Business Strategy - Samsung - Free Essay Example

Business Strategy Task 3.1: Introduction to Samsung: The organization that we have selected is Samsung. Samsung is a South Korean multinational conglomerate company. Its head quarter is in Samsung town, Seoul. It was founded in 1938 as a trading company. Samsung entered the electronic industry in 1960s. Strategy used: The strategy that our selected organization, Samsung, is using is Limited Growth Strategies. Limited Growth Strategy: It is the type of strategy in which an organization focuses on its current products that are being produced and the potential market. Ways of growing are considered to make the product more innovative. Samsung basically relies on four different growth strategies i.e Market Penetration, Market Development, Product development and Innovation. Market Penetration: Samsung maintains its market shares. the organization innovates its product so that their potential customers doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t get bored with the product and they can attract new customers. In this way their customers will be satisfied with the product and this can lead to greater market share for Samsung Product Development: Samsung targets same old customers with a ne w product. By launching a new product, they will attract more customers towards their product and can increase their market share by doing so. For the awareness of the product, they advertise in TV, newspaper, and pamphlets and on billboards. Example: Samsung launching Galaxy S5 mobile phone Market Development: Samsung entering a new market will cause an increase in market growth and its market shares. By adopting this strategy, they enter a new market by targeting new customers in other areas. New market for Samsung could be a new Country or a new City within the same country it is operating in before. Example: Samsung introducing its product in a village or a new country. Task 3.2: The future strategy that our selected organization, Samsung, will adopt is substantive growth strategies. In substantive growth includes vertical integration. Vertical Integration: There are three types of vertical integration, vertical forward integration and vertical backward i ntegration and horizontal integration. 1. Vertical forward integration: Vertical forward integration in a business is when a manufacturer decides to controls distribution or retail store. Samsung will cut themselves off from the wholesalers to sell directly to retailers and then the retailers directly to the customers. Example: Samsung owning retail shop or franchise and sells their product directly. 2. Vertical backward integration: It is a form of integration in which companies controls its suppliers directly. There will be efficiency and cost will be saved. This might cut transportation cost, improve profit margins and make Samsung more competitive. 3. Horizontal integration: Samsung do not follow Horizontal integration Diversification: Other than Samsungà ¢Ã¢â€š ¬Ã¢â€ž ¢s electronics, Samsung also produces unrelated products. Samsung has Samsung heavy Industries, which is 2nd largest shipbuilders. Samsung also has two Construction Company which is 13t h and 36th largest companies which are Samsung engineering and Samsung CT. Samsung also provides services such as Samsung Life Insurance and it is worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s 14 largest companies. TASK 4.1: It is significant whenimplementing strategythat particular guiding principles have been fixed with those persons tasked with building the strategy realism. This is an important implementation matter which will engage duty setting and interactions, what is to be done by whom? At what time? , And with what resources? Actually, how a strategy is implemented will be based on how it was urbanized, therefore it is significant to concentrate on the question of who urbanized the strategy relatively than only who will implement it. For-example, was the strategy urbanized by a fundamental team or was there full meeting? The response to this question will help to form the implementation process. It will be tricky to evaluate development at a afterward phase if no one is answerable fo r the way a strategy is to be carried out. In a small organization, amount of managers will be implicated in the strategyenlargement processbecause of the small size, as an organization grows in size the question of who will execute needs more explanation. It may be essential to train those implicated or there may be an opportunity for extra open conversation, again, this can repeatedly depend on the sort of organization and the management approach. The major actions for strategy implementation should be translated into objectives for each of the major areas of the company; this could be functional, corporate or divisional. These objectives should then be construed into action programs or tasks that have to be undertaken consecutivelyto accomplish them. The meaning of objectives into tasks may be uncomplicated in smaller organizations than for bigger ones. In small organizations, it may be pointless to connect in the complex communication of settled strategies. Those who ha ve discovered the strategic errands throughout the formulation of the strategy may not require prolonged communication throughout accomplishment. For bigger organizations communication will be