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Mastering Success: A Comprehensive Guide to Strategic Management Planning

University: Kensington College of Business

  • Unit No: 19
  • Level: High school
  • Pages: 16 / Words 4012
  • Paper Type: Assignment
  • Course Code: K/508/0574
  • Downloads: 384
Question :

This sample will let you know about:

  • What is Strategic Management?
  • Discuss SWOT analysis model.
  • Discuss Porter's Five Forces Model.
  • Discuss the impact and influence of the macro environment.
Answer :
Organization Selected : Samsung

INTRODUCTION

Strategic management plan is defined as the organisational management activity which is used for setting priorities, focusing energy and resources and ensuring that employees as well as stakeholders are all working together effectively and having a common goal. A strategic plan is a document used for communicating with the company and achieving the organisational goals. This plan includes all the tactics and strategies that a company can adopt for improvising the business sales and profit (Andersen and Sax,  2019). The strategic management is known as comprehensive collection of all the present activities and processes which are used by the company for achieving it's vision and mission. The company which is considered for analysing the concept of strategic marketing is  Samsung. This is a South Korean multinational conglomerate which has headquarters in Samsung Town, Seoul. The founder of this organisation is Lee Byung-chul. The following report provides explanation on PESTLE, SWOT, Porter's Five Forces and Porter's generic strategy. The main aim of this file is to analyse the strategy which Samsung can choose for enhancing profit and sales.

Applying appropriate frameworks analyse the impact and influence of the macro environment on a given organisation and its strategies

The macro environment which affects functioning of any organisation includes political, environmental, social, technological, legal and economical factors. It is essential for business organisations to analyse what are the ways by which an organisation is affected more. This includes managing all the factors in effective manner and attaining organisational goals. Samsung is a conglomerate and it is operating in the white goods market or the market for consumer gadgets and appliances. The external drivers of business environment that affects operations of Samsung have impact on strategies of the company. The PESTEL analysis of Samsung is discussed below -

Political 

The countries in which Samsung operates are having conductive environment for it's operations. But there few companies in which it has faced some political issues. Samsung is operating in those markets in which political elements are benign. Within South Korea, Samsung has faced political headwinds as there was political instability. This company has also faced problem in African and Latin American countries in which the political environment is unstable. 

Environmental 

Samsung is an organisation that deals in consumer oriented products and thus it is very important for this company to analyse the needs and demands of organisation for enhancing profits and sales (Ansoff and et. al., 2018). There has been increase in ethical consumer and they want to source their brands and make the products socially as well as environmentally responsible. Samsung must be aware about the needs and demands of the products that an individual requires. According to this, it is ensured that Samsung is not compromising on the working conditions and wages that are paid to the labour who are making the final product.

Social 

Samsung is a South Korean company and the owner of this company is whole family. This company is operating from the core as  a Korean company. This company is known for effective global working. The main factor which helps this company to be successful in different international markets is it's adaptability to the local market. Samsung adopts glocal strategy which is used while operating in global market and and adopting the strategies to capture local markets (Baumgartner and Rauter, 2017). On the other hand, Samsung is a global company that tailors the product according the changing preferences of the customers. This organisation operates in a niche market and this is strongly affected by the life style of consumers. 

Technological 

Samsung is one of the leading innovative companies of the world. This company will get advantage by suing new and latest technology in it's products. Samsung has mission to attract a lot of customers by providing them innovative and latest technology items. In context of Samsung mobiles, it applies all the latest software and applications so that customers will buy them.

Economical

This is a crucial factor of this company and it has opportunities to expand it's market share in new markets. Samsung has the ability to manage it's operations and activities at global level effectively. While operating in global markets, it is essential to analyse the inflation, deflation, economic rates, before providing services and products in any marketplace.Need Help With Strategic Resource Management Assignment Help? Talk to Our Experts.

Legal 

It is important for Samsung to analyse all the regulations and rules given by law. As Samsung is a electric gadget company, it is seen that it operating in different countries and follow the legal rules given by that country. The consumer laws of international markets is not same and it varies from country to country. Samsung faced heavy penalties for alleged imitation of iPad (Apple) as well as iPhone. This includes how the market is seen on how an organisation will manage legal maze.

From the above PESTEL analysis of Samsung, it is concluded that this company has good strategies for entering in international markets (Bolisani, and Bratianu, 2017). There are various opportunities that Samsung can work upon for increasing the market share of the company in different global markets. The stakes of Samsung must be high in era of recession to capture success in global markets. After using the PESTEL analysis, it is clear that all the things that are to be analysed by Samsung for maintaining its goodwill and reputation within market.Take Examples of Assignments Now!

Analyse the internal environment and capabilities of a given organisation using appropriate frameworks

In business world, all those factors of internal environment like workers, standards, laws, business happening have a major impact on the organisation strategies. Thus, companies are required to prepare a strong and effective policy to manage and handle business operation and determine the reasons that which can improve overall performance. In Samsung the manager of corporate strategy maker have implemented the SWOT evaluation that is useful in defining the way to run business task in most suitable and profitable manner (Bondarenko and et. al., 2017). The same is discussed underneath:

SWOT analysis model

It is a method that organizations use to obtain links to various factors that are their strengths, weak points, opportunities and challenges. This study of Samsung SWOT shows how well the second biggest technology company has taken benefit of its competitive advantage to influence and become the leading company in consumer products, household appliances and microprocessor sectors. The Business strategy Director of Samsung analyses all the components thereof and presents the following description:

Strengths

  • Innovative fundamental research was always the focus of Samsung. The company has a wide variety of products between its rivals at the expense of those divisions. It includes smartphones, videos and audio devices, cameras, mobile telephones, TVs and video players, computers and other gadgets. They include 34 R&D institutions (R&D) working worldwide and have invested $14,857 billion in 2017 which help in developing most suitable mobile phone for large number of customer across all nations.
  • In Emerging Asian markets, Samsung maintains a stronghold, especially in India as well as China. The company opportunities of both India and China were increasing significantly, that's why Samsung took benefit and thus enabled them become the world's number one marketer of cell phones with about 21.4% covering the world's biggest market share in 2nd quarter of 2015.
  • Company has improved its image as brand by its ecological developments. It was rated 9th throughout the EPO's 2016 Green Power Partner list of top 30 Technology and Telecommunications companies.

Weaknesses

  • The biggest weaknesses of Samsung is that it is highly depended upon American market and around 70.8% of their cell phone are sold in America. As American economy is not easily predictable and any recession in recent time can hit Samsung very badly impacting its overall profit margin and capabilities to produce electronic devices. 
  • Since 2017, smartphone sales have fallen under Samsung due to increase sell of Chinese Phone in various part of world. Chine use of provide useful electronic gadgets at lower cost to which damages the profits of Samsung (Bryson, 2018). Moreover, Samsung has tried to shift its emphasis somewhat, but that approach has not resulted in significant market performance.

Opportunities

  • In present time if Samsung invest in the HR management then they can make a impressive transformation which help to attain the desired results. This will not only support to increase the sales but can help out to give competitive leverage over its competition.
  • This is important for Samsung to avoid the fault of being specific to only few market which can reduce their overall sales. It not only calls for economic uncertainties but also causes excessive divisiveness and negative press advertising. Which is why Samsung is able to succeed on a market void in the economy of Asia and Europe. It must also increase its number of clients.

Threats

  • Allthose companies dealing in consumer electronic products, computer devices and smart phones give a tough competition to Samsung at a record high level which become a major threat (Bryson, Edwards and Van Slyke, 2018). Technical rivals, such as Xiaomi, Apple or Huawei, were the best software organization to handle and outperform. That further raises stresses for Samsung in both trade and financing.
  • In modern era, when world have become more technical and digitally focused, so government have make number of laws and regulation which increase the legal thereat to Samsung. This is mainly because different market have different laws and certain guidelines create problems for company to operate different function as per their requirement and convenient. If not complied with the standard of particular country a total shutdown can even happen in Samsung's respective business.

