ZinMinLwin,BS,A-1Hnd-1250

Table of ContentsOrganizational audit for Samsung Electronics2SWOT analysis2Strength (Blue ocean)3Merger Strength3Weakness3Opportunities4Threats4Value Chain activities5Bench Marking7Scenario Planning7Environmental Audit8PESTEL8Porters five forces9Stake holder analysis10Stake holder mapping12Reference list13

Organizational audit for Samsung Electronics

SWOT analysisSamsung Electronics Company (Samsung Electronics or the company) is engaged in themanufacture and distribution of consumer electronics, communication products, semiconductorproducts and home appliances. The company, a part of the Samsung group, operates through aStrength1. Ability to apply BLUE OCEAN strategy on product development.2. Vertical and horizontal integration with its own subsidiaries.3. Excellence in engineering and producing hardware parts and consumer electronics4. Constant investment on R&D5. Focus on environment6. Low production costs7. Largest share in mobile phones and 2 place in smart phones sales8. Ability to market the brand

Weakness1. Patent violation2. Too low profit margin3. Main competitors are also largest buyers4. Lack its own OS and software5. Focus on too many products6. Instances of product recalls reflect poorly on brand image of the company

Opportunities1. Growing Global smart phone market2. Growing mobile advertising industry3. Growing demand for quality application processors4. Growth of tablets market5. Obtaining patents through acquisitions

Threats1. Saturated smart phone markets in developed countries2. Rapid technological change3. Breached patents4. Price wars

number of subsidiaries. The company operates through three business segments: digital media and communications, device solutions, and others.This is the for the current situation of Samsung.

Strength (Blue ocean)Blue ocean strategy has been a great tool for Samsung, especially in the Value innovation part of the strategy.The concept is that: Porters five forces analysis is a formula for remaining in red oceans, The key to exceptional business success is to redefine the terms of competition and move into the blue ocean, where one have the water to oneself. The goal of these strategies is not to beat the competition, but to make the competition irrelevant.'Value Innovation and reducing or eliminating features or services that are less valued by the current or future market are the factors that Samsung has been focusing on.A combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage. Example: Samsung has started a foldable screen smart phone.Merger StrengthOne more advantage of Samsung is that Samsung phone company merge with its subsidiaries where it produces micro chips and electronic components. Unlike other electronic company ,like Apple where they order electronic components from china, resulted in higher cost and higher power of the supplier in five forces. This gives Samsung a competitive edge in a value chain process.WeaknessInstances of product recalls reflect poorly on brand image of the companySamsung Electronics was involved in several instances of product recalls in recent past. For instance, The Company has issued a voluntary recall of its 160,000 Jitterbug phones. The company recalled these phones after regulators determined that they could fail to connect to Emergency 911 in a no-service area. During the same month, the company recalled Jiperu refrigerators in the South Korean and Chinese market after incidents of explosion occurred in the modelOpportunitiesGrowing global mobile phone marketThe global mobile phone market is witnessing a robust growth. According to Data monitor estimates, the global mobile phone market was valued at $101 billion in 2008. In 2013, the market is forecast to have a value of $157 billion, an increase of 55.3% since 2008.Samsung Electronics is one of the leading producers of mobile handsets in the world, with 20.6% market share. With its strong market position, Samsung Electronics is well positioned to control the benefits of growing global mobile phone market.ThreatsSamsung has wide variety of product lines; failure of one product line will have impact on the other and will result in brand dilution.The competitors like Nokia are focused focused only in one segmentThreats from Chinese products, cheap and quality Rapid technological changes is also a threat to Samsung since they will always have to try to keep ahead of its competitors.Price war is not the solution but considered the biggest threat.

Value Chain activitiesThe goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin

Value chainsAnalysis

Inbound logistics: This includes the receiving, warehousing, and inventory control of input materials.

