Management: Samsung Electronics

Title of contents Executive Summary 1. 0 penetration1 2. 0 Political environs.. 2 2. 1 disposal stableness 2 2. 2Government and contribution 2 2. 3 Analysis . 2 3. 0Legal Environment.. 2 3. 1 regulative framework 2 3. 2Business statutory philosophys .. .. 3 3. 3Labour laws .. .. 3 3. 4 Analysis .. 3 4. 0 Economic Environment.. 3 4. 1 following judge (%).. .. 3 4. 2 currency Exchange consider ($). 3 4. 3 Economic Trends/ forecasts. . 4 4. 4 Analysis. 4 5. 0 Socio-cultural Environment.. 4 5. 2 Analysis .. 5 6. 0 Technological Environment. 6 6. 1Technological infrastructure 6 6. 2 communion interlockings 6 6. Logistics networks. 6 6. 4 Analysis.. 7 7. 0 trick out Analysis 7 8. 0 Recommendations.. 8 9. 0 Conclusion 8 10. 0 References 9 Executive Summary This say forget prove whether Samsung gathering can establish a confederacy in Malaysia.The tarradiddle will be divided into two parts foreign(a) surroundings and SWOT analysis of the external milieu. In exte rnal environs, it provides six sections which be political, scotch, socio-cultural, technological and legal milieu, individually of them gives the analysis and suggestions to Samsung Group. Further much, the findings will be presented in the recommendation and conclusion of the report. 1. 0 Introduction Samsung group is the largest electronic manufacturing company in Seoul. The company mainly products electronics such as stylish phones, semiconductor device and digital TVs. Samsung 2013) Now the company considering expanding the subsidiary company in kuala Lumpur, Malaysia. This report will focus on detailed analysis about the external environment of Malaysia. The aim of this report is to provide the evaluation of the external environment of Malaysia in context of electronics manufacturing industry. The investigation will report on the political, economic, socio-culture, applied science and legal environment of Malaysia. The report will help the company do expansion of anal ysis opportunities & threats for Samsung in Malaysian electronics industry and assess strengths or weakness of Samsung.The report will discuss the possibility of expanding Samsung group trading deeds in Malaysia. It provides the political, economic, socio-cultural, technology and legal environment analysis. Then it will exsert SWOT analysis and provide recommendation. 2. 0 Political Environment 2. 1 government stability Malaysia is a federal constitutional monarchy in southeastward Asia. The dust of government is a legacy of British colonial rule. The fountainhead of the state is referred to as the king and selected every five year term.Compared with the other(a) countries, the death penalty is still be in used, in that locationfore, Malaysias offensive identify is lower. Because of the Consolidate leadership, Malaysias political situation keeps stable in recent years, crime rate pass aways down. (Malaysia information 2013) It shows the direct of government stability in Malaysia is high. 2. 2 Government and contribution Malaysia serves as a distich between the East and the West and withal plays an important role in the world stage by establishing a long-term cooperative family relationship with the other ASEAN members, such as China, south Korea and Japan.Government implements several plans and welcome outside investitures. (Malaysia government information 2013) 2. 3 Analysis Depending on the political stability and global trading relationships, Malaysia can make a closer deed with the other countries. With the mutually-beneficial foreign policy, Samsung Company has a heavy(p) opportunity to see smoothly in Malaysia. 3. 0 Legal Environment 3. 1 Regulatory framework Malaysia and south-central Korean do not have the quasi(prenominal) legal system, Malaysias legal system is based on incline common law turn atomic number 16 Korean legal system is based on civil law. South Korean government) It means the Samsung Group would not be familiar with the restrictive framework. 3. 2Business laws Although in that respect are rough legal restrictions on certain products imported from other countries. (Malaysia demarcation guide) The law allows foreign companies to import raw materials. (Malaysia customers) However, the corruption problem in Malaysia has become much more worse. (Corruption Malaysias happen enemy) 3. 3Labour laws Malaysia labour laws have ameliorate in recent years, there are age and working moment restrictions in Malaysia. (Malaysia labour law) 3. 4AnalysisThe government holds encouragement on foreign investment in Malaysia which presents an opportunity for foreign companies. However, due to Samsung Group is unfamiliar with the regulatory framework, it exists a threat to Samsung Company. 4. 0 Economic Environment 4. 1 Interest rate (%) The benchmark interest rate in Malaysia is 3. 00 percent. (Malaysia interest rate 2013)Malaysias interest rate is likely to keep unchanged in these years. (RUPA 2013) Sout h Koreans benchmark interest rate is 2. 75 percent. It means that the interest rate in Malaysia is higher than that in South Korean. Central bank rates) 4. 2 Currency Exchange Rate ($) establish on the exchange rate in March 2013, one Malaysian Ringgit equals 358. 31 South Korean Won. (The cashconverter 2013) With the exchange rate increased each year in Malaysia (Trading economics Malaysia 2013), Samsung Company will invest more money in Malaysia in the future due to the cost will be increased. However, it is also a chance for Samsung to earn more money in Malaysia. Therefore, this is not only a threat but also an opportunity for Samsung Company. Malaysian Ringgit to South Korean Won The money converter) 4. 3 Economic Trends/ forecasts Malaysia keeps one of the high hat economic records among Asia countries. GDP is predicted to rise by 4. 5% in 2013 and increase by 5. 4% in 2014. all over the next decade, GDP is judge to grow by 4. 2% a year on average. According to forecasts, o ne of the fastest growing sectors in manufacturing industry over the next 10 years will be electrial equipment. (Oxford Economics) Nowadays, Malaysia begins a transition towards a more multi-sector economic that means the economic forecast in Malaysia is strong. 4. 4 AnalysisAlthough the interest rate and exchange rate in Malaysia are high, the worldwide trade ability of Malaysia is still fixing in the forefront of the world. This kind of ability makes a great authoritative impact on the international stage. (Malaysia News 2013) 5. 