ELECTRONIC ASSIGNMENT COVERSHEET
Course/Unit Information
Qualification
Pearson BTEC Level 4 Higher National Diploma in Business
Unit No and Name
Unit 01 The Contemporary Business Environment
Unit Code
H/650/2917
Validity Date
September 2024 to August 2025
Batch
Online Batch
Instructor Information
Name
Ms. Sufia Munir
Email ID
sufia@westford.org.uk
Contact
+971 52 100 7355
Assignment Information
Schedule Code
CBEONLRM2410A
Full/ Part Assignment
Full Assignment
Date Assignment Issued
14/10/2024
Date Assignment Due
15/11/2024
Student Information
(To be filled by the student prior submitting the assignment)
Name
Khulah Ismail
Student ID
ONLRM6272410A03
Email ID
khawlahm04nov2004@gmail.com
Date of Submission
13/11/2024
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Assignment title
The Contemporary Business Environment
LO 01
Explain the different types, sizes, and scope of organizations
LO 02
Discuss the interrelationship of the various functions in an organization and how they link to
organizational structure
LO 03
Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations
LO 04
Determine the internal strengths and weaknesses of a specific business and their
interrelationship with external macro factors
Scenario:
Choose any organization of your choice. The organization can be any Manufacturing or Service-based entity.
You can also choose any global organization- Public/Private/Government which has its presence in the UAE.
You are to assume the role of a Junior Business Analyst in your chosen organization. Prepare and submit a
report for the chosen organization
1.
Introduction
Refer to academic sources to define and explain comprehensively the purpose of a public, a private, and a
voluntary organization. Explain the different types of organizations’ legal structures along with different
organizational sizes. Briefly analyze how the structure, size, and scope of organizations link to the business
objectives, products, and services offered.
2.
Company Specifications
a.
Company Profile
Introduce your chosen organization, by giving out the background details of the organization, the products and
services it offers, the size and scope of the organization, its vision, mission, and business objectives, the
organizational and legal structure, including information about their stakeholders and competitors. Kindly
highlight the market share, profit share, and growth and specify the organization’s responsibility on
sustainability.
b.
Analysis
Use and refer to the organizational structure chart of the chosen organization. Explain the relationship between
the organization’s functions (discuss the role of marketing, finance, human resource management, and
operations in an organizational context and the interrelationships and how they link to the organizational
objectives and structure).
c. Analyze the advantages and disadvantages of interrelationships between different organizational functions
in your chosen organization and the impact it has on the structure of the organization.
d. Analyze the organization structures and complexities of transnational, international and
global organizations.
3. Macro Environmental Analysis
a. Apply the PESTLE model to support the detailed analysis of the macro-environmental impact.
b. Identify the positive and negative impacts the macro environment has upon your chosen company’s business
operations, by giving out suitable examples (highlight different spatial levels of external influences e.g. local,
regional, national, international).
4. Micro Environmental Analysis, Critical Evaluation, Conclusion and Recommendations
a. Conduct internal and external analysis of a specific organization to identify strengths and weaknesses.
b. Explain how strengths and weaknesses interrelate with external macro factors.
b. Explain how the outcomes of the PESTLE and SWOT interrelate with each other and critically evaluate the
impact on the business objectives and how they influence decision-making in the chosen organization. Based
on the critical evaluation.
d. Recommend changes that would further help the company, in pursuit of its business objectives and decision
making.
Submission Format
You are required to use headings, paragraphs, and subsections as appropriate, and all work must be
supported with research and referenced using the Harvard referencing system. You will need to provide a
bibliography using the Harvard referencing system (or an alternative system). Inaccurate use of referencing
may lead to issues of plagiarism if not applied correctly. The recommended word limit is 5000–6,500 words,
although you will not be penalized for exceeding the total word limit.
Recommended Resources:
Textbooks
Burns, J. and Needle, D. (2023) Business in Context: An Introduction to Business and its Environment. 8th
Ed. Andover, Hants: Cengage Learning EMEA.
Morrison, J. (2023) The Global Business Environment: Sustainability in the Balance.
6th Ed. London: Bloomsbury Publishing.
Weatherly, P. and Otter, D. (2018) The Business Environment: Themes and Issues in a
Globalizing World. 4th Ed. Oxford: Oxford University Press.
Worthington, I., Thompson, E. and Britton. C. (2023) The Business Environment.
9th Ed. Harlow: Pearson.
Recommended Websites
Web links
www.businessballs.com
Business balls
(General reference)
www.forbes.com
Forbes
(General reference)
www.ibtimes.com
International Business Times
“Business”
(General reference)
www.ted.com
TED
(Videos on business and technology)
Introduction
Brief Introduction to the business environment.
There have been several global developments in the business environment over the last five
years or so. The outbreak of COVID-19 had a significant impact on the supply chain, workforce
structure and consumer behaviour. Due to COVID-19, organizations forced themselves to
implement digital techniques to maintain customer satisfaction, thus increasing the usage of
cloud computing and AI. At the same time, during the recovery, economies were hit by inflation
and disruptions in supply chains and central banks were changing interest rates. It did this
concerning costs, investment requirements, and consumer expenditure behaviour among the
business entities. “Global trade risks emerged from sources like the trade war between the
United States and China and from Brexit” ( Hasanov, et al., 2023). These developments forced
firms to reconsider the supply chain management and marketing as risk hedges to limitations
in trade and fluctuating tariffs. In addition, the significance of environmental issues has made
organizations engross themselves in environment-friendly business practices because
consumers and regulators encourage them by demanding environmentally conscious business
operations.
The purpose of a Public, a private, and a voluntary organization
Public, private, and voluntary organizations all fulfil distinct social roles depending on their
ownership, goals, and financing sources.
Public Organization
The public sector acts as the backbone of
society and ensures that citizens can achieve
the core aspects of human development such
as peace, economic stability and safety
Besides delivering service delivery in areas
such as safety, infrastructure, health and
education, they are also required to deliver on
their main function of delivering public
services to the public.. “These organizations,
which are mostly supported by taxes, are
accessible to the public and the government,
which guarantees that they successfully
address community needs” (William,
2022)They frequently follow regulations that
are designed to encourage them.
Example: National Health Service (NHS)
Private Organization
“Private organizations are profitdriven businesses that are owned by
corporations, partnerships, or
private people” (Team, 2024)Their
main goals are to create job
opportunities, supply particular
goods and services, aid in the
development of industries or
technology, make it possible for a
wide range of business entities to
operate, and increase national
wealth.
Example: Samsung
Voluntary Organization
The term voluntary
organizations describe
groups whose main objective
is to improve society rather
than make money. “These
organizations, which promote
social change and community
development, are essential in
filling service gaps that the
public and commercial
sectors might miss” (NCVO,
2021).
Example: Habitat for
Humanity
Types of Organizational Structures (including diagrams)
“How tasks and responsibilities are distributed and arranged within an organization is
described by its organizational structure” (Olmstead, 2022). Here are the types of
organizational structures:

