CSR activity carried out by Samsung (Compare)

In order for Samsung to stay gain their competitive advantage; they have utilized their resources
to maximize their output or end products. Resources such as human resources, money,
machineries and materials are being strategized to stay ahead and be the leader the global market.
The first advantage Samsung has created was by developing the human resources. The company
acknowledged the need for the employees to work in conducive working environment. Samsung
created a family-friend working environment, which allows the team members participate in the
developing and improving ideas. Samsung even sponsored their employees for MBAs and PHDs
program to develop and enhance their human resources skills. As a result of years of human
capital investment, Samsung has a high concentration of skilled engineers and labour. The
company are able to management the human resources and knowledge which will directly
impacted Samsungs operation by producing a higher productivity and quality of the product s
and services.
The low cost strategy by Samsung allowed them to be very competitive in the global market.
Samsungs ability to negotiate with supplier, gave them the advantage of cost raw material.
Samsung won several awards every year since 1995 for their performance, quality and reliability
of their products and services. Hence, this gave the advantage for them to negotiate with
suppliers to supply them the raw material at the lowest cost possible or even at premium.
Samsungs high adaptation cultural to new and fast changing market demand made them an
aggressive market reader.
As part of their competitive advantage strategy, Samsung setup a centralized research and
development (R&D) facilities. Most of their competitors have their R&D facilities and
productions facilities geographically scattered around the globe. The centralization gave them to
opportunities to continuous explore and exploit greater products and invention for new
technology, as well as innovation for existing technology. The Washington Post on 12 November
2012, in the article Apple vs. Samsung: battle of the Innovation Strategies, was number 4 in the
10 most innovative companies after Apple, Google and 3M. However Samsung was at the
number 6 spot in the top 10 R&D spender compared to Apple not on the top 20 list. For example,
Samsung invested heavily on the new bendable screen technology for smart phone. They planned
to launch the new product in 2013, where other competitors are still developing to commercialize
the new technology
Most of the innovation for the Samsung products shared the same core design. Samsung flexible
product line able them to materialize those ideas to end products with minimal cost occurred. For
every new invention and innovation, Samsung does not need to set up a new facility. The results,
higher yield against the cost of the production. Lower cost of productions allowed Samsung to
offer attractive and competitive price for the consumer. The relatively lower cost gives lots of
rooms for the pricing strategy to work with.
High adaptation to adjust the course of production, able Samsung to produce and broad market
their five major products division of Semiconductor, digital technology, telecommunication,

LCD and digital appliances. The results, production variety of product mix with lower cost to
meet the customer demand. Offering the market with variety or multi product segment, gave
Samsung the advantage to other competitors. Example, by providing the varieties of models and
product features, Samsung are able to tab to a larger market segment compare to Apple or Nokia.
Centralization of R&D also gave Samsung the advantage to keep their intellectual property
within their boundary and mass produce at the same time.
Samsung is an aggressive market reader. They are the early adopters of new technology and
innovation, while their competitors still in R&D progress or even finding the market niche to
commercialize the products. Samsung has an aggressive learning curve, which them an
advantage and ability to read the market demand better than other competitors. As the result they
are able to produce customized products to meet the customer demand. Samsung stable and
strong financial portfolio, gave them the advantage to launch and adopt through aggressive
marketing campaign and promotion. Positions themselves before any competitor does by
identifying the customers need and demand to enhance their lifestyle. The information and data
gathered, along with the close monitoring of the market trend, able Samsung to customize to
customer need. Samsung have a large product portfolio, which cover broad market and at all
level.
Samsung has been in the market since the 60s and has been well established. Acknowledging
and creating the competitive advantage ensure their dominant in the industries. The fact that they
are in the top 5 in smart phone vendor and shipment for 3rd quarter 2012, with 31.3% market
share, proofed that they are the major player in the industry.

Economic Factors
The economy of a country has some factors that can influence in purchasing decisions of end
consumers and in turn the cost of capital of a company.Therefore the company has to consider the
following aspects for decision making:

Inflation
Iinterest rates
Economic growth
Market and trade cycles
Global econimies and trends

Apple's operations and performance depend on worldwide economic conditions. Also, uncertainty
about current global economic conditions, unemployment, and negative financial news could have a
negative effect on demand for the company's products and services. This means that, in the global
markets such as, personal computers, mobile communication devices, digital music and video
devices, and related peripherals and services are highly competitive and subject to rapid
technological change. Also with the global economic conditions, the stock price of the company
could be affected.