necessary to à ¢Ã¢â€š ¬Ã¢â‚¬Å" Make sure everyone understands Allocate for any confusion to be set on Communicate the options prepared throughout the strategy assessment period Make sure the organization is appropriately synchronized. Deliberation should also be specified as to how strategy can persist to be implemented in a rapid shifting atmosphere. By the time tasks and objectives have been fixed and communicated the atmosphere may have distorted. As changes take place objectives may turn into unattainable or extra clear-cut depending on the nature of the changes. In these circumstances, it makes minute logic to stick on to objectives urbanized for former situations. Its probable to relate three procedures in this situation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Elasticity of tasks and objectives in a settled vision Empowerment of those contiguous to the ecological changes so they can react rapidly Close up monitoring of those responding to proceedings The reason of such observation is to guarantee that proceedings taken to not rendering the association to pointless risk. Marketing Department: Roles and Responsibilities: Maintain existing clients and magnetize new consumers by assessing their requirements and bearing in mind their purchasing power, buying behaviour, location etc. Reviewing marketing actions with administration to contain strategy review reports, sales analysis and forthcoming promotional plans. Prospecting latest locations for property and reporting on chosen regions or cities and their design, population and transport facilities. Mounting yearly marketing plans with individual departments. To enhance the quantity of sales by analysing the burden of markets. Awareness of the products on sale. Investigating and trailing new products. Finance Department: Roles and Responsibilities: Calculating incoming and outgoing cash flows. Expense of salaries, wages and invoices. Undertaking performance evaluation, budgeting and reporting to administration. Grounding of annual accounts and budgets. Liable for the assortment and distribution of this information. Advising on possible investments. Be in charge of expenses throughout the company. Calculating financial necessities needed to meet up objectives. Both the marketing department and the finance department have a main role in implementing organizations strategy. With exacting gaze at the grocery industry some manufacture will need to be purchased on a daily basis. Marketing will require providing consideration to the sale tempo of fresh manufacture and from that quantifying the effort needed. Sales forecasts will also be a significant part of budgets being created by the finance department as well as concerning to the labour necessary for the HR department. (Ltd., 2013-2014) TASK 4.2: Finance: In order to implement any strategic plan finance is constantly going to be a key resource necessity. A budget can help begin the finance required for the plan and can frequently be controversial. A capital budget will shape part of the procedure of alteration when an organization selects to spend a lot in its apparatus. A departmental budget will be essential to the dissimilar divisions of a company who are combating for their share of organizational resources. A revenue budget is essential when the company is thinking about building finance accessible for administration of new areas of development. All of an organizations programmes, policies and plans will hold financial suggestions hence suspicious financial planningwill be vital in order to profitably implement a strategy. Human Resources: Human Resource planning is one of an organizations most significant resourcing areas and will merely be successful if employees are considered as a key factor by administration. HR planning should be measured in the similar way as investing in latest products, that is, strategically. One of the key rudiments in HR planning is to have a functioning organizational structure. When scheming the structure it is compulsory to distinguish tasks into jobs related with supervisory and management control. Employees planning are also compulsory in order to recognize the variety of structures required in a company along with the quantity of employees needed. Human Resource planning can be based on forecasts and statistics whereas employees planning can be based around mutual planning i.e. If a product is to be phased out and a new product launched then it may be compulsory to enlarge a guidance plan or set up for redundancies, or on the other side recruitment. Materials: In order to carry on operating a company will always need a customary throughput of materials. The management of materials is a complicated matter for a company but is an important resource one. Over the years some special approaches to stock run and inventory have appeared to facilitate with this procedure. It is essential to value the significance of material resources and its special effects on functions. Strategy is as ward on efficient functions as functions are on efficient strategy, this needs a top to bottom incorporated prominence on qualityprinciples within a company. Time: Time similar to every other resource should be due in a sound planned way. When making conclusions about resource utilization to future strategies managers can habitually abandon the significance of time and yet time is of the