Student Assignment Covering Form

Course/Unit Information
Course Pearson BTEC Level 5 Higher National Diploma
Unit No. and Name Unit 1: Business and the Business Environment
Unit code L/508/0485
Unit Type Core
Schedule code BBEONLRM2210A

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Full/ Part Assignment Full

Date Assignment Issued 17th October 2022

Date Assignment Due 19th November 2022
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 Student Declaration

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 Achievement Feedback Summary

Assessor’s Name Mr. Vinu Wilson

Pass Merit Distinction Grades Awarded

LO1 Explain the different types, size and scope of organisations

P1 Explain different types P1 Achieved / Not

and purposes of Achieved
organisations; public, private M1 Analyze how the structure,
and voluntary sectors and size and scope of different P2 Achieved / Not
legal structures. organisations link to the Achieved
business objectives and product M1 Achieved /
P2 Explain the size and and services offered by the D1 Provide a critical Not Achieved
scope of a range of different organization. analysis of the complexities
types of organisations. D1 Achieved / Not
of different types of
Achieved
business structures and the
LO2 Demonstrate the inter relationship of the various interrelationships of the
functions within an organisation and how they link to different organisational
organisational structure functions.
P3 Explain the relationship M2 Analyze the advantages and P3 Achieved / Not
between different disadvantages of Achieved
organisational functions and interrelationships between
how they link to organisational functions and the M2 Achieved /
organisational objectives and impact that can have upon Not Achieved
structure. organisational structure.
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations

P4 Identify the positive and

M3 Apply appropriately the P4 Achieved / Not
negative impacts the macro
PESTLE model to support a Achieved
environment has upon
detailed analysis of the macro
business operations,
environment within an
supported by specific
organisation. M3 Achieved /
examples.
D2 Critically evaluate the Not Achieved
LO4 Determine the internal strengths and weaknesses of impacts that both macro
specific businesses and explain their interrelationship with and micro factors have
external macro factors upon business objectives
P5 Conduct internal and and decision-making. P5 Achieved / Not
external analysis of specific Achieved
organisations in order to M4 Apply appropriately
P6 Achieved / Not
identify strengths and SWOT/TOWS analysis and
Achieved
weaknesses. justify how they influence
P6 Explain how strengths decision-making.
M4 Achieved /
and weaknesses interrelate
Not Achieved
with external macro factors.

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 Overall Feedback Summary

Over All Grade Date

[To Achieve a PASS, all P grade descriptors should be achieved; To achieve a MERIT, all P and M grade
descriptors should be achieved; To achieve a DISTINCTION, all P, M and D grade descriptors should be
achieved.]
Summative Feedback

Overall feedback on
current work with
emphasis on how the
student can improve and
achieve higher grades in
future.

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Business and the Business Environment: Assignment Task

Organizational Types, Functions and Structures and Business Environmental

Assignment Title
Analysis.

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LO 01 Explain the different types of organisations, including their size and scope.

Demonstrate the interrelationship of the various functions within an organisation and how
LO 02
they link to organisational structure.

LO 03 Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations.
Determine the internal strengths and weaknesses of specific businesses and explain their
LO 04
interrelationship with external macro factors.

Scenario

Choose any organization of your choice. The organization can be any Manufacturing or Service based
entity. You can also choose any global organization- Public/Private/Government which has its presence
in the UAE. You are to assume the role of a Junior Business Analyst in your chosen organization.
Prepare and submit a report for the chosen organization in light of the Fresh Government initiatives
under U2 - I2 Trade agreements signed by UAE, US, India, and Israel, in the following suggested format.

1. Introduction

Refer to academic sources to define and explain comprehensively the purpose of a public, a private, and
a voluntary organisation. Explain the different types of organizations’ legal structures along with
different organizational sizes. Briefly analyze how the structure, size and scope of organizations link to
the business objectives, products and services offered.

2. Company Specifications

2.1. Company Profile

Introduce your chosen organisation, by giving out the background details of the organisation, the
products and services they offer, the size and scope of the organisation, their vision, mission and
business objectives, the organisational and legal structure, including information about their
stakeholders and competitors.

2.2. Analysis

Use and refer to the organisational structure chart of the chosen organisation. Explain the
relationship between the organization’s functions and how they link to the organisational objectives
and structure. Analyse the advantages and disadvantages of interrelationships between different
organisational functions in your chosen organisation, and the impact it has on the structure of the

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 organisation.

2.3. Comparison and Contrast with another business set up

Thereafter, choose a government/public/voluntary company and critically analyse the differences

observed with those of your chosen organisation by understanding its business structure and its
interrelationship on different organisational functions.

3. Environmental Analysis

3.1. Macro Environmental Analysis

Apply the PESTLE model to support the detailed analysis of the macro environmental impact.
Identify the positive and negative impacts the macro environment has upon your chosen company’s
business operations, by giving out suitable examples.

3.2. Micro Environmental Analysis

Appropriately use and apply the SWOT model to conduct an internal analysis of the strengths and
weaknesses of the chosen organization.

4. Critical Evaluation, Conclusion and Recommendations

Explain how the outcomes of the PESTLE and SWOT interrelate with each other and critically evaluate
the impact on the business objectives and how they influence decision making in the chosen
organization. Based on the critical evaluation, recommend changes which would help out the company
further, in pursuit of their business objectives and decision making in light of Summit U2-I2 to be held
soon.

NOTE: The submission on the LMS is in the form of an individual written report. This should be
written in a concise, formal business style using single spacing and font size 10. You are required to
make use of headings, paragraphs, and subsections as appropriate, and all work must be supported
with research and referenced using the Harvard referencing system. Please also provide a
bibliography using the Harvard Referencing System. The recommended word limit is 4,500–5,000
words, although you will not be penalized for exceeding the total word limit.

1.1 Introduction

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  BBE refers to the forces, that involve people and organizations. Such forces do not
directly govern business enterprises, but they do have an effect on how they perform.
 In other terms, the environment in which a business operates is the business
environment.
 As a result, the business environment involves the economic, social, political, and
technological forces that operate outside of enterprises (toppr,2016).

I. Public sector organization:

The public sector is a part of the economy that includes all organizations owned and operated
by the government. This covers everything, from roads and bridges to hospitals and schools.
The main objective of the public sector is to offer services that are considered to be necessary
for society's well-being. Usually, these services are provided for free or at a reduced cost.
(dss, 2022)

Types of Public sector organizations:

There are several different public sector organizations, each with a distinct mission and goal.
The following are some common examples of public-sector organizations:
 Educational organizations: Government schools, universities, and institutions are all
forms of public-sector organizations.
 Healthcare infrastructure: The public sector generally provides hospitals, clinics, as
well as other medical services.
 Transportation infrastructure: Government institutions often manages roads, bridges,
airlines, and mass transportation networks.
 Utility services: these include services like electricity, water, sanitation, and drainage,
all of which are generally provided by the public sector organization.
 Public sector provides more services like Emergency Services, Fire Services, Gas and
Oil, Law Enforcement, Police Services, Postal Services, and other kinds of Social
Services. (dss, 2022)
Pros of Public sector.:
 You will be stable after you have a permanent position in the public sector.
 The public sector provides a variety of employee incentives, including retirement
pensions, vacations, medical insurance, and allowances. (difference101.com,2018)
Cons of Public sector:
 Public sectors can indeed be difficult to manage since important decisions necessitate
several meetings with govt officials, which take time.
 Some public sectors are costly to maintain, which causes governments to charge for
their goods and services. (difference101.com,2018)

II. Private sector organization:

A private sector consists of organizations and businesses managed by private groups or
people. In order to provide services, ensure the efficient flow of cash and contribute to tax
revenues, the private industry is essential to a country ’s economic growth. Businesses owned
and managed by private individuals or organizations are included in the notion of the private
sector. The private sector employees more workers than public sector. The main objective of
the private sector is to meet the requirements of its customers, as they are committed to the
development of their brand's reputation. (difference101.com,2018)

Types of Private Sector:

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Sole proprietorship: A individual owns, incorporates, and runs a business. The owner has
the ability to hire external support to run and supervise the business. It is responsible
permanently for the company's debts.
Partnership: A partnership is when two or more individuals manage a company together.
Compared to a firm, it faces fewer legal problems. All partners are personally responsible for
the debts incurred by the business.
Companies: It was designed to accomplish organizational objectives. Debt and equity are
frequently used to support enterprises. Shareholders are a company's legal owners. These
individuals invest money and have a major role in business-related issues. (Dheeraj, 2016)

Pros of Private sector:

 Employees can benefit from the private sector's better salary, bonus payments, and
more opportunities for promotion.
 Relatively speaking, the private sector enjoys greater financial advantages than the
public sector. An employee's dedication can lead a small business having a high
demand. (difference101.com,2018)
Cons of Private Sector:
 The private sector doesn't provide stable employment. In the private sector,
eliminating an employee doesn't take too long.
 Retirement and allowance benefits are not provided to employees working in the
private sector. (difference101.com,2018)

III. Voluntary sector Organisation:

The voluntary sector, commonly referred to as the non-profit sector, the community sector, or
the third sector, is usually composed up of organizations whose objective is to grow and serve
the community, without the concern of earning profit and with minimal to no government
intrusion. (privacysense.net,2015)

Types of Voluntary sector around the world:

 Charities: World Vision, American Red Cross
 Foundations: David Suzuki, Bill and Melinda Gates Foundation
 Social Welfare: Human Rights Watch, Environmental Protection Agency.
 Advocacy Groups: Privacy International, World Wildlife Fund
 Faith-Based Organizations: Churches, Mosques, Temples (privacysense.net,2015)

Pros of Voluntary sector:

 Making a difference in society
 The opportunity to develop skills
 open up new opportunities (Sheen, 2019)
Cons of Voluntary sector:
 Risking injury
 Working overtime (Sheen, 2019)

1.2 Organisational structures

An organizational structure is a blueprint that describes how specific functions are to be

performed in order to accomplish the objectives of an enterprise.

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The flow of information between levels of the organization is ultimately governed by its
organizational structure. For instance, in a centralized structure, decisions are made from the
top down, compared to a decentralized structure, decision-making authority is distributed
among all the organizational levels. Organizational structures enable businesses to maintain
efficiency and focus. (Investopedia, Will Kenton 2022)

I. Functional Structure
A functional organizational structure is a kind of business organization that divides a firm
into sections based on employees’ specialty, ability, or related jobs. It is built on levels of
hierarchy with several departments functioning under the control of authorized leaders.
Larger businesses that employ a number of individuals in similar positions generally benefit
from the functional structure. Business owners have more time to concentrate on their long-
term objectives while department heads group employees according to their abilities and
related function in the firm. (indeed,2020)
Pros of Functional structure:
 Minimized cost of operation
 Increased productivity
 Skill development (indeed,2020)
Cons of Functional structure:
 Hindered decision-making
 Competition between departments
 Narrow scope (indeed,2020)

II. Divisional structure:

A divisional organizational structure is a framework in which an organization divides its
workforce into groups based on regions or goods instead of work roles. While some
organizations have departments for marketing, sales, and communications, divisional
organizations have groups committed to a particular region or product. Huge businesses that
benefit from dividing their employees into relatively individual entities will find divisional
structure to be most beneficial. (indeed,2020)
Pros of Divisional structure:
 Accountability and Transparency
 Responsiveness to external changes
 Leadership (advergize, Sobia,2018)
Cons of Divisional structure
 Heavy competition
 Lack of communication between levels
 Not suitable for smaller organizations (advergize, Sobia,2018)

III. Matrix structure organsaitaion:

The matrix organizational structure comprises various distinct business structure
types, like project planning and functional planning. Moreover, the matrix structure
includes a traditional hierarchy of management, where employees are supervised by a
functional manager. The intersection of these two or more management systems is
known as a matrix organizational structure. (indeed,2020)

Pros of Matrix organization:

 Coordination throughout departments
 Project and functional management frameworks are combined.

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  New skills and experience can be acquired by employees. (indeed,2020)
Cons of Matrix organization:
 Functions in management may not be clearly stated.
 Decision-making can be slowed down in some circumstances.
 Too much labor may result in overloading work. (indeed,2020)

IV. Flat structure:

A flat organizational structure, also known as a horizontal structure, is a company
hierarchy that has fewer levels or no levels at all. An entry-level worker and the
company's CEO are separated by fewer levels under a flat structure, which allows most
employees to have more responsibility and authority in their job and much more
flexibility to make significant decisions without consulting others. A flat organizational
structure, at the very least, eliminates middle management roles. (indeed,2020)
Pros of Flat structure:
• lowered operating expenses
• Higher productivity
• Quick and clear communication (Akrani, 2022)
Cons of Flat structure:
• Due to a large number of employees under one manager, there might be challenges
when interacting.
• The performance quality might not be very good.
• Loss of control may have a negative impact on the organizational discipline.
(Akrani, 2022)

V. Hierarchical structure organisation:

A hierarchical structure is an organisational framework that involves a long chain of
command within a business. The organization's middle managers act as a link between
the top and the employees. It displays organisational structure in a traditional manner.
Generally, we refer to this type as a tall structure.
In the chain of command, there are different levels. It grows wider as one moves down
the organizational structure. (Nasrudin, 2022)
Pros of Hierarchical structure:
 More employment opportunities
 Controlled operation
 Evenly distributed workload. (Nasrudin, 2022)
Cons of Hierarchical structure:
 More bureaucratic
 More rigid
 Job dissatisfaction. (penpoin,2022)

VI. Flatarchies structure organisation:

Flatarchies are in-between hierarchies and flat organizations. These organizations combine
elements of both structures. Even though the business operates within an established
framework in this sort of environment, it frequently gives team members the freedom to
suggest and develop unique ideas. Teams are usually formed as the result of ideas that an
organization allows its employees to explore. This kind of structure is incredibly dynamic.
(Forbes,2015)

VII. Flatter structure organization:

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 A flatter organisational structure aims to reduce organisational levels and improve
channels of communication and cooperation. Minimal layers are visible, and the arrows
point in both directions. Although this is definitely a very simple method to consider this
sort of firm, the key idea should still be completely clear. Many relatively significant
businesses all around the world are shifting toward this strategy. Flatter organizations
continue to place a significant emphasis on communication and cooperation, enhancing
the employee experience. (Forbes,2015)
Pros of Flatter organisation:
 Clearer communication
 Quick decision
 More independence and empowerment (siliconrepublic,2019)
Cons of Flatter organisation:
 It can't be scaled
 It's possible to make poor choices while posing as an expert.

VIII. Holarctic organisational structure:

Holacracy is an organizational structure that exemplifies decentralized management in
which an enterprise is composed of teams or sections that operate independently to
accomplish corporate objectives.
Instead of a traditional hierarchical structure where power and decision-making are
centralized at the top, holarchy aims to distribute authority of decision-making and
innovation through various teams. (CFI,2022)
Pros of Holarctic structure:
 Increased Employee Engagement
 helps people communicate with one another more effectively
 Encourages Others to Act with a Specific Goal in Mind
Cons of Holarctic structure:
 Increase in the amount of money on training and onboarding.
 It is challenging to shift from the previous management model to holacracy, which
affects people's current professional. (edureviewer,2019)

1.3 Different organisational sizes: The number of employees at any particular physical
location is known as organisational size. This might encompass the entire corporate
organisation if it is centralized or a section of a decentralized firm. (studybuff,2018) It
also affects an organization's structure and design, including departmentalization,
formalization, and task specialization. (study.com,2019)
 Small and medium business (SMB):
Mid-sized companies frequently employ under 1,000 people, and small companies
generally employ less than 100. (indeed,2019)
 Small and Medium-sized Enterprises (SME):
Businesses that fall below specific income, asset, or employee thresholds are known
as small and medium-sized companies (SMEs).
The majority of businesses with fewer than 500 workers are categorized as
SMEs. (indeed,2019)

 Large business

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 Large multinational organizations with hundreds of thousands of employees
worldwide, like KFC or Apple, are typically considered big enterprises. A big
corporation recruits at least 250 people. (superbusinessmanager,2021)

1.4 The Link between structure, size and scope of organizations to business objectives,
products and services offered
To make sure that all team members, executives, managers, and directors are rowing in the
same direction, business scope is very essential for all the firms. It enables you to focus your
business strategy more effectively and guarantees that everyone in your organisation is
working toward the same target. (incorporatedzone,2020)
Samsung’s Organizational Structure Type:
Samsung has a product-based divisional organizational structure. This organizational
structure employs product classification to identify which resources and company procedures
belong to which divisions, such as the Consumer Electronics division of the company. The
headquarters of Samsung, situated in Seoul, serves as the hub of the entire business
organization. By focusing on the specific strategic goals of the structural divisions, the
corporate headquarters' management directives are carried out. (Evans, 2019)
The Samsung organisational structure's divisions by product category are as follows:
 Personalized electronics
 Device Services
 Computer and mobile communications (Evans, 2019)
Samsungs organizational size:
Another important factor that can exist in Samsung's structure is how it reacts to differences
in size and environment. Presently, Samsung employs 266673 workers worldwide.
(Samsungnewsroom)

Sourced from Department Statista Research https://www.statista.com/statistics/236919/number-of-

samsung-electronics-employees-worldwide/

This leads me to the conclusion that Samsung is a major company based on the above
statistics. The divisional structure that was previously outlined will allow us to efficiently
manage our huge business.
The organisational structure of our company is created to encourage research and innovation
across the organization. The company's strategy is centered on technological development, as
seen by the quick development of smartphones and other consumer goods. The efficient
implementation of Samsung's overall competitive strategy and intense growth initiatives is
supported by structural facilitation. Additionally, the organizational model reflects how the
business has evolved from a modest trade operation into a multifaceted global company that
provides cutting-edge technology. We use a variety of operations management methods for