0 Socio-cultural Environment Hofstede South Korea Dimension Malaysia Managerial Implications Collectivism VS IndividualIndividual Collectivism Work design The Malaysia employees privilege to work in groups while the South Korea employees prefer to choose personalised works.Overall, Samsung Company should organize teamwork to its Malaysia employees. Power Distance Lower Higher lead Power Distance affects the hierarchical order in an organization . Compared with South Korea, Malaysia employees agree hierarchical order more than Australian employees. Therefore Samsung Companys manager should take autocratic style Uncertainty Higher turning away Lower Planning The planning in Malaysia employees would like clearly aims while South Korea employees prefer relaxed attitudes. It demonstrates that clear rules and regulations are more suitable for topical anesthetic employees. Time orientation Long Short PlanningSouth Korea employees prefer having a long time orientation, however, Malaysia employees are known to prefer having suddenly time plans. Therefore, Samsung Group should set short term targets for its staffs. Masculinity VS womanhoodFemininity Femininity Rewards The Masculinity and Femininity will have an impact on amicable competition, achievement and success. Both Malaysia and South Korea are similar in this level of Femininity. It shows that Samsung Company can perform female leadership in Malaysia. (Hofstede, 201 3) 5. 2 AnalysisAlthough both Malaysia and South Korea would be inclined to work with females, there are also several differences between Malaysia and South Korea. 6. 0 Technological Environment 6. 1Technological infrastructure Malaysia has the well developed technological infrastructure while (Asias New High Tech Competitors) the infrastructure in Malaysia is one of the best in Asia. (Invest in Malaysia) It demonstrates the brilliant infrastructures can maintain the pricey operation of Samsung Group in Malaysia. 6. 2 Communication networks Compared with South Korean, the telecommunication network in Malaysia is developing faster.Communication network in Malaysia is served by digital and theatrical role optic technology. (Invest in Malaysia) 6. 3Logistics networks The logistics networks in Malaysia cover sea, land and air mail modes. The Malaysia government will strengthen the management of roads and improve the case of transport in the future. (Trade and Transport in Malaysia o verview of the logistics) 6. 4 Analysis The great Technological infrastructure, Communication networks and Logistics networks in Malaysia will provide an opportunity for Samsung Group. 7. 0 SWOT AnalysisStrength Samsung Company has * good reputation * high-quality products * large scale international corporation * strong financial resource * A strong securities industry influence Weakness Samsung Company * lacks business experience in Malaysia * the shortage of qualified personnel * no stable customers in local grocery Opportunities Malaysia hasPolitical environment-stable governmental environment -good trading relationshipLegal environment-improvement in labour and business lawEconomic environment-strong economic forecastsocio-cultural environment-similar in female leadershipTechnological Environment- Advanced Technological infrastructure good communication networks- Convenient Logistics Threat Malaysia hasLegal environment-different regulatory framework to South Korea- corrupt ion problemsEconomic Environment-high interest rate in Malaysia-high exchange ratesocio-cultural environment-used to work collectively-higher cause distance-lower Uncertainty Avoidance-only achieve short time target 8. 0 Recommendations ground on the analysis of external environment of Malaysia, it is suggested that Samsung Company should *continue to puddle high-quality products to make good reputation in Malaysia (strengths) * train more raw(a) professionals in local market (threats) *use the new technology and the political system to achieve mutual benefit (opportunities) *seek professional legal advices and the lowest cost supplies (threats) 9. 0 Conclusion Political, socio cultural and technological environment constitute opportunities for Samsung Company.However, the threat appeared in the different socio cultural, weak legal environment and the economic conditions will in recession in the future. According to this report, there are still more opportunities than threats. T o sum up, from the current market environment, there are many favorable aspects for Samsung Company to be expanded in Malaysia. Word Count1443 10. 0 References Alphabetical Index of the political entities and match legal systems. 2013. University of Ottawa. www. juriglobe. ca/eng/sys-juri/index-alpha. php. Business area2013 Samsung http//www. samsung. com/au/aboutsamsung/ourbusinesses/index. html South Korean Interest . 2013. Central bank rates. www. bok. or. kr Malaysia information technology reportQ1. 2012 .Business superintend International. January http//search. proquest. com. dbgw. lis. curtin. edu. au/docview/919719232/13D455FB3221B7702F2/1? accountid=10382 Rupa Damodaran 2013. Malaysias key interest rate expected to remain unchanged in these years. Business times April 201 82 (11) 14-15. Currency Converter Widget. 2013. XE. COM INC http//themoneyconverter. com/MYR/KRW. aspx Malaysia Interest Rate 2013. .trading economics. http//www. tradingeconomics. com/malaysia/interest- rate Asias new high tech competitors. 2013. government statistics http//www. nsf. gov/statistics/s4495/conten3c. htm Invest in Malaysia. 2013 Malaysian investment development authority. ttp//www. mida. gov. my/env3/index. php? rascal=invest-in-malaysia South Korea economic. 2013. south korea government. www. southkoreagovernment. com Malaysia labour laws. 2013. laws, Accessed Feb 6 www. azminias. com/MALAYSIAN. %20LABOUR%20Lw. doc Malaysia Information. 2013. Malaysia journey. http//www. tourism. gov. my/en/au Malaysia Hofstede 2013 South Korea Hofstede http//geert-hofstede. com/malaysia. html Malaysia Interest Rate. 2013. Trading Economics http//www. tradingeconomics. com/malaysia/interest-rate Malaysias top enemy. 2013. Malaysia story http//www. asiaone. com/News/AsiaOne+News/Malaysia/Story/A1Story20091225-188007. html