Samsung Business Analysis, Thesis of Leadership and Team Management

Download Samsung Business Analysis and more Thesis Leadership and Team Management in PDF only on Docsity! UNIVERSITY OF NORTHAMPTON SCHOOL OF BUSINESS *** FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** MID-TERM ASSIGNMENT Module: Leadership and management Code: BSS028-2 SAMSUNG BUSINESS ANALYSIS Student: NGUYỄN HỒNG HẠNH Student ID: 2145519018 Class: K60NOB Semester: I Academic year: 2023-2024 Headteacher: Nguyen Minh Nam Anh Submission date: 23/09/2023 Student’s signature: FOR EXAMINERS ONLY Grade (in number) : ……………….. Grade (in words) : ……………….. Examiner 1 ……………….. Examiner 2 ……………….. UNIVERSITY OF NORTHAMPTON SCHOOL OF BUSINESS *** FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS *** MID-TERM ASSIGNMENT Module: Leadership and management Code: BSS028-2 SAMSUNG BUSINESS ANALYSIS Student’s fullname: NGUYỄN HỒNG HẠNH Student ID: 2145519018 Cohort: K60NOB Semester: I Academic year: 2023-2024 Lecturer: Dr Le Son Dai ii Content s I. Introduction...................................................................................................................3 II. Strategic plan..............................................................................................................3 2.1. Objectives.................................................................................................................3 2.2. Business environment analysis...............................................................................4 2.2.1. External environment.........................................................................................4 2.2.2. Internal analysis.................................................................................................9 2.2.3. SWOT analysis.................................................................................................10 2.3. Strategy..................................................................................................................11 III. Action plan................................................................................................................14 3.1. Timelines................................................................................................................14 3.2. Financial plan........................................................................................................15 3.3. Human resources management............................................................................17 IV. Control method and Risk management..................................................................17 4.1. Control method.....................................................................................................17 4.2. Risk management..................................................................................................18 REFERENCES...................................................................................................................21 iii I. Introduction The first significant company in South Korea and a transnational corporate group is Samsung Company. The Samsung Group comprises many multinational affiliate companies. Its business spans a wide range of industries, including mechanical, chemical, financial, electrical, and other fields, and it is included in a list of the top 500 global corporations. Its major subsidiary, Samsung Electronics, is the largest maker of mobile phones in the world and has the highest revenue among all electronics firms. Target Market: The target customer base for Samsung consists of tech-savvy individuals between the ages of 15 and 45. They watch a lot of TV and online content, and they have a keen interest in regional TV programs, celebrities, and their idealized lives. Acording to the head of the mobile experience division at Samsung Gulf Electronics, the firm is also experiencing greater demand, particularly in the luxury smartphone market, which has remained stable despite the difficulties the industry has encountered. Global smartphone shipments fell 12% yearly to 1.2 billion units in 2022, the lowest level since 2013, according to a research released this month by Counterpoint Research. Shipments decreased by 18% year over year in the fourth quarter alone, reaching their lowest level for a holiday period since 2013, according to the statement. However, according to Mr. Abu Shamat, the demand for high-end goods has been rising. According to Counterpoint Research, the average selling price of premium smartphones—those that generally cost $400 or more—rose 8% yearly to a record $780 in the second quarter of 2022. II. Strategic plan. II.1. Objectives. iv Since consumers in the premium market are quality seekers rather than price seekers,who look for the highest return on investment for their purchase of a smartphone, the significant demand for the product line in upcoming, high-quality items suggested by customers should be addressed by Samsung with rules. Thus, I believe that the corporation should concentrate on