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various markets and sectors due to its organizational structure's participation in numerous
activities. Our organizational structure is made up of firms, subsidiaries, and Samsung
Electronics Co., Ltd. The corporate structure of the technology conglomerate is shown to be
used across activities in this internal analysis. The company's operations are made more
efficient by the corporate structure's stability, especially when it comes to maintaining its
competitive strengths against several competitive companies like Apple, Google, Sony, Intel,
Dell, Acer, and Lenovo. (Evans, 2019)
Organisational Scope:
The Samsung Group is a multinational manufacturer with its main office in Samsung Town
in Seoul, South Korea. (Wikipedia,2016)

SUPPLY CHAIN OF SAMSUNG:

With more than 2,500 suppliers worldwide, Samsung Electronics has a huge supply chain.
All of them are necessary, whether they offer infrastructure, raw materials, or even other
parts. We give our manufacturers technological and financial help and appoint advisors to
them since we are conscious that if all of these suppliers participated in Green Management,
it would result in a broader ripple effect. Through this, we motivate them to proactively
switch to green management and establish a sustainable supply chain. Moreover, when we
select new supplier, we perform an environmental management review using our in-house
certification process. Following this examination, a judgment is made based on the
participant's sustainable characteristics, desire to participate in efficient and environmentally
manufacturing, and the extent to which the potential partner has put these ideals into effect.
(Samsung.com, 2018)

Sourced from Samsung:

https://www.samsung.com/us/aboutsamsung/sustainability/environment/sustainable-supply-
chain/

VALUE CHAIN OF SAMSUNG:

Samsung's value chain often forms a component of a larger system of values that also
involves businesses that operate either upstream (manufacturers) or downstream (distribution
centers), or even both. This view of creating value pushes managers to look at every stage in
the value chain as an important one that increases the value of the finished goods or services
rather of seeing it as an expense. . The value chain includes the notions of activity,
competitiveness, set of options, and value. The value chain is a collection of actions taken to
provide consumers with value. The fundamental components of competitive advantage are
the activities and the complete value chain within which they are engaged.
Primary and support activities make up the entire value chain. The collection of operations
that are actively engaged in value generation constitute the fundamental operations. While the
value chain's major operations are support and primary activity, which are secondary in
nature. (notesmatic,2021)
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 Sourced from notes mastic: shorturl.at/iowCO

Primary Value Chain of Samsung:

 Inbound Logistics:
The term "inbound logistics" describes the movement of products and services into
commercial activities. Every significant company in the technology sector collaborates
with hundreds of manufacturers worldwide. It must acquire materials from diverse
regions of the world. As logistics is the foundation of their supply chain, effective
logistical management is crucial. Asian countries make up the majority of Samsung's
supply chain. In addition, the United States and the United Kingdom are home to its
manufacturers. (notesmatic,2021)
 Operations:
In 1938, Samsung began its operations as a trade firm. It has expanded with constant
diversification. Across its existence, it has continued to expand into manufacturing
entrants. Diversification has undoubtedly been the company's primary business objective.
It originally joined the television market in 1970, when it released first ever black-and-
white television. In 1980, it made a move into the hardware sector of telecommunications.
Seoul serves as the home base for the South Korean company Samsung. In addition to its
native market, the firm has expanded its services to the United States and a number of
other countries. Additionally, Samsung has seven branch offices spread across nations
which include Korea, China, the USA, Germany, Japan, and Singapore.
(notesmatic,2021)
 Outbound Logistics:
Outbound logistics, often known as the flow of products or services from the firm to the
marketplace. Samsung is the biggest corporation in South Korea. In addition to
manufacturing and selling of consumer goods, transistors, memory chips, and televisions,
the company also produces and offers smartphones. It has built seven production facilities
where it produces the goods and distribute it in different parts of the world. Samsung is a
worldwide corporation, hence the goods produced are shipped from those facilities to
various marketplaces around the world. For the purpose of managing both inbound and
outbound logistics, Samsung has established affiliates. They ship the final products to
retailers and merchants all around the world. (notesmatic,2021)

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  Marketing sales:
Marketing is a crucial source of demand in the mobile and electronic goods sector. Such
sectors are extremely competitive. Some of the top phone manufacturers are Apple and
Huawei, which compete against Samsung. As an outcome, marketing must be the key
priority in order to retain demand and sales globally. In addition, a company's brand
image generally comes first. Consumers choose one company to purchase from by taking
into perspective factors like sustainability and brand image, among many others.
Businesses seek to develop enduring and strong relationships with their clients. They aim
to develop a reputation that their clients can rely upon. As a technological brand,
Samsung has successfully preserved its positive brand reputation. Samsung's commitment
to technical innovation and the superiority of its products serve as the foundation of its
brand reputation. (Notesmatic,2021)
 Services:
In addition to sales and marketing, Samsung maintains a worldwide structure of
distributors and resellers that help clients by providing after sale services. After-sales
assistance is becoming an important aspect of marketing for the majority of hardware
resources and electronic goods. The reason for this is that brand's identity is directly
impacted by the quality of customer support provided. In addition to that, a business
should concentrate on offering great customer support if it wishes to build a strong
reputation. Buyer's happiness is influenced by customer service, which is essential for
increasing sales and income. (notesmatic,2021)

Secondary value chain of Samsung:

