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BUSI1701 Academic Essay on a Mobile Phone company

University: LSC London

  • Unit No: 13
  • Level: High school
  • Pages: 9 / Words 2170
  • Paper Type: Essay
  • Course Code: BUSI 1701
  • Downloads: 697
Question :

This assessment will cover following questions:

  • Generate an understanding on the important elements of the internal environment of organizations and the interaction with the external environment
  • Samsung is an organization which provides high range of electronic gadgets.  Identify how a market economy functions and the role of government within it.
  • Generate the information about growing impact of the European Union on British business.
Answer :
Organization Selected : Samsung


Business environment is a marketing term that includes all factors that affects business operations through internal and external factors. Business environment includes all the factors that affects business operations. As per the present market scenario business environment is complex and dynamic as it involves number of factors that influence taste and preference of consumers through which demand and supply in the market keeps on fluctuating. In the external business environment factors like level of competition, current marketing trends, availability of finances and performance of competitors affects business operations. In order to analyse external business environment relation among demand and supply needs to be identify to calculate elasticity of the products and services offered (Albescu, 2015). In order to analyse contemporary business environment Samsung organisation is considered. It is a Korean organisation which was established in the year 1938 and serves its mobile phones all over the world.

In this project report business environment factors influence will be provided through demand and supply curve and estimation of elasticity of the products served. Together with this SWOT and PESTLE analysis will be done to make a critical evaluation of internal and external environmental factors.


Overview of company

Samsung is a South Korean multinational organisation and deals in number of electronic devices. In terms of mobile phones Samsung has topped the list in global smartphones shipments. This organisation acquires largest market share of mobile phone industry and perform its operations through Lee Kun hee and Lee Jae Youg. This organisation is operating its functions through a large number of human resource with approximately 350000 employees working world wide (ARIKAN and ENGÄ°NOÄžLU, 2016). Its revenues are growing continuously and amount of total assets in the organisation has reached to 365 billion US dollar.

Business Environment and Micro Economic concepts and models

The terms of Morden business environment it is seen that effect of external environmental factors has grown so far and possess a external pressure on business organisations. Micro economy concepts that possess considerable effected on business are as-

Demand: It is termed as willingness of an individual to purchase a goods and services offered by business through paying a specific amount of money. Price and demand of a product possess a inverse relationship. This means movement of price and demand takes place in opposite directions.

Supply: It is the amount of goods and services that are available in the market for consumption for demand made by consumers. Supply and price possess positive relationship i.e. higher the price more supply will be available in the market for consumption. On the contrary low prices leads to reduction in the amount of supply products (Baporikar, 2015).Want to score high? Take assignment help Now!

Elasticity: It is defined as an sensitivity of a variable in relation to change in another variable. In terms of business and economics it is termed as the degree to which an individual consumer or producer changes their demand or amount of funds invested on goods and services due to change in income and price of products. When elasticity of the product is more then 1 then in that case demand of the product is affected through price (Blahová, Pálka and Zelený, 2014). When it is less then 1 then in that case change in the price do not affect demand of the product. Different types of elasticity are as follows-

Cross Elasticity: It is applicable on two substitute products through which change in price of one product affects demand of other product and visa versa. For example – tea and coffee.

Cross Price Elasticity of Demand = (Q1X – Q0X) / (Q1X + Q0X) ÷ (P1Y – P0Y) / (P1Y + P0Y)

Price-elasticity: When change in price of the product leads to change in demand offered then in that case it leads to price elasticity.

Price Elasticity of Demand = % change in quantity / % change in price

Income elasticity: This concept is related to income earned by an individual and demand made for a product offered. Income and demand possess positive relationship i.e. rise in income leads to generation of more and more demand and visa-versa is also applicable (Botha, Kourie and Snyman, 2014).

Oligopoly: It is termed as a market structure in which small amount of firms dealing in the similar products are services are present. All the organisations possess their own influence and non of them can keep other aside form having an influence. As cell phone industry is dominated through small number of large organisations and provides goods that are identical to each other. Together with this cell phone industry is available with significant amount of barriers to entry so this form of market satisfied all the characteristics oligopoly market.

External audit of business environment through PESTLE analysis

Political: Samsung operates at global level and in order to analyse various external factors that influence business operations, political stability must be considered of all the countries where Samsung operates. As per current situations this organisation is facing political distraction in its own home country and through in-stable political business environment operations are affected all over the world (DesJardins and McCall, 2014).

Economic: This dimension is critical for Samsung organisation, as Samsung is operating at global level and crises that are ongoing in the economies of several countries has affected purchasing power of targeted consumers. This situation has negatively influences profitability of business organisation. Uncertainties in the economic environments all over the world drives Samsung organisation to generate its policies accordingly.