the following goals (in general) given the recent rise in both the need for high-quality items and in consumer preference for high-end products. The newest model in Samsung's line-up of foldable phones is the Galaxy Z Flip 5, and with it, the firm is introducing several fresh and noteworthy advancements. In addition, we may utilize the introduction of the newest Samsung Galaxy ZFlip 5 product line as a launchpad for tactics that will support the company's goals. II.2. Business environment analysis. II.2.1. External environment 1. PESTEL model – factors that effect my business project. a. Political. - Government Policies: Samsung's commercial operations may be significantly impacted by the government policies of the areas in which it operates. For instance, the business strategies of Samsung may be affected by issues like tax laws, employment regulations, environmental rules, trade obstacles and tariffs, and political stability. The reality that most directly impacts Samsung is that it is owned by political billionaires in Korea and that the Korean people have high expectations of Samsung. Although it appears to be a blessing, it has two sides. People now have higher expectations, whether it be for the efficiency of marketing tactics or the rate at which things are sold. As a result, Samsung is under a lot of pressure to deliver products that actually meet customer needs. vii Consumer demand for environmentally friendly "green" items is rising. By creating goods with a lesser environmental effect, such as those made of recycled materials, Samsung can capitalize on this demand. f. Legal. - Employment Laws: In the nations where it operates, Samsung is required to abide by the employment and labor laws. This covers regulations governing pay, working conditions, health and safety, and discrimination. - Consumer protection legislation: This legislation guards consumers from unethical corporate activities. Advertising, product safety, and customer service are just a few of the areas where Samsung must abide by these regulations. 2. Porter’s five forces. a. Industry rivalry Samsung's software as well as its hardware are likely to be directly challenged by an array of tech rivals. And while high-end hardware makers as Apple and Google, Mi and Optic provide similar features on smartphones for a lower price. As switching costs are little and customers may test out new goods, loyalty to a company is unusual in the cellphone industry. Businesses like Whirlpool Corporation Voltas, and many more are creating fierce competition in the residence appliance sector since they sell almost identical items at prices that are comparable. b. Threats of new entrants. Any of the top makers of electronic products internationally is Samsung. Because of the intense competition in the scientific sector, a company necessitate innovation to stay afloat. The profound cost that these improvements require is outside the capacity for a company of this size. viii An experienced firm might discover hard to compete in this field because they the absence the technological know-how. A new operator would find it challenging to enter this industry especially since it necessitates a strong brand and trust among customers. Without that, it would be highly costly for a high-end appliances like those created by Korea to reach into the marketplace, and it might also be rather challenging for a company of this size to offer one up with. c. Power of buyers. Smartphones, for example have cheap costs for switching, giving them significant negotiation financial leverage. Although Galaxy is a business to customer business, earnings of any particular customer have little effect on Galaxy's total revenue. Therefore a consequence, the specific client's negotiating stance is weak. Nevertheless, given that there are so many distinct companies and goods available, customers have a lot of collective bargaining authority. Furthermore, rather than rely just on the value of the brand, consumers and clients may now obtain unique knowledge and statistics that are comparable. d. Power of suppliers. Exporters' leverage whilst negotiating with Samsung is constrained. Samsung could obtain knowledge from multiple places. Within those countries that Samsung partners with on worldwide scale are the US, Taiwan, China, South Korea, Hong Kong, and Japan. Samsung provides a substantial portion of profits for a number of companies. They are prohibited from hurting Samsung in return. Furthermore, Samsung has strong defenses against any supplier whose fails to provide the raw material or whose prices are too expensive due to its relatively inexpensive switching expenses for suppliers. e. Threat of subsitutes. ix Televisions are utilized for viewing movies, freestanding cameras be used to capture pictures or film videos, telephones or internet-based devices be used to make calls, personal desktops are used for an array of works, etc. Each of these qualities could not be combined into one thing anytime soon, much less in a portable and