The global economic crisis had huge impact on Apple Inc. The inflation rate went high and so did the
unemployment rate in the country, and since Apple Inc products were viewed as luxury products, the
customers started pending less on them. US dollar value keeps fluctuating, and thus again which
have a bad impact on Apple Inc products, however the company has purchased itself foreign
currencies and thus, the economic effects on the company are minimized. Thus, Apple Inc revenue
has increased in the global market (Apple Inc 2012).

Weaknesses of Apple Inc UK:

High Price: Apples products are higher in price, even though many of consumers want to use
Apples product but they cannot afford to buy one. Apples competitors have advantage of them they
introduce and sell their product cheaper in price than Apples. The recent innovation of Apple is iPad
which cost minimum of 600 as of the same product launch by Samsung which cost 200, so Apple
loses its customers keeping its high prices.
Weak Relationship: Apple relationship with Microsoft and Intel is not strong as it should be
previously Microsoft products were not useable with Apple product recently they started working with
Microsoft but till now they are not successful to make a strong relation with Microsoft. IBM used to be
the chip supplier to Apple but they moved to Intel in recent times which could cause confusion to
Apples user.
Weak Presence in Business Area: Apple have only 29 retail store operating in United Kingdom,
Apple depend on other retailers e.g. Argos, Currys, PC World and different mobile networks to sell
its products e.g. music players, mobile phones, personal computers. Apple does have online store
but still there are many consumer they do not preferred to use online store. When Apple launched its
iPhone it was available to consumers on the purchase of one specific mobile network.
The Product Life Cycle: The Apples product life cycle is very small so the revenue is mostly
depending on its new product or service. Apples products are not consistent if we talk about Apples
iPhone, since the iPhone introduces in 2006 till now there are four different types of iPhone been
introduce it is same as Apples all product and Apples revenue more depend on its new product.
Less Attraction towards Corporate Customers: Apple products do not attract corporate customers
e.g. Apples computers are not in use within organisation or Apple iPhone is not famous among
business people as dell computers has it placed within corporate and blackberry phones has it place
in business people.
Technological Complications: Apples mostly face problems with its software and hardware, the
recent problem with Apples new product was iPhone network signal problems and data sharing
problem with Apples product e.g. consumer do not share their files with other non Apple products.
Above are the few weaknesses of Apples product which affects its profitability and within United
Kingdom Apple launched its product far later than United States in mean time its competitor are
ready to launch its product same as Apple.

Carroll Model
Apple has been committed to the highest standards of social responsibility across its
worldwide supply chain. It has been insist all of its suppliers provide safe working
conditions, treat workers with dignity and respect, and moreover use environmentally
responsible manufacturing processes. We terminate our relationship with those suppliers
which dont respect the code or they refuse to take corrective actions based on audits
("Apple supplier code," 2012). To respect labor and human right. Apples suppliers must
uphold the rights of their workers. Apple does not tolerate involuntary labor, underage labor,
excessive work hours, or discrimination. And as a member of the Fair Labor Association,
Apple is setting a new standard in its industry for transparency and oversight. Moreover,
Apples suppliers must create a safe and healthy work environment for their workers. Safety
equipment, proper ventilation, and emergency procedures are just the beginning. On the
other hand, Apples suppliers must use environmentally sound processes, including
managing hazardous substances, treating wastewater, and limiting air emissions. Its all part
of a commitment that starts with product design and continues through manufacturing and
beyond. Lastly, the most important part for Apple is fostering and enforcing ethical practices.
Apple has established ethics training programs for managers that cover proper recruitment
of foreign workers, record-keeping and documentation of business practices, worker ID
checks and age verification, tracking of working hours, and general management
responsibilities. Apple-designed training programs have educated more than one million
supply chain employees about their rights as workers, local laws and occupational health
and safety (Apple, 2012).

Apples Company ethical issues

There were find out the Apples company have several ethical issues such as chemical related
health problems, bribery, enrol document issues, using fault IDs, and employ underage workers. All
these are seriously impact the stakeholders and shareholders.

