Delivery in day(s): 5
Unit 32 Business Strategy in Organization Assignment
Business strategy refers to establishment of organizational objectives and standards that increase and encourage existing approach of organization. In other words business strategy is art of operational planning, arrangement of resources, analysis of skills and capabilities of staff members to assign role and responsibility to achieve the goals and objectives. The Unit 32 Business Strategy in Organization Assignment will evaluate and assess the mission, vision, objectives and goals of Samsung organization that operating business in communication and electronic industry. Organization belongs to Korea and started business in 1938, since than company has develop business across the world by producing quality products and services according to demand of market and trends. Samsung is one of leading electronics and communication manufacturing organization in world which has good brand name and trust in customers. Apart from that, report will analyze the factors for developing the new business strategy by performing internal and external business audit. Moreover, the report will evaluate the alternative strategies and recommended the strategy for developing the business of Samsung. Furthermore, report will assess the role and responsibilities of personnel and provide the information about the resources that required for implementing the strategy to achieve the business objectives.
1.1 Mission, vision, objectives and core competences of organization
Samsung is leading electronic company that offering advance products like TV, smart phones, music systems and communication gadgets in different range and qualities that meet the satisfaction and purchasing power of target customers (Halbert and Ingulli, 2014). Company has stated mission, vision and objectives for business and working accordingly to achieve them efficient manners. Organization has appointed skills and qualified staff those supporting and encouraging business activities of organization.
The mission of organization is to emerge as market leader in the communication and electronics industry all around the globe. Management is focusing on the improvement in products and service quality to meet the expectation of customers. In addition to this, company is looking to develop innovative products and services that give competitive advantage over rivalry firms.
The vision of Samsung is to develop inspiring future oriented products and services that help people to perform the work more easy and effective manners. Company is aiming to develop more entertaining and IT based products that influence the decision of target customers (Hamilton and Webster, 2012). The vision of organization is to be the leader to industry by 2020. The management of company is working on the vision by increasing production and standard of products by using the advance technology.
Following are the key objectives of organization that used for developing the strategy and plan.
To become the world leader in electronics and communication industry.
To build strong brand image.
To manufacture quality products and services using the advance tools and technology.
To satisfied the needs and expectation of customers.
To improve the use of internet based technology in new and existing products.
To sustain and encourage market position by performing CSR activity and marketing.
Every organization work according to goals and develop plan and strategy to meet them. Samsung management has determined goals like to become No. 1 in industry and increase the sales and market size. Moreover, company has define the goal to improve the sales up to 400$ and change the scenario of entertainment system and products by using the technical tools to improve the effectiveness. Additionally, company is looking to expand business size by starting joint venture with local companies of target nations.
According to the business report and brochure of company, core competencies of organization are to develop products and service to gain the competitive advantage. Majorly four competencies have been identified about Samsung such as creative people; develop innovative culture, being a technology leader and creation of customer value (Harison and Koski, 2010). These competencies make organization different from other leading firms from industry. Moreover, company is working on the product quality and implementation of new technology to develop innovative products.
1.2 Factors that have been consider while formulating strategy
There are many factors and elements that requires to be consider while management frame and implements strategy for encouraging the business activities and develop new plans to meet the goals and objectives. In addition to this, Samsung management has to consider the following factors before developing the business strategy:
Political factor: In order to develop business at different nations, consideration of political environment to expand the business will help to gain competitive advantage in establishing business and utilization of resources (Hill. et.al. 2010). By analyzing the political regulation and process of offering license would be essential to make changes in existing approach and formulate new strategy.
Competition: This is an important factor that requires major concern while developing new strategy for encouraging business. Samsung managing to evaluate the plan and policies of competitor organizations like Apple, Sony and Motorola which were offering quality products. By considering the facts of those companies will help to add innovative elements in business strategy.
Market trends and customer needs: Company is looking to frame business strategy for developing business, for that purpose evaluation of market trends like new techniques, marketing approach and expectations of target customer will help to establish effective strategy. However Samsung management has good sense of market needs and trends but sudden changes in technology affect the planning of organization.
Economy: This is consider as important factor while organization formulating business strategy. Economy conditions have significant impact on the cost of raw material, manufacturing and logistics of products and services (Holbeche, 2009). Management has to collect information about the economy situations of different nation to maintain flow of operations and gain the maximum profit.
Legal factors: According to business reports and news Samsung has been fined many times for breaching the copyright regulations and not following the legal rules and regulation for marketing the products and services. In order to frame the strategy, consideration of legal aspects of law and regulations is necessary to sustain the market position as well as influence the brand image.