compact form size. Unfortunately, there is no fitting replacement for any kind of native device, including the refrigerator, washer and dryer, microwave use, and or TV. These electronic devices offer convenience and excitement that no other technology can match. Also Samsung is the owner of various patents that inhibit other businesses from manufacturing devices that have features similar to its own. 2.2.2. Internal analysis. The intrinsic strengths of Samsung have been heavily credited for its success. Samsung's competencies include R&D, innovation, turnaround strategy, growing global brand, new products each year, and customization. The business has few flaws. The issue of language is one of the important ones. Being of Korean descent, the top management may experience communication difficulties in an environment where English is the dominant language. Language coding is crucial in product design since many users may not be familiar with operating systems or user manuals written in Korean. The company's inability to make user-friendly goods is another one of its weaknesses. According to the conceptual approach, this is seen as the most significant flaw since it is dependent on technology, which is a crucial factor in the success and profitability of the firm in the contemporary period. Similarly, innovation is viewed as the company's most crucial asset since it is focused on technology, a crucial element of the external environment that determines profitability in the current period. The best feature of Samsung may be utilized to address its worst flaw. Peng (2008) claims that the business may utilize its innovative skills to address the xii In light of the analysis recently completed, I believe Samsung should adopt the following new approach: Increase sales by promoting the new product picture for the Samsung Galaxy Z Flip5. As it strives to solidify its market leadership in terms of revenue this year, it is believed that Samsung will concentrate more on 5G smartphones in 2023, raising the proportion of revenues from 5G smartphones from 61% in 2022 to 75%, and the Galaxy Z Flip5 is the target factor. The Galaxy Z Flip5 is a device that acknowledges the numerous improvements Samsung has made for Z Flip Series consumers. The new Samsung clamshell folding phone boasts a bigger exterior screen than the previous model, allowing users to fully utilize the front. Additionally, the Z Flip5's redesigned hinge and user-friendly software updates enable the gadget to fold more tightly. Samsung should thus begin a number of imaginative and varied advertising strategies utilizing both online and offline media. The advertising campaign I propose will have 2 phases and the main message of this campaign is to use the new product Samsung Galaxy Z Flip5 to convey "Unleash your hidden power". Phase 1: Trigger Digital Video: The main theme of the video is young individuals wanting to advance in their jobs. With its camera, AI, processor, and style, the Samsung Galaxy Z Flip5 is the ideal helper. What talent do you conceal? Through this video, let's find out. A link to a personality test will be provided at the conclusion of the video. Social media platforms, websites, and YouTube advertisements will all display digital videos. Microsite: to evaluate personality. Websites like Samsung.net, Cafebiz.vn, GenK.vn, and CafeF.com will host the microsite, among others. All participants will take the exam, receive evaluations, and access to tech events. xiii Social media (Facebook): Utilize KOLS to promote dialogue and understanding about personality assessments. OHH: The electronic billboard asks, "What is your hidden power?" while displaying the color scheme of the Samsung Galaxy Z Flip5 cover. PR Booking: First, unbox and examine the Samsung Z Flip5 to uncover its potential. Websites: include Tinhte.vn, CafeF.com, and GenK.vn. Phase 2: To clarify that the Samsung Galaxy Z Flip 5 product will "Unleash" consumers' secret potential, go to the key message: "Unleash your hidden power" through practical communication events. The main hook is: Unleash your secret power at a technology event - The event will be held in the VCCA - Vincom Center Hanoi and HCM City. The goal is for visitors to be able to immediately experience the newest technologies of Samsung Galaxy Z Flip5. The following are the main activities: Human development conference, advice on releasing latent talents, and the launch of an assistant – Samsung Galaxy Z Flip 5 for Samsung’s dedication to uplifting Vietnamese people is demonstrated. Other Samsung Group technological goods on display, such as televisions and automobiles... Mobile gaming tournament with the aim of demonstrating Samsung's hidden power. Supporting strategies include social media, KOLs, and PR pieces. OOH POSM (Point Of Sale Material, advertising presents, promotions, standees, wobblers, advertising hangers, and so on): "Unleash your hidden power with the latest technology Vsmart Aris Pro," said digital banners at Vincom Shopping Center, Vin Mart, and