Currently Samsung has logistics companies as its subsidiariesSamsung already has its own operations and activities in the manufacturing processes of their smart phones, most activities involved in inbound logistics are heavily superior.

Operations: These are the value-creating activities that transform the inputs into the final product

Manufacturing of all components for Samsung Electronics products are spread out around the World. Factories are mostly located in Korea, China, Vietnam, and Indonesia. Some countries produce specific product. For instance, India R&D factory produces software application, and Samsung Austin Semiconductor focuses on production of semi conductors. Logistics play a big role in ensuring that scheduling and inventory control are matched with Samsungs pace because of overseas shipping and unpredictable delays that come with it, this operation potentially becomes less streamlined and thus can decrease value.

Outbound logistics: These are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.

Current outbound logistics are very solid on Samsungs end. Because it has most of its operations localized within Samsung Town in Seoul, all activities related to the gathering, storing or distribution of their finished smart phones (and all other products) are done effectively, with little delay and with a efficient logistics methodology.

Marketing & Sales: These are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etcRegional Head Quarters are located in nine overseas countries; North America, Latin America, UK, Singapore, China, Russia, UAE, and IndiBy using the correct marketing strategies, Samsung can maximize the value perceived by the public.The biggest challenge with this stage of the framework is in forceful current blackberry users that Samsungs network and security features on their mobile phones are superior than Samsung.

Service: These activities are those that maintain and enhance the product's value including customer support, repair services, etc.

Most of the customer complaints can be applied through the website;1.Contact support through live chat, emails, and twitter2. Registering product warranty online through website.3. The biggest challenge here is that Samsung must be ready to cover in order to proceed with the promise of enhanced and superior security.

Demographic influencesDemography is one of the most powerful, and useful tool to help people understand the past, and forecast the future. Demographics affect every one of us. The statistic data of population can show the issue of an event clearly.

Bench MarkingWhen organizations want to improve their performance, they benchmark. That is, they compare and measure their policies, practices, philosophies, and performance measures against those of high-performing organizations anywhere in the world. Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is. One of the reasons for Samsungs smart phone success over the past three years is a large marketing effort. Benchmarking is used to measure performance using a specificindicator(cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to othersExample: Samsungs S4 smart phone has gone through a Android authority geek bench test and it stated that the condition of S4 bested iphone 5 by almost double in terms of speed. I suspect the company will use this benchmark tests such as these and speak the message repeatedly that its phones best all others in terms of speed.Scenario Planning

ExampleIf S4 turns out to be a great hit, how to maintain it.If S4 does not meet the target sale, the company will do more promotion and advertising.If S4 failed and has been rejected by customers, how to diverthttp://www.12manage.com/methods_scenario_planning.html (Picture taken source)Scenario are detailed and reasonable views of how thebusiness environmentof an organization might develop in the future based on grouping of important environment influences and drivers of change about which there is a high level of uncertainty.

Environmental AuditPESTEL

There are so many silver linings that the company would find very encouraging to start a business here in Myanmar. There are six factors that are needed to be taken into consideration. They are: Political, Economic, Social, Technological, Environmental(green), Legal The recent political changes in Myanmar has given a great opportunities to foreign investment to help country on the run. The democratization has bring a lot friendlier policy and favor greatly to foreign investment. E.g. Five years annual tax-free period for investors, lower land rental fees is a major fact and strong law protecting the investors from other countries. Economically, Myanmar has broken down its doors and opened-up dramatically. Most people are eyeing on the recent dramatic changes and exciting about the improvement in economical sector. The rate of inflation on currency has been ceased and the interest rateson having a loan and the exchange rates are very stable (1$ equivalent to 800kyat). Sadly, the average income of every Burmese people in the country is around 3$ a day. They sure have very little disposable income.

The living standards of the Myanmar people are not up to the standard. There are very few percentage of the people living in the metropolitan area. However, the hunger for the rise in living standards has given a chance for luxury products also. Lifestyle changes are quite fast. Like people in the nineties will not spend much money on recreational stuff like soft drinks but it has been changed.

