Growth of International Business Strategy
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In the present era, every business organisation requires effective tactics and strategy in order to survive in the competitive environment. Business strategy is a tool and attribute which assist firm to complete with rivals in the market and develop their own competitive position. In a simple word it can be said that business strategy is a long term planning which aid in attaining the objective of firm. International business strategy is a program and activity to attain the objective at global level. Whole business enterprise operates its business at international level then it requires effective and distinctive strategy to compete with rival and develop its own strong position in the market. The following project report provides a depth knowledge and understanding about the international business environment and strategy through which corporation can achieve objective at global level. The following report defined internal and external component of business environment. Furthermore, sustainability of competitive advantage of the Samsung company has been also addressed in this report. It is a public limited and multinational electronic company. It is the world largest manufacturer of mobile phone and smartphone fueled by the popularity of its Samsung galaxy line of devices. This project defined that how cited firm impressively develop its international business strategy and attain its objective in an effective manner.
1. Analysis of the key changes in the strategic position that is external and internal business environment during the period
Strategic management is a important procedure for developing planning, monitoring, evaluating the performance of business for attainment of the Objective. In this manner. Business firm can analysis the environment of business and develop competitive strategy to get success in the market. Generally strategy management involves analysing cross functional business decision to implement in the business process. With assistance of proper and systematic strategic management planning, firm can analyse the internal and external strength and weakness, formulate action plan, executive action plans etc.
A Samsung electronic is the world largest corporation of the Samsung group, a south Korean which founded in 1938. it has more than 236000 employees in 79 countries and most of the employees based outside of south Korea. The cited firm deals with the electronic good like hard drive, clips, flash memory, lithium ion batteries, smart phones, LCD, printers, television, personal camera, home appliances etc. Samsung delivers the various electronic goods and products in the various 79 countries. Samsung is the world second the largest information technology company by revenue after apple. It earlier products were electronic and electronic appliances including television, calculator, refrigerators, air conditioners and washing machines. company have major aim is to provide the high quality of electronic good to customer and meet their expectation. It wanted to acquire the large number of market share and profitability in the global market. As Samsung is dealing with various 79 countries in the world so at international level its strategic management function has extremely strong and it has high competency.
At the international level, there are various kinds of key changes in the strategic position that is external and internal environment. Samsung is the world second largest company which dealing with 79 countries in the world. At international level, strategic changes may faced by the cited venture due to the various internal and external components. At global level, Samsung may face various kind of changes which are as follows-
Organisational resources: At the international level, organisational resources can highly changed due to the changing business environment. Organisation resources includes human resource, financial resources, technical equipment, machinery etc. While Samsung deals at international level then strategy management influence by the organisation resources. In the different country, company have faced the issue related to the organisation resources such as human resource, financial resources, machinery etc. As per the Samsung case, Samsung considers on the high capability, productivity and efficiency by which it successfully delivers the high quality of customer good in the international market. Samsung believes on its internal strength and focus on the efficiency and capability through which it effectively attains the target in the global market. On the other hand in the china market, Samsung was losing money in the china because Chinese research and development conducted research in specific area where work could be done better or cheaper locally.
Competency: Competency is another major component in the business internal and external environment. It refers to the capability, ability and competitive advantage of the company through which firm can develop its strong position in the market. As per the give case study of Samsung electronic, Samsung corporate revitalisation initiative that set a new course for the company. The three strategic pillar to new initiative that set a new course for the company that is quality, strategies, internationalisation. With assistance of these three competencies, firm can effective perform at international market and gain competitive position. In the Indian market, Samsung product had been significantly adapted for the Indian market because it used localised innovation to come up with multiple model fast to fit local need and different customer segment. In the Indian market, Samsung have highly skilled and qualified engineers which provides their best contribution in order to develop the competitive product of Samsung. In the India, Samsung research and development department was the global hub for feature phone and simultaneously innovated on three mobile phone platforms in order to develop over 25 different model. Thus, it can be said that in the different country, Samsung have effective competency in the different international market.