Hierarchical: This kind of organizational structure is the most frequent.

Workers may be organized according to their job or role, location, or the
kinds of products and services they offer “Think of it like a kingdom or a
company” (Miller, 2024). Because of the several levels of authority, it is
depicted as a pyramid with the apex as the highest leadership holding their
direct subordinates and thus throughout the way.
Example: Amazon, Apple
Advantages





Disadvantages

Clearly defines the many levels of authority
Encourages departmental loyalty and teamwork.
Promotes chances for advancement and staff
improvement
Identifies the people each report to or should speak
with regarding specific projects.
Assign a specialist to each worker.




May lead workers to act more in the department's
best interests than the company's overall interests.
Can give lower-level workers the impression that
they have less control and are unable to voice their
opinions for the business.
Delays the process of making decisions
Restricts cooperation
Flat: Organizations frequently begin with a flat organizational
structure. “In a flat organization structure there is little hierarchy
separating an employee from the senior managers.” (Olmstead, 2022).
The framework improves workplace trust, fosters employee
involvement, and demands less supervision.
Example: Squarespace, Netflix
Advantages




Lowers budget expenses because intermediate
management is absent.
Strengthens the bonds between employees and
supervisors.
Improvements and Changes are implemented
quickly.
Encourages creativity, flexibility, and adaptation.
Disadvantages




Needs a lot of preparation to be effective.
Creates uncertainty about decision-making authority.
Depends on a single individual to make all of the
decisions.
Results in workers that lack specialized knowledge and
possess broad capabilities.

