Business strategy

TASK: 1
(a) Assess how business missions, visions, objectives, goals and core
competencies inform the strategic planning of Samsung.
{Strategy:
Strategy is the coordinated means of which an organization for sues its goals and
objectives. A strategy helps a firm accomplish its objectives in the face of
competition.
Business strategy:
Business strategy is a strategy for competing against rivals within the particular
industry or in an industry segment.
Mission and vision statement:
Business mission is a short briefing of a companys tasks, markets and competitive
advantages. It is a statement in which the purpose of an organization is defined.
However Samsung has the same mission and vision statement.
Mission statement:
Mission statement is a declaration of what a firm is and what is stands for
fundamental values and purpose.
Vision statement:
A simple statement or understanding of what the firm will be in future.}
{Strategic management, a dynamic perspective (2nd edition)
Carpenter -Wm Gerard Sanders -Prashant Salon}

-Mason

Mission and vision statement of Samsung: (1)

As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."
This new vision reflects Samsung Electronics commitment to inspiring its
communities by leveraging Samsung's three key strengths: New Technology,
Innovative Products, and Creative Solutions. -- and to promoting new value for
Samsung's core networks -- Industry, Partners, and Employees. Through these
efforts, Samsung hopes to contribute to a better world and a richer experience for
all.
Samsung is committed to being a creative leader in new markets and becoming a
truly No. 1 business going forward.
Objectives:

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Objectives set out more specifically the goals of an organization, the aims to be
achieved and the desired end results.

Objectives of Samsung:
The main objective of Samsung is to become most wanted and globally number one
company in electronics industry
Their objective is to make sure that their all products have a good quality and are
available with the latest and best technology in the market
Their objective is to create products which will help users in easy use that means
that they create user friendly products.
Organizational goals:
The goals of an organization will determine the nature of its inputs and outputs the
series of activities through which the outputs are achieved and the interaction with
its external environment. The extent to which an organization is successful in
attaining its goals in the basis for the evaluation of organization performance and
effectiveness. (Mullins 2007)
Goals of Samsung:
Samsung has built its goals by setting up the following business directions, by doing
so results can easily be measured.
Samsung tries to improve the products and make them more efficient. This way
success of the products and the teams working behind the production can be
measured.
The leadership of Samsung has been able to make their teams and customers
understand what Samsung is trying to accomplish. They have been able to do so by
setting up sales targets, revenue targets and budgeting.
Increasing the market share by becoming the best technology producer is another
goal of Samsung. With every passing year they have been able to achieve this goal
by attracting more users.
Core competencies:
Core
competencies square
measure those
capabilities
that square
measure important to a business achieving competitive advantage. The place to
begin for analyzing core competencies is recognizing that competition between
businesses is the maximum amount a race for ability mastery because it is for
market position and market power. Senior management cannot target all activities
of a business and also the competencies needed to undertake them that the goal is
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for management to focus attention on competencies that actually have an effect

on competitive advantage.
Core competencies of Samsung: core competencies are the unified strengths,
skills and USPs (unique selling proposition) of an organization. Samsung have the
following core competencies;
Samsung is a market leading company in electronic products. The capacity to fulfill
different product ranges and integrating various technologies collectively helps to
formulate Samsungs core competence.
Samsung ability as well as commitment to new product development, to redesign
products and user friendly electronics, adds as a benefit in capturing higher market.
A collective learning within the organization and outside among the users provides
essential access to revenue generation.
The management of Samsung has helped develop the organization and its
structures to formulate it into one of the best sellers, ultimately turning the teams
to become a core competence.