Technological factor: Samsung is leading communication devise manufacturing organization that using technology for developing products and services. In the present time, technology has achieved an essential place and it is considered as the most vital variable of micro environment which have influenced the development of various products of Samsung. If organization aiming to frame business strategy to achieve goals and objectives, understanding and knowledge about the technology is important.
1.3 Effectiveness of techniques used for developing strategic plans
In order to develop business strategy and meet the organizational goals and objectives, different types of tools and techniques have been used for analyzing the required standards. For developing the business strategy for Samsung, the management could use following techniques that will help to ensure the growth, evaluation of current capabilities and forecasting of future needs and demand. By using these strategies company will able to scan the environmental conditions and analyze the key issues and factors that are affecting the existing business approach of organization (Houdet. et.al. 2012). This kind of information will help organizational structure to develop the strategy to overcome the weakness and work according to strength by developing aggressive and sustainable strategy using the following analytical approach:
To develop the business strategy and analyzing the issues and strength of organization, the top management could use this technique. BCG matrix will aid to determine the growth rate, market share and basic issues that would support to analyze the current position of company. Moreover, by using this technique, Samsung management will be able to evaluate the performance of existing products and services to make changes according to requirements and other substitute products (Jain, 2014). This strategy categories the products according to performance using Stars, Question mark, Cash cows and Dogs that have different meaning and performance standard. Hence, it is considered that use of this technique will be beneficial for organization.
This is another technique for evaluating performance and makes changes in the business plan and strategy to achieve the objectives. According to this, strategy, company will able to analyze the sales and marketing process of existing products as well as make decision to diversify the communication and entertainment products into other category (Jeston and Nelis, 2014). Ansoff matrix gives the knowledge about the needs and demand of target customers. This matrix uses the review of customer feedback and market survey reports. Apart from that, to develop the strategy that gives the competitive advantage use of this strategy will be beneficial for Samsung.
This is an important technique that gives the actual understanding about the current performance of organization. By using this technique, Samsung management will be able to develop sustainable business strategy that will overcome the impact on weakness and threats that identified in SWOT analysis. Moreover, it will help to gain the information about the opportunities and strengths to consider them for developing the plan and meet the goals and objectives. In addition to this, SWOT analysis helps to evaluate the internal business function effectiveness and use of resources for developing the new business strategy to encourage the outcome of business.
2.1 Strategic positioning and organizational audit
Strategic positioning refers to achievement of goals and objectives into desired results of organization. The positioning of Samsung is good as company has better understanding of consumer needs and developing products and services accordingly. Organization has good range of products and services for all types of customers including middle and upper class people (Kitching. et.al, 2009). In order to determine the strategic positioning in market, management consider different factors and internal elements that gives idea to make sustainable plan for expanding business operations as well as encourage the existing approach of company.
Table 1: SWOT analysis
Good brand image
Quality and reliable products
Have largest mobile phone market share with 21.4%
Good use of technology and innovative design
Optimum prices of products and services
Strong relation with retailers and suppliers
Lack of integrated system development technology
High dependence on consumer electronic market sales
Use of low function Android and IOS systems
Market efforts are not up to other organizational standard
Have good pitching on market of India, China and Africa that has good opportunities
High demand of TV and tablet
Introduction of new technology such as wearable tech.
Use of online marketing and sales
Dependence on Google and IOS
Chinese companies like Xiaomi and Huawei giving tough hands to Samsung
Lack of marketing
2.2 Environmental audit of organization
For evaluation of external factors that significant impact on the business performance of organization PESTLE analysis technique has been used. In order to gain the information about the impact of external factors, Samsung management could use below listed information.
Political factors: Samsung is performing business in different nations that have different rules and regulations according to internal culture and business environment. Political factors have significant impact on the business strategy of organization as corporate tax, allocation of resources and implementation of rules and regulation will affect the plan for company. However, organization has good relation with the national authority of different nations that helping to promote the business (Luo.et.al, 2011).
Economical factors: This is considering as important external environment factor that influence and shape the business operations of organization. According to current scenario, economical conditions of world and organization are stable and supporting in business development. The economic factor mainly includes the rates of interest, inflation and deflation rates, economic development and growth of the country with respect to the company. The company had fixed appropriate policies in the operational market on the basis of the economic strength and size of the targeted customer segment.
Social factors: Organization is considering the social factors to develop products and services that are user-friendly and encourage target customers. This has positive impact on the brand image of Samsung as company is considering the belief and offering additional values in products. In addition to this, organization has introduced low cost mobile phones to increase the market share and size by attracting lower middle class people.