Matrix: Matrix organizations exchange workers and
resources among teams and projects, as well as across
departments or functions, making them more complex than
typical hierarchical structures. “They also have two or more
management reporting systems” (Asana, 2024). Two or
more organizational structure types put together will lead to
a matrix structure. It is a technique of aligning your
company so that you can develop a structure of reporting
hierarchy.
Example: Coco-Cola, Nike
Advantages




Interdepartmental cooperation
Facilitates communication across departments
Assist teams in exchanging ideas and best
practices.
Improve efficiency by allowing departments to
share resources.
Disadvantages




Uncertainty about jobs, duties, and priorities
Project teams' conflicting allegiances
Overwork can result from doing too much.
Employee performance measurement may become
challenging.
 Divisional: A divisional organizational chart is made up of
multiple separate divisions within a business; each division
functions as a somewhat independent entity with its resources
and functions. A divisional organizational structure is meant
to increase efficiency and agility by providing focused
attention on particular goods, markets, or areas.
Example: McDonald's, Disney
Advantages




Quicker changes and flow of operations
Autonomous decision-making procedures
Encourages democracy and adaptable tactics
Gain a deeper understanding of each market
separately.
Disadvantages




Insufficient communication between the leadership and
the divisions.
It could lead to redundant resources.
More expensive to run
Promotes competition within the Business
Explain the organizational size.
A company's size is a relative concept that is heavily influenced by the industry it
operates, there are 3 main business sizes.
1. SMB (Small and Medium-sized Business): Small to Medium Business (SMB) is
defined by the annual revenue and employee headcount of the company or organization.
Small businesses have less than 100 employees while medium businesses have between
100 and 999 employees and have an annual turnover of less than $ 10 million. It can be
used to describe a variety of companies, including business-to-business and businessto-consumer enterprises. “SMBs make up the majority of the companies we deal with
regularly; in fact, they make up 99 per cent of all businesses in the United States”
(Copadis, 2024).
Examples: Bakeries, Construction businesses, Mechanic shops
2. SME (Small and Medium-sized Enterprises): The overwhelming majority of
companies that have international operations are SMEs. They are majority, individual
enterprises with less than fifty employees. However, the maximum number of
employees in each country is different. The upper limit, however, is around 250 for the
majority of firms. Certain countries set their workforce cap at 200 employees. “A small
and medium-sized enterprise (SME) according to the United States is an enterprise that
has a workforce of not more than 500 employees.” (Radley, 2024). SMEs have an
annual revenue of around $1 Billion. Moreover, Small and medium-sized businesses
encourage competition regarding product design, cost, and effectiveness.
Example: Newspaper publishers, Law offices, Restaurants
3. Large Enterprises: Large enterprises employ over a thousand people, are organized
into multiple departments with bureaucratic and hierarchical systems, and frequently
conduct national and international transactions that greatly impact the economy.
Generating more than $1 billion in revenue annually. “Large companies frequently have
a significant asset base to back up their extensive operations” (Nasrudin, 2024)
Example: Apple, Google, Amazon
Categories
SMB (Small and
Medium-sized
Business)
SME (Small and
Medium-sized
Enterprises
Large Enterprises
Employee
<100
50 - 500
< 1000
Annual
Revenue
$ 5 to10 Million
Business Structure
Example
Owners frequently participate
directly in operations, flat
organizational structure, and
low hierarchy level.
Local Shops and
family-owned
Restaurants.
<$10 Million
Professional management is a
more structured organization
with well-defined departments
and duties.
Gym, Dental
Clinic
< $ 1 Billion
Decentralized divisions,
several tiers of management,
specialized departments, and a
complex hierarchy.
Coca-Cola,
Toyota,
Microsoft
Explain the Scope/Nature of the organizations to business objectives,
products, and services offered.
A business entity is an organization that applies economic assets to produce and supply
products and services to consumers in return for cash or other products and services. Business
organizations exist in various categories and can exist in multiple ownership categories. The
four major types of businesses are:
1. Manufacturing: “A manufacturing organization is an
enterprise that employs parts, components, or raw materials
to create finished products.” (Franklien, et al., 2019). These
finished goods can be marketed directly to the customer or to
another manufacturing company that uses them as a subassembly for the final product.
Objective: Overall targets in manufacturing organizations
may comprise the need to achieve higher production rates,
Figure 1 Toyota Group
reduce costs, improve quality, as well as embrace safety
Manufacturing a Car
measures.
Example: Toyota Group
