Index Company HighlightsMacro EnvironmentVRIO Analysis of Samsung CompanyUsing KSF and VRIO to Determine Weakness of SamsungPorter's Five Forces ReactionPorters Diamond ModelSWOT AnalysisGlobal companies face various challenges which in a way jeopardizes the their operations in the global market. To develop an understanding of how global companies operate, a consideration of Samsung's operations is described in this essay. The main objective of this discussion is to establish the locations where Samsung operates with a certain number of employees and the profit margins of the organization. In addition to discussing the issues mentioned, the essay will use defined tools to analyze Samsung's strengths and weaknesses. Specifically, easy will provide an analysis of Samsung's operations based on VRIO analysis, PESTLE analysis and SWOT analysis. Furthermore, the essay will provide an analysis of both the macro and micro environments in which Samsung electronic devices operate. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Company Highlights Samsung electronics was invented in 1969 in Daegu, South Korea. After its founding, Samsung showed an overwhelming growth rate which led it to expand into other countries making them achieve multinational status. Specifically, the organization has factories and sales network in 61 countries around the world. Considering the broad scope in which Samsung Electronics operates, the organization has employed approximately 308,745 people worldwide. Although the organization, like other global companies, faces operational challenges, as of October 2017, the organization's market capitalization stood at $372.0 billion (Lee, 2006). The value indicated was an increase in the net profit that the company had achieved in 2016. Specifically, in 2006, Samsung recorded a consolidated revenue of (Korea Republic Won) of 53.33 trillion and an operating profit of 9.22 trillion . Samsung's overall performance in 2016 showed revenue of KRW 201.87 and profit of 29.14 trillion. Despite its well-known profits, Samsung Electronic has been subjected to a major operational challenge from global competition. Using key performance indicators, the challenges faced by Samsung Company can be broken down into less complex and easily understandable measures. Some key performance indicators that can be used to represent Samsung's performance are, for example, the earnings per share rate, the number of intragroup transactions within related parties and finally the number of transactions between joint venture members . Making use of the key performance indicators mentioned above, it can be argued that despite the organization facing a global challenge, it showed an increase in earnings per share of 24.9 in 2011 compared to 2010 (Lee, 2006). In addition, the number of the intragroup transaction organization within the related party environments. For example, the company is involved in the analysis of an inert joint venture with companies such as Coming Precision Glass and Siltronic Samsung Water. The biggest challenge that Samsung Electronics has faced over time has been the high competition from rival companies Apple and Sony. Following the challenges that Samsung is currently facing, the company has embraced various trends that have seen it maintain a competitive advantage over other organisations. Recently Samsung invented curved television technology which put it in a better competitive position compared to other organizations. Despite the use of known innovations, Samsung is fighting the battle dueof the invention of other phone companies such as Apple, Huawei, Lenovo and +Motorola. It is important for any business or organization to identify the elements of the macro environment as any change in the economy associated with electronic products would affect many organizations. Samsung electronics are used in many parts of the world, including Asia, the United States and Europe. All organizations are influenced by the aspect of the macro environment as they are able to determine the purchasing power of the consumer and his ability to satisfy the desire for material goods. The natural elements of the macro environment should not be overlooked by any company, especially those operating in the electronics sector where heavy metals such as cadmium and mercury are applicable. The PESTEL analysis therefore focuses on all the external macro-environments within which the company operates and in most cases; they are uncontrollable by the business. Macro Environment There are many external factors that influence the electronics industry globally and one of them is the political environment. The influence of politics affects many companies globally to the extent that some regimes support a certain brand in their countries. Other companies are even forced to recall some gadgets in some countries due to political tensions. The social environment is another trend that is changing globally as new services and technologies are changing the needs and desires of many customers around the world. The main challenge that the electronics industry faces is that many individuals have difficulty using products correctly and even more so new gadgets such as tablets (Nuovo and Salazar, 2015). Many people need to be trained on how to use various electronic devices and this remains a major problem for the industry. Furthermore, the legal issue is another factor that has affected many companies in this industry while marketing their products. Samsung Electronics faces many challenges related to macro environment elements as any organization and therefore it is necessary to define the necessary measures to overcome these challenges. The microenvironment of any company involves all nearby entities that interfere with the effective delivery of services or products. Having a conducive internal environment is essential for any business as it increases productivity and positively benefits the business. Stakeholders as members of the microenvironment in most cases directly influence the company. The profit made by the company sometimes influences the stakeholders, and through voting, they influence the company. Although stakeholders constitute part of a short-term financial gain for any organization, their demand for profits and excessive control can influence the organization's practices, employees, products and services. Also, the industry needs to be careful with the media as it can make or break the company. Therefore, an organization must create a positive working relationship with the media in order to promote progress and reduce the impact created by a negative event on their status (Nuovo, & Salazar, 2015). Suppliers remain one of many factors that determine the direction of a company and therefore a supplier's behavior can directly influence the management of a company. For example, if the supplier of your Samsung product provides poor service, in many cases this could increase the quality or time of the product. Having a close relationship with a supplier is the only way to ensure your business remains safe and competitive. Employees working in any organization act as the pillar of the company and a company that has employeeseffective remains competitive on the market. It is important to hire staff with appropriate experience and skills. The process of having effective employees must begin in the recruiting phase and continue into the employee's employment through ongoing promotion and training opportunities. In the marketing services sector in which Samsung operates, development and training play an essential role in gaining a competitive advantage. If a company operates with staff who lack skills, motivation or experience it can impact customer services and sometimes sales. Another microenvironment that influences the success of a business is its customers since all businesses need customers. Any business marketing plan should be planned to attract and retain customers through products that meet their “wants and needs” and exceptional customer service (Nuovo and Salazar, 2015). Globalization—the merging of individuals with world markets—may represent the most important and inevitable economic expansion of the late 20th and early 21st centuries. Globalization has an impact on various internal factors affecting business as it acts as a double-edged sword, one can be harmful and beneficial to the industry and therefore companies need to be equipped to deal with such effects and attempt to exploit the global market prospects while prudently managing its inherent constraints. Value chain analysis appears to be a difficult model to duplicate and offers a substantial competitive advantage for Samsung. The most relevant variables for analysis in this situation include customization, technology, quality, and branding. The history of an organization is a relevant factor that contributes to brand value. The brand value factor is primarily calculated using the number of years in business. On technology, the design rule is applied to measure technical competence. As for quality, better process engineering and research and development deliver better quality products. The weight of Quality is measured using the level of company investment in research and development. Overall, compared to its competitors in the industry; Samsung has the highest VC. Conferring with VC analysis, Samsung is a leader in both value and cost in the market and this ensures that it is able to create the highest surplus of buyers and businesses in the industry it controls. As is the case with any other leading company in the market, cost and value are important to Samsung's presentation. VRIO Analysis of Samsung Company Samsung has many capabilities and resources that provide a lasting competitive advantage over its competitors based on VRIO analysis. Various threats from competitors, and even more so from China, could be more important if they can catch up on value factors in the provisional category of modest and continuous benefits. In most cases, this involves various factors, such as product and quality mix/customization capability and manufacturing capability. The analysis highlights the drivers of the organization's values ​​in terms of intellectual property and technological advantages in their edge products. The importance of drivers is that they prevent imitation by other new competitors in the market and therefore the company's reliability and value of quality prevent customers from switching to competitors' products. A VRIO analysis is complementary to the PESTLE analysis which examines the macro environment of an organization. Using VRIO analysis it is possible to know the state of a company from the internal situation by examining its resources, competitive implications and the possibility of improving the environmentorganizational with the aim of better strategic management of the organization. The best way to evaluate Samsung electronics is through the use of six strength models. A combination of the six forces model and VRIO analyzes helps identify threats and opportunities for companies in the market. The industry competition of the company in question indicates that there is medium to high competition as despite having many competitors, Samsung has emerged as a market leader in e-commerce (Australia, 2016). Samsung Electronics' VRIO results indicate that the organization has a competitive advantage in the DRAM market, a fact that can be demonstrated by the amount of R&D capital and strong leadership practiced by Samsung Electronic. It is important to mention Samsung Electronics that the organization produces use of a human relations management strategy that offers employees the opportunity to take part in ethical decision making within company premises. The use of human relations management strategy has impacted Samsung positively because through it high levels of productivity are ensured, employees are given the opportunity to take part in ethical decision-making processes