 Procurement:
To ensure a constant production of goods, one needs a steady flow of high-quality raw
materials. Although Samsung successfully maintained a worldwide distribution network,
the majority of it is in Asia. To assure a steady flow of raw materials, the firm has
maintained close connections with its suppliers. There are 216 worldwide centers
operated by Samsung Electronics, which spreads over 74 nations and 2,389 suppliers
provide their services to these centers. The corporation also set up an international
procurement center (IPC) as they serve as the main core for managing supplier
connections. (notesmatic,2021)
 Human Resource Management:
Human resource management always remains to be Samsung's major strategic priority.
As it takes skilled workers to operate a worldwide technology business. Any
technological company's competitive edge comes mostly from its people, therefore in
addition to seeking out brilliant individuals, the business must make investments in their
professional development and employees’ health and happiness. In addition to providing
workers with knowledge and other essential elements, they also need to develop their
careers and experience greater job satisfaction, as it also pays competitive wages and
provides a range of additional perks. (notesmatic,2021)
 Technology:
Technology is the main significant factor of Samsung's success in the mobile phone and
electronics industries. Samsung makes significant investments in Research and
development to achieve rapid expansion and increase in sales. Considering that the
majority of its recent success was supported by technology-based distinction, Samsung
has also considered technological innovation a key priority. (notesmatic,2021)
 Infrastructure:
Samsung has separated its commercial activities into four different departments that work
separately from one another. The device Services, Electronics, and Memory sectors of

15
 Samsung are all led by Ki Nam Kim, the company's vice president, and CEO. Samsung's
President and CEO, Hyun Suk Kim, is in charge of the company's consumer electronics
division. In addition, he oversees the technology planning team and the electronic display
sector. Dong Jinn Koh, who serves as director and is in charge of the Information
Technology & Telecommunications Services division, also oversees the technology
strategy team and is in charge of smartphones R&D. (notesmatic,2021)

Advantages of conducting Value Chain Analysis:

-Discover possibilities of competitive benefit:

 Potential sources of competitive advantage might be found throughout the
development phase by performing the Value Chain Analysis
-Recognize intricate linkages and dependencies:
 Through the value chain, Samsung Group may see numerous internal and external
links amongst operations.
-Enhanced material, intellectual, and financial flow:
 The organisation may be able to find and seize new possibilities and lessen external
dangers with the better information flow.
 Through improved demand and sales forecasting, the Samsung Group's application of
the value chain analysis can enhance the flow of materials and products.
-Create a successful company-specific strategy:
 The competitive strategic decision-making process can benefit from the usage of the
Samsung Group Value Chain Analysis. (Value Chain Analysis of Samsung, 2022)

Competitive Advantages of Samsung:

-A strong approach to research and development:
Samsung constantly prioritizes consumer demands over those of its competitors. They do
study and determine client requests. Their engineers work to create cutting-edge goods that
satisfy consumer demands.
-Innovation and creativity skills for products:
Samsung is capable of producing items with excellent design and durability. Samsung has
received several honors throughout the years for its well-designed devices.
-Blending American and Japanese strategies:
American businesses are more precise and concentrated on a limited selection of items, but
Japanese businesses often seek to provide a variety of products. Samsung employs both
vertical integration and horizontal diversification by combining these two techniques. This
indicates that Samsung has a diverse product line. (Haque, 2017)

Cost Advantage of Samsung:

- Cost advantage through Value Chain:
Samsung may benefit from cost savings by lowering the expenses connected with value chain
operations. The link between the value chain and the cost management strategy shows a
simultaneous emphasis on relatively inexpensive operations and maintenance tasks. Samsung
Corporation must identify each value chain component that needs to be improved in order to
achieve the desired overall result if it hopes to get a cost advantage. A reasonable price for
the goods may be achieved by setting an advertising budget, which can lower marketing
expenses. (Value Chain Analysis of Samsung Group, 2022)

-Cost drivers of Samsung:

 Organization guidelines

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  Connectivity
 Connections
 Interrelations
 Utilization of capacity (Value Chain Analysis of Samsung Group, 2022)

2.1 Company profile of Samsung:

Lee Byung-Chull established Samsung on March 1st, 1938, as a grocery trading shop.
Following the Korean War, Lee grew his company into the clothing industry and established
the biggest woolen factory in Korea. In the 1960s, Samsung purchased additional insurance
firms, an oil refinery, a nylon manufacturer, and a department store. To increase its ability to
compete in the textile market, the company expanded its textile manufacturing processes in
the 1970s to include the entire manufacturing chain, from raw materials to finished goods.
The establishment of new subsidiaries led to the creation of Samsung Industries, Samsung
Shipbuilding, and Samsung Precision Company (Techwin, 2016). Additionally, the business
began making investments in the massive chemical and petrochemical industries during this
time, giving it a promising future. (Brittanica,2017). Samsung is a multinational
manufacturing company with its headquarters in Samsung Town, Seoul, South Korea. It is
the largest South Korean chaebol and consists of multiple connected companies, the majority
of which are unified under the Samsung brand. (Wikipedia,2016).
It is one of the leading manufacturers of electrical technology globally. Samsung focuses on
producing a wide range of consumer and business electronics, including integrated systems,
digital media players, memory chips, and appliances. It now ranks among the most
recognizable names in technology. (Brittanica,2017).
The organizational structure is created to promote technical innovation across the company.
Rapid advances in technology in the field of smartphones and other consumer electronics are
an indication that technological innovation is at the core of the company’s mission and
vision. (Evans, 2019)
Organizational Structure:
Samsung has a product-type divisional organizational model in which goods define
how materials and business processes are classified. (Cuofano, 2022) Samsung's
organizational structure uses a hierarchical approach despite its product-type division. This
hierarchy, which is a component of the organizational structure is designed to ensure that the
conglomerate's activities are coordinated and successfully oriented toward development and
operational effectiveness (Evans, 2019)

Samsungs business model:

I. KEY PARTNERS
o Conglomerate (Electronics, Heavy Industries and Financial Services)
o Affiliated Businesses (hospitality and tourism)
o Acquisitions and Investors (Rolle, Fokker, etc.)
o joint endeavors (GE, Toshiba, Sony, etc.)
o Endorsement
o Manufacturers

II. KEY ACTIVITIES:

o Research and Development
o Services related to communication networks
o Marketing

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 o Monetary services
o The technology of information and communication

