Course: Strategic Management

As assignment: Strategic Management Plan.

Contents
Introduction:....................................................................................................................................3
About company:...............................................................................................................................4
Vision:..............................................................................................................................................4
Mission:...........................................................................................................................................4
Strategic goals:.................................................................................................................................4
Strategic Management Approaches:................................................................................................5
Company Strategies:........................................................................................................................5
the external environment:................................................................................................................5
Swot Analysis:.................................................................................................................................5
Pestle Analysis:..............................................................................................................................7
Company’s organizational competencies :......................................................................................9
The company's strategies in discourage unethical behavior :...................................................10
Recommendation in strategies :.....................................................................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

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Introduction:
Today's business organizations that use strategic management concepts see significant
improvements in sales, productivity, profitability. Successful organizations today work for future
planning and plan for many changes both in the external and internal environment. Organizations
that adopt the schematic system are adhering to the theory Strategic management (Fred,2005).
Strategic management in organizations is used to meet competitors in the market, taking
advantage of new technical features that affect product quality and production costs.

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About company:
 Samsung is a global company in the field of digital technology, a Korean company
specialized in the manufacture of electronics of all kinds, and the manufacture of devices and
electronic components, occupies the top positions in the sale of smart phones and television.
 Establishment: March 1, 1938
 A global leader in digital technology. , Employing about 370 thousand people in various
branches of the world.
 Samsung Electronics has more than 25 hardware manufacturing centers in the world.
There are 59 branches to sell equipment in 46 countries.
 The number of employees in the company (427,000) employees by the end of 2013 in
various branches of the world.
 Net profit of the company is (30.1) billion dollars in 2013.

Vision:

Vision aims to become a pet brand and a company that appeals to people. By dedicating efforts
to innovation and creating a better world filled with digital experiences through innovative
technologies and products.

Mission:
Work on inspiring the world with innovative technologies, products and designs that contribute
to social prosperity by creating a new future and creating the future1.

Strategic goals:
 Achieve financial revenues of up to US $ 400 billion and become one of the top five
brands in the world in 2020.
 Enter into a new field such as health, pharmaceutical industry, biotechnology.
 Innovative and innovative leadership to become the first company in the field of
technological progress, building new markets that attract the best talent in the world.

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http://www.samsung.com
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Strategic Management Approaches:
o Creativity.
o Partnership.
o Talent.

Company Strategies:
 Create a competitive advantage by:
 Research and development.
 Quality of products.
 Reinvest the wind.
 Improve supply chains.
Samsung creates an environment of work and culture in the company. This environment brings
together different cultures based on creativity and innovation through intensive training .

the external environment:

Swot Analysis:
o Very high financial center.
o Global brand.
o High spending on advertising (4 billion in 2013).
o Expenditure on scientific research.
o Large budgets for advertising promotion
o Focus on all international and local markets.
strength
o Development spending
o Successful management by all standards.
o Product diversification (The Economist, 2011).
o Innovation and creativity in products.
o Product adoption from competitors (Apple buys Samsung screens and
processors worth $ 3 billion each year)
 Failure in some products (Hollister, 2016)
Weaknesses
 Market is unstable and fast changing (Cheng, 2016).
Opportunities  Distinguished relations with suppliers.
 Exit some competitors from the market.
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  Transition to sustainable technology.
 The trend towards wireless technology and fast Internet service.
 Strong market competition from many companies (Apple, LG, ...)
Threats  Global financial and economic crises reduce sales.
 Problems between South Korea and North Korea

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 Pestle Analysis:
Political
o There is some minor political
harassment in some foreign
markets such as India.
o Samsung operates in markets
where political factors are
generally good.
o South Korea's political
tensions have been hampered
by the country's tension with
North Korea.
o Samsung faces political
pressure in many African
countries and Latin America
where the political climate is
unstable and prone to
frequent changes in
administrative structures.
o o
Economical Social
o The company has opened o Its widespread presence
many markets in the globally means its social
world (expanding its spread.
global reach).
o Economic crises have o A multinational family
severely affected the company that relies on a
purchasing power of broad social heritage.
consumers in many
developed markets.
o Creating profitable o The company looks at
projects in emerging the pattern of consumers
markets to compensate and the fact that different
losses from developed social cultural factors in
markets. each country.
o The Korean economy has o Manufacturing products
faced many difficulties in a socially responsible
such as family debt, manner.
Samsung is affected by o Samsung respects the
economic forces, has an social and cultural values
important impact on the of communities
global economy.
o Social cultural forces
have profoundly
influenced the company.
Where these social
cultural changes can lead
to higher profits.
o Social cultural factors
have had a direct and
indirect impact on
Samsung's business and
profit making. For
example, smart phones
and tablets are very
popular in the global
market.
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 Technological legal Environmental
o The company depends on o The existence of o Manufacturing products in
innovation. lawsuits in the market an environmentally
(eg with Apple ...) responsible manner.
o Focus on technology curve o There is a lot of legal o Make their products satisfy
and innovation to beat risk on Samsung: the consumer morally.
competitors. o Tax laws, the
obligation of its
suppliers to the law,
the preparation of
rules, laws, regulations
and regulations to
ensure compliance of
employees and the
absence of legal
violations in the work.
o Focus on sustainable o o Focus on environmental
business.1 protection.
o o o Samsung focused on
sustainability, through
energy management and
reduction, water risk
management, chemicals
management, application of
pollutant management
programs2.

