Samsung's History and Evolution

Task 1:

a. Nature, background and history of selected business:

Samsung is a multinational conglomerate company which has headquarter in Seoul, South Korea. It consists of different affiliated businesses which are united under the brand, Samsung. It is one of largest South Korean conglomerate that is founded by Lee Byung Chul in the year of 1938 as the trading company. This business is started in the 1938 with only 40 employees in a small ware house in Taegu, South Korea. As stated by Leach (2017), even after the Korean War, Lee Byung-Chull did not lose hope, rather he had invested more in the textile and developed the huge woollen mill in Korea. During the next three decades, Samsung has been diversified into several areas such as securities, retail, insurance and textile. However, Samsung has established its business footprint into the electronic industry during the late 1960s. Then it entered into the shipbuilding and construction industry. Other subsidiaries of Samsung are Samsung Electronics, Samsung C&T Corporation, Samsung Heavy industries, Samsung life insurance and Samsung SDS (samsung.com, 2018).

b. PESTEL analysis to meet organisational objectives

As stead by Rau (2012), PESTEL analysis is important tool in determining the macro environmental factors that affect the overall business decision and marketing strategies of an organisation. This analytical tool assist marketers to understand the possible impact of different macro environmental factors such as Political, environmental, social, technological, economical and legal factors on the overall activity of the organisation. By using PESTEL, Samsung marketers can identify the positive as well as negative influence of the above-mentioned factors on its strategy and business which will assist marketers to direct their workforce towards the achievement of objectives.

By analysing the political factors, Samsung can understand how policies and political decision can affect the overall business objectives of this company. After the Korean war, the political changes and reforms affect eth Korean peninsula which intern affect the different multinational conglomerates such as Samsung. Moreover, In African country, Latin America and South Asian country, Samsung faces several political pressures due to taxation, political agreements and contracts (samsung.com, 2018).

Economic slowdown during the year 2015, affect the global business spectrum, in which Korean multinational companies like Samsung suffers from financial uncertainties. According to Morgan (2018), changing monetary policy and high degree volatility in the emerging stock markets affect the overall business activities if global multinational conglomerates. Due to the global economic slowdown in 2015, Korean economy also faces several financial difficulties that affect the business process of Samsung’s Shipbuilding and construction units. On the other hand Samsung believes on increased level of international business and FDI that improve the overall economic progress of this company

Analysis of social factors assists Samsung marketers to understand the current socio-economic trend in the community. For example, now-a-day, android smart phone are top preference for consumers. Samsung has introduced Galaxy series of smart phone that have such feature and apps that has satisfied the needs of consumers. Therefore, the recent galaxy series of Samsung are highly selling Smartphone in the world (Dudovskiy, 2017).

By analysing the technological impact on the business, Samsung can determine the strength and drawback of their products and service (Lumpur, 2016). During the 21st century technology has influence the every aspects of business by improving the quality of product and service. Samsung believes in using technology in order to make innovating, research and evaluation on the current market trend and customers preferences that assist them to introduce the best Smartphone, electronic items in the global market.

Environmental factors are important part of PESTEL, which assist marketers to understand the actual environmental trend in the community. Today’s customers are more conscious regarding the sustainability and recycling. Therefore, Samsung marketers focuses on saving energy as well as minimizing the carbon footprint during the manufacturing the different products.

Analysing the legal factors assists marketers to understand the criteria of different laws and act that are applied on them while operating the business in the domestic as well as in the overseas country. Samsung marketers need to consider the taxation acts, agreements and business related laws while operating in a country (Aishyah, 2013). On the other hand, Samsung also focuses on the different labour laws and acts while appointing labour in oversees country.

Task 2:

a. Impact of globalisation on business:

According to Stevens (2018), globalisation is process of integration as well as interaction among people governments and companies across the globe. This system enables the market leaders in different countries to exchange, share and send important information regarding current market trend, customer preference and recent business processes. Globalisation also influences the business process of Samsung. For Example, Sunday Greenpeace had conducted the press-conference with Samsung regarding its defective project Galaxy Note 7, which interfere with the international marketing reputation. Globalisation has helped the Samsung marketers to convey the message that Samsung is now able to resolve the issues by introducing the new smart phone in the market. Through globalisation, Samsung can aware people regarding the ‘Disabled Scheme’ that has taken by its marketers to get rid of the disabled smart phones and focus on the environmental sustainability and safety (samsung.com, 2018).

b. Impact on technology in operation the daily operation:

According to Brown, (2016) technological advancement is associated with the revolution in the electronic market. Samsung focuses on introducing new electronic devices and sets to make perfect connection with the new product users. Moreover, this company always design its websites, products and services based on the current requirement of its service users. Technology assists Samsung to offer different apps, software’s, online storage and other facilities to its users. Moreover, through using strong network and internet connection, this company is able to offers its users more connected devices. Through using online connections and Samsung marketers become able to make strong connection with consumers across the entire globe. Moreover, through using network, Samsung can connect itself with global business framework, in terms of sharing business related information among the global market leaders (samsung.com, 2018).