In terms of technology, I think that the company is fully prepared for it has more than fifty years of experience. Better packaging, mass production, and services to customer and better quality products.

Public awareness of the connections between industrial production, mass production and environmental damage is higher than it has ever been before. We could win the peoples heart by doing green marketing. Such as using recycling method, reduce, reuse. Most people who are very aware environment like environmentalist will also be in our market segment.

Porters five forces

New entrants: A new entrant into an industry will bring extra capacity and more competition. These depend on the strength of the barriers to entry and the likely response of existing competitors. The very new entrants are prevailing in the market especially from the products from the neighboring countries. They are coming into the market illegally. These products will surely have lower. Substitute products: A substitute product is a product produced by another industry which satisfies the same customer needs. Eg, many electronic appliances from china, HUAWEI, HTC, SONY Bargaining power of customer: Customer wants better quality products and services at a lower price. This could affect the profitability of the product. The bargaining power of supplier: We do not have this problem here because our raw material is being produced by our own subdiaries companies. The rivalry amongst current competitors in the industry: The intensity of competitive rivalry within an industry will affect the profitability of the industry as a whole. Price competition, advertising battles, sales promotion campaigns, introducing new products for the market, improving after sales service or providing guarantees or warranties.

Identifying the competitors: There are so many competitors in the market. One of the biggest would be Huawei since it is cheap and also good in quality wise. Others are iphone, LG, HTC, and Sony.

Stake holder analysisStake holder consists of all enterprises whether they are profit or non-profit organizations. Stakeholders are individuals or groups that affects in how the enterprise is running.Business objectives are the ends that an organization sets out to achieve. A business creates business plans to enable it to achieve these ends - thus plans are the means to the ends. The objectives and plans that an organization creates are determined by balancing the requirements of the various stakeholders in the organization. The stakeholders are those individuals and groups that are affected by and have an interest in how the business is run and what it achieves.Internal stakeholders objectivesStakeholder groupGeneral concernsExample

Employees Job security Pay and condition Job satisfactionWhen employees are motivated they will be more productive, this can be done by increasing the wages.

Managers Pay and status Job security Performance measuresThe managers are going to defy , if they do not feel recognized.

Connected stakeholders

Stakeholder groupGeneral concern

Share holders The amount of return on their investment. Organizations ethical performance.

Bankers Overall condition of the company. To minimize the risk of not being paid. Security of loan

Customers Quality Price Product development based on feedback

Suppliers Ability to pay Interested in future business

External Stake holderStakeholder groupGeneral concerns

Government and the general public The organization is meeting relevant legal requirements The organization does not make harm to the outside environment

Stake holder mapping

Key players: They are quite interested and powerful groups. Like major customer. Example key stake holders: Government and the general public, Share holders,

Keep satisfied: They have a great potentiality of becoming a key player so they must be treated with care. E.g Customers, , Managers

Keep informed: They are more like communities representatives and charities group. Not very Important but they can influence powerful stakeholders. E.g: Employees

Minimal effort: Very little effort is spent on this segment. E.g environmentalist

Reference listBenchmarking. 2013.Benchmarking. [ONLINE] Available at:http://govinfo.library.unt.edu/npr/initiati/benchmk/. [Accessed 4 May 2013].

SWOT analysis of Samsung. 2013.SWOT analysis of Samsung. [ONLINE] Available at:http://www.marketing91.com/swot-analysis-samsung/. [Accessed 8 May 2013].

Organizational Audit. 2013.Organizational Audit. [ONLINE] Available at:http://www-distance.syr.edu/orgaudit.html. [Accessed 10 May 2013].

Organisational Audit Tool | Excellence Gateway. 2013.Organisational Audit Tool | Excellence Gateway. [ONLINE] Available at:http://www.excellencegateway.org.uk/node/17228. [Accessed 10 May 2013].8