Products: Car, Engine etc.
2. Merchandising: An example of a typical business is a
merchandising firm. A company known as a merchandising firm
buys completed goods and resells them to customers.
“Merchandising if done properly can significantly boost a
supermarket or a store sale” (What is Merchandising?, 2022).
Objective: Buy and keep in stock the goods that your clients
demand. The second strategic objective of merchandising
is expanding the company’s turnover and profitability. “It means
to acquire or possess inventory that is expected to be sold in the
market or probably will be sold” (Kumari, 2024).
Figure 2 Walmart
Example: Walmart
Products: Vegetables/ Fruits, beauty products etc.
3. Service: A service business is, therefore, a business that trades in services
which include skill, knowledge, or labour. Since they are used by people
who do not have time or skills to do it themselves, the business is always
popular, which is one of the reasons for its profitability. “The service
industry has become a significant part of the U.S. contributing 65% of the
economy.” (Franklien, et al., 2019).
Objective: Customer goals and targets are orientated towards increasing
Figure 3 Financial advising
levels of customer satisfaction, creating greater levels of efficiency
through the achievement of self-imposed service quality and quality standards together with
an emphasis on customer loyalty.
Example: Financial advising
Products: Banking
4. Hybrid: “A hybrid business model is thus described as an
integration of various organizational models to manufacture goods
and provide services and usually caters for the same clients in the
different models” (Trujiilo, 2024).
Objective: “While hybrid organizations retain an articulated vision
about their position in the social and environmental networks
within which they are embedded, they also attempt to deliver value- Figure 4 Apple store Providing
different service
added, relevant and sought-after products and services” (Nardia, et
al., 2012)
Example: Apple
Products: Apple, for instance, makes gadgets (iPhones, iPads), markets them through
shops, and provides services such as iCloud, and AppleCare.
Company Specifications
Detailed company profile with vision, mission, and objectives, as well
as an explanation of the concept of the business model canvas.
“Samsung Electronics was originally started as a part of the larger Samsung Group
in 1969 by Lee Byung-Chull” (Standard, 2024) and is now one of the global leaders
when it comes to technology, which further has its headquarters situated in Suwon
South Korea. Although it began with a focus on consumer electronics, the company
quickly broadened its scope into semiconductors, telecommunications equipment
Figure 5 Lee Byung-Chull and cutting-edge technology of all kinds.
Mission: “We are going to pour in efforts of human resources and our technology to
make better and enhanced products, to serve the needs for an enhanced world society”
(Samsung Official , 2024 ). This brief but strong and powerful statement tells potential
customers, employees, and others about the business’s commitment to creating value
in the form of high-quality products that can be useful to people and should help the
entire world community. Going by this statement the company Samsung has been
established as an industry leader in the innovation and invention of technologies.
Vision: “Inspire the World, Create the Future” (Samsung Official , 2024 ). Samsung’s
vision statement as a company is that its technologies will make people’s lives easier
and more fun. When it refers to inspiring the world through technological innovation,
one gets the impression that Samsung is confident in the company’s capacity to produce
a new killer application that will positively change society.
Objective: “The objective of Samsung is to transform Samsung, South Korea's
second-largest chaebol, into a world-class cooperation” (Thomson & Baden-Fuller,
2010). Samsung aspires to be a technological innovator, to expand globally, and to
promote sustainability. With an emphasis on innovation, the company invests heavily
in research and development in domains such as artificial intelligence (AI),
semiconductors, and 5G, resulting in creative solutions that boost customer happiness
and brand loyalty. Samsung customizes its products to satisfy a wide range of consumer
needs around the world, creating customer loyalty through dependable, high-quality
products. Sustainability is also important in projects aimed at lowering carbon
emissions and promoting environmentally friendly activities. To realize its mission of
inspiring the world and creating a brighter future, Samsung intends to grow financially
by establishing high-revenue regions, boosting efficiency, and providing value to
stakeholders.
Size: Samsung is defined as a larger enterprise, with a global footprint, vast resources,
and a staff of hundreds of thousands. It is one of the world's largest corporations in
terms of revenue and market influence, with Samsung Electronics standing alone as a
global industry leader.
 Employee: “Samsung Electronics employs more than 280,000 people across more than
230 locations worldwide” (Kalra, 2024). Its extensive operations across a wide range of
industries, including electronics, heavy industries, construction, and financial services, are