Task 3:

a. Identify targeted customers of Samsung and discuss the necessity for this company to understand the customers:

According to Thai and Turkina (2014), for each organisation, it is important to set the target market as well as target customer. Setting specific target customer assists Samsung to standardise and design its product and service based on the requirement as well as interest of those particular customer categories. Samsung has classifies the target customers’ into three main categories:

Mobile and Communication:

Women and Men with age group 18-65

Married or single couple, teenagers, young professional families and people and workers

Device solutions:

Men and Women with age group 25-60

Single, married and workers

Consumers electronics:

Women and Men with age group 25-65

Married, single and workers (samsung.com, 2018)

Knowing about the target customers is paramount to Samsung in order to get the unforeseen scenarios that can occur during the dealing with electronic products (Dudovskiy, 2018). Samsung focus on the preference and interest of its target customers to understand their fashion sense and requirement, based on which marketers can modify their products and services. Understudying about customers, assist Samsung marketers to upgrade as well as improve the marketing strategy and operation in order to meet customer demand. According to Cavka et al. (2015) customers are important for any organisation, to understand the usefulness of its product and service. For Samsung, its supporters and customers are significant that assist the marketing team of Samsung to innovate new strategies and technologies to introduce new electronic devices in the market that can satisfy the needs of young people in the market. Samsung offers customers with live chat service, through which its customer care executives provides instant massaging support to customers in order to answer all their queries. Moreover, customers can contact with Samsung’s marketing executive to send a technician into customer’s house in case of any default or error in the device (samsung.com, 2018).

b. Two ways that Samsung uses to attract its customers:

Samsung uses two important ways such as Advertisement and sales promotion, to attract the customers. As stead by Lumpur (2016), advertisement is paramount to implement the marketing mix into the organisational framework. Samsung advertise its two famous products such as galaxy series and Note smart phones, which are highly preferable to the customers. Advertising strategy of Samsung is based both on the pull and push strategy. In case of the push strategy, this company focus on advertising by investing huge amount into the traditional advertising strategy. The example of Samsung’s traditional advertisement is celebrity endorsement as well as spot placement of different major promotional events. In case of the pull strategy, Samsung uses online platform and social media such as Facebook; YouTube and Twitter to build strong relationship with its customers (samsung.com, 2018).

In case of sale promotion, Samsung offers free products to its customers with buying of other products. Moreover, by offering high range of discount and cash back offers, Samsung promote its selling of different products. For example, Samsung has offered free memory card with 64GB data and Wireless Charge Convertible with buying Galaxy Note 8 within the period 24 august to 24 September, 2017 (samsung.com, 2018).

Task 4:

a. Role of Ethics in Business:

As stated by Dudovskiy (2018), organisation ethics is one of the most important aspects in operating any business that represent the integrity, transparency and compatibility of the organisational staffs. Samsung believes on maintaining transparent as well as fair business operation, that will provides equal opportunities to all customers as well as to all stakeholders. Stakeholder importance is the centre of the business of Samsung, which assist its staffs to maintain synergistic cooperation with all its stakeholders. Samsung emphasizes on improving the quality of the customer’s life. Moreover, the Samsung marketers always prioritise the environmental sustainability in order to maintain the health and safety of the community. Moreover, Samsung focuses on corporate social responsibility to offers services and assistance in order to promote the community welfare.

b. How Samsung combat the Co2 and carbon emission:

Samsung has proved itself as highly successful in combating the emission of Co2 and cabon. It has own Environmental Award for developing 860 Evo 4TB SSD, the high performance drive that reduce the carbon emission in considerable amount (Aishyah, 2013). Samsung V-Nand technology flash makes this company able to own Best in Product Carbon Footprint Prize by the Carbon Trust of UK. The ATB SSD compound in 512 Gb V-NAND is able to reduce the 240 kg carbon emission per annum as compared to the 8TB SSD product. With formation of DDR3 DRAM server module in 2009, Samsung own its Low Carbon Footprint Certification. By manufacturing of flagship Galaxy Smartphone, Samsung has contributes its huge efforts into maintaining environmental sustainability by reducing the carbon level in the environment (samsung.com, 2018).

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