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Samsung Group

Autor:   •  October 17, 2016  •  Study Guide  •  4,354 Words (18 Pages)  •  835 Views

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Executive Summary

Samsung Group is a familiar organization as an electronic device and smartphone manufacturer in the world. With this overall report analyses for Samsung, Samsung is a one of organization that have high capability for handling macro and micro factor.

In macro factor, Samsung will be using Postal Five Force tool explain how it emphasize on the balance of five forces circulating around the organization. Furthermore, PESTEL framework is one of analyze tool for Samsung to emphasize on six external factor (Political, economic, social, technologic, Environment and Legal) to reduce business threats. (Johnson, Whittington and Scholes et al. 2014).

VRIO and SWOT analysis are tools for analyze micro factor on Samsung business operation. Usage SWOT analysis can help concentrates on the most essential factors affecting Samsung business and VRIO use to evaluation dimensions for the organization as well as for its competitors. (Barney, J. 2016)

Company Overview:

Samsung Electronics Co. Ltd. is s a South Korean multinational electronics same as Apple company. Samsung is through extremely complicated on ownership structure with some circular ownership (Gil Kim, Keon Han, Minseok Sinn, Hyung Cho, Ray Kim .18 June 2014)

Samsung Electronics Co. Ltd

Main Headquarters

Suwon, South Korea

Services

Manufacturers and producers in home electronic appliances, electronic appliances, laptops, mobile phones, tablets, and relevant electronic products such as LCD, LED panels, chips and etc.

Working Industries

Manufacturers, Engineering, Customer Service, Financial Services, Technology and Telecommunication Services, Research and Development, Electrical and Electronics parts producers

Number of Employees

393,305 (2016)

Area Served

Worldwide

Operating income

₩26.410 trillion

Profit

₩19.060 trillion

Total Asset

₩192.179 trillion

Revenue (in millions of Korean won)

               ₩ 200,650,482 (2015)

Revenue (in thousands of USD)

USD 177,365,404 (2015)

Source: (Samsung 2016)

PESTEL Framework

Political Factor

  • Samsung product Market demanding will effect by political tension between South and North Korea

  • Country government and political stability will significant for Samsung Operation

Point 1

The political issue and conflict between North and South Korea is exist from June 1950 and their military threat had reached particularly a war level according Business Insider Reporter (Business Insider 2016). By this threat, all of company under Samsung Korea Group may consider to shut down once the war breakout between North and South Korea and it will bring huge destruction on the Samsung operation

Point 2

Country government and political is a one of crucial for Samsung Operation. Some of least development country – Latin America and Africa either wars country – Syria will be bring huge impact for Samsung operation. Therefore, Samsung company should make a decision before expand business operation in those countries are instability political.

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