(BS-Assignment 1 Final)

8/10/2019 (BS-Assignment 1 Final)

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Mu NwetKhintZaw HND -1262 Business Strategy

Assignment 1

Contents

1. Organizational Audit for Samsung Electronic ....................................................................................... 2Process of the Company ........................................................................................................................... 2

Benchmarking of the Samsung ................................................................................................................. 2

SWOT Analysis of Samsung Electronics Company: ....................................................................................... 3

SWOT Analysis for Samsung ..................................................................................................................... 5

Strength .................................................................................................................................................... 5

Weakness .................................................................................................................................................. 5

Opportunities of the Samsung Electronics Company: .............................................................................. 5

Threats of the Samsung Electronics Company: ........................................................................................ 6

SWOT Conclusion & Recommendation ..................................................................................................... 6

Value Change of Samsung ......................................................................................................................... 7

Value System ............................................................................................................................................. 7

2. Environmental Audit for Samsung Electronic ....................................................................................... 8

Myanmar country brief ................................................................................................................................. 8

Political Issues in Myanmar....................................................................................................................... 8

Myanmars Economic Policy Priorities ...................................................................................................... 8

Customers for Samsung in Myanmar........................................................................................................ 9

Supplier for Samsung in Myanmar ............................................................................................................ 9

Competitors ............................................................................................................................................. 10

New Entrance .......................................................................................................................................... 10

Substitute Products ................................................................................................................................. 10

3. Stakeholders analyze for Samsung Electronics ...................................................................................... 11

Summary ..................................................................................................................................................... 13

References .................................................................................................................................................. 14


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1. Organizational Audit for Samsung Electronic

Process of the Company

Samsung Electronics Company not only sells but also manufacturing of the equipment. Before

launching any product they ensure the quality of the product through whole process from getting

raw material, production, transportation, and usage and end-of life disposal. All of these are

adding price, quality, design and function which done for product improvement. Before

manufacturing any product, fast maintain the customer choice and all are doing with

responsibility. If customer is not satisfied in the product, the company has to ensure the warranty.

Benchmarking of the Samsung

Benchmarking is a technique by which a company tries to emulate or exceed standard

achieved or process adopted by another company or industry generally an exemplar organization.

Type of Benchmarking include

(1)Internal Benchmarking

(2)

Functional Benchmarking

(3)Competitive benchmarking

(4)Strategic Benchmarking

The object of and value of benchmarking are as follows:

(1)To keep up with industry best practice perhaps to negated a competitors operational

competitive advantage.

(2)To enhance the efficiency and effectiveness of the function involved in the benchmarking

exercise.

(3)To reduce the need to reinvent the wheel

(4)As performance indicators to motivate managers: the benchmark standards are

achievable, as other firms have achieved them.


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compare with the other company

Threat

Several of competitors

Competition in the global market can

be tending to price war.

Players in the LCD market, is facing

weakening demand and industry

scenario in this product category.

Samsung Electronics was involved in

the patent litigation lawsuit recently.

Opportunities

The Samsung electronics company has the

ability to form strategic alliance in the world

market while according the consumer

perspective.

This reflects the great attitude of the company.

Myanmar telecommunication market is

growing recently.


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SWOT Analysis for Samsung

Strength

Samsung Electronics Company is a part of Samsung group which is one of the leading

manufacturing technologies of home alliance product in the world. This success may be result of

the following.

1. Product Innovation

2. Good product development programs

3. Extending the product range to suit changing customer needs

4. Marking Skills

5. Strong Customer relationship management

6.

Product quality and reliable service

Weakness

Samsung have a return to unit problem for Phones and Microwave Oven product in

America and China. It has a great impact for Samsung. Products might have shorter life cycle

than past.

Opportunities of the Samsung Electronics Company:

The Samsung electronics company has the ability to form strategic alliance in the world market

while according the consumer perspective. This reflects the great attitude of the company.

Myanmar telecommunication market is growing recently. They should to proper use in this

countries for example; in 2008 0.8 million people used mobile but in 2009 it reached about 1.2

million in India.