(b) Analyze the factors that have to be considered when formulating

Samsungs strategic plans.
Strategic planning: strategic planning is a systematic process imagining about
what is going to happen later on and explaining idea into large aims and missions
and the steps that are needed to achieve them. In every stage of planning
something for a longer run a planer thinks about what is going to happen next and
what would we have to do at the previous step in order to reach till here.
In order for Samsung to develop its strategy there are various factors that need to
be kept in consideration.
Competition: with the growing user interface Samsung has to develop its strategy
in contrast with the emerging competition. It has to develop its products line and
depth in contrast with the availability of features offered by the competition.
New product development: with the growth in competition and demand,
technology has taken its pace as well. New product is being developed with better
features and greater innovation to keep up with the customer needs and capture a
high market share.
Revenue generation: revenue of Samsung can only be generated only if they
have buyer sales and good quality products. As discussed earlier market share can
only be increased if Samsung focuses on its internal strategy of team development
for better product development and to overcome its competition. This is ultimately
going to help better the operations, increase the productivity and generate revenue.
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Customers: the end user of the product is a customer. Strategies have to build
such that the customers is kept in focus. Samsung focuses on making their products
user friendly, quality effective and efficient for their customers to prefer the
purchase of their products instead of their competition.
Product depth and product length: Samsung has been able to achieve the
above factors by introducing a wide range of electronics, by targeting different
market segments. For example; Samsung has introduced a wide variety of smart
phones focusing on features and pricing. This way they have targeted a niche
market by introducing phones such as note series and Samsung S series. Similarly
Samsung has introduced low price smart phones for middle class, lower middle
class and students.
Samsung is also focusing on the development of its products such as televisions,
stereo systems, electronic gadgets, laptops, kitchen appliances and other home
appliances to compete against brands such as; apple, Huawei, LG, Siemens.
(c) Evaluate the effectiveness of techniques used when developing
Samsungs strategic business plans.
BCG Matrix: BCG matrix is helpful for managers to evaluate balance in a
companys current portfolio of stars, cash cows, question marks and dogs. It is
applicable to large companies that seek volume and expensive effects. It provides a
base for management to decide and prepare future actions and is easy to
understand.

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{Question mark: a question mark is a business unit in a growing market but not
yet with the high market share. Developing question marks into stars with high
market share takes heavy investment. It is important to make sure that some
question marks develop into stars as existing stars eventually becomes cash cows
and cash cows may decline into dogs.
Stars: a star is a business unit which has a high market share in a growing market.
The business unit may be spending heavily to keep up with the growth but high
market share should yield sufficient profits to make it more or less sufficient in
terms of investment needs.
Cash cows: a cash cow is a business unit with high market share in a mature
market, however because growth is low, investment needs are less while high
market share means that the business unit should be profitable. The cash cow
should be than a cash provider helping to fund investments and question marks.
Dogs: dogs are business units with low share in static or decline markets and are
thus the worst of all combinations. They maybe cash drain and use up a
disproportionate amount of company time and resources. The BCG matrix usually
recommends the divestment.}
(Exploring cooperate strategy 8th edition by Johnson et al)
Market strategies for Samsung:

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(d) Environmental and organizational audit occupies an important place in

strategy formulation. Attempt an environmental and organizational audit
for Samsung.
{SWOT analysis: A SWOT analysis encompasses both the internal and external
environments of the firm. Internally the frame work addresses the firms strengths
and weaknesses on key dimensions such as; financial programing and resources,
human resources, production facilities and capacity, market share, customer
perceptions, product quality and availability. The assessment of external
environment organizes information on the market (customers and competition) ,
economic conditions, social trends, technology and government regulations.
SWOT analysis is considered to be one of the cost effective tools in the analysis of
marketing data and information.}
(Marketing strategy by O Ferrell and
Michael Hartline 6th edition 214)
SWOT analysis is all about strengths, weaknesses, opportunities and threats. SWOT
analysis is divided into two categories, i.e. internal and external. Strengths and
weaknesses are included in internal while opportunities and threats are included in
external.
Link with Samsung: SWOT analysis of Samsung;
S=Samsung is worlds number one marketer of mobile phones and has 21.4% of
worlds largest share. Apple is second with 13.9% (2)
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W=Samsung has not been able to compete with apple marketing capabilities. Its
share fell between 2014-2015 and apples share raised.
O=introduced new technologies such as wearable tech
T=Apples reputation for quality and reliability seems to be growing.
Pestle analysis: PESTLE is a mnemonic which in its expanded form denotes P for
Political, E for Economic, S for Social, T for Technological, L for Legal and E for
Environmental. It gives a birds eye view of the whole environment from many
different angles that one wants to check and keep a track of while contemplating on
a certain idea/plan. (3)
Political: The political environment is unstable in Latin America and African countries
due to which Samsung have to face political pressure
Economic: it tells about the performance of an economy of a company which has
long term impact on a company. the company could expand its worldwide mark but
it had to worry about the current global economic crisis.
Social: it analyzes the social environment of a market elements. For example;
culture, trends etc. Social factors refers to the cultural and demographic aspects of
environment of Samsung.
Technology: new developments in technology may affect the companys operations
positively or negatively. Samsung is among the worlds leading innovative
companies. Their aim is to stay ahead of the technological and innovation curve.
Legal: legal factors influence the companys operations, costs and demand of its
products.

