Mu NwetKhintZaw

Assignment 1

HND -1262

Business Strategy

Contents
1.

Organizational Audit for Samsung Electronic ....................................................................................... 2

Process 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

Mu NwetKhintZaw
Assignment 1

HND -1262

Business Strategy

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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Assignment 1

HND -1262

Business Strategy

Benchmarking technique can be use for type of information for Samsung. Firstly, the best
way to design and run a field sales force. Second, the performance of the sales team.

SWOT Analysis of Samsung Electronics Company:

Samsung Electronics Company is a part of Samsung group which is one of the leading
manufacturing technologies of home alliance product in the world. Its specially known as
telecommunication, semiconductor, digital media and convergence technologies. This company
provides their strength, limitation, opportunities and threats by SWOT analysis. Now a day, this
company is the global biggest producer for DRAM, SRAM and flash memory which makes the
strong situation of the world brands company and also for the strong competitors
Strengths

Weakness

For

different

semiconductor,

sectors

such

as

first

2009 Phone

product come back to Korea from US

Come

backed

about

1000

watt

market.

fridge in the South Korean and Chinese

First position for the television which is

market.

ranked in the nineteenths place overall

the leading 100 brands and only 5th
position for the technology\
Provided new technologies of home
alliance and earns more money.

the

microwave ovens in the US market and

phone which 19% of the global market

is

the biggest producer of the world

25% and second position for mobile

backs

company Example

digital media of the governing players

come

weakness for the Samsung electronics

telecommunication,

and DRAM, SRAM, flash memory of

product

for the highest electronics equipments

Both are big reflect to Samsung

Mu NwetKhintZaw
Assignment 1

HND -1262

Business Strategy

compare with the other company

Threat

Opportunities

Several of competitors

Competition in the global market can ability to form strategic alliance in the world

The Samsung electronics company has the

market

be tending to price war.

according

the

consumer

Players in the LCD market, is facing perspective.

weakening

demand

and

industry

scenario in this product category.

while

This reflects the great attitude of the company.

Myanmar

telecommunication

Samsung Electronics was involved in growing recently.

the patent litigation lawsuit recently.

market

is

Mu NwetKhintZaw
Assignment 1

HND -1262

Business Strategy

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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Business Strategy

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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Business Strategy

Value Change of Samsung

Firm Infrastructure
Human Resource Management

Profit Margin

Innovation Development ( R & D)

Support
activities

Procurement
Distribution Channel in Myanmar
Inbound Operation Outbound Marketing Service
Logistics

Logistic

& Sales

Primary Activities

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 valueadding 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 like
branding 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.

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Assignment 1

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Business Strategy

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.

Mu NwetKhintZaw
Assignment 1

HND -1262

Business Strategy

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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Business Strategy

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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Business Strategy

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 & Society

Social 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 within Organizations 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 longterm 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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Business Strategy

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 popularity
of 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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Business Strategy

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

http://newton.uor.edu/departments&programs/AsianStudiesDept/burma-pol.html.
[Accessed 27 March 2013].
5. 4. Business Strategy Book ( BPP Learning Media 2013)

at: