The purpose of this strategic plan proposal is to describe Samsung’s values, mission, goals, and the means through which they can be used for strategic assessment to arrive at these goals. It seeks to analyze the operating conditions, market, and both the internal and external environments to provide recommendations for implementation of alternative strategies.
The management of the company implements the strategies although with approval from the board of directors. The company’s mission, vision, goals, and objectives will be emphasized to get all the employees on board with the decision-making process. Plans will be created to help the organization move forward (Carroll & Buchholtz, 2014). Further, the vision and mission statements will be used to communicate the planned goals to the employees and other stakeholders.
Samsung is a multinational headquartered in Suwon, South Korea and specializing in consumer appliances and gadgets. The company has operations in 80 countries and has more than 160,000 employees and is very dominant in the TVs market.
3.0 Scope of the Project
The proposal intends that the strategic intentions to form the basis for the project work with work allocation being decided amongst the group members. Further, the situational analysis will entail an examination of both the internal and external environments.
3.1 Company Mission, Vision, and Values
Samsung seeks to develop innovative technologies as well as efficient processes to ensure a creation of new markets in a bid to enrich the consumers’ lives and thus keep making the company a digital leader (Xu, 2009). The company believes in strong values to sustain its business.
4.0 Internal Environment Assessment
Samsung’s internal environment is characterized by strengths, weaknesses, opportunities, and threats that the company should consider to stay competitive.
These include a well-used R&D expenditure on which the company is able to produce high-quality brands. Such spending on research and development portrays the company’s innovativeness hence growth in revenue and market expansions. The company’s excellence in engineering has made it the best producer of electronic goods hence holding the number one position which it can exploit to penetrate other markets due to economies of scale. The focus on environment is also another strength for Samsung (Xu, 2009).
The company’s weaknesses include patent infringement and a low profit margin that is haunting the company. Patent infringement has occurred on Apple leading to losses in damages. Aggressive price cuts and low sales of semiconductors have made Samsung’s business suffer a low profit margin. The sale of Samsung products to its competitors is a weakness which such competitors can use against Samsung to its disadvantage.
The company’s opportunities include a growth in emerging markets for smartphones, such as India, which can be used to expand sales thereby increase profitability. Another opportunity is the increasing demand for quality processors which Samsung can provide cheaply than its competitors.
The saturation of the smartphone markets in the emerging markets present a threat to Samsung as that eats up its market share. Moreover, rapid technological changes pose a serious threat to the company as they compel it to release products in quick succession to catch up with competitors.
5.0 External Environmental Assessment
5.1 Social Factors
The company has been compelled by its Korean origin to operate as such within even though it has a global presence. This has made the company to alter many global aspects with regard to local conditions (Craig & Campbell, 2012). The social environment also pushes the company to alter its operations to match the customer preferences in the market.
5.2 Technological Factors
The company is a tech giant that is a world leader in innovation as it possesses an edge over the power of technology. This has enabled it to further innovation for sustainable business advantage thereby being able to stay ahead of competition by being the leaders in offering new and innovative products. However, this has seen the company infringe on some patents thereby pay out some damages.
5.3 Economic Factors
Samsung has been able to expand its operation in many countries albeit the stringent economic factors affecting most companies. However, the global economic crisis that has plunged countries, especially in Europe has bitten hard on its revenues. On the micro-economic level, the company has been through some volatility and uncertainty thus making it rethink its strategies.
5.4 Environmental Factors
The company has been commented for processing and cleaning eco-waste thereby affecting its trade relations with host countries in a positive manner. This has also given Samsung a competitive edge over most of its competitors in the electronics market. Therefore, the company has its external environment aligned as it navigates the global consumer market (Gupta, 2013).
6.0 Strategic Synthesis
The company can create successful strategic approaches using the data presented in the general environment. Further, the company should examine its threats and weaknesses before its competitors do so and come up with better strategies. The company should make it a habit to change as the environments change through policies that are geared towards resilience. The company should also work on cost-minimization to gain a competitive edge over competitors, such as Apple.