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Threats of the Samsung Electronics Company:

Now a day, global market is open, so to make a position of any company makes sure their

completion. In this reason Samsung Electronics Company has more competitive in the business

environment, such as Nokia, LG Electronics, Sony, etc., which faces the negative effect in the

market of the Samsung Electronics company.

Samsung Electronics Company facing the weakening position in the liquid crystal displays

(LCD) flats in the market. According in 2010, fast quarter sell about 154 million amount and

second quarter sell only 157 million amount, day by day decreased the demand that is why these

company takes the low prize. This makes the great effect in their financial position.

SWOT Conclusion & Recommendation

Samsung should choose the long terms strategy for leading market share in

Myanmar. Myanmar is now changing in every ways for better life. People send more money for

electronic devices. Telecommunication system will be change very soon. Myanmar culture will

be change better life style with innovative products. So A strategic planning programs are very

important for Samsung. Samsung should use strength, change the weakness to strength, grasp

the opportunity in Myanmar.


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Value Change of Samsung

Value System

Innovation of the product is the value for Samsung. So Samsung value change is very

important for choosing suppliers, and adds the organizational value change, then add retailer or

dealer value change, and customer value change.

Samsung should manage well the linkages in the value system for Myanmar Market. The

Analysis Value Chain Framework has its shortcomings in not being able to represent value-

adding activities that Samsung might be performing outside of the value chain.

A lot of the value created by Samsung, even strictly in the mobile market, comes from things likebranding and human resources which are not accounted for in such an analysis. Its because of

this that to understand Samsung and its operations from various perspectives. Determining

inbound and outbound logistics and the changes that would result in them for Myanmar and the

new activities added was the most difficult and perhaps vague sections of the Value Chain

because thats not information readily available to the public.

Firm Infrastructure

Human Resource Management

Innovation Development ( R & D)

Procurement

Distribution Channel in Myanmar

Inbound Operation Outbound Marketing Service

Profit Margin

pport

tivities

Primary Activities


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2. Environmental Audit for Samsung Electronic

Myanmar country brief

Myanmar is the largest country in mainland South-East Asia. Located between China, India, and

Thailand, Myanmar lies in an area of dynamic political and economic development. Myanmars

diverse population is estimated at around 60 million, with eight major ethnic groups comprising

over 100 ethnic nationalities.

Political Issues in Myanmar

The progress in Myanmar's political reforms has seen an easing of international sanctions, and

the Myanmar Government has begun introducing significant reforms to encourage foreign

investment, including new land and investment laws and creating special economic zones.

Myanmar is now changing in better way. Now every sanction release to Myanmar. A lot of

foreign invest come to Myanmar such as Coca Cola, Pepsi, big telecommunication services from

the Europe. It can be impact on Samsung Strategy.

Myanmars Economic Policy Priorities

Open the economy to international trade and foreign investment. The government should

lower barriers to trade by eliminating import licensing and converting import bans and

quantitative restrictions into low or zero tariffs.

Promote competition in domestic markets. To encourage the Myanmar to start private

businesses, investment licenses should be eliminated except in industries producing armaments,

toxic products, and similar potentially harmful materials. The Myanmar government is now

engage in open, regular, and candid communication with the private sector to help identify policy

and public investment priorities.


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Myanmar Economy policy, Myanmar is likely to allow foreign banks into the country by

2015 and will also pass a new foreign investment law in the coming months. In 2011 the

government took initial steps toward reforming and opening up the economy by lowering export

taxes, easing restrictions on its financial sector, and reaching out to international organizations

for assistance. Although the Myanmar government has good economic relations with its

neighbors, significant improvements in economic governance, the business climate, and the

political situation are needed to promote serious foreign investment. Now this is the best time for

investment in Myanmar.

For the social and culture factors such as demography , family relationship,

religion , and ideology will all affect consumers responded to the product. The marketing effort

must take account these factor. I want to explain you about Myanmar country social and culture.

