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ASSIGNMENT 1

STUDENT NAME
NAME OF THE INSTITUTE

ASSIGNMENT 1

Contents
Introduction................................................................................. 3
Analysis....................................................................................... 3
Three models of culture.......................................................................4
Type of economic system.....................................................................4
Differences in economic development of countries................................5
Leading the company..........................................................................5
Global changes....................................................................................6

Conclusion...................................................................................6
References................................................................................... 8

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Introduction
There was a time when companies used to operate in domestic market only. That was the
time when competition was limited. With globalization and spread of technology, organizations
have expanded to international geographies. Today, competition has increased and as a result
organizations have to continuously evolve. The industries such as automobile industry, cell
phone industry, hospitality industry have their presence in almost every part of the world
(Sackett, 2007). The organizations operating in these industries would also have their presence
across multiple locations. These organizations would have to deal with people from multiple
cultural backgrounds. The selected industry for this paper is cell phone industry. There has been
a tremendous growth in this industry. The three competitors that would be discussed in this paper
are:
Apple: It is an American multinational that is known worldwide for its innovative products. Its
cell phones, I Phones are huge success in the market.
Samsung: It is a Korean multinational that is known to produce the quality smart phones ate
minimal price.
Nokia: It is a multinational company based in Finland. The company is known for its robust and
user friendly cell phones.

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Analysis
Cell phone industry is highly competitive industry. There are lots of players that operate
in this industry. The companies operating in this industry have targeted the customers from both
developed and developing nations.

Three models of culture


Apple has done well in America and other developed parts of the world but it has limited
presence in developing world due to its cost factor. There is a difference in the internal and
external culture of Apple and Samsung (William, 2005). Apple charges a premium for its
products and Samsung believes to develop cell phones that are low on price. The model of
culture that would best suit Apple would be an affluent culture in which people would like to
spend what they earn. This is American culture where people have high disposable income and
people like to buy luxury and trendy items.
On the other hand the culture of targeted audience of Samsung is different. The customers
of Samsung would believe to save the money. These customers would study all the alternatives
before making any purchase decision. The price of the product would be a crucial factor that
would decide the product company. . The model of culture that would best suit Samsung would
be a culture where people have limited disposable income and people like to save money for
future.

Type of economic system


The economic system type of three competitors (Apple, Samsung and Nokia) in
cellphone industry can be discussed as:

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Apple: A capitalistic economic model is recommended for Apple because in capitalistic model
people can earn and spend based on their capability.
Samsung: A socialist economic model is recommended for Samsung because in an socialist
economy the focus is on development of all.
Nokia: It is one of the companies that started the cell phone revolution. The products of Nokia
are liked by people of all generation in all the economies, provided the prices of product does not
go up too high.

Differences in economic development of countries


The countries like America and Australia are developed economies and cell phone in
these countries is not a luxury item but a necessity item. Whereas the Asian countries like India
and China are developing countries. There is a difference in the economic development of these
countries because these countries have different factor of productions. The population of India
and China is very large and this also creates a bottleneck for development. The three generic
actions that Apple, Samsung and Nokia should take in order to encourage economic progress
within these countries can be discussed as:
Action 1: To target the customers in developing countries, companies should focus on effective
pricing. The pricing of the products (cellphones) should be kept within the range of customers so
that customers can get the value out of product (cellphones)
Action 2: It is recommended that companies should invest a lot on promotional activities; it
would help these companies to develop rapport with customers.

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Action 3: It is recommended that these companies should also focus on after sales service as
customers may want to use cell phones for longer time periods.

Leading the company


I would personally want to lead Apple because company is known for its creative work
and innovative design. I believe that Apple is the house of great leaders and it would require a
hard work to reach at a good position in Apple. I believe that the best learning is learning from
people. In my journey, I would want to learn from the people who have been leading different
departments of Apple and other countries. To reach at a position is a different thing and to sustain
at a position is a different thing (Shawn, 2006). I believe that I would have to learn the
negotiation skills and conflict management skills in order to reach at remain at that position.
Apple strongly believes that its people are its biggest assets. I believe that I would have to learn
and master the people skills before I can reach a global leadership / management position at
Apple.

Global changes
If I were at the top leadership position at Apple, I would recommend following two
changes:
Change 1: Apple must focus to increase its presence in developing parts of the world. For
example, the company has large number of stores in USA but it is difficult to buy the I-phone in
India. The marketing strategy in India should be based on the large number of retail stores that
should be established in India.
Change 2: Apple must focus on social media marketing. In this era of high competition,
companies can reach out to customers through social media marketing. The platforms like

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Facebook and Twitter should be explored in order to reach out to customers. It would help Apple
to develop rapport with customers.

Conclusion
The above paper discussed the cultural impact in cell phone industry. The competition is
high among Apple, Samsung and Nokia and all these companies should understand the pain
points of customers before targeting the customers in developed and developing parts of the
world.

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References
Carraher, Shawn M., Whitney Gibson, Jane., Buckley, M. Ronald., (2006).
Compensation satisfaction in the Baltics and the USA. Baltic Journal of Management, Vol. 1 Iss:
1, pp.7 - 23
De Corte, W., Lievens, F., & Sackett, P.R., (2007). Combining predictors to achieve
optimal trade-offs between selection quality and adverse impact. Journal of Applied Psychology
92(5), 1380-1393. Retrieved March 6, 2009, fromhttp://web.ebscohost.com.library.capella.edu
Von Bergen, C.W., T. Mawer, William., (2005). The U.S. FairPay Overtime Initiative.
Managerial Law, Vol. 47 Iss: 3/4, pp.219 - 231