Table of ContentsCompany StrengthsMacro EnvironmentVRIO Analyzes of Samsung CompanyUsing KSF and VRIO to Determine Samsung's WeaknessPorter's Five Forces ReactionPorters Diamond ModelSWOT AnalysisGlobal businesses face various challenges that, from in some way, compromise their operations on the global market. To better understand how global businesses operate, this essay examines the operations of Samsung. The main objective of this discussion is to clarify the locations in which Samsung operates a number of its employees and the profit margins of the organization. In addition to addressing the mentioned issues, the essay will use precise tools to analyze Samsung's strengths and weaknesses. Specifically, the easy will provide an analysis of Samsung's operations based on VRIO, PESTLE and SWOT analysis. Additionally, the trial will provide analysis of the macro and microenvironments in which Samsung electronic devices operate. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Company Highlights Samsung electronics were invented in 1969 in Daegu, South Korea. After its establishment, Samsung showed an overwhelming growth rate which allowed it to expand to other countries and achieve multinational status. Specifically, the organization has factories and a sales network in 61 countries around the world. Considering the scope of Samsung Electronics' operations, the organization employs approximately 308,745 people across the world. Although the organization, like other global companies, faces operational challenges, as of October 2017, its market capitalization stood at $372.0 billion (Lee, 2006). The value shown represents an increase in net profit that the company had achieved in 2016. Precisely, in 2006, Samsung recorded a consolidated revenue of (Republic of Korea) 53,330 billion won and an operating profit of 9.22 trillion dollars. Samsung's overall performance in 2016 showed revenue of 201.87 KRW and profit of 29.14 trillion. Despite the profits seen, Samsung Electronic has been subject to a major operational challenge from global competition. By using key performance indicators, the challenges faced by the Samsung company can be broken down into less complex and easy to understand measures. Some key performance indicators that can be used to describe Samsung's performance are, for example, the earnings per share rate, the number of intercompany transactions within related parties and finally the number of transactions between joint venture members. Using the key performance indicators mentioned above, it can be stated that despite the organization facing a global challenge, it showed an increase in earnings per share of 24.9 in 2011 compared to 2010 (Lee, 2006) . Additionally, the organization number of the intercompany transaction within the related party circles. For example, the company involved in the analysis of the inert joint venture with companies such as Coming Precision Glass and Siltronic Samsung Water. The biggest challenge that Samsung Electronics has faced over time is the high level of competition from its rival companies Apple and Sony. Following the challenges Samsung is currently facing, the company has adopted various trends that have enabled it to maintain a competitive edge over other organizations. Recently, Samsung invented curved television technology which put it in a better competitive position than other organizations. Despite the use of the mentioned innovations, Samsung is leading abattle against the invention of other phone manufacturers such as Apple, Huawei, Lenovo and +Motorola. It is important for any business or organization to identify the elements of the macro environment as any change. in the economy associated with electronic products would affect many organizations. The Samsung electronic devices are used in many parts of the world, including Asia, the United States, and Europe. All organizations are affected by the aspect of the macroenvironment because they are able to determine the purchasing power of the consumer and their ability to satisfy their desire for material goods. The natural elements of the macro environment should not be neglected by any business, especially those operating in the electronics industry where heavy metals such as cadmium and mercury are applicable. PESTEL analysis thus focuses on all external macro environments in which the business operates and in most cases; they are uncontrollable by the company. Macro Environment There are many external factors that influence the electronics industry globally, one of them being the political environment. The influence of politics affects many businesses globally, as certain regimes support a certain brand in their country. Other companies are even forced to remove certain gadgets in certain countries due to political tensions. The social environment is another trend that is evolving globally, as new services and technologies change the needs and wants of many customers around the world. The main challenge facing the electronics industry is that many people find it difficult to use products appropriately, more so new gadgets such as tablet phones (Nuovo and Salazar, 2015). Many people need to be trained in the use of various electronic devices, which remains a huge problem for the industry. Furthermore, the legal issue is another factor that affects many companies in this sector when marketing their products. Samsung electronics faces many challenges related to the elements of the macro environment, so any organization must take necessary steps to overcome these challenges. The micro-environment of any business involves all nearby entities that interfere with the effective delivery of services or products. Having a supportive internal environment is essential for any business as it increases productivity and positively benefits the business. Stakeholders as members of the microenvironment in most cases directly affect the business. The profits made by the company sometimes influence the stakeholders, and through voting, they influence the company. Even though stakeholders are part of the short-term financial gain for any organization, their demands for profits and excessive control can affect the organization's practices, employees, products, and services. Additionally, the industry needs to be careful with the media as the media can benefit or destroy the business. Thus, an organization must create a positive working relationship with the media in order to promote advancement and reduce the impact created by a negative event on their status (Nuovo and Salazar, 2015). Suppliers remain one of many factors that determine the direction of a business and, therefore, a supplier's behavior can directly influence the operation of a business. For example, if the Samsung product supplier provides poor quality service, this can in many cases increase theproduct quality or delivery times. Having a close relationship with a supplier is the only way to guarantee the security and competitiveness of the company. Employees working in any organization are the backbone of the business and a business that has efficient employees remains competitive in the market. It is important to employ staff with the appropriate experience and skills. The process of having effective employees should start from the recruitment stage and progress to an employee's employment through continuous promotion and training opportunities. In the service sector, marketing in which Samsung operates, development and training play a vital role in gaining a competitive advantage. If a business operates with staff without skills, motivation or experience, it can affect customer service or sometimes sales. Another microenvironment that affects the success of a business is its customers because all businesses need customers. Any business marketing plan should be planned to attract and retain customers through products that meet their “wants and needs” and exceptional customer service (Nuovo and Salazar, 2015). Globalization, which is the merging of people with global markets, is perhaps the most important and unavoidable economic expansion of the late 20th and early 21st centuries. Globalization impacts various internal factors that affect the business as it acts as a double-edged sword, one of which can be detrimental and beneficial to the industry. Companies must therefore be equipped to deal with such effects and attempt to exploit global market prospects while managing prudently. its intrinsic coercions. Value chain analysis appears to be a difficult model to replicate and provides a substantial competitive advantage to Samsung. The most relevant variables for analysis in this situation include personalization, technology, quality and brand. An organization's history is a relevant factor that supports its brand equity. The brand value factor is mainly calculated based on the number of years in business. On technology, the design rule is applied to measure technical competence. For quality, better process engineering and R&D results in improved quality products. The weight of Quality is measured using the company's level of investment in R&D. Overall, compared to its industry competitors; Samsung has the highest VC. When discussing with venture analysis, Samsung is both a value and cost leader in the market, which ensures that it is able to create the most buyer and business surplus high in the sector it controls. As is the case with any other leading company in the market, cost and value are important to Samsung's presentation. Samsung Company VRIO Analytics Samsung has numerous capabilities and resources that provide a sustainable competitive advantage over its competitors based on VRIO analytics. Various threats from competitors, and even more so from China, could be greater if they catch up with the value factors in the category of temporary modest and continuous benefits. This mainly involves various factors such as product mixing/customization and quality capabilities and manufacturing capacity. The analysis highlights the organization's values ​​in terms of intellectual property and technological advantages in their cutting-edge products. The importance of the factors is that they prevent imitation by other new entrants into the market and therefore the factorThe company's reliability and quality prevents customers from switching to competing products. A VRIO analysis is a complement to the PESTLE analysis which examines the macro environment. of an organization. Using VRIO analysis, one can know the state of a company from its internal situation by examining its resources, competitive implications and the possibility of improving the organization's environment with the aim of improving strategic management of the organization. The best way to evaluate Samsung electronics is to use six strength models. A combination of the six forces model and VRIO analyzes helps identify the company's threats and opportunities in the market. The industry competition of the company under consideration indicates that there is medium to high competition since, despite having many competitors, Samsung has become a leader in the e-commerce market (Australia, 2016). Samsung Electronics' VRIO results indicate that the organization has a competitive advantage in the DRAM market, a fact that can be proven by the amount of R&D capital and the strong leadership exercised at Samsung Electronic. It is important to mention about Samsung Electronics that the organization makes use of a human relations management strategy that gives employees the opportunity to participate in ethical decision-making within the company premises. The use of a human relations management strategy has impacted the Samsung positively because through it high levels of productivity are guaranteed, employees are given the opportunity to participate in ethical decision-making and, most importantly , a feeling of belonging is inflicted on employees. A review of Samsung Electronic's VRIO analysis indicates that the organization's resource capacity is partly fair compared to its competitors. As was noted in the latter sections of the essay, Samsung electronic devices are subject to high levels of competition from other mobile phone manufacturers. companies such as Apple, Huawei, Lenovo and +Motorola (Australia, 2016). Even though the companies involved are managed differently from Samsung, they display an average level of competition for Samsung. For example, the prices of products from the mentioned companies are cheaper than gadgets manufactured by Samsung. Take the case of Sanyo and LG companies which enjoy better global recognition than Samsung, they have a better market position than Samsung, which presents a competitive disadvantage for Samsung. Although Samsung is subject to the mentioned competitive strengths, the organization's competitors suffer from a major weakness which, in turn, has ensured the dominance of the Samsung company in the market. For example, Apple products are very expensive compared to the products offered by the Samsung company. Additionally, the compatibility of Apple products compared to Android products made by Samsung is relatively low. Using KSF and VRIO to Determine Samsung's Weaknesses Using the tools mentioned, it is clear that although it is a global organization, Samsung has many weaknesses that if not addressed quickly, it will can lead to the total failure of the organization. The main weakness that Samsung faces is the lack of operating system and software. The development of such software subjects the organization to indefinite losses due to the high cost of their development. An additional weakness Samsung faces is focusing on too many products. Samsung is losing out because it is losing focus due to competing with too many companies (Australia, 2016).Compared to products offered by Chinese companies, Samsung products are expensive, which exposes Samsung to cases of too low profit margin. Porter's Five Forces Reaction Porter's Five Forces in relation to Samsung electronics revolve around the five stages present in the industry. as it aims to dominate or control the global market as management steps in to improve innovations and production. Competitive rivalry is one of the strengths of the carrier in which Samsung is expected to look at the type of competition that exists at all levels. Samsung, as we saw previously, manufactures a variety of brands and for this reason there are competitors in all sectors of its production. The first competitors that seem to be giving Samsung management a hard time are Apple Inc. which has gone so far as to use them in violation of innovation and property rights (Dögl, et al, 2915). The second group of competitors in the consumer electronics sector involves LG and Sanyo electric limited, which have been around as long as Samsung Electronics. Samsung in this competitive field has been ahead of its competitors as they have improved their electronic production style to suit their markets and target customers across the world. The second formula of the five forces of the carrier is the power of the supplier which has allowed Samsung products to be used even in remote areas of the world due to the ease of movement of their products by their suppliers. Samsung electronic products are reasonably priced, which means they have good business relationships with suppliers. The third strength of the carrier is purchasing power and for Samsung electronic devices it is strong because their products are well accepted by many consumers at all levels and because of the variety of products they produce. The fourth force of the carrier is the threat of substitution and when it comes to products that compete with Samsung electronics, they must continue to improve the products they produce, lest they lose the market share they enjoy through the world. Porters Diamond ModelPorter's Diamond Model also aims to improve the business advantage of any organization and for Samsung Electronics, it must ensure its continuity and long-term survival goals. Samsung enjoys strong support from the South Korean government as it is one of the global giant countries focused on electronics innovation and invention. The firm strategy, structure and rivalry used by Samsung helped the company grow and improve over the years, to the point of posting $175 billion in the year ended 2016 (Porter, 2008). The demand conditions in the electronics and mobile industry mean that Samsung electronic devices still need to work on their innovations as this is where the new frontier of competition lies (Porter, 2008). Consumer demand from different parts of the world ensures that products manufactured by Samsung comply with the guidelines and policies instituted in these countries. The Porter's Diamond Model also focuses on the related supporting industries that are essential to the growth of any industry and how they ensure mutual existence. The proximity of these industries helps them share any relevant information that can be useful to their businesses and in doing so creates a continuous exchange of ideas. In the diamond model, the factor conditions necessary for an industry to grow are assumed to be created, not inherited. There are specialized factors of production that allow industries to operate.