The country is divided into seven states and seven regions formerly called

divisions. The population of Myanmar is at present has a population of about 56 millions

Customers for Samsung in Myanmar

Samsung is the No.1 brand in Myanmar. Myanmar people want to spend their money for buying

Samsung products. Myanmar has 70 million people. Every Myanmar cannot be Samsungs

customer, but Samsung should have a strategize plan to persuade for get the more customer.

Every message from a customer presents an opportunity to improve customer satisfaction. So

Samsung should build more relationship with every customer in Myanmar. If customer switching

cost is high, it can be danger for the company.

Supplier for Samsung in Myanmar

Supplier can exert pressure for higher prices. Samsung is electronic company in Korea. In

Myanmar, Samsung do only selling products and service. Samsung supplier will be distribution

network and dealers in Myanmar. If there rely on only biggest distributer, they can able to charge

monopoly. The good thing of get the big supplier, Samsung can distribute the products easily in

Myanmar.


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Competitors

Samsung biggest competitors in Phone are Iphone , HTC, Hwewai in Myanmar for Mobile. A lot

of big electronic companies come to Myanmar. Myanmar people like iphone more because of the image

quality. HTC and Hwawai are the cheap brand, so everybody can buy easily. Their market shares are also

really big in Myanmar. For the Electronic product, Myanmar has familiar with Sony, Media, and others.

Samsung competitive actions might take the form of price competition, advertising battles, sales

promotion campaigns, introducing new products for the market, improving sales service in Myanmar

New Entrance

Now Myanmar releases the two main mobile service providers. They are very strong Mobile Companies

so that their alliance mobile company will come to Myanmar. It can impact on Samsung. Now Myanmar

Electronic market in booming, so lot of Electronic companies around the world wants to invest and

Myanmar. They are now starting the market research and make survey in Myanmar. When they will come

Samsung will be ready for price war.

Substitute Products

Electronic things are everywhere. If people dont want to use Samsung, they will use another

cheaper product from China. China electronic market share are big in Myanmar because the price are so

cheap. So people who cant get the real product from Samsung, they will chose to buy Samsung made

by China. It can be impact on Samsung.


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3. Stakeholders analyze for Samsung Electronics

Organizations have a number of different stakeholders and their goals may be in conflict with

the requirements of the shareholders/owners. These are outlined in the table below.

Stakeholder group Goals and expectations

Shareholders/Owners Share price, profitability, economic benefits, survival

Managers Promotional prospects, status and power

Employees Remuneration, job security, working conditions, training

Suppliers Fair price, continuity of relationship

Customers Quality, price, value, service

Community & SocietySocial responsibility, actions in line with regulations and

consumer expectations

Samsung have to create value for shareholders/owners, while at the same time, satisfy the other

stakeholders expectations. Clearly this may cause conflicts withinOrganizations and is often a

difficult balance for the strategic marketer to achieve.

In the past, marketers have tended to pursue purely marketing objectives, such as sales growth,

market share, customer satisfaction and brand recognition. None of these marketing objectives

necessarily translate into increased shareholder value and, as a result, marketing has suffered

from a lack of perceived relevance to true business value.

A long-term concern of many in the marketing profession is that there are too few marketers at

board level and, therefore, they are not really in the best position to argue the marketing case.

Research undertaken by PA Consulting found that 97% of Chief Executives believe that long-

term shareholder value creation is their primary objective so, in theory at least, if marketers are

better able to develop strategies that deliver increased shareholder/owner

value, they should be better positioned to achieve representation on the board, where they


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will be better placed to influence strategic decision-making.

In 2011, Samsung Electronics achieved record-breaking sales despite the worldwide recession

and increased pressure from competitors. We realized sales revenue of KRW 165 trillion and

operating profit of KRW 16 trillion and maintained a strong financial structure, with a liability

ratio of 32.1% and capital adequacy ratio of 75.7%.

Samsung responsibility is to express an opinion on these consolidated financial statements based

on audit. We did not audit the financial statements of certain subsidiaries, whose financial

statements represents 7.6% and 9.2% of the consolidated total assets as of December 31, 2011

and 2010, respectively, and 20.4% and 23.2% of the consolidated total sales for the year then

ended, respectively.