retail stores. Commercial marketing and sales: xiv Shopper promotions include: Promotions for die-hard fans: Old Samsung phones may be exchanged for new Samsung phones. Samsung ID points can be used for electronic vouchers. Decorate Samsung retail and sales locations with the "Hidden Power" motif, and establish the Samsung Galaxy brand. III. Action plan. III.1. Timelines. This campaign is divided into 2 phases, lasting 3 months and divided into 7 main areas: social media, microsite, event, OOH/POSM, PR/Booking, KOLs, and Trade marketing. Social media: Activities related to social media will last throughout the 3 months of the campaign, including Digital video, Personality test in the first month, with great reach and frequency. In the first 2 weeks of the 2nd month xvii Depreciation cost: Samsung's depreciation cost was 17.7 percent more than that of its rivals. The cost control team could handle this. To reach the magnitude of economies, technology could be improved. Price premium: Previously, the company's products were priced lower than those of its rivals. To a percentage of 34%, it was lower. The business might be able to manage this. It could provide goods that draw greater attention (Hwang and Ng, 2016). However, compared to its rivals, it has introduced more DRAM products. III.3. Human resources management. Position Quantity 1 Marketing staff 100 2 Stage staff 50 3 Online staff 100 4 KOLs 10 5 Programee staff 50 6 Social Media Ads Looking Staff 50 7 Managers 50 8 MC 10 IV. Control method and Risk management. IV.1. Control method. In essence, a control mechanism is something you do to reduce the risk that a "event" will happen and/or serve as an exit for a certain potential "failure." After a purchase, controls may be used to track customer satisfaction and promote future purchases of the Samsung Galaxy Z Flip5. These controls include maintaining an accurate inventory, monitoring sales figures, and keeping in touch with consumers by email and phone lists. xvii i To remain in operation, any organization needs sustainability. Samsung Electronics has since created a number of tactics to maintain success in the electronics industry in this era of technological competition. Feedforward controls are designed to anticipate problems or deviations from standards before they occur. They generally fall into two categories: Diagnostic tools identify a deviation that is occurring or has already occurred. When determining whether an employee has reached a quota, a sales manager at a clothes business uses a diagnostic control and a monthly sales report. Therapeutic controls are those that simultaneously seek to identify and remedy deviations. In order to make the engine operate more effectively, an automatic gearbox in a car detects when the engine is working too hard and switches gears using oil pressure. When an athlete's form is improper, a coach calls attention to it and gives advice to help fix it. Because they provide an action to be made while a deviation is happening, concurrent controls are sometimes known as steering controls. A business representative may figuratively steer the path of an encounter. Multiple controls are more common then is often believed. The menu and the side dishes must be dubbed to a the server as a restaurant. A car dealer needs to be educated about the features of the car that he is pushing. Factory employees utilize measuring devices to check that products satisfy weight, size, and other requirements A salesman who frequently fails to meet quotas may be identified by managers using feedback controls, also known as post-action controls, and may be given more training or fired from his position. A recall to prevent a choking danger may be the right post-action control if enough consumers complain about a xix loose element in a child's toy. Sales data that indicates product inventory is running low might indicate that manufacturing needs to be increased. IV.2. Risk management. Risk Definition Management method Measurement method and system Interest Rate Risk Risk of loss owing to shrinking in adjusted net worth caused by asset and liability length and ALM mismatch caused by interest rate fluctuations - Create standards for calculating predicted interest rates and the minimum guaranteed rate. - Set an asset duration objective based on obligations cashflow that takes liabilities structure and interest rates into consideration. - VaR - ALM - RAFM Credit Risk Loss risk induced by a counterparty's default or a drop in credit rating. - Each industry is required to set investment caps in order to diversify risks and manage exposure to maximum risk. - Credit VaR - Credit Metrics Insurance Risk Actual claim payment rates are greater than expected claim payment rates, which increases the risk of loss. - Set your tolerance threshold for risk based on changes in the loss ratio and policy cancellation rate, and keep an eye on connected risks often. - Develop reinsurance tactics. - VaR(Value at Risk) - ReMetrica - RAFM(Risk Agility Financial Modeler)