Environmental: it includes all the factors that influence or are determined by the
surrounding environment. environmental factors have a direct effect on agricultural
businesses only but it can have a positive impact if they clean their waste.

(e) Explain the meaning and importance of stakeholder analysis in relation

to Samsung.
Stakeholder: Any person or organization which can be positively or negatively
affected by or cause an impact on the actions of the company. (Freeman 1984)
Stakeholder analysis: Stakeholder analysis is a tool for clearly defining key
stakeholders for a project or other activity, understanding where stakeholders
stand, and developing cooperation between the stakeholders and the project team.
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The main objective is to ensure successful outcomes for the project or the changes
to come.
(4)
Importance of stakeholder: stakeholder can provide feedback during the entire
product development process which can affect the company or the product
positively. If the company is going towards success then it can earn its stakeholders
loyalty. If a company has long-term relationship with its stakeholders than it can run
more efficiently and can have better chance of producing profits. Stakeholder
includes customers, employees, shareholders, suppliers, contractors, local
government etc. by making a list of useful approaches, it will help analyze
stakeholders through which we can identify what their demands are.

(f) Present a new strategy for Samsung.

Samsung can increase its market share and growth by implementing the following
organizational strategies;
joint ventures: A joint venture (JV) is a business arrangement in which two or more
parties agree to pool their resources for the purpose of accomplishing a specific
task. This task can be a new project or any other business activity. In a joint venture
(JV), each of the participants is responsible for profits, losses and costs associated
with it. However, the venture is its own entity, separate and apart from the
participants' other business interests.
Mergers: a merger is a legal consolidation of two entities into one entity, whereas
an acquisition occurs when one entity takes ownership of another entity's stock,
equity interests or assets
Acquisitions: it is cooperating action in which a company buys all, if not all then
most of the targets of companys ownership in order to assume control of the target
firm. Acquisitions are often made as part of a company's growth strategy whereby it
is more beneficial to take over an existing firm's operations and niche compared to
expanding on its own.
Task: 2
(a)Analyze the appropriateness of alternative strategies relating to
market entry, substantive growth, limited growth or retrenchment
for Samsung.
Market entry: it is a planned method of delivering goods and services to a
targeted market and distributing them there.
Franchising: franchisor is a dealer who permits an operator or a franchisee to
use merchants brand/logo and distributes the merchants goods. The success of
franchisors success depends on the success of a franchisees.
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Advantages:i.

Freedom of employment

ii.

Less risk of failure

Licensing: the method of foreign operation whereby a firm in one country

agrees to permit a company in another country to use the manufacturing,
processing, trademark, know-how or some other skill provided by the licensor. It
involves little expense and involvement and is quite similar to franchise
operation. Coca cola is an excellent example of licensing.
Advantages:
i.

Low manufacturing risk

ii.

Capital not tied up in foreign operation

Substantive growth: It is defined as an annual percentage of increase in sales

that is consistent with a defined financial policy.
Retrenchment: a strategy used by cooperations to reduce the diversity or the
overall size of the operations of a company. It is divided into:
I.

Turnaround strategy: this type of strategy is not a successful strategy.

It is used when a company is getting negative feedback from its
customers and competitors are doing well.

II.