Applying Porter's Five Forces model evaluate the competitive forces of a given market sector for an organisation

Porter's Five Forces Model

This can be defined as a simple  and powerful tool which is used to understand about competitiveness among the business environment in order to identify strategy's potential profitability (Ginter, Duncan and Swayne, 2018). It was primarily developed by the great thinker named M. Porter in the years around 1979 which helps to understand the impact of five key competitive factors on an industry. It is a structure and framework that assists in determining the level of competition in different business sectors. This concept is developed by Michael Porter to monitor the competition in a particular industry so that a new business can effectively enter in a new sector. This concept is useful fro understanding the strength of a company in existing business atmosphere and the capability of a position that a firm may look top move into. In context of Samsung, this model is crucial to understand the forces that shape and manage rivalry in a sector. However, Samsung can be consider as a well known brand of electronics which is much famous its smart phones and television.

Bargaining power of Suppliers 

This includes the sources from where an organisation gain raw materials in required amount to manufacture their product or services that is known as suppliers. They are important and can be consider as an important force that has an ability to affect the organisation. However, it has been evaluated that higher is the bargaining power of suppliers then lower is the competitive strength of the company. In context of Samsung, bargaining power of suppliers is very low because of several factors including small size & low financial strength. They have a capability to easily switch from supplier to the another.

Bargaining power of Customers 

It has been analysed that Samsung is responsible for manufacturing variety of products such as television, mobile, home theatres, computing related products and home appliances. The bargaining power of customers is low due to the reason of producing different types of products by given company (Hartmann and Driessen, 2017). It is observed that bargaining power of corporate clients and groups consumers is significant that have led to rise in the same. Moreover, customers are capable to select the brand of their choice which are available in the market then it is very important for an organisation to make their product more attractive with innovative features to gain new clients along with retaining the current ones for increasing profitability. 

Threat from Substitutes 

In case of Samsung, it has been identified that threat of substitutes is moderately high for them because of having various local and international competitive brands. The competitive firms offer competing products and services to customers in market and switching cost for clients is low. Meanwhile, Samsung has various competitors which provides similar products to people which encourage consumers to switch themselves to the another brand. Moreover, it is required for Samsung to male their product different attractive and innovative to attract fresh customers as well as retain present consumers to gain competitive advantage in market.

Threat of New Entrants 

In context of Samsung, it has been evaluated that threat of new entrants is low in market. It has reason that company invest much to build such brands and they also put funds for attracting talent along with building strong brand with the help of marketing.

Level of Rivalry in the Industry 

The competitive rivalry among Samsung and other existing company in industry of electronics such as Apple, Microsoft, Philips, Toshiba, LG etc. It is observed that the level of rivalry is very high because new brands find it very difficult in enter the market.

 From the above discussion, it is analysed that  The management of Samsung has implemented Porter's Five forces analysis with the motive of analysing competitive position of firm in that sector in which it operate (Hill, 2017). As the rivalry for Samsung is high so organisation is needed to frame effective plan of actions like launching new products in marketplace. The bargaining power and threat of similar products is moderate in market that can be minimised  by focusing on quality of the product and making brand loyal customers.Finding Online assignment help UK ? Talk to Our Experts.

Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation

Strategic planning requires the execution, for the benefit of the company as well as for the development of plans that succeeds to growth. The Ansoff Matrix may allow management to find options for the growth of the company when looking for the best plan for market execution. Samsung Corporate Strategy Director have been using this approach to develop strategic thinking.        

Ansoff matrix

It is seen as a system that allows businesses to take the best idea to help them achieve success. In the sense of Samsung four various elements are addressed below:

  • Market Penetration: That approach offers companies the chance to grow by offering ever more goods in new markets. In order to capture the opportunities and growing number of consumers, Samsung should promote its goods throughout its existing market.
  • Product development: In the current market, under this choice of growing companies introduce a new item (Holloway, 2018). By providing a single or updated brand to current customers, Samsung will also be able to boost sales and profits with the support of this method.
  • Market development: This allows companies to provide new market growth to their current products. Samsung may implement it in order to improve the share of the market and achieve the goal of growing the company at various locations.
  • Diversification: Thisisthe Ansoff's main approach, which allows businesses to start new goods on a growing market. This is the most risky option as it help to increase the additional funding. Samsung can used this to attract customers with such a spanking new brand device from a new marketplace.

Porter's Model of generic strategies

There are different concept, models and theories that can be adopt by a company to make development and growth in the business of a firm. Porter's generic is a model that can be implemented by organisations like Samsung with the  motive of monitoring development plan of action (Jones and et. al., 2018).  The brief description of this concept is mentioned as under in reference to respective company:

Cost leadership

This strategy is defined that by adopting lowest pricing strategy for the goods and services of the company the firm can make evolution in it business. In context of Samsung, if the administration of this firm implement this approach then the company can get attention of number of consumers by setting low process of products.

Differentiation

This strategy of respective model leads that by adopting it, organisations can launch unique products in business sector that are different form others commodities that are available in industry. By accepting it, Samsung can target new clients in current market to improve the profitability and market share. 

Cost focus

Within it, a business enterprise set low cost of its products in term of getting attention of number of customers to make increment in its customer base (Kerzner, 2019). In reference to Samsung, the management of this company can implement this strategy and can try to become lower cost manufacturer in a small market place to be a market leader by setting low cost to its products for niche market.

Differentiation focus

this growth approach leads companies to launch unique goods in small market place so that the feedback and response of consumers can be monitored regarding new product. Samsung can chose this option to analyse the attraction and attention of customer regarding new product that will be launched in existing market. Get help from our Coursework Helper Now!!

Strategic Plan

As per both explained concept and model, Corporate strategy manager of Samsung should make concentration on Ansoff Matrix and chose the strategy of product development. This suggestion can be provided to the firm because with the assistance of this, firm can get attention of numerous individuals fro its current marketplace. In this approach, risk is low because the administration of the company also familiar with market trends and behaviour of consumers. 

On the basis of preceding suggestion a strategic management plan for Samsung is being developed that describes objectives, tactics and strategies in context of product development option. With the assistance of it, the employees examine the details about forthcoming time aims and objectives and operate business of the company in term of accomplishing them (Lasserre, 2017). The company make innovation in its products in term of launching “Holographic Phone” that are foldable and easy to carry.  The components of this plan is described as under:

Objective

The smart objective of this strategic engagement plan are mentioned as under:

  • Samsung is adopting product development option to maximise the sales of the company by 8% within 1 years.
  • The company is trying to improve sales and customer base by by launching its new product “ Holographic Phone” in its present market.

Strategies

At the time of launching a new product in marketplace, it is crucial for the firm to frame effective plan of actions. So that set aims and objectives can be accomplish in successful manner. The strategies that are considered by Corporate strategy manager of the firm are mentioned as :

Market research

During the time of launching new product in the marketplace, it most essential to conduct market analysis to get and collect information about the needs, demands of customers (Madsen and et. al., 2017). With the assistance of aggregated information new product can be developed in crucial way.

Publicity activities

When a firm launched a new commodity in market then it is essential to the firm to use effective tools and techniques of promotion to create awareness about new product. By using different marketing channels like social media, web advertisement, TV, news paper  and others. The firm can familiar number of customers about its new production.

Tactics

It refers to those plan of actions and plan that are used and implement by administration of organisation in context of resolving them. Some of them are defined as follow that are highly focused by Samsung:

Focus on technology

In reference to launch a new good and commodity in market, the corporate strategy administrator of Samsung has determined that latest and effective techniques will be focused to devise a product attractive. It will assist to accomplish the set goals of accomplishment of growth and development.

Gathering finance

It most crucial to arrange and manage monetary value for new products that are launched in its current marketplace. There are several sources of funds like bank loan, angle investors, crowdfunding and many more that can be chosen by Samsung to raise fund in term of manufacturing new product.

When a company is want to  make development and growth in its business then it is crucial to utilise and implement different tools and techniques like PESTEL, SWOT, Porter's five force, VRIO etc (McKiernan, 2017). all these conceptions and models assist in identifying the way to perform the business activities and operations. By implementing all of them a strategic management plan is being developed by Corporate strategy manager of Samsung. The major purpose of it are accomplishing growth and maximising profit margins. The plan of action that can be used uin this plan are market investigation and promotions. Tactics that are determined by the firm are gathering finance and technology.

CONCLUSION

From the above discussion, it is analysed that strategic management is an important part of the company and it is also essential for managers to have strong strategies so that goals and objectives of the company are attained in short period of time. There are different models used for analysing the  internal and external factors that are affecting business of an organisation. PESTLE and SWOT are used for analysing the capability of an organisation while working.  Porter's Five Forces model is used for knowing what are the factors within market which have impact on business operations and activities. There are some theories for managing the strategic management within an organisation.

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