Management In Samsung Corporation

Introduction

In the contemporary world, the business environment is constantly prone to changes that are induced by technological advancement, and the thriving competition from other producers. To keep up on the top pedestal of the market, it requires a strategy to manage both internal and external operations of the business. It equally calls for a need to strategize an informed product portfolio management, for it is a vital premise on which the success of business activities is founded (Djavan, Xin, and Can, 2018).

The intent of this paper is to demonstrate the application of TOWS matrix to strategize for the Samsung Corporation and unravel the matrix significance to the company’s responsiveness concerning business operations in different geographical jurisdictions. Additionally, the paper intends to establish the link and association between the state and the Samsung organization, and determine how the influence therein can impact the corporation’s capacities to conquer the business world.

TOWS Matrix

TOWS analysis is a critical tool for generating, comparing and selecting strategies geared to boost both the internal and external environments under which a business operates. It is distinctive from the SWOT analysis in that SWOT is merely a tool of auditing and analysing business environments, without rendering solutions on how the identified gaps can be filled and fixed (Alaaraj, and Hassan, 2014).

As in with the case of many corporations, the processes and activities carried out do not function in isolation from a model geared to steer and control the internal and external operations (Means, 2017). It is prudent for business organizations to grab a better comprehension of the environment on which their processes and activities are anchored, as such an environment has the vast potentials to affect the various aspects related to policy formulation, decision making and planning. In consideration of such a premise; SWOT analysis was conceived as a tool to bring forth competitive strategies that are inclined towards the current conditions in their constituent business environments. The role of SWOT thus is to help enterprises get to initiate a full understanding of every factor positively or negatively influencing the operations of a company, on the table of strategic planning.

Despite the application of SWOT analysis, as a tool for identifying strengths, weaknesses and opportunities and threats for the organization; its analysis is deemed sedentary and barely allows the unique establishment of complementary strategies, as may be suggested by the SWOT analysis findings. This is the point at which Threats, Opportunities, Weaknesses and Strengths (TOWS) matrix come in. this tool is important not only because it empowers the managers to align the external threats and opportunities with the internal weaknesses and strengths; but the matrix also help in the development and streamlining of four typical strategies which are (Jibai, Alaaraj, and Issa, 2018);

WT strategies
WO strategies
ST strategies
SO strategies

As a global IT company, the integration of SWOT analysis enough cannot provide for the alternative strategies to fill in the gap realized by the analysis itself. There is a need to incorporate a holistic approach to benchmark the SWOT analysis findings, with what needs to be done to initiate the filling of the gaps therein if indeed there are any. The four strategies mentioned above needs to be supplemented with essential tactics; which are essential in strategic planning (Weihrich, 2017).

The WT strategies will focus in suppressing the weaknesses and threats constricting the Samsung Corporation, the WO strategies will strife to improve the conditions within the company’s internal business through capitalizing on its opportunities. ST strategies will focus on utilizing the internal strengths of the corporation with the pursuit of reducing or mitigating the impact of the threats along the external surroundings. Lastly, the SO strategies will be central to capacitate the company to maximize on its existing opportunities (Weihrich, 2017).

The analysis of TOWS matrix is constructed on the threshold of particular precepts (Wang, 2007). The matrix in its nature is subjective, in that its benefits can be realized depending on the kind of data on subject to it. Therefore, it is important to focus on realistic sort of analysis, and transfer the findings to the model for a more meaningful solution. The models also demand that the organization using be precise and specific. The strategies therein tend to integrate internal development for company growth, joint ventures and acquisitions (Hanson et al., 2016).

The Samsung Company can integrate the TOWS model to effectively comprehend, manage and monitor her produced goods efficiently in her quest to sprout her wings and establish new branches in different nations. The application of TOWS matrix will also optimize the company’s potentials to manoeuvre through the competitions induced by their competitors concerning production of almost similar products. It is only the best company, and that which operates within the threshold of smart strategies which will stand on the markets, of the contemporary world (Lasserre, 2017).

Samsung Corporation is enshrined with different strengths and weaknesses as at now. The low bargaining capacities due to its small pool of capital accumulation, and the threats imposed by the new products substitutes entry into the market; and competition from the existing companies are some of the constricting factors that impede the progressiveness of the company. According to the SWOT analysis conducted in the previous model, I came into the full realization that the company is equally saturated with various opportunities, which can propel it further if well harnesses.

For instance, the Samsung Company enjoys its customer bargaining capacities. The company enjoys diverse brand production which enriches the customers’ choices. The company has specialized in high quality products ranging from smart televisions, music systems, computing to other home kitchen appliances. As a result of that diversity, the company enjoys the space for bargaining with her customers globally, and thus can take advantage of such prowess to outshine her competitors already existing in the ,market.

Additionally, Samsung Corporation has little threats imposed by the new market entrants. This is based on the premise that the company has already established its brands and produce; which has consequently build her brand. For this, it may be impossible to get shaken by the new business joining the industry. This premise can equally amount to a pillar, necessary to steer forth the company’s operations to higher scales, as per the WO strategies of the TOWS matrix.