fundamental nature in strategic implementation. One of the customs of assigning time to ensure that errands are fulfilled to meet a deadline is the à ¢Ã¢â€š ¬Ã‹Å"ABC Analysisà ¢Ã¢â€š ¬Ã¢â€ž ¢ this is a assessment analysis on the utilize of time. In order to meet deadlines managers will focus on the most significant tasks. In a usual day 1 or 2 A tasks will be fulfilled per day, 2 or 3 B tasks can be allocated with some time situate aside for C tasks. The ABC Analysis can be used to ensure that time is owed to meet the strategic objectives of a company in a sound way. (Ltd., 2013-2014) TASK: 4.3 Gantt chart: AGantt chart, generally used inproject management, is one of the trendiest and valuable ways of showing activities (events or tasks) display ed against time. On the left of the chart is a list of the activities and along the top is asuitable time scale. Each activity is represented by abar; the position and length of the bar reflects the start date, duration and end date of the activity. This allows you to see at a glance: What the various activities are When each activity begins and ends How long each activity is scheduled to last Where activities overlap with other activities, and by how much The start and end date of the whole project Tosummarize, a Gantt chart shows you what has to be done (the activities) and when (the schedule). (Gantt.com, 2012) Time period (Days) Activities Day1 2 3 4 5 6 7 8 9 A B C D E F G Task M: The following table is the Critical Path Analysis of Samsung Galaxy S5 Activities Elapsed Time 1 1 2 A 3 3 B 60 4 1 5 10 6 CD 2 7 F 15 8 EG 40 Task D: Issues Faced by a Firm during Implementing Strategy: While implementing a strategy there are several problems that an organization has to face. A few of them are discussed below in details: Problem in Planning for Every Event Separately: As we know that there are different tasks performed in an organization and there are several activities which take place in an organization. Now for each activity different strategy is to be followed accordingly thus, the strategy you want to apply for each and every task over all in an organization would not be the effective one for all activities which might result in lower output or disturbance of organizational activities so, planning for each is a difficult, time consuming and cost occurring task. Adjusting the Plan: As discussed above there is different strategy used for different activities and tasks so by adjusting the plan we mean that, if according to the situation a plan used in one department suits best in any other perfectly then the organization must exchange those plans with each other. Example: For example if an organization has three departments in it Marketing, HR and Finance and they follow plans A,B,C,D,E,F,G,H and I respectively. Now if we notice that plan D of Human Resource fits the best instead of plan G of finance and vice versa then we will exchange these two plans according to their suitable strategies. During implementing these changes we have to face many problems such as to see whether the staff is willing to change their duties or not, whether the timings of both plans match each other or not, whether the employees are satisfied or not, whether we have compatible staff in the other sector or not etc. Adjusting the plan is easy but implementing is tough and it is quiet hard to satisfy each employee with the upcoming plans. Diagrammatical Explanation: A G B H C D I E F Organizing Resources for Operational and Corporate Level: By organizing resources we mean that resources such as HR, Finance, Raw Material etc. need to be identified at each organizational level. This means we have to set a specific amount of budget for each resource. This will help to examine each sectorà ¢Ã¢â€š ¬Ã¢â€ž ¢s resources in a proper way. For example if we have settled down 40% of resources for operational level and 60% for corporate level respectively, now if we see that top level is using 65% of resources this will clearly let us know that something is going wrong and 5% of the bottom level resources are being used by the corporate level. The following diagram will clear the above mentioned scenario accordingly. Diagrammatical Presentation of the Above Scenario: 60% of total resources if 65% is used here 40% of total resources then 35% is left here Conflicts Between Different Levels of Management: Strategy may be affected by decision at the operation level. For example if a decision is made at the corporate level which should be implemented in the organization conflicts may rise. Because probably the plan which corporate level thinks suits best the organization might not be same in the opinion of operational level. Operational level management may face problems regarding finance, faculty or any other issue while implementing the new made strategy. These problems might be raised due to unfriendly behavior or communication gap problems between the top, middle and bottom level managers. Bibliography Gantt.com. (2012). What is a Gantt chart? Retrieved june 15, 2014, from https://www.gantt.com/: https://www.gantt.com/ Ltd., A. A. (2013-2014). The Roles And Responsibilities For Strategic Implementation Commerce Essay. Retrieved june 15, 2014, from https://www.ukessays.com/: https://www.ukessays.com/essays/commerce/the-roles-and-responsibilities-for-strategic-implementation-commerce-essay.php Business strategy Page 1