Capabilities: Capability is another major component of the business internal and external environment. In every business enterprise mostly requires the capability because by use of this company can perform effectively in the market and earn high market share. In the given case of Samsung, firm has attained high speed in new product development by placing multiple bets on technologies with effective trajectories and a high potential ROI for research and development investment a process is known as parallel development. Cited firm learned the importance of speed while competing in the semiconductor industry. As per the give case. Cited firm is world number one marketer of mobile phones with 21.4% of the world largest market share in the second quarter of 2015.apple is number two with 13.9%.
Leadership: Samsung have highly skilled and qualified employees whose gives their best efforts to attain the organisational objective. At international level, while firm operates its business then it has faced the various changes which affect its strategic changes. Leadership is one of the major internal component through which workforce of the organisation can manage and maintain its business activities and function. It refers to the process under which leader manage, motivate, encourage, control and monitor the performance of employees and influence them for attaining the objective. In the different country, the process of leadership can also influence which affect the strategic position. As per the given case, At the time of lee leadership, Samsung have become an iconic global brand which is known for its high quality and innovative product. In the china market, there is very low skilled labour as compare to India because in the Indian market company have effective skilled engineer whose given their best contribution to attain the objective. At the global level, Samsung company plays effective leadership because it has lead to various other electronic corporations in the world. Other electronic company has also merged with the Samsung so as It can be said that company playing effective leadership function in the global market.
As per the case it can be said that in the India Samsung have effective staff member and manger takes effective strategic decision in different countries. Thus, its leadership process is effective in every country through which company can able to develop its strategic position in the different country. It effective leadership and management focus on the quality and synergies led Samsung to become a global technology leader. In the India market, leader have effective decision making power who were rewarded for innovation and risk taking with individuals bonuses.
Culture: Culture refers to the value, beliefs, ways of attraction, attitude etc. In other word it can be said that culture refers to the cumulative deposits of knowledge, experience, beliefs, value, attitude, regions, notions of time, roles, spatial relations, concepts of the universe and material object acquired by the people in the course of generation. Effective culture develop effective outcome in the organisation. In the context of business, culture plays a very crucial role because only culture is an attribute which assist in developing health relationship and environment at workplace. With assistance of effective culture, employees can effectively manage and motivate for higher performance and productivity. In the given case scenario, in the different countries in the world, Samsung developed an executive oriented culture based on strong discipline, loyalty, ethics and a can do spirit. Company has adopted different culture in the different countries .For instance, in the Indian market, company have focused on recruiting high potential employees and attracted Korea top talents 12% has PhD and MS degree.
2 Critically evaluate how well the organisation responded to the external and internal challenges over the period concerned.
As per the above discussion it has been ascertained that there are various kinds of internal and external component of business environment which affects the Samsung company while it operates its business in the different countries. Major issue faced by company of difference among the leadership, culture, human resources, competencies, capabilities etc. In the India and china market, Samsung have faced different strategic challenges due to the differences. However, company have strong compatibility and capability through which it has successfully competed with its diversity and changing situation. While during the period of key factor influenced to the country then company have adopted effective strategy and action to overcome these strategic challenges. Following are some major strategies and action of the firm to respond the internal and external challenges over the period concerned.
The Samsung company have major strategy of new management that is three strategic pillar quality, synergies and internationalisation. In the 1998 300% equity ratio has debt by the Samsung company and management of business enterprise have major objective to deliver the high quality of electronic good and services to customer at global level . In the first year there are huge gap between the goal and reality but Samsung owner Lee never loses hope and its new management developed by considering speed of market, new product development, supply chain management, marketing and human resources.
In order to fill the gap between the reality and objective in the international market, company major focus on these factor humans resources, supply chain management, marketing, new product. By considering these components, firm have developed its own new management and strategy in the different country.