III. VALUE PROPOSITION:

o "Inspire the World; Build the Future."
o modern technologies
o Excellent functionality and design
o Eco-friendly goods

IV. CUSTOMER RELETIONSHIP:

o Virtual
o Society
o Personalized assistance
o After-sale assistance
o Brand image

V. CUSTOMER SEGMENTS:
o Massive market
o Multi-sided
o Innovation
o Multi-sector businesses

VI. KEY RESOURCES:

o Trademark
o Variety of goods and services
o Gross domestic products
o Customers

VII. CHANNELS:
o Samsung Community
o Suppliers
o Exhibitions & Conferences
o Media

VIII. COST STRUCTURE:

o Marketing and Advertising
o Price of production
o Price of research and development
o Price of distribution
o Employees salary

IX. REVENUE STREAMS:

o Electronic sales
o Products and services from many industries
o Components for sale to other parties
o production costs (vizologi,2018)

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SAMSUNG’s mission and vision statement:
Samsung is a multinational technology company with a company mission and vision that
emphasize innovations for societal development on a worldwide scale via digital
technologies. The mission statement of the firm suggests supremacy, which indicates quality
and leadership in semiconductors, electronics, and other areas. On the other side, Samsung's
vision statement emphasizes an inspiration-focused strategic aim that positions the company
as a global impact among citizens and societies. In this way, the notion of a technological
conglomerate that strives for worldwide impact and industrial supremacy is created by the
union of the corporate's vision and mission statements. (Martin, 2019)

Samsungs competitors:
To meet Samsung's multinational company’s mission and vision, the business organisation
should assure competitive benefits against significant technology firms such as Apple, Sony,
Intel, Microsoft, and LG. Because of the power dynamics and strategic difficulties imposed
by the competitive environment, Samsung's operations, technological design and
development, as well as the use of cutting-edge technologies to assist operational processes,
all demand high rates of innovation and high-quality standards. (panmore,2019)

Samsungs Stakeholder:
Internal and external stakeholders' viewpoints have a significant impact on how a business is
managed. A stakeholder is any group, individual, or organization who is influenced by the
firm's activities and thus deserves a voice in how the business operates. (Twalah, 2022)

Internal stakeholder:
These are organisations or people who play a direct role in how a company runs. They consist
of managers, business owners, and employees. (Twalah, 2022)

External stakeholders:
The decisions need to be made in a manner that guarantees the interests of all Samsung
Business stakeholders are taken into consideration. When developing plans and making
choices, the Samsung corporation must consider several external stakeholders. General
public, governments, communities, creditors, suppliers, and consumers are some of the
external stakeholders. (Twalah, 2022)

Samsungs Shareholders:
These are the individuals who govern Samsung. When any problem occurs in the company,
shareholders respond accordingly like the dealers, manufacturers, and corporate partners. To
properly run its commercial activities, Samsung needs to work with different third parties.
The majority of these external parties have talents that Samsung Business does not, yet
Samsung Corporation retains the ability to recruit and eliminate any of its outside corporate
owners.

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2.2 Anylasis of Samsung:

Sourced from business research methodology: https://research-methodology.net/samsung-

organizational-structure-divisional-according-product-types/
Samsung's has a divisional organizational, with three major divisions: IT & Mobile
Communications, Consumer Electronics, and Device Solutions. Samsung's organizational
structure uses a hierarchical approach despite its product-type division. This hierarchy, which
is a component of the organizational structure is designed to ensure that the conglomerate's
activities are coordinated and successfully oriented toward development and operational
effectiveness. The Device Solutions (DS) division underwent modifications as well, such as
the growth of the groups in charge of developing software, controllers, and solutions such
that each group had its own team. The reason for choosing a divisional structure is due to
Samsung's wide ranging product line and the distinctions in products and services offered to
the industry. As a result, each division of Samsung is handled individually, taking into
consideration that product features have impact on product development, promotion, pricing,
and other parts of the company. Furthermore, Samsung has approximately 200 affiliates
worldwide. The corporate management office and the Samsung Advanced Institute of
Technology are likewise integrated into the Samsung organizational structure (SAIT). The
corporate management department is responsible for both administrative duties and overall
organization operations. SAIT is the Research and development center of the Samsung
Group, serving as an incubator for the evolution of new goods and services. As Samsung
electronics rose to the top, it not only used conventional resources but also dynamic skills.
Ambitious and risk-taking investing behavior in search of entrepreneurial rent, as well as a
good method of controlling technological development, ultimately led to Samsung
Electronics' extraordinary performance. Along with expanding the agency in the
responsibility of the bio and medical device industry, Samsung Electronics also turned the

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Bio Lab at the Samsung Technology Research Center into the Bio Research Center.
(Business Research-Methodology, 2017)
Pros of Samsungs structure
 The organizational structure of Samsung provides substantial assistance for product
innovation, particularly in terms of technology and innovation.
 This structure also gives the business the flexibility to adjust its activities and strategy
in response to market trends.
 Organizational structure contributes to the business's competitive edge, particularly
when compared to large rivals such as Apple Inc.
Cons of Samsungs structure:
 The organizational structure of Samsung does have the drawback of giving the
product-based divisions minimal flexibility. For instance, the product-based divisions
must adhere to planned directions from the corporate headquarters due to the
centralized organisation.

2.3 COMPARISON AND CONTRAST WITH ANOTHER BUSINESS SETUP

Samsung and Apple are two modern technology powerhouses with worldwide influence and
committed user communities. Samsung's business strategy has been centered on increasing
manufacturing product volume and vertically integrating distribution networks. Apple has
chosen to outsource components like production in order to concentrate on design and user
experience. The two businesses are currently involved in legal battles involving intellectual
property and trademark disputes.

