Samsung 's keep tabs on environment give it an edge over its competition in the eyes of its clients.
Low production cost is Samsung 's most vital qualities, which according to many theorists is a major strength of the company. Samsung has set up its handling and manufacturing offices in nations where production is cheaper (Kelly, 2008). This permits preparing merchandise with low processing and manufacturing cost and ensures high profit. Samsung offers low cost and gain higher margins. Samsung is the only company in the world who is earning largest profit in portable telephones. Samsung Electronics have acquired a major piece of the overall industry in numerous features they advertise, specifically in versatile telephones, cell phones, semiconductors and TV sets. Great piece of the pie has its preference, dealing power, that Samsung can utilize to further diminish requires and request for better contract conditions

Weaknesses
Samsung has not long ago utilized Patent infringement. Samsung is using Apple and some different firms ' patents. This concept along with lawsuits is harming their reputation and damaging the company with respect to finances.
Another issue of business unit inside Samsung is level of profit margins in their electronics division. Samsung Electronics is the greatest innovation association on the earth as far as incomes however; it has very low profit benefit and net margin. Granted that its cell phone business is truly gainful, Samsung 's profit edge is flat because of its semiconductors deals and aggressive cost cuts.
Samsungs one of the major weakness is prevailing contenders are additionally greatest purchasers. All the companies in competition are the fundamental purchasers of Samsung Electronics items and additionally the company 's essential contestants. Such scenario might be good to Samsung, if contenders would be unable to find correlative features and might shape moderately flat offer compared to Samsung 's incomes. Samsung can use this against their competition but they are unable to because of the behavioral aspects of the industry. Because of converse, conditions of the industry contenders can find supplements and they can structure a generally heightened impact of association 's incomes (Kelly, 2008). Samsung can 't utilize its bartering control over contestants as it can effortlessly lose its clients and bargains.
Another highlighted weakness of Samsung is absence of its own working framework and programming. Programming and working framework processing has a heightened benefit edge and the company can expand reconciliation of association 's features and mark dependability. Without solid programming and managing framework, Samsung is at impediment over its contenders.
Last but not the least weakness of Samsung is Concentration on an excessive amount of items. Samsung Electronics serves four distinctive commercial enterprises with numerous distinctive features in them. Samsung is at hindrance over its contenders on the grounds that it loses a center while contending in an excessive amount of businesses and an excessive amount of items.

Opportunities
There are many opportunities for an enterprise like Samsung in the whole world. First of all Developing cell phone market in the south Asia is factor to look into. Countries like India, Pakistan, and Sri lanka are growing markets for cell phones, tablets and electronic products. Another opportunity for the company is developing portable advertising industry. Samsung could advance publicizing stage for its versatile gadgets and essentially profit from this lucrative business (Porter, 2005).
An opportunity highlighted by many magazines is developing interest for value provision processors. Samsung is one of the crux makers of requisition processors for cell phones and tablets. The developing interest for the above-mentioned features needs more best value provision processors which can only by met by Samsung.
Development of tablets business sector is growing market worldwide. Tablets business has developed into twofold digits over the following few years. Samsung has the best quality of tablet and there are many untapped markets in the world. All Samsung needs to do is to focus on advertising and promoting their tablets all over the world. One of the key strategist of the technological industry noted that getting patents through acquisitions is a very good idea and it is an opportunity which increases the scope of the organization. The key further bolstering Samsung 's focused good fortune is the vast portfolio of patents. Patents could be identified by taking part in exorbitant R&D or through acquisitions of different firms.

Threats
The smart market is saturated in almost all the developed nations. Cell phones industry is at its maturity, advertising in the advanced economies is immersed so the bargains won 't be developing at a towering rate.
Fast innovative change is an inevitable factor and it will always be a threat to this industry. The genuine danger that Samsung and the other tech associations are confronting is quick innovative change. Associations are under the force to discharge the new items faster and faster. The particular case or the company that does not stay aware of the rivalry soon loses market share and brand value. This is in particular is hard when the association needs to present something new, imaginative, and creative on a timely basis (Kelly, 2008).
Another threat noted by the experts is declining profits in the production and creation of hardware. Samsung is the second largest semiconductors maker where the benefit edges are exceptionally low, accordingly the entire industries figures. Misuse of patents is also an issue with the company as Samsung is the largest company in this industry all the manufacturing of competition is also done by Samsung which is causing misuse of patents.
Another threat is the launch of Apple’s TV, which is basically a smart TV by apple named as iTV. Samsung has to come up with creative integration process as all the apple products are integrated via iTunes and their software’s. This software’s will also be integrated into iTV. We have already noted before that the one of the major weakness of the company is strong software support. This weakness of the company can later kick them out of the industry. Due to fierce competition and price wars all, the companies in this industry have decreased their profit margin. Samsung is a victim of price wars as well. Although it has the market share but the profit margin of the company is very low compared to the biggest competition of Samsung that is Apple.

Pest Analysis
Political Factors
Political factor have great control over the economy and the way people think in a society. These factors vary country to country. In this situation of, we talk about the political condition of the UK than for Samsung it is no issue as the political conditions of UK with respect to the industry Samsung is operating in are highly favorable. The factors that we have analyzed are the taxation, tariffs, employment law, and all the other related business factors. When it comes to taxation UK, taxation policies encourage only bug companies to enter into the market which de includes all the small firms in the industry.
Samsung faces noteworthy political dangers in the nations where it works however in the greater part of the nations; the political scenario is favorable for the operation of the nation. Lately, the political atmosphere in the eastern region has stressing element for the company. Nonetheless, the scenario is not that genuine as contrasted with a percentage of the other nations where it works. This is especially the case in nations in the African mainland and the South west and East Asian nations where Samsung is at a dissimilar inconvenience in light of the unfriendly nature 's turf. In nations like China and India, the association has a favorable political environment, which permits it to think about the businesses in an improved manner.

Economic Factors The recent economic downturn of the world has lead to poverty and employment rates all over the world. This change has affected every company in the world and Samsung was effected by this changing dynamic as well.
Samsung positively accompanies exceptional methodologies in the business sectors it works in depending upon the budgetary size and the quality of the shoppers as far as variables like disposable salary. Given the way that the association requirements elevated amounts of disposable wages from its buyers to purchase the items that it makes, the association has accompanied a focused on showcasing method pointed at the working classes in the nations in which it works. Further, the association drops in business sectors where the business cycle for the items that it pitches is in the introductory stages unlike the advanced nations where the feature lifecycle for its run of features is in the decrease or the development stage (Doug, 2010).

Social Factors
Regardless of being an East Asian association, Samsung has devised a workable plan to join itself well in the developing business sectors where it works together. This has brought the think worldwide philosophy. The act nearby mentality has successfully spanned the social focus and social crevice between its home nation 's business view and the business sectors where it works inn. One trying perspective has been the association 's mentality towards neighborhood authorities in the matters concerning remunerating them to finish its business. The association attempts to strike equalization between the goal qualities of the customer classes and the levels of pay that they have.

Technological Factors
The Technological Factors of business has been recognized as one of the substantially developing with level feature of life cycle that have show the path to worldwide incomes and growth. Samsung’s major innovation with respect to technology was the 3D TV. Samsung is heading the industry with another turning point of new imaginative Technology (Doug, 2010).
The association prides itself on its imaginative approach to innovation and outfitting the same for taking off features that utilization bleeding edge advances in their configuration and characteristics. The mechanical abilities of Samsung are well known and the association is in particular solid on this component (Ross, 2010). The association 's development drive is its greatest quality and the association can take pride in the way that it is a pioneer for a significant number of innovative advancements that has presented through its items in the worldwide commercial center.

Task 2a
Porters Fives Forces Analysis
The threat of potential new entrants (Low)
Heightened capital is instructed to take part in the versatile business. It is demanding to begin up in an industry where the existing firms as of recently work on expense and separation procedures. On the other hand, with the commoditization of parts, finding vanilla results for a basic elective item may be conceivable. Separation, notwithstanding, is another story. New contestants might have issues with overcoming patent issues if they did not plan to put resources into their particular R&D to make a novel item. The above-mentioned things together might need another participant to secure an intense mark name while attaining economies of scale by means of speculations in a production network handle and advancing a conveyance framework to remain aggressive (Porter, 2005). The expenses of performing the above mentioned things make an exceptionally solid restraint to passage. After it has all said and done, overcoming issues for example client steadfastness and switching expenses might be another impressive restraint to passage.

