Impact Of Globalization On World Business

The appointment of Yun Jong Yong as president and CEO of Samsung in 1996 was symbolic to the beginning of the organizations transition from its previous business level strategy of cost-leadership to its now successful implementation of differentiation. Before refocusing the direction of Samsung’s strategy it was originally making most of it’s profits producing lower-priced appliances that cost-conscious consumers were more likely to pick up if they couldn’t afford a higher priced brand (i.e. Sony or Mitsubishi). Also during that time Samsung has established itself as a low-cost supplier of various components to larger and better-known manufactures around the world. Although the organization was profitable at the time the over-all cost leadership strategy implemented by Samsung was positioned to be vulnerable to future external threats that could send the company belly-up.

This reflection is about „The Paradox of Samsung’s Rise“ written by Khanna, T. Song, J. and Lee, K. published in The Globe in 2011 pp. 142-148 and the challenges Samsung overcame to become a successful company over a brief period of time.

Every now and then disruptive events happen in the business world such a technological change, industry changes, market changes or even societal changes that greatly impact the continual success of a business. More so we live in era where these changes are only accelerating increasing uncertainty and the growing complexity of the business world. Economic power continues to shift eastward and different markets and trade linkages are emerging causing the boundaries between industry and sectors to blurring. Discontinuities and megatrends are an inherent part of today’s business environment and it is important the businesses assess the impact of both these concepts on their strategic objectives and daily operations of the business in order to stay ahead in today’s competitive environments. Most importantly CEO’s need to be at the head of the business’s strategic objectives to ensure that the business remain on track and able to quickly adapt to these changes in the environment.

A strategy is method by which a company is run in order to generate revenue. Whilst investigating strategies by which companies run, Samsung Electronics Company (SEC) can be considered for a case study due to its remarkable market share, brand reputation and global positioning. Samsung Electronics Company (SEC), founded in 1969 as a member of the Samsung Group, is the largest manufacturer in Korea, with a sales turnover of $23.9 billion in 1997, and accounting for 32.8 percent of the total output of the electronics industry. In investment, product development, marketing, and technology development, SEC has played the leading role in expanding the frontier of Korea 's electronics industry. The case study can be enlightening to many

Globalization has been an economic trend for the past few decades. According to Pologeorgis(2014), globalization is defined “as a process that, based on international strategies, aims to expand business operations on a worldwide level, and was precipitated by the facilitation of global communications due to technological advancements, socioeconomic, political and environmental developments”. Globalization has increased the emigration and trades between countries. It has also lead to the flourish of multinational corporations due to the effects of offshoring and outsourcing.

Company Background: Samsung may be a South Korean transnational company those beginning its business as alittle commerce company and immediately turning into world largest corporation. the corporate deals with its business in many sectors like advance technology, finance, organic compound, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical et al. the corporate was established in 1969 in Suwon, Republic of Korea and noted globally for its electronic merchandise (Kelly, 2011). the corporate is producing many latest technologies, electronic appliances like mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and different merchandise. the corporate runs its operations and sales its merchandise in sixty one countries with approx a hundred and sixty,000 workers altogether over the planet (SAMSUNG, 2014). Moreover, the corporate noninheritable the position of the planet biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue within the section of LCD and junction rectifier is that the highest within the world. moreover, Samsung conjointly becomes world leader within the section of tablets, mobile phones and gadgets.

In the midst of the global financial crisis, the Korean currency’s value, won, had fallen tremendously. Samsung’s management team saw this as an opportunity to start outsourcing from China, where they manufactured LCDs and Mobiles for a fraction of the price. By 2011, Samsung had the largest Mobile share in China. They decided that by moving out they would understand the surrounding markets (Zahou, 2015). Chairman Lee commissioned a task force team to make in-depth market research to find out the needs of the market and to study the foreign trends. Feeling limited with the trends of the Asian

As I will be joining Samsung Group’s global strategy team in the fall, I have chosen its flagship subsidiary Samsung Electronics, as the company for my analysis. From its beginnings as a subcontractor to a manufacturer to a developer of electronic products, Samsung Electronics has established itself as a leading creator of innovative gadgets.

“Globalization is the process by which everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world.” Presently, the world is considered more globalized than it has ever been. The world today has embarked on strong world relations through trade, exchanging both knowledge and goods. According to the World Trade Organization there are ten benefits of trading systems; the first entails the idea that “people are usually reluctant to fight their customers.” This is the foundation our world is constructed on. Globalization’s effects in the world presently has allowed for a reduction in armed conflicts and warfare.

The impact that globalization provided to the world was a positive effect that expanded the influences from one country to another. Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Similarities on how national markets established themselves in other countries which increases not only international trade but also cultural exchange. This increases cultural trade because it gives countries the ability to be able consume products and take in products that would help their country. A vast of trade networks such as The Silk Road and The Columbian Exchange, became a central origin on how networking began. These trade networks gave the central idea of how regions can work together to trade, such as materials and silk, and can help expand the growth of their knowledge of the things. The significance of this origin established the beneficial things people use in the 21st century, such as, technology, the sharing of knowledge, and the trading process.

Samsung had achieve great success in past year which its low-end strategy, low cost position in competition and great job as a copycat. Samsung 's develop a cost leadership strategy with its economic of scale, they had an adaptive culture and quick responsiveness to external environment change,

Globalization is the process of increasing interconnections and linkages within societies and across international boundaries through improved communications and expanded world trade.

Globalization can be defined as the process by which businesses or other organizations develop international influence or start operating on an international scale. (Oxford Dictionaries, 2016)

Samsung is a good example for a company that make a best combination of the marketing mix and through this they achieved the company’s aim and objective , and make their products well known globally , and try to enter very market to increase the profit

Based on the articles that I’ve read up on , I’m going to talk about Samsung . Samsung is one of the world’s largest information technology company which has a very powerful influence on South Korea’s economic development . Samsung company produces some goods like , TV , Phone , computer and more . One of Samsung’s most successful products are its smartphones which has significantly dominated the world’s mobile phone industry . Samsung is currently one of the best smartphone in the market . Samsung electronic was found and made in 1969 as a unit of Samsung group . The unit was set up as a method for getting Samsung into the advance TV and customer hardware industries . By 1980 , samsung was assembling , transporting , and offering variety