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Macro Environment Elements of Samsung
Macro Environment Elements of Samsung
Besides being known as the world’s second largest semiconductor chip maker, it is
also the world’s largest smart phones vendor. As of the year 2011, Samsung Electronics has
an outstanding amount of 221,726 employees and assets totalling USD 135.131 billion.
Samsung Electronics mainly produces LCD and LED panels, mobile phones, semiconductors
and televisions.
Samsung Electronics is not owned by a single person, it is a corporation with a two-
person team as the topmost decision maker. “In December 2010, Samsung switched its
management system from the single CEO system of last year under Choi Gee-Sung, to a two-
person management team with Choi Gee-Sung, CEO and Vice President, and Lee Jae-Yong,
Chief Operating Operator and President.In June 2012, Samsung appointed Kwon Oh-hyun as
the new CEO of the company” (Wikipedia, 2004).
The macro environment includes all factors which are external to the firm and cannot
be controlled by the organisation. Decision maker adjust their marketing approach as per the
change in the environment. The important factors comprising the macro environment are
demographic, economics, socio-cultural, natural, technological and political-legal.
Political and legal environment consists of government regulations, policies and social
groups. Any kinds of business must abide by the constitutions of the nation. The law is for the
purpose of protecting the rights of customer from exploitation, to protect interest of society
and to defend companies from unfair competition. There is various kind of law regarding to
marketing of products to end-consumer in countries across the globe. For instance, the
Consumer Protection Act and Intellectual Property Act. Policies like displaying the expiry
date on product and allergic alert is practised in most countries. Also there is a special interest
group like NGOs who oppose any unethical acts by business. In recent history we saw
opposition by large customer group against Cadbury as worms were found in one of its
products. Also Coca-Cola suffered lots of oppositions as pesticides were found in its cold
drink. The growth of consumerism has changed the businesses into pro-consumer and the
market into a consumer driven market.
A marketer must understand each and every parameters of the macro environment and
be flexible to the change in the environment. As the factors are external to the business and
cannot be controlled, ability of being flexible towards the change in these factors will provide
competitive advantage to the firms over its competitors.
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ELEMENTS OF MACRO ENVIRONMENT IN SAMSUNG ELECTRONICS
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industry related to electronics, ranging from semiconductor to home appliances. Any changes
in the economics related to electronics goods shall effect this organisation; therefore it is very
important for their team of decision maker to recognise these elements of macro environment.
Samsung Electronics manufactures and markets its product in various countries across
the globe, including the Asia as well as Europe and United States. Hence recognising the
demographics of the target group is crucial and this varies among different country. For
instance, youths make up most of the population in countries such as the Europe and India,
whereas in some parts of Asia, most of the consumers are made up of large families with at
least 6-7 members.
The economics aspect of macro environment affects almost all organisations as this
aspect determines the buying power of consumer and whether they are able to fulfil their
desire for material goods. Since Samsung Electronics markets electronic appliances, and it
most countries especially in the undeveloped part of Asia, electronics are considered as a
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wealth. Economics elements such as distribution of income and credit availability are very
crucial to Samsung Electronics to market its good in these countries.
In the current era of going green, the natural elements of macro environment must
never be neglected by any organisations, especially one that dwells in the industry of
electronics where the use of heavy metals such as mercury and cadmium is pertinent.
Therefore Samsung Electronics must never oversee any aspects of pollutions caused by its
plants in order to maintain a trust and good relationship with its customer. On the other hand,
natural resources such as those needed in the production of LCD and LED fluctuates in term
of price and this severely affect the production cost.
In the recent years, political and legal issues have been affecting Samsung Electronics
in marketing its products, especially the smart phone families. For instance, injunction by the
Apple Inc. to stop Samsung from marketing its Galaxy series smart phone in the Europe and
United States, as well as numerous copyright infringements allegations still on trials between
Samsung Electronics and Apple Inc.
Macro environment management refers to the steps taken to overcome obstacle caused
by the elements of macro environment in order to maintain the smooth running of the
organisation’s operation.
Samsung Electronics is affected few elements of macro environment which are listed
earlier. First of all, the demographics of target consumer is crucial to be recognised and then
steps should be taken whether to heavily market latest gadgets such as smart phones or focus
more on conventional items such as home appliances. For instance, in the Europe the IT
gadgets market is currently blooming, hence it is advisable to heavily promote and market the
latest member of the Samsung Electronics smart phone family, whereas in countries like
Malaysia where the demand for home appliance is more prevalent compared to IT gadgets,
therefore more functionality should be embedded in home appliances products marketed here
as compared to smart phones, this is due to the demographic of Malaysia where the average
marrying age is at 23 years old, hence we have more families than youths in the population.
The natural element of macro environment is perhaps one of the most important
aspects due to the many laws as well as regulation being enacted recently regarding the
environment. Pollution and scarcity of natural resource or raw material is a familiar issue for
all manufacturing plant even since the era of industrial revolution in the Europe. In line with
the going green concept, there are many options available in market to filter out or ionise the
waste material of an industrial plant in order to neutralise them as to not cause any harm to the
biotic and abiotic organism before releasing them into the ecosystem. Besides, there is always
alternative to replace the need of using raw materials that is scare.
CONCLUSION