The threat of substitutes (High)
For the company that is Samsung, practically any cell phone that performs the same capacities as a Samsung cell phone could be recognized a substitute. This incorporates different apparatuses running the operating system by Google and not made by Samsung, and different gadgets like the cell phones that Apple and Sony makes. All of the above mentioned reasons are in elevated plenitude with comparative cost and strategies used are remarkably aggressive.
Even though there is an expanded prevalence of Tablets, they are usually excessively massive to be recognized as straight substitutes. They do not offer universal cellular telephone proficiencies, which makes them deficient. Laptops have the same issue. PDAs are no longer a feasible substitute in since two years (Doug, 2010). For quite a while they had benefit emphasizes that the normal cell telephone did not have, yet now portable telephones have each one of the above mentioned abilities and more. With that stated, the purchasers ' inclination to substitute is flat.
Concerning things like relative cost exhibition, observed level of feature separation and the amount of substitute features ready in the business sector, the vast majority of the above mentioned issues get superfluous as none, of these laptops, tablets or PDAs offer enough of the same utilities to have the ability to swap Samsung PDAs.
The main other feasible substitute might be phablets which, because of the absence of characteristics and proficiencies, come as an exceptionally shabby or even liberate substitute to the normal keen mobile phone. They are a substandard items. Purchaser switching expenses are discernibly lower, yet item separation just goes in the absence of characteristics. Today, even lower-end PDAs might be acquired at extremely modest costs.

The bargaining power of buyers (High)
Purchasers have great power regarding the matter of buying on account of their right to gain entrance to informative content and how intense the cell telephone industry is. With such a large number of comparative features from different companies, purchasers have few focuses on which they can deal.
Purchasers effortlessly switch with the expanded of decisions of portable associations and besides their items are very comparative to each one in turn; they will switch to those who have better characteristics or cost focuses.
Switching expenses, then again, might be exceptionally heightened in certain cases. Ordinarily a cell phone will have a go at a more level cost to a purchaser in the event that it is bought with a two year contract by means of a service supplier. This agreement might be terminated soon after the agreement is fulfilled.

The bargaining power of suppliers (Low)
For Samsung 's situation, the force of suppliers is leveled because Samsung is particular supplier of most parts. Samsung likewise happens to be its particular supplier for crude materials.
In the industry, nevertheless, the bartering force of suppliers is heightened because suppliers ' merchandise are discriminating to the purchasers ' commercial center victory. These methods they are more significant to the purchasers than the versatile transporters themselves. A cellular telephone producer could dependably join advance into the industry without the brokers. Actually, Samsung has as of recently done this in many countries (Chris, 2010).

The intensity of competitive rivalry (High)
The developed and informed business has numerous contestants that are correspondingly equalized, and therefore contention is elevated (Ross, 2010). The business for advanced cell phones and electronics has impeded in development since its blast, so force to take clients from contenders is likewise elevated. Separation in the perceptive cell industry is likewise at a focus where it is extremely fleeting. Reasonable intense playing point through enhancement is an obscure. While Samsung has been doing extraordinary staying aware of the industry and heading in certain territories, everything is fleeting because of the compelling level of rivalry in the industry.

Proposed Strategy
Samsung 's development along the feature size may be seen best from the viewpoints of the item life cycle, feature cost level, expansion and attributes, which together gave an establishment for manufacturing extraordinary aggressive focal points. As laid out in the presentation, the association has emulated a rather remarkable method and its plan of action is without a doubt one of a kind in the industry. First, Samsung 's feature advancement from the PLC point of view shows a clear example of the association emulating the PLC in opposite request. At the time it began its operation it will flood the market with its product line. Second, from a value point of view, the development started from features at the end of the value will extent and slowly climbs in parallel with the competition and all the opposing forces (Porter, 2005). Third, Samsung Electronics at first will manage a rather straightforward feature structure, predominantly focusing on TV beneficiaries and home machines. From the early initiative of the strategy, the association started to expand its item lines. The company has to focus on reducing cost of its production and at the same time focus on expanding and producing more. The more items it will produce the more it will sell and therefore it will complete the market flood strategy.

Task3
The worldwide population has been estimated to be over billions, issues of water deficiency, nourishment security and contamination are coming to be issues that are more genuine. In a planet defied by environmental change and vigor issues, governments and companies are accelerating their execution and development of GHG(greenhouse gas) decrease, vigor protection and renewable vigor exertions. Worldwide regulations on destructive concoction substances are ending up being more inflexible while limitations on the exchange of constrained assets for example uncommon metals are being reinforced too (Chris, 2010)..
In the interim, publicly accepted norms is mandating a much broader corporate social authority to guarantee a livable fate. Current quick updates in social conditions everywhere request more authority and activity from partnerships. Partnerships may as well finish minimizing their ecological and social effect through proceeded conveyance with their different stakeholders and by satisfying their avocation and part as a part of public order (Pimentel, 2005).

Sustainable World
Samsung reacts proactively to regularly modifying livability issues. In doing so, they strive to distinguish major issues for every area and consider them while honing tolerability administration. Hence, Samsung announced its maintainability administration vision with a perspective to donating to humankind through feasible growth, demonstrating administration in the financial, ecological, and social circles, and building TBL (Triple Bottom Line) procedures for each of its parts (Ross, 2010).
Task 4

Customer Focus Samsung was always customer focused. In few cases, the company lost its focus and deterring factor in the market. The company’s electronics division is focused while on the other hand the company’s cell phone and tablet division has lost focus because they flooded the market with so many models and not thinking about the implications (Pimentel, 2005). Apple is the major competition of Samsung and their reason of success is their strategy, which is based on focus. Samsung didn’t leave any market segment unlike Apple but los focus in its lower end models with respect to targeting strategy. Competitor watching/pricing strategies
The major reason of success of Samsung is their competition strategies. For years and years, the company waited for a competition to act and reacted with perfect timing and strategy. They looked out for all the market in the world and observed everything that was offered in the market and later on came up with most innovative technology. Samsung unleashed its electronic and cellular phones division after a long time of observation. Pricing strategies As the clients are coming to be more price conscious stage, they need a great value item in flat or in a sensible cost. The association is concentrating on the clients to fulfill them with the standard and unrivaled value feature in a sensible cost. Samsung is making diverse marks under its item class and that value sensible for the purpose that the more value sensitive individuals can effortlessly purchase it (Porter, 2005).

Promotion Strategy
A successful product or brand is defended by using the following strategies

* Advertising * Public Relations * Personal Selling * Sales Promotion * Internet Marketing

The commercial/marketing/sales department of the company makes Al of these decisions with respect to strategy. Market penetration
Samsung penetrated the market by using the flood marketing strategy. By using bombardments of advertising and promotion, they used the perfect strategy for their innovation. After doing market research they realized that the company is innovating the technology and believing in this factor along with heavy advertising resulted in their current brand value (Ross, 2010).

Expansion After the initial market research, the company expanded thoroughly in different regions. All of these expansions were strategically viable with respect to all the theories of strategic management. The company started with electronics from that it went into manufacturing ram chips and processors for computer giants and mobile phone providers. They realized that they can rule the industry and finally they entered into the industry of smart phones with so many patents as their asset the company is currently the market leader. The top management of the company is responsible for this strategic movement (Chris, 2010).

Product Strategy Product strategy of Samsung was based on diversification. They brought this strategy because no other company was opting for a lower end or a mid range Smartphone. This strategy of Samsung was successful because in this whole industry Samsung is the strategic leader.

References
Chris, Z., (2010) Where 's the GPS fix for the Samsung Vibrant and Captivate?, Engadget, Pp. 55-190.
Doug, A., (2010) Top 10 Gadgets. 2. Samsung Galaxy S, TIME, Pp. 33-90.
John, K., (2008) Samsung Techwin to spin off camera business, Reuters.com. Pp. 44-87.
Kelly, O., (2008) Samsung chairman resigns over scandal, Associated Press via Google News, Pp. 22-90.
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Porter, Michael E. (2005), "Competitive Strategy" Continental Publishing Company SA, Mexico City, pp. 3-36.
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References: Chris, Z., (2010) Where 's the GPS fix for the Samsung Vibrant and Captivate?, Engadget, Pp. 55-190. Doug, A., (2010) Top 10 Gadgets. 2. Samsung Galaxy S, TIME, Pp. 33-90. John, K., (2008) Samsung Techwin to spin off camera business, Reuters.com. Pp. 44-87. Kelly, O., (2008) Samsung chairman resigns over scandal, Associated Press via Google News, Pp Kevin Anderson, Alice Bows, and Paul Up ham, (2007) ‘Aviation and Climate Change: Lessons from European Policy’, Routledge, pp.14-23. Lamb, Robert (2009), Boyden Competitive strategic management, Englewood Cliffs, NJ: Prentice-Hall, pp 56-78 Nag, R.; Hambrick, D Peppard, Joe and Rowland, Philip (2006): "The Essence of Re-engineering Business Processes", Prentice Hall Hispano, Mexico, DF, pp. 3-19. Porter, Michael E. (2005), "Competitive Strategy" Continental Publishing Company SA, Mexico City, pp. 3-36. Pride, W. M., Robert, H. J. & K. R. Jack (2009). Business. Cengage Learning, pp. 16-31. Richard Luecke , (2003), Managing change and transition. Harvard Review, pp. 9-16. Ross, M., (2010) Samsung Continuum first hands-on (update: video!), Engadget, Pp. 21-10. Vikas, S., (2010) Samsung Galaxy S to arrive in Singapore first, Mobile Knots, Pp. 1-10.