Social: Samsung is a family owned organisation and despite of serving at global level it still operates as Korean company form its core. Samsung being a global organisation needs to adopt some global strategies to enhance level of competence in the emerging markets. Samsung has tailored its products as per preference of the fast changing consumer preference. This organisation follows market niche strategy which is based on lifestyle of the targeted consumers and needs to provide different products as per demand of different markets.

Technological: Samsung is one of the worlds leading organisation in terms of application of innovation. Technological improvement and innovation are termed as a tool to enjoy sustainability in competitive business environment at global level. Through effective innovation this organisation is efficient to achieve its vision and mission and provides a good amount of competition to several competitors present in the industry. Samsung works on the key that providing basic services to consumers in best manner is the key to success in long and this acts as a tool to achieve grate success in the competitive market (Grant, 2016). Get Law essay help at upto 50% off now!

Legal: Operating at international level leads to adoption of various rules and regulations applicable in different countries. Form employment to environmental tax related law prevailing in the different countries affects level of profits of Samsung organisation. This organisation also ensures that rules and regulations in relation to workplace is also followed to avoid legal compliances.

Environmental: Sustainability is not just a trend and emerges as a main focused area so that business organisation can create their footprint for making contribution towards environmental protection. Samsung in order to contribute towards environment protection has reduced its energy consumption and leads to managing water resources risk. Together with this chemical substance management policies and pollution control programs are initiated by Samsung so that good image can be created in the market for brand.

Internal audit of business environment through SWOT analysis

Strength (Internal):

  • It is world's most successful and largest electronics manufacturer and gets benefited through its scale of operation in cost management.
  • It acquires largest market share in mobile industry and turns out to be the biggest competitor.
  • It impressive design and innovation leads to attract more and more consumers (SWOT Analysis, 2019).
  • Long standing relationship with retailers helps in serving large number of consumers in most efficient manner.
  • In some countries Samsung is not able to match marketing capabilities of its biggest competitors and that leads to reduction of market share.
  • Samsung is facing huge amount of competition through Chinese competitors and that is distracting market share of Samsung in many countries.
  • Samsung for its same is heavily depended on American markets as 70% of the products are sole their and a small change in the market conditions have a grate impact on sales.

Opportunity (Weaknesses):

  • A effective investment in HR management will give Samsung organisation a impressive transformational change and also provide competitive advantage in future.
  • As Samsung prefers to get diverse in several markets present all over the globe. This provides an opportunity to Samsung to grow in some different market where large market is available to grab an serve.
  • Level of competition is increasing in the cell phone industry and consumers are shifting towards other brands and this is a threat for Samsung by reduction in the present market share.
  • As Samsung has expanded its business to international markets and this leads to generation of more and more amount of legal and regulatory threats for non compliance with any of rules and regulations required to be followed in a particular nation.Take help from our academic essay examples Now!

Limitation of Micro Economics

In the Micro-environment in which Samsung operates there are number of limitation available that hinders operations of business and have a negative impact on sustainability of business operations. Some of the factors that are affecting businesses are as follows-

Lower price of goods: In the present business environment level of competition has increased and different competitors are emerging in the industry by offering low price of similar products (Jurina, Vrecko and Barilovic, 2014). As Oppo, Vivo and Hwai are the biggest competitors when considered in terms of price for Samsung organisation. Providing quality product with latest technology involves high cost and that affects operations of Samsung organisation in negative manner.

Ignorance of government rules: Government in different countries possess separate rules and regulations and each business needs to follow these rules to avoid any legal compliances. Negligence of government policies leads to generation of hurdles for business and through this a negative image is created for Samsung organisation. Need essay help? Take Help from our experts Now!

Breach of contracts: Multinational organisations in order to operate at certain place enters into contracts with local businesses and they breaches contracts (Rosenbach, 2018). This hinders operations of business organisations to perform as set targets are not achieved through this.

Potential Benefits for the Company

  • Products served by Samsung are available with latest technological innovation and also in affordable pricing.
  • Updated feature provides more and more amount of satisfaction to consumers.
  • Effective cost management through scale of operations leads to generation of targeted amount of profits.
  • Samsung needs to focus on more efficient marketing strategy to compete effectively.
  • Management of HR needs to be done so that highly skilled employees can be employed for providing quality services.
  • Introduction to new markets needs to be made on conscious basis to achieve targets.

Know More: MAR002-2 Individual Marketing Report


From the above project report it has been concluded that business is affected through number of factors available in its internal and external business environment. Several economic factors such as demand, supply, elasticity are some economic concepts that needs to be understood so that establishment of company in the economy can be made in effective manner. Through understand the market scenario and elasticity of the product served demand and supply of the product offered can be maintained so that price can be charged to earn desired amount of profits. In order to analyse external and internal market audit is performed through SWOT and PESTLE analysis. Effective influence of these factors are analysed so that efficiency of business can be improved through implementing effective strategy.

Read more: Sample Reflective Journal Assignment

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