Samsung: Vertical Integration and Product Volume

Samsung functions with a focus on vertical integration and a ton of goods, like most other
Asian manufacturers like Sony Corporation. In addition to flat screens, detectors, led bulbs,
cells, video game systems, cameras, Televisions, utilities, cellular carriers, tablets,
smartphones, and even health facility equipment, Samsung is active in a wide range of areas.
Samsung battled with and frequently outperformed Japanese technology businesses in the
1980s and 1990s before focusing on Apple. The corporation invests a lot on both capital
investments and research & development. The mid- and low-end markets benefit from this,
while the high-end offerings keep clashing with Apple's unstoppable force. Samsung's main
competitive strength is vertical integration. Samsung is independent, while Apple continues
to buy materials from its opponent valued at billions of dollars each year.

Apple: Design, Integration, and Outsourcing

Apple is a lot more highly focused on its firm than Samsung based on its target sales, study,
and product development. Additionally, it is a far more prosperous business. Apple is
successful in terms of integration, design, and a sizable amount of risk.
It is simple for consumers to continue purchasing Apple devices and challenging for them to
move to its rivals since all of Apple's products have better programmed that perform very
well with one another. Apple is reliant on iPhone line since it generates close to three-
quarters of its total income. Apple does not try to top competitors in the race to market
leadership; rather, it lets them focus on their initial R&D and market development before
rushing in to improve everything.

Apple vs. Samsung: Who is More Eco Friendly?

-Apple:
One of Apple’s most intriguing inventions is its recycling machines, Daisy and Save, which
deconstruct smartphones on their own and retrieve parts like magnets, tungsten, and metals.

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Additionally, the business stated that by 2030, every manufacturer it works with would have
an emission-free aim, and every product it sells will have no effect on the environment. In the
upcoming future, it will cut partner firms' emissions by a minimum of 75%, with the leftover
25% being cleaned up by activities already in progress and the upcoming technology.
Apple has launched the Impact Accelerator, a program that makes investments in companies
run by Black and Brown people. Additionally, the Apple Battery Energy Storage System,
which was developed in collaboration with Tesla, has begun construction. This initiative is
among the biggest power storage initiatives in the nation. (Joita, 2022)
-Samsung:
Samsung is aware of its responsibility to contribute to the creation of sustainable
development that will benefit both current and future generations. The corporation plans to
invest in eco-friendly materials, eliminate plastic from product packaging, reduce inactive
electricity, and redirect electronic junk by 2025, Samsung aspires to have all of its mobile
workplaces produce zero pollution that ends up in landfills. One of the first locations
Samsung turned its attention to was the marine, and more particularly, the abandoned fishing
equipment, which account for a sizeable amount of ocean garbage which totals up to 640,000
tons annually. (Joita, 2022)

Organizational Structure:
Apple:
-Apple Inc. has a hierarchical organizational structure with distinct divisional traits and a
deficient functional matrix. A common structural element in these enterprises is the
hierarchy. The term "divisional qualities" refers to Apple's divisions based on products, such
as iOS and macOS. While maintaining the hierarchy, them deficient functional matrix
requires cross-divisional cooperation.
-Samsung:
Samsung has a divisional organizational structure based on products. This structure type
employs product classification as the foundation for figuring out which assets and corporate
activities belong to specific divisions, such the Device Solutions division of the organisation.

Organizational Size:
-Apple has 137,000 full-time employees.
- While Samsung employs 266,673 workers.

Organizational Scope:
- Apple is a global multinational company with headquarters in Cupertino, California.
(Bartleby, 2022)
- Samsung Group is a multinational manufacturer with its main office in Samsung Town in
Seoul, South Korea. (Wikipedia, 2016)

3. Environmental anylasis
PESTLE analysis is a term used to describe marketing concepts. Associations utilize this idea
as a way to maintain control of external influences on their operations. In its enlarged form,
the acronym PESTLE stands for Political, Economic, Social, Technological, Legal, and
Environmental. (Pestle, 2011)
Political Factors:
Samsung benefits from UAE's considerable strength and prominence in the region. To
conduct business successfully in the UAE, Samsung is obligated to pay a variety of taxes,
including the economic substance necessities to transport its products to the country,
compliance with common reporting standards for Samsung to pay 5% VAT. Labor laws are

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strictly adhered to in the UAE, and there are certain rules and regulations that need to be
maintained while conducting business. It is important for Samsung to note that the maximum
work hours for their employee must be 48 hours per week and 8 hours per day (9 hours
including break at work), and that they should also be provided with medical benefits, safety
and security. (MyBayut, 2022)
Economic Factors:
The UAE's actual annual GDP was estimated to be 353.899 billion USD in 2020, ranking it
35th in the world. The traveling prohibition, the nationwide lockdown, and the COVID-19
pandemic all greatly slowed down the country's economic expansion, which had an impact on
Samsung and also the value of the Korean won had a significant impact on Samsung's
performance as well. The business cited the dropping Korean currency for the 25% profit
decline; however, the UAE is one of the nations with the greatest GDP and per capita income
in the world, which does not impact Samsung's value in UAE. Additionally, Samsung is
subject to a 5% corporation value-added tax. (Frue, 2019)
Social Factors:
Since the UAE is very proud of its language, it is essential for Samsung to recruit people who
can speak Arabic when introducing new trends to the market in order to win customers' trust.
Samsung should also adhere to Islamic laws and regulations.
Technological Factors:
The population of the UAE is expanding quickly, thus there is a big need for the latest
technologies and Emirati nationals are reportedly among the most engaged online users.
Samsung must keep up with emerging technology and follow current trends in order to satisfy
this demand. Samsung employs highly qualified individuals. With the rise of all these
specialists, a market for abilities that can be used to the development of Samsung's economy
has been created. (Shaw, 2021)
Legal Factors:
United Arab Emirates is a federated constitutional monarchy. Regardless of nationality,
Samsung's labor laws apply to all staff and employees. Individual employees are only
permitted to work a maximum of eight hours every day (48 hours a week). As a result of the
country's strong adherence to laws and regulations, it may occasionally be challenging for
Samsung to comply with them all. (MyBayut, 2022)
Environmental Factors:
Samsung needs to be aware that the exploitation of natural resources, increasing population
growth, and increasing energy demand in the United Arab Emirates present several concerns.
the ongoing rise in temperature brought on by global warming. Samsung must be prepared to
adjust to the UAE's shifting climate if it wants to continue operating. (Wikipedia, 2016)

Porters five forces model:

-Competitive Rivalry:
This factor is particularly important for Samsung given the intense competition that exists
among major global manufacturers like LG, Nokia, Motorola, and Apple. In fact, Samsung
cannot take its market share for granted given that all of these local manufacturers compete in
a market with tight profit margins. (Pratap, 2020)
-Bargaining power of Suppliers:
Suppliers are indeed the sources where businesses get the materials, they need to turn raw
materials into finished goods. They are a significant group, and their ability to negotiate
effectively has a significant impact on how a firm is positioned. If the suppliers have greater
negotiating power, the business’s competitive strength will stay low, or vice versa. Due to a
number of significant constraints, Samsung's suppliers have limited negotiating ability. The

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first important aspect is their lower stature, which limits their negotiating power. These
merchants are spread around the entire world. (Pratap, 2020)
-Bargaining power of customers:
The 21st century has seen a steady increase in the bargaining power of consumers as a result
of greater access to high-quality information. In the case of Samsung, the overall negotiating
power of the consumer base is relatively high. The reason is that consumers have lower
switching costs and can readily move to any competitive brand. They can also easily compare
brands and their goods and read customer reviews. The growing importance of the consumer
is caused by increased rivalry, extensive use of technology, and other factors as well. To
entice new consumers, businesses invest a lot in marketing and advertising. Companies
mostly utilize marketing to enhance their consumer bases and market impact. (Pratap, 2020)
-Threat from substitutes:
Samsung is somewhat highly threatened by competing products and brands. There are a
number of brands that compete with this one. Sony, LG, and Apple are Samsung's three
biggest rivals. In addition to these, there are other national and international companies that
represent a challenge in the marketplace. Customers, therefore, have a variety of alternative
brands and goods available to them. Additionally, switching expenses are minimal. In some
ways, this threat is moderated by a strong brand image, technology advancements, and related
other variables. (Pratap, 2020)
-Threat of new entrants:
For Samsung, the threat of new competitors is minimal. It's difficult to create a brand that big.
There is a significant requirement for highly qualified people resources, as well as marketing
and significant financial expenditure. Consequently, entrance hurdles are considerable. One
can join on a lesser scale and build a local brand, but there will be intense competition from
firms that are already market leaders. Furthermore, entrance barriers are raised as a result of
legal and regulatory requirements. (Pratap, 2020)

3.1 Micro Environmental Analysis

SWOT
SWOT analysis is a method used to assess a firm's competitive position and to create long
term planning. It stands for strengths, weaknesses, opportunities, and threats. The SWOT
analysis evaluates internal and external variables as well as present and anticipated future
situations. (Investopedia, 2022)
Samsungs Strength
 Samsung is a well-known and well-established modern technology brand that has
been on the market for a long time.
 Samsung increases sales by providing a wide choice of models and choices for every
price point. There are phones in practically every price category in the Samsung
Galaxy series.
 It is a top producer of TVs, household appliances, and mobile phones.
Samsungs Weakness:
 Due to fierce competition, Samsung must make substantial investments even for a
slight increase in market share.
 Past legal disputes, litigation, and opposition from environmental organisation have
an influence on the industry's brand reputation.
Samsungs Opportunities:
 Samsung can improve their present product range and branch into additional things by
innovating more.
 Introducing devices customized to a particular region can help the brand.

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  Using emerging technology to enhance products may benefit a company's bottom
lines.
Samsungs Threats:
 Strong pricing competition in the mobile industry may affect Samsung's smartphone
profitability.
 The market is quite dynamic, and unsuccessful items may prove to be a significant
problem for the corporation.
 In every market category it serves, Samsung faces fierce competition from regional
manufacturers. (Team, 2022)

4. Critical Evaluation, Conclusion and Recommendations

Interestingly, both the SWOT's Opportunities and Threats sections may benefit from
Samsung's PESTLE research. In order to cover all of its bases, Samsung must be mindful
of the PESTLE requirements in both parts while doing a SWOT analysis. For Samsung to
begin formulating its strategy, the SWOT or PESTLE analysis might be employed. It
serves as a major marketing, sales, and business planning tool in a more complex
approach for Samsung. Samsung may be able to comprehend its rivals by conducting a
SWOT or PESTLE analysis, which will then provide them with the knowledge they need
to acquire a strategic advantage.
Although Samsung might move to a different sector when the smartphone market finally
ceases to be profitable, but the legacy of its explosive mainstream success in this sector
will endure eternally. The firm will always be proud of outperforming major companies
like Nokia and Apple. This assignment shows Samsung's strong methods to key
competitive concepts. It has been determined that Samsung's achievement is in its part
of both the objective of technology uniqueness and price competitiveness. To identify
techniques that are properly suited to both the present market rivalry and core
competencies, competitive market research was studied by an internal analysis since
competitive behavior changes regularly. Samsung is recommended to enhance their
technology and constantly innovate its software application through a constant Research
and development procedure, as they have done skillfully to generate unique electronics in
the past.
To conclude, the analysis of Samsung makes it very evident that this company has a
greater ability to provide the greatest results across all areas in which it competes. This
company ought to think about developing a marketing management plan that would
increase consumer love and appreciation for its items.
The company should prioritize client happiness over short-term benefits like revenue.
Building trust with customers is always essential for a business to be profitable. The
company's efforts to build this trust can be costly. However, the company will remain
profitable going forward after the trust has been established. The necessity to fully utilize
developing technology as a means of preserving competitiveness should be taken into
account by management as well. In order to combat the challenges posed by rivals,
Samsung must make sure that it consistently creates business strategy in a very hostile
environment. This may be accomplished by organizing the business in accordance with
the factors driving the industry today and putting technologies at the center of all business
processes

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