Those financial statements were audited by other auditors whose reports thereon have been

furnished us, and our opinion expressed herein, insofar as it related to the amounts included for

those subsidiaries, is based solely on the reports of the other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the

Republic of Korea. Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in

the financial statements. An audit also includes assessing the accounting principles used and

significant estimates made by management, as well as evaluating the overall financial statement

presentation. We believe that our audits and the reports of the other auditors provide a reasonable

basis for our opinion.

In 2012, Samsung Electronics will continue to bring greater value to our customers.


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Summary

Samsung Electronics wide product line-up ranges from setproducts to components,

encompassing semiconductor, TV, and LCD and LED display. In the global market, it has been

presenting a successful growth in a tough business environment. For this reason, Samsung can be

referred to as the benchmark for companies in development of successful business strategies.

Samsungs sales reached a new high in 2011 despite recession in the IT industry. It recorded

KRW 165 trillion in sales which increased KRW 10 trillion from 2010.

Each of communications, semiconductor and TV business presented a strong performance,

driving the sales increase. Its mobile handset production surpassed 300 million units last year. In

particular, smartphone shipments reached 100 million of which Galaxy series made a large

contribution. The semiconductor segment continues to be the cash cow for the company with

improved product mix although DRAM price fell to a record low.

The digital media and home appliance business tripled in profit earnings thanks to the popularityof LED TV. Samsungs TV business enhanced profitability by being focused on premium LED

TV products and the communications business posted a new record in terms of shipment by

strengthening smartphone product line-up.

Despite the successful results, Samsung is placed under pressure to seek new growth engines

because its current business structure is faced with various challenges and it needs to maintain a

steady growth. To achieve the goal, Samsung will make a huge investment in five strategic

businesses by 2020.

In line with that, corporate restructuring has been conducted through merger, creation of new

business segments and separation since July 2011. Samsungs restructuring efforts has three

goals: first, to fill the entire product line-up with world-best products; second, to improve


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relations with the global partners including Sony and ; and, third, to shift its paradigm to a

Software Driven Company. In 2012, corporate restructuring will be focused on separation of

set product business and component business, enhancement of competitiveness in software and

content businesses, and preparation for future businesses. It is expected that Samsung Electronics

will evolve into a new company when restructuring is completed. On the other hand, businesses

struggling with low profitability due to aggravating business environment or immature market

demand will be integrated withothers for an efficient management. For instance, LED

displaybusiness was integrated into component business on April 1, 2012 and LCD display will

be merged with SMD to concentrate on OLED display production.

References

1. Burma (Myanmar): Politics, Society, & Economy. 2013. Burma (Myanmar): Politics, Society, &

Economy. [ONLINE] Available at:

http://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.html. [Accessed

31 March 2013].

2. SAMSUNG Ireland. 2013. SAMSUNG Ireland. [ONLINE] Available at:

http://www.samsung.com.[Accessed 26 March 2013].

3.

Annual Report - Financial Information - Investor Relations - About Samsung - Samsung.

2013. Annual Report - Financial Information - Investor Relations - About Samsung -

Samsung. [ONLINE] Available at:

http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Ann

ual2011.html.[Accessed 26 March 2013].

4. Burma (Myanmar): Politics, Society, & Economy. 2013. Burma (Myanmar): Politics,

Society, & Economy. [ONLINE] Available at:

http://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.html.

[Accessed 27 March 2013].

5. 4. Business Strategy Book ( BPP Learning Media 2013)
http://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.htmlhttp://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.htmlhttp://www.samsung.com/http://www.samsung.com/http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Annual2011.htmlhttp://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Annual2011.htmlhttp://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Annual2011.htmlhttp://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.htmlhttp://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.htmlhttp://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.htmlhttp://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Annual2011.htmlhttp://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/IR_Annual2011.htmlhttp://www.samsung.com/http://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.html

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(BS-Assignment 1 Final)