demonstrated by the size of its workforce.
 Income: The company's most profitable division was mobile communications, which
brought in nearly “195 billion US dollars (about 360 trillion Korean won)” (Laricchia,
2024) in revenue in 2023 alone. With a market share of more than 20% in 2024, Samsung
is undoubtedly among the market leaders for smartphones worldwide.
 Worldwide Presence: Samsung has a global network of divisions, with “15 Regional
Offices, 32 Production Sites, 40 R&D Centers, 7 Design Centers, and 109 Sales Offices in
more than 76 countries” (Newsroom, n.d.). Thanks to its wide global reach, Samsung can
successfully reach various markets and adjust to local requirements and regulations.
Scope: Samsung is one of the hybrid companies that have production, retailing, and
service departments. They also offer their customers services and what they call
“merchandising” products and they do all this while also having their own production line.
They are also more flexible to changes hence making the market more flexible than rigid.
Business Model Canvas
Let us start by defining what is the business model
canvas. “Developed by Alexander Osterwalder and Yves
Pigneur, Business Model Canvas (BMC) is the main
skeleton of a business plan with a relatively simple,
versatile, and open framework that meets the essential
desires of a business”. (Arturas, et al., 2016). The 9
Components that make up the BMC are:
1. Customer Segments: “The core of any business
concept is its customers. Long-term viability is
Figure 6 Business Model Canvas
impossible for any business without profitable clients.
A business may divide its clientele into discrete
groups based on shared requirements to better serve them.” (Hersztowski, 2020;
Osterwalder & Pigneur, 2024). Thus Samsung products are developed to suit a wide range
of customers; from the single user to the large business house. This segmentation is in line
with Samsung’s strategic plan to increase its market base around the world and improve
customer satisfaction.
2. Value Propositions: Its range of goods and services, particularly concerning how it
distinguishes itself from the competitors. More specifically, what sets this company
apart from others? “Samsung has built its brand as the brand with the most fun and stylish
models starting from cell phones to flat-panel plasma TVs” (Philip , et al., 2006). This
way Samsung fulfils organisational goals of maintaining market dominance in technology
and creating stakeholder brand equity. This is because quality, uniqueness of product
components, product features, and performance are critical factors for customer and
competitive advantage.
3. Channels: The process through which your business will engage and associate with its
consumers is described in this section. The contact points through which a client can
4.
5.
6.
7.
8.
9.
access your business are referred to as channels. “Customers may learn more about your
product or service, and get your value propositions through channels” (Creately, 2022).
Moreover, a channel may be used to offer support after selling the product and also offer
clients an opportunity to buy the product. Samsung supports its two business strategies
through expanding into multichannel selling which refers to online selling, regular stores
and distributors. It also often sets programming for region-based activities, celebrities and
shows within its own ‘Solve for Tomorrow challenge’. This method seems to be especially
useful regarding the fact that its products are always in the market and are touching
consumers through integrated marketing communication.
Customer Relationships: “You must define the kind of relationship that the company
will have with each of your customer segments or how the company will engage with the
customers at different stages of their lifecycle with your company.” (Creately, 2022).
Concentrating on after-sales services and warranties along with the customer support
services, though they support all objectives, especially the customer satisfaction and
loyalty objectives. Through service channels like Customer service through phones, online
platforms, Samsung Ecosystem, Samsung Academy, and Physical Service Centers, or in
addition Online communities “Samsung device owners can participate in online user
groups with tips, troubleshooting and reviews for specific devices” (Cuofano, 2024).
Revenue Streams: “Revenue Streams; are generally the ways a company makes
money by offering their product or service to customers” (Strategyzer, 2024). “The selling
of computers, TVs, appliances, cell phones, and displays generates revenue, Revenue is
also derived from selling semiconductors and electronic components” (Cuofano, 2024).
Services like cloud storage and Samsung Pay bring in money. Samsung makes money by
selling its patents and intellectual property, it makes money through advertising on its
platforms and devices. Repairs and maintenance are examples of after-sales services that
can generate income.
Key Resources: “All organizations are powered by resources, which are the necessary
assets for managing the company and giving customers the value that was previously
stated” (Creately, 2022). This can take many Samsung has competitive resources, such as
efficient manufacturing plants, and professional labour “