Issues of chemical related health

The issues of chemical related health problems were seriously impact the employees health. Apples
Company use any hazardous substance by replacing it with a substances that fall above its normal
conditions of use, is not only dangerous affected employees but also others stakeholders will be
seriously impact. Some of chemicals can cause damage to the reproductive system of employees,
leading to cancers, infertility. For women, it will cause menstrual disorders and damage to offspring.
Manager of Apples Company might also get impact by the chemical issues. Their healths also get
affected by hazardous, and managers feel guilty because their employees were under insecure
conditions. They feel the burden to bared this issues.
Over use of chemical in the products will cause lots of issues for customers. Different ages of
customers may have different health issues. Children are most at risk due to they dont clear with the

safety. Chemical affected children were common issues. Adult healths get affected likes causing
fatigue, death of cell issues and get poisons.
Besides that, due to the Apply Company over use chemical in the products cause lots of health
issues and many of them were seriously impact. Shareholders also were get impact by diminished
their value when Apples Company failure to appropriately account fot toxicity and health criteria.
These issues can impact a company financial health. Those risks that can impact company financial
well being due to failing to take into toxicity and health factors in business assessments.
Shareholders not only lost the funds, in the same times they force to give out money to respond to
the injury claims for health issues. Moreover, shareholders worried the products get ban because the
products chemical already excess the standards. They tend to worries lost of sales.

Bribery issues
Bribery issues occur in the company will cause employees to feel insecure to continue stay with the
organization. This is because the company doesnt have well management causing bribery occur in
the company. Employees feel the organization dishonesty and they tend to leave as soon as
possible. Managers also get impact by bribery issues. Due to mishandle the organization, cause
bribery activity get introduce from somewhere. This is a serious issues for manager, due to they fails
to perform better in company. Manager stressed by this issues and this cause them to feel burden.
Customers notify these issue and they tend to get rejected and run away from the company. This is
because they feel the company is dishonest and irresponsible to their ethical issues. They will find
others better company. Automatically, attitudes of customers and also bribery issues occur made
shareholders tend to worries. Their emotions get affected by these issues because they have giving
out funds to this company. Once bribery issues didnt settle well, affected shareholders lost
everything from the above company. They started to feel loss confident and tend to withdrawal the
funds and leave the company.

Employ underage workers issues

This is the major issues for Apples Company. One of the serious impact of stakeholders is
employees. There are feel their position is insecure. This is because company employ large amount
of underage workers with save large amount of cost, they tend to worry those underage workers
might replace them. Besides that, their benefits also force to share with underage employees, this
causes the violence conflicts in internal organization. Employees feel unhappy and unsatisfied with
the offer of company. Unfair treatment of the company forces them to leave the company.
Manager also facing this issue, due to their overlook of the company employees causing the
underage workers issues affected the company. Managers will feel stressed to protect the reputation
of the organization because the company already employ large amount of underage workers. They
feel hard to take the responsibility in the company, cause them choose to leave the company.

These issues were less impact for customers. But nowadays, customers are intelligent and before
make purchase; they will make the company research. Although this issues doesnt impact them
very well, but customer will not prefer with the above company. This is due to the company is having
an ethical issues; cause them to change their mind set. They prefer to choose others company
rather than an issues Company.
Shareholders also get serious impact on this issue. Once customers do not prefer with their
company product, automatically the production of sales will drops. This can make shareholders to
feel nervous. They already lost confident and tend to withdrawal the funds and leave the company.

The issues of modern indentured servitude

Apple audit revealed a system in which their workers have to pay recruitment fees that boned them
to modern indentured servitude. These cause them to pay out lots of recruitment fees and force
them to work with Apple Company. This issues is related with human right violations. Employees will
feel reluctant to work with the organization, but they have no choice. These impact them to injure
themselves such as suicide.
Manager of the company they also get affected due to they overlook the reactions of an employees.
Besides that, customer will feel the company is like a devil, so that rejected continue to co-operate
with them. They can see the company is dishonest and insecure.
Shareholders also get to affected by this issues. From the first time of invest the funds to this
company objectives is to earn back more than the current amount of funds. But now, this issues has
been so serious, they lost confident to the company and tend to stop invest the funds.

Legal Services
In an environment of continuous change and innovation, it is impossible that aim to produce
improved and developed products and services, Apple will suffer patent and copyright breach
claims. The dispute over the Apple logo on its iTunes Music Store, for example, continues despite a
previously reached settlement with Beatles' Apple Corps Ltd. in 1991. (Dow Jones Newswires) While
such litigation as Microsoft's Windows infringement on Mac OS patents has been highly publicized,
use of legal guidance to drive acquisition versus internal development strategies for such products
as GarageBand and iMusic have proven highly valuable. (Linzmayer, 172-4, 250) Intellectual
property is sacred to Apple. There was a recent attempt to uncover the identities of internal "sources
who leaked confidential information about an unreleased product to online media outlets in 2004."
(Wong)