Improving of competitive position strategy:

 Focusing on R & D strategy and constant modernization contributes to the achievement
of its competitive strategic plans.
 The company's strategy is based mainly on product diversification policy, long-term
continuous development.
 The company focuses its strategy on strong competition by applying quality to its
products.

1
https://www.managementstudyguide.com/pestle-analysis-of-samsung.htm
2
https://www.cheshnotes.com/2017/10/samsung-pestel-analysis/
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Company’s organizational competencies :
The organizational structure plays a major role in the success of the company. The company
focuses on organizational competencies and this is reflected in:
1) The most important divisions of Samsung is the R & D department, which is a specialized
department in the field of research and development in the company, one of the most important
sections of the company, which has 220 thousand employees, and this contributes to the
profitability of the company.
2) The company constantly seeks to develop organizational competencies in the company and
this contributes to increasing productivity and thus increasing profitability.
3) Samsung needs in the coming period to split the company into a holding company and another
operator.
In order to simplify the complex organizational structure of the company, thereby supporting the
company in the end to achieve organizational and tax benefit of the company.

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The company's strategies in discourage unethical behavior :
1) Samsung is committed to a strategy that helps to maintain a clear and transparent
business relationship with customers and others in a manner that is based on justice,
mutual respect and professionalism.
Samsung's Global Code of Conduct
1: Compliance in all laws and regulations ethical standards.
2: Maintain a clean organizational culture.
3: Respect for customers, shareholders, and employees.
4: Attention to the environment, health and safety.
5: Citizenship and socially responsible institution.
2) Doing business in a legal and ethical manner.
3) Samsung's strategy that competes with other companies according to laws and business
ethics.
4) Guidance strategies in the business conduct of all employees of the company in order to
take the right actions and make behavioral and moral decisions.
5) Implement strategies and policies to secure personal data in respect of the privacy of
consumers and employees and to protect their personal data.
6) The strategy of opening legal offices in all branches of the company to enhance
compliance management.
7) The company has developed a lot of goals where the strategy has focused on becoming
one of the best companies in the world in ethical values and respectful transparency.

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Recommendation in strategies :
 The key strategy for success lies in the company's focus on all consumers and their
financial and social levels.
 Samsung is a mixed organization: a large variety of organizations
These organizations are made up of unrelated units. In the sense that each organization has a
very different activity from that of other organizations, it has a range of different companies
(activities) that must monitor all organizational structures and organizational change in all
activities of the parent company.
 The company should adopt the strategy of organizational change and organizational
structures to suit the external environment of the world taking into account the change in the
competition and the global changes in technology.
 Focus on the strategy of continuous improvement.

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Conclusion:
Through this we note that Samsung has focused heavily on strategic management, by becoming a
successful company by all standards, where the company has the analysis and strategic thinking,
strategic decision-making and future thinking, all these decisions contributed to increase
efficiency and efficiency and this has resulted in profitability and competitive advantage

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References:
1) Fred r. david ,(2005), "strategic management" concept, cases 10/ ed. by Pearson
Education, P.16
2) https://www.managementstudyguide.com/pestle-analysis-of-samsung.htm
3) Hollister, Sean. (2015)," Here’s Why Samsung Note 7 Phones Are Catching
Fire. CNET.com. Retrieved from https://www.cnet.com/news/why-is-samsung-galaxy-note-7-
exploding-overheating/
4) Cheng , Jonathan. (2016). " Samsung Profit Down 40%; Warns More Pain to
Come" . Market Watch. Accessed from http://www.marketwatch.com/story/samsung-profit-
down-40-warns-more-pain-to-come-2016-01-28
5) Economist, The. (2011),"Samsung: The Next Big Bet. The Economist". Retrieved
from http://www.economist.com/node/21530976
6) http://www.samsung.com
7) https://www.cheshnotes.com/2017/10/samsung-pestel-analysis

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