Technological factors: Samsung is technology based organization that manufacturing communication and entertainment devises according to requirements of customers. Company is being raked among top innovative organizations of world. This has positive impact on the brand image of Samsung. In spite of that, company has good resources to develop new technology and maintain high standard that gives competitive advantage.
Environmental: The top management of organization has good understanding of environmental issues and changes in climate (Ma and Hong, 2010). Company is developing products without using Mercury and Spray paints as both considered as hazardous for the environment. This goes in fever of organization as well as encouraging other manufacturing firms to use this technology.
Legal factors: According to the analysis it is being considered that Samsung is not good in meeting the legal rules and regulations of technology and patents. Organization is facing many challenges that affecting the reputation and customer base. Samsung has been fined many times for breaching the copyright act and use of banded resources.
2.3 Significance of stakeholder analysis for developing strategy
Stakeholder plays critical role in development of strategy and identifies the key issues that hampering the performance of company. Majorly two types of stakeholders take participation in organizational meetings and decision making approach. The key stakeholders of organization are employee, customers, suppliers and strategic partners. Analysis of stakeholder expectations and needs helps the management to include their objectives in business strategy planning and as well make changes in the existing process of satisfying the objectives (McDonald and Wilson, 2011). The stakeholder analysis would benefit Samsung in getting more investment resources and ideas to expand its products and services and establish a recognized position in the market all over the world. The analysis of stakeholders helps to forecast the upcoming conditions and expectations of organization to develop sustainable business strategy. Moreover, allocation of resources and process of utilizing them will be beneficial for organization.
Additionally, consideration of government and competitor policies and media will help Samsung to develop plan and involve the new function to engage the all stakeholders and gain their support to meet the business outcome as well overcome the impact of political, economical and legal factors that have major impact on the brand image of company.
2.4 New strategy for Samsung
Samsung has been listed in the top most companies in the sector of electronics and telecommunication in the whole world. It had achieved a renowned brand value and image for its products and services among people. It has been found that in the past few years the organizational sales of the products and the services had been diminished and thus had become an issue for the organization. It has been identified that the there are several aspects which had affected the organizational business like the rule and legislations as patent rights, economic conditions and the proper utilization of the resources globally(Ma.et.al, 2010). However, the business of Samsung had also been hampered as the competition level and the customer expectations had taken a new way and other companies like Microsoft, Apple, Sony, etc had come up with the new innovative products and had pulled the customers towards them. To attain sustainability in the market position there is a need to bring changes in the functions, quality and the products offerings which would surely enhance the sales of the company. Thus to make these changes Samsung must implement strategy of products reintroduction.
Additionally, the company could also bring changes in its distribution channels like e-commerce and online media could be utilized to explore its business activities and the sales procedures. This strategy could also prove to be profitable deal for the organization. The customer preferences and the buying behaviour have been changed day by day as the competitors are offering good and attractive discounts and schemes to them (McDonald and Wilson, 2011). Samsung had recently introduced the insurance offers and EMI schemes for the product and services which would help in increasing the sales revenues and number of customers.
The recent trends of using the digital resources like website, social media, etc. are also needed in the marketing activities of the products. This makes the evaluation of the product for the customer easier and convenient to take decisions regarding the purchase. Moreover, to attain the desired objectives and the goals of the business the organization must conquer the threats and weaknesses by making its strengths and the opportunities as a base. The key strength of the organization is utilization of advanced technology, its brand image and value and the high quality products at low prices. With the help of these strategies the management would be able to enhance the business activities in more efficient manner. This particular strategy would assist the planning and the approaches of the organization to hold on to the top most position in the whole industry globally (Rika, 2009).
3.1 Alternative strategies for developing business of Samsung
There are several alternative strategies which could be implemented for bringing innovation and improvement in the business activities of the Samsung Company. Samsung could adopt one of the strategies briefly discussed below which would support the company to achieve higher level of position in the market and influence the present business activities and the new market segment as well (Simon.2011). The alternatives are listed below:
Retrenchment is been utilized by the organizations for overcoming the operation activities and the size of the business. The strategy is been utilized to reduce the expenditures as per the objectives and the goals so that to attain financial stability and maintain higher level value in the market. As per the evaluation the strategy is been adopted when the organization had aimed to build the market growth and cut down the expenditures which are increasing the financial reporting on it. This strategy is been used when there is a adverse condition as if the products and services are not gaining good performance level and are not receiving any of the profits (Brannen.et.al, 2013). In addition to this, this strategy would help Samsung to manage the resources and improve the effectiveness in the production and the distribution of the services as well.
Limited growth strategy
Limited growth strategy acquires a potential of exploring and boosting the market activities of the organization for the expansion of the product and the diversified services in the market. Thus the strategy would help Samsung effectively with respect to the market development and business expansion. However, the implementation cost of this strategy is comparatively high and could lead to hindrance to the organizational planning. As per this strategy Samsung could bring diversification in the products like TV, mobile phones, etc. in a new target market by making changes according to the demand and the recent market trends (Schaap, 2012). For this Samsung needs to make prior systematic plans to bring innovations in the structure, features and the prices. This would provide with the proper knowledge and understanding about the market and its consequences in more enhanced way. Samsung would had to perform certain market researches so that to gain proper idea about the market and could introduce the products and services.
Substantive growth strategy involves the horizontal and vertical integration of the organization for enhancing the products and service standards and provides satisfaction to the customers. This would assist in making sure about the integration and diversification of the business operations having impact on the growth and profits significantly (Luo.et.al, 2011). According to this strategy Samsung must manufacture its raw material or other devices rather than outsources from others as it would increase the profits. This would also diminish the transportation cost and increase the profit margins.
Market entry strategy
This strategy supports in developing the market share of the company with the help of imports and exports of the products and services. The management of Samsung could make use of the market entry strategy through joint ventures and partnership with the leading organization from similar industry. It involves several techniques like licensing, franchising, joint venture, merger and acquisition etc. and would assist in overcoming the operational cost, recruitment of employees and infrastructural developments. This strategy suits Samsung as the local companies acquires good market in small local business locations and making joint ventures with them would help Samsung to enter the new market segment (Tsai and Eisingerich, 2010). This type of initiative would help in overcoming the threats of getting fail in the market and would assist in attaining leading positions in a short span of time. This strategy is the most suitable one to gain large market share in the industry.
3.2 Justifying the selected strategy
Market entry strategy would be adopted by the management of Samsung as to come up with the resolution to the issues and endorse the brand value among the present and the new market. With the help of this strategy the organization would be able to enter new market by means of combining the operation with the other local well established organization. The strategy would be profitable for Samsung as the local companies acquires a good share in the local market area and getting joint venture with them would enhance the quality of operation within the organization.
The strategy had been selected on the basis of the outcomes of the internal and the environmental analysis of the business activities and the operations (Nair.et.al, 2014). However, the strengths and the weaknesses are also been analyzed for an enhanced result and the approaches which are already existed in Samsung so that to have more clear understanding. Samsung could make entry to the new market as it presents various opportunities to increase the number of customer segment and bases. For instance, for exploring the business in China the management of Samsung could make joint ventures with the domestic business organizations who manufacture the raw material for mobiles and TV’s. This type of initiative would help in reducing the threat for getting any kind of the breakdowns in the system. It is been suggested that the organization must execute the market entry strategy that would cover the financial expenditure and sustain market position by meeting the product standards. In addition to this use of this strategy would help Samsung to approach the market which are been not covered at present (Wunker, 2012). Having joint ventures and pooling the resources would also overcome the expenditures of infrastructural developments. It is an effective initiative for the market development in the entire industry.
The Unit 32 Business Strategy in Organization Assignment concludes that the business operations and the planning of those activities highly rely upon the business strategy and the market situation of the company. Report had revealed the information with respect to the mission, vision and objectives of Samsung and had also given details about the factors which are being considered during the development of the new strategy for the business. Furthermore, the report had also identified many of the factors regarding the execution of the strategy in the organization with the help of various analysis and evaluations.
Books and Journals
Brannen, M. Y., Moore, F. and Mughan, T. 2013. Strategic ethnography and reinvigorating Tesco Plc: Leveraging inside/out bicultural bridging in multicultural teams. In Ethnographic Praxis in Industry Conference Proceedings (Vol. 2013, No. 1, pp. 282-299).
Choi, S.Y., Lee, H. and Yoo, Y., 2010. The Impact of Information Technology and Transactive Memory Systems on Knowledge Sharing, Application, and Team Performance: A Field Study. MIS quarterly, 34(4), pp.855-870.
Halbert, T. and Ingulli, E., 2014. Law and Ethics in the Business Environment.
Hamilton, L and Webster, P., 2012. The International Business Environment.Oxford University Press.
HND Assignment Help provides the best online assignment for the students in affordable price with great services of 24x7. So, Order your assignment with HND Assignment Help. Order Now