The Role of the State and its Relationship with Samsung Corporation

The government of a country is a vital entity and a huge determinant of business success at any given time. As globalization takes root in the modern days, so does the internationalization of business operations take course. Such that, the reduction of geographical barriers due to globalization; has enabled the establishment and spread of businesses from the mother countries and to abroad. This is chiefly facilitated by the governments which provide such a welcoming gesture; for business to thrive in their countries.

The government policies of a particular country will either inspire the establishment of businesses or otherwise. The settings of the policies will inspire or discourage the urge for both domestic and foreign investors to invest into business. The same case applies with the Samsung Company of South Korea. The continued prosperity of the company at home has been highly influenced by government policies which are in supportive of its operations (Hill, 2008).

Notably, the realization that indulgence into business is a way towards self-employment has inspired the government to provide incentives and favourable environment where business can prosper in. The government can also provide subsidies to make it easier to those who seek to venture into business operation. The subsidies may take forms such as reduced costs in accessing business raw materials, reduced tariffs, and taxes on the areas of business. By so doing, people and inspired to conquer the business domain which in long-run promotes self-employment, and indeed employment for many other people (Hitt, Ireland, and Hoskisson, 2012).

The role of government in business is varied within different countries. In view of this, there are some countries which discourage foreign investors into inhabiting their countries. Such nations make it hard for foreign investors to establish their brands, in such states. Such legal frameworks geared to discourage foreign investments may orbit around increased taxation exclusively to foreign investors. Such legislations will consequently compromise the will of globalizing particular corporations, such as Samsung.

The government also is a key player in business. The government of the day lay suitable doctrines geared to ensure there are fair competitions in the market. Through the licensing of business activities, the intent of the government is to ensure that the business owners are protected from illegitimate competitions from unscrupulous business owners who are not qualified to operate their businesses. Licensing also intends to regulate the number of businesses in the market, to ensure favourable competitive capacities are achieved (Johnson, 1987).

Additionally, the state’s government is a keynote provider of funds to boost the operations of the company when in shortages. The government of South Korea can find it of a good use to provide financial assistance to meet the company’s need, on the principle that the government will always find it good to contribute into a good thing. Through the provision of such financial assistance, the company can expand its operations and yield more satisfying products that are able to compete favourably with other substitutes in the market domain (Snider, Hill, and Martin, 2003). In turn, the company can reward the state through such distinguished products that resonates in global markets as the best of produce.

Recommendations

The integration of modern practices in terms of technology and models is vital to ensure the sustainability of a company into the future perspectives. The careful planning of day to day activities account to the ability of a company to remain in force; and to continue upholding its brand name that has been achieved over time. As the old adage suggests, it takes a lot of efforts to build up a reputation, be it of a company or a person. But it takes a little effort to demolish all the good name and reputation that has been earned over time. The following three recommendations are my suggestion of the efforts geared towards steer forth Samsung Corporation in the future perspective.

First, the company should consider the adoption of modern technologies in production. Through the constant evolution of science and technology, there has been incessant architectural changes in the organizations, concerning machineries, and equipment. The adoptions of such will induce efficiency production and in long-run cut short production costs.

Secondly, there is a need for periodic reviews conducted regularly to establish the sustainability of the model strings and provide for remedies using the TOWS matrix or any other relevant digital model.

Thirdly, it is important for the company to draw grains of wisdom from different cases concerning how other countries operate their processes. Through such cross checking, the company may adopt some important insights to supplement what they already possess.

Take a deeper dive into Majestic Herbivores With Horned Snouts with our additional resources.

References

• Alaaraj, H. and Hassan, S., 2014. Developing SWOT/TOWS Strategic Matrix for e-government in Lebanon. International Journal of Multidisciplinary Research and Development, 1(7), pp.181-186.
• Djavan, G., Xin, B. and Can, W., 2018. SWOT-AHP-TOWS analysis of private investment behaviour in the Chinese biogas sector. Journal of cleaner production.
• Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Competitiveness and globalisation. Cengage AU.
• Hill, C., 2008. International business: Competing in the global market place. Strategic Direction, 24(9).
• Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
• Jibai, B., Alaaraj, H. and Issa, A., 2018. Developing SWOT/TOWS Strategic Matrix for E-Banking in Lebanon. International Business and Accounting Research Journal, 2(1), pp.13-22.
• Johnson, C., 1987. Political institutions and economic performance: The government-business relationship in Japan, South Korea, and Taiwan. The political economy of the new Asian industrialism, 136.
• Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
• Means, G., 2017. The Modern Corporation and private property. Routledge.
• Snider, J., Hill, R.P. and Martin, D., 2003. Corporate social responsibility in the 21st century: A view from the world's most successful firms. Journal of Business ethics, 48(2), pp.175-187.
• Wang, K.C., 2007, July. A process view of SWOT analysis. In Proceedings of the 51st Annual Meeting of the ISSS-2007, Tokyo, Japan (Vol. 51, No. 2).
• Weihrich, H., 2017. The TOWS matrix—A tool for situational analysis. Long range planning, 15(2), pp.54-66.