Disinvestment strategy: it is used when turnaround strategy is not

working, a company cant face competition and when you have a better
alternative.

III.

Liquidation strategy: it sales the company when it is going in loss or is

not doing well.

IV.

Substantive growth strategy: substantive growth strategy is further

divided into four categories. i.e;
a) Horizontal integration: it is used when government allows monopoly
or if the company merges with its competitor.
b) Vertical integration: it is used when you become your own
distributor.
c) Related diversification: this type of strategy is used when business
expands its activities into product lines that are similar to those it
currently offers.

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d) Unrelated diversification: unrelated diversification relates to

the making of various goods which have no relation to each other.

(B) Justify the selection of s strategy.

Market strategy can be used for Samsung. By using this strategy it will increase
the market share as well as the sales of a product and it will let customers know
about the product in a better way. If Samsung markets its products in wellorganized way and if the way of marketing is good then it will develop the image
of a company and if a company has launched a product and customers are
complaining about the performance of a product than they should immediately
stop the sales of that particular product and should entertain its customers who
have purchased that product by giving them a discount or by giving them a new
product for free of cost. By doing this image of a company will not be affected
and the customers will be satisfied as-well.

(C) Assess the roles and responsibilities of personnel who are charged
with strategy implementation.
Strategic implementation: an activity done according to the plan to achieve the
aims is called strategic implementation.
Responsibilities of employees: the employee is appreciated if he do his job
within his working hours and should inform the manager or any other employee if
he is unable to do the task allotted due to any reason especially due to illness. He
should obey proper safety procedures.

Manager: A manager is basically a person who is responsible for controlling and

administrating an organization or people. A manager also manages the resources of
the
organization.
He
is
a
person
to
whom
people
report.
Responsibilities of a manager: A manager is basically responsible for almost all
the activities of the organization but there are FOUR management functions which
are the key responsibilities of a manager. These 4 functions are:
-Planning
-Organizing
-Leading
-Controlling

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But, in todays competitive era, a manager has to do much more than this. He
should
also
focus
on
areas
like:
Leadership:-A good manager must have good leadership skills. A good manager is
measured not as much by what he does as by what he is able to get others to do.
He has to make his employees accomplish the tasks that are difficult for them and
should help them in any way possible. An effective manager must be able to set a
vision for his organization or department, and have his staff see the value in that
vision.
Administration:- A manager must be a good administrator. He has to perform the
tasks in a systematic manner and be able to respond to panic situations without any
hustle. The manager must be able to ensure that all requirements of his department
are met on time.
Monitoring:-A competent manager has to monitor the tasks being performed in the
organization, He has to keep a check and balance and point out the short comings.
He must also know exactly what each of his staff is capable of and give them work
that they can complete effectively while also challenging them to achieve more.

HR department: HR department is a department which is responsible for hiring of

employees, skills and development of employees.
Functions of Human Resource Management:
I.

Recruitment: The procedure of finding and hiring an employee who is best

qualified among the other employees from within or outside the organization.
The

recruitment

process

includes

analyzing

the requirements of

job,

attracting employees to that job, screening and selecting applicants, hiring,

and integrating the new employee to the organization.
II.

Selection: selection and recruitment is somewhat similar. Selection is the

process of choosing the best among those who have been hired. It is one or the
foremost important task in the functions of HRM as no organization can achieve
its goals and objectives if right people for the organization/ task are not
selected. Thus in order to achieve the goals and objectives, it is necessary for
an organization to select the right employees.

III.

Monitoring: keeping an eye on the activities that are being performed and
making sure that they are being performed as scheduled and in a sequence
decided in order to meet the objectives and performance targets.

IV.

Rewards:
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Types of rewards:
a) Bonuses
b) Free medical
c) Overtime and holiday packages
d) Increment in pay
e) Promotion to new position etc
V.

Motivation: to have a good response from the employees and to encourage

their skills it is very essential to motivate the employees. Every employee is
motivated in a different way. Some are motivated by the bonuses while some
are motivated by promotions. Motivating employee makes them do their work
with more conviction

Finance department: Finance department is a part of an organization that deals

with money.
Roles of finance department:
I.

