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Table of Contents
Organizational audit for Samsung Electronics ........................................................................................ 2
SWOT analysis ................................................................................................................................... 2
Strength (Blue ocean)...................................................................................................................... 3
Merger Strength .............................................................................................................................. 3
Weakness ........................................................................................................................................ 3
Opportunities ................................................................................................................................... 4
Threats............................................................................................................................................. 4
Value Chain activities ............................................................................................................................. 5
Bench Marking .................................................................................................................................... 7
Scenario Planning ................................................................................................................................ 7
Environmental Audit ............................................................................................................................... 8
PESTEL .............................................................................................................................................. 8
Porters five forces .............................................................................................................................. 9
Stake holder analysis ............................................................................................................................. 10
Stake holder mapping ....................................................................................................................... 12
Reference list ................................................................................................................................ 13










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Organizational audit for Samsung Electronics

SWOT analysis
Samsung Electronics Company (Samsung Electronics or the company) is engaged in the
manufacture and distribution of consumer electronics, communication products,
semiconductor
products and home appliances. The company, a part of the Samsung group, operates through
a
number of subsidiaries. The company operates through three business segments: digital
media and communications, device solutions, and others.
Strength
1. 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 electronics
4. Constant investment on R&D
5. Focus on environment
6. Low production costs
7. Largest share in mobile phones and 2
place in smart phones sales
8. Ability to market the brand

Weakness
1. Patent violation
2. Too low profit margin
3. Main competitors are also largest buyers
4. Lack its own OS and software
5. Focus on too many products
6. Instances of product recalls reflect poorly
on brand image of the company

Opportunities
1. Growing Global smart phone market
2. Growing mobile advertising industry
3. Growing demand for quality application
processors
4. Growth of tablets market
5. Obtaining patents through acquisitions

Threats
1. Saturated smart phone markets in
developed countries
2. Rapid technological change
3. Breached patents
4. Price wars

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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 Strength
One 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.
Weakness
Instances of product recalls reflect poorly on brand image of the company
Samsung 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 model
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Opportunities
Growing global mobile phone market
The 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.
Threats
Samsung 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 segment
Threats 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.








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




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

Currently Samsung has logistics companies as its
subsidiaries
Samsung 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.
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Demographic influences
Demography 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.


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, etc
Regional Head Quarters are located in nine
overseas countries; North America, Latin America, UK,
Singapore, China, Russia, UAE, and Indi
By 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
twitter
2. Registering product warrant y 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.
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Bench Marking
When 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
specific indicator (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 others
Example: 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
Scenario are detailed and reasonable views of how the business environment of 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.





Example
If 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 divert
http://www.12manage.com/methods_scenario_planning.html (Picture taken source)

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Environmental Audit
PESTEL


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 rates
on 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.

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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.
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Stake holder analysis
Stake 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 objectives


Connected stakeholders

Stakeholder
group
General concern
Stakeholder
group
General concerns Example
Employees Job security
Pay and
condition
Job satisfaction
When employees
are motivated
they will be more
productive, this
can be done by
increasing the
wages.
Managers Pay and status
Job security
Performance
measures
The managers
are going to defy
, if they do not
feel recognized.
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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 holder












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

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Reference list
Benchmarking. 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].