In order to face the challenging situation in the emerging market that is china and India, Samsung considers on its unique organisational capabilities, propelled the company to success in both countries and such strategy which its rival can not achieve. The company have invested in manufacturing facilities in Mexico, Thailand, Malaysia, Indonesia, china, Brazil, Vietnam, India, Russia, Egypt etc.
The Samsung was one of the market leader in the product categories in the Indian market. One major reason of this success is that India used localised innovation to come up with multiple model fast in order to meet the needs and wants of the local customers. The major reason is that it have high skilled sand qualified employees which gives their best contribution in the research and development activities.
Another success factor in the India market is that Samsung have ability to manage it's supply chain management system. Organisation collaboratively working in the global level with other business enterprise and deliver the high quality of electronic products and services to customers.
In the china country, Samsung is number one mobile phone company and it is a global leader in TV in the china market. Samsung is one of the major company which deal with electronic goods like Television, mobile phones etc.
Samsung provides the high quality of product and services in an appropriate price so as customer can gain the full satisfaction.
In the china market, Samsung created direct sales stores to circumvent the cities and has had difficulty penetrating the more rural.
3 Critically discuss the basis and sustainability of the competitive advantages
As per the above discussion it has been ascertained that there are various effective strategy and action taken by the Samsung in the emerging market that is china and India in order to compete with rival and gain the effective outcomes. Thus, it can be said that Samsung have effective strategic management through which in the international market it has effective compete with rival and develop its won position. Following are some major competitive advantage of the Samsung electronic-
Cited firm is world number one marketer of mobile phones with 21.4% of the world largest market share in the second quarter of 2015.apple is number two with 13.9%.Company have major competitive advantage is that it focuses on the three major thing that is pillar quality, synergies and internationalisation.
Another major competitive advantage of the Samsung is that it have effective research and development programs in the India and china through which it designs and create effective and attractive capabilities which distinctive it from its competitors.
It has strong manufacturing and marketing capabilities and long strongest relationship with retailers in the china and India that provide a steady sales channel for its product. In the India used localised innovation to come up with multiple model fast in order to meet the needs and wants of the local customers. The major reason is that it have high skilled sand qualified employees which gives their best contribution in the research and development activities. Innovative on multiple platforms allowed Samsung to create its own market data by conducting trials to see which model success in the marketplace.
In the Indian market, Samsung have highly skilled and qualified engineers which provides their best contribution in order to develop the competitive product of Samsung. In the India, Samsung research and development department was the global hub for feature phone and simultaneously innovated on three mobile phone platforms in order to develop over 25 different model.
4 Develop a range of strategic option available to Samsung organisation
As per the above discussion it has been ascertained that Samsung have various competitive advantage related to its internal strength, competency and organisational resources. By these competitive advantages, company have successful survive in the international market that is china and India .Following are some strategic option through which company can ensure its success and sustainability into the future in the international market.
Human resources: The major strategic option is it's highly skill employees which gives their best contribution to attain its objective. Human resource is one of the best strategic option through which firm can gain high competitive advantage in the future and implement the effective strategy to gain the high market share in the international market. By providing effective training and development opportunity to employees, firm can encourage and motivate them for high productivity and profitability in the emerging market.
New product development: This is one of the bes strategic option for the Samsung through which it can gain the effective success in the international market. It have effective research and development programs through which its employees can gives their best contribution to research the innovative thing and develop some creative technology. By effective research and development programs, company can attain effective success in the china and Indian market.
Supply chain management: This is another major important strategic option for the organisation through which firm can improve.
From this project report it has been concluded that strategic management plays a very crucial role in the international business through which company can easily face the challenging situation and compete with rival in an effective manner. It has concluded that Samsung have various low end products but these were positioned higher than local competitors product with similar brand. In the china market, Samsung created direct sales stores to circumvent the cities and has had difficulty penetrating the more rural. It has been also concluded from this report that The three strategic pillar to new initiative that set a new course for the company that is quality, strategies, internationalisation. With assistance of these three competencies, firm can effective perform at international market and gain competitive position.
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