and, most importantly, it is inflicted on employees a sense of belonging. A consideration of Samsung Electronic's VRIO analysis indicates that the organization's resource capacity is somewhat fair compared to that of its competitors. As noted in the latter sections of the essay, Samsung Electronics is subject to high levels of competition from other cell phone manufacturers. companies such as Apple, Huawei, Lenovo and +Motorola (Australia, 2016). Even though the companies in question are managed differently from Samsung, they present mid-level competition for Samsung. For example, the prices of products from the companies mentioned are cheaper than gadgets made by Samsung. Taking the case of Sanyo and LG companies which enjoy better global recognition than Samsung, they show a better market position than Samsung which is a competitive disadvantage for Samsung. Despite having subjected Samsung to the mentioned competitive strengths, the organization's competitors present serious weaknesses which in turn have ensured the market prevalence of the Samsung company. For example, Apple products are very expensive compared to the products provided by the Samsung company. Furthermore, the compatibility of Apple products compared to Android products made by Samsung products is relatively low. Using KSF and VRIO to Determine Samsung's Weaknesses By making use of the mentioned tools, it is clear that despite being a global organization, Samsung has many weaknesses that if not addressed timely, can lead to total failure of the organization. The main weakness that Samsung faces is the lack of its own operating system and software. The development of such software exposes the organization to face indefinite losses due to the high costs of their development. An additional weakness that Samsung faces is its concentration on too many products. Samsung is at a disadvantage as it loses focus due to competing with too many companies (Australia, 2016). Compared to products offered by Chinese companies, Samsung products are expensive, a fact that subjects Samsung to dealing with cases of low profit margins. Porter's Five Forces Reaction Porter's Five Forces as it relates to Samsung electronics revolves around the five phases present in the industry as it aims to gain dominance or control of the world market as management moves to improve innovations and production . The rivalryCompetitive is one of the goalkeeper's strengths where Samsung should look into the kind of competition they have at all levels. Samsung, as seen previously, has several brands that it produces and for this reason there are competitors in every sector of its production. The first competitors that seem to give trouble to Samsung management are Apple Inc. which has gone so far as to use them in violation of innovation and property rights (Dögl et al, 2915). The second group of competitors in the consumer electronics industry includes LG and Sanyo Electric Limited, which have existed as long as Samsung Electronics. Samsung in this competitive field has been ahead of its competitors because it has improved its electronic manufacturing style to adapt to its markets and target customers around the world. The second formula of Porters five forces is the power of suppliers which has seen Samsung products being used even in remote areas of the world due to the easy handling of their products by their suppliers. Samsung electronic products are reasonably priced, which means they have good business relationships with suppliers. The third force is buyer power and for Samsung Electronics it is strong because their products are well accepted by many consumers across the board and because of the variety of products they sell.produce. Porter's fourth strength is the threat of substitution, and as far as products that compete with Samsung electronics are concerned, he should continue to improve the products he is producing so as not to lose the market share he enjoys around the world. Porters Diamond ModelDiamond Porter The model also works to enhance the business advantage of any organization, and for Samsung Electronics, it is necessary to ensure continuity and long-term survival goals. Samsung has gained strong support from the South Korean government because it is one of the global giant nations that are inclined towards innovation and invention of electronics. The business strategy, structure, and rivalry used by Samsung have helped the company grow and improve over the years to reach $175 billion in the year ending 2016 (Porter, 2008). Demand conditions for the electronics and mobile industries mean that Samsung Electronics still needs to work on its innovations because that is where the new frontier of competition lies (Porter, 2008). Demand from consumers in different regions of the world ensures that the products made by Samsung are in line with the guidelines and policies established in those countries. Porter's diamond model also focuses on the related supporting industries that are essential to the growth of any industry and how they ensure each other's existence. The proximity of these industries ensures they can share any relevant information that may be useful to their companies and in doing so creates a continuous exchange of ideas. In the diamond model, the factor conditions necessary for the growth of an industry should be created and not inherited. There are specialized factors of production that have enabled industries to function and perform well and include capital, infrastructure and skilled labor (Porter, 2008). Other general factors such as raw materials and unskilled labor that can be obtained by any company do not have any great impact on the sustainability of a company. Therefore, Samsung Electronics must be able to balance the diamond goalkeeper initiatives even if applicable at the departmental level as each sector is assigned objectives and milestones in a certain period of time. The role of government is also present in the diamond model why it should act as.