Internal and external reporting

II.

Managing the investment

III.

Check accounts, credit notes and statements received from suppliers

IV.

Calculate salaries and prepare pay slips for employees

V.

Prepare cheques to be sent to suppliers

VI.

Complete tax returns

(5)

Marketing department: the department of a commercial organization that deals

with the selling of products.
Roles of marketing department:
I.

Feedback from the customers

II.

Creating promotional ads

III.

Gathering Competitive Intelligence

IV.

Establishing prices

(D) Analyze the estimated resource requirements for implementing a new

strategy for Samsung.
Resources are required in order to perform tasks. Those resources can be in any
form. For example; facilities, people, equipments or anything else that is necessary
for a task to be completed. Following are the resources that are required for
implementing new strategy for Samsung;

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Skilled workforce: a skilled worker is a person who is trained and has knowledge
about his work. If the employees are skilled it will take them less time to perform
any task and will benefit the organization. Samsung should hire the employees who
have good working experience and are skilled.
State of the art technology: to meet the customer demand and equalize best
quality product. This is only possible if Samsung focuses on manufacturing and
introducing the best available machinery.
Business Investment: is to have enough amount of funding for your business to
carry out the research. The money is invested in a business with a hope that it will
benefit in future is called business investment.
Market knowledge/ market research: market knowledge is carried out only if
research is done. Market research specifies the information that is necessary to
address problems.

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(E) Evaluate the contribution of SMART targets to the achievement of

strategy implementation in Samsung.

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Smart goals are the goals that state a preferred future accomplishment. It helps on
focusing on a task. It tells about the future state and tells what is exactly looks like
and how will it be measured.
S= when there is a specific goal there are more chances for it to be fulfilled and
within a short time period because all the concentration is focused on a fixed goal
instead of general goal. To set a specific goal you need to know;
Who is involved? What do I want to accomplish? Where will the action
place? When will the goal be achieved?
Why is this goal important?

take

M= goals should be measurable. In order to measure progress towards goals it is

very important to identify clear objectives. The goal that you have set should be
quantified in terms of numbers so that it is easy to accomplish it. You need to know
the answers of the following questions in order to determine if your goal is
measurable;
How many? How much?
accomplished?

To what degree? How will I know when it is

A= you should be able to fulfill whatever goal you set for yourself. In order to fulfill
it you need to know about the important goals, the decide how to fulfill them. Work
to develop attitudes, abilities, skills, and financial capacity to reach them
R= your goals should be in the direction you want your career to take. Goals should
be important to the work and focus on results.
T= there should be deadlines set for the goals, this will keep you working hard in
order to reach your goals on time. There should be a deadline of what you want to
achieve and when you want to achieve that specific goal. Seeing the deadline come
near will make you work more hard for the completion of your goals.
(6)
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REFERENCES:
BCG
MATRIX:
https://www.google.com.pk/search?
q=bcg+matrix&rlz=1C1CHMR_enGBPK686PK688&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj2kcKl1tHM
AhXPBo4KHeSAbkQ_AUIBygB&biw=1280&bih=709#imgrc=NVqQim9ZaxGgmM%3A
(1) http://www.samsung.com/us/aboutsamsung/corporateprofile/visionmission.ht
ml
(2) http://asq.org/service/body-of-knowledge/tools-stakeholder-analysis
(3) http://www.idc.com/prodserv/smartphone-market-share.jsp
(4) http://pestleanalysis.com/what-is-pestle-analysis/
(5) https://www.google.com.pk/search?
q=functions+of+finance+department&rlz=1C1CHMR_enGBPK686PK688&espv=2&biw=1280&bih=709&source=lnms&tbm=isch&sa=
X&ved=0ahUKEwiOt8zlLbMAhWDTo4KHehBCT4Q_AUIBigB&dpr=1#imgrc=IUk5s1T4XdEQ0M%3A
(6) http://www.slideshare.net/emmanuelfkumah/goal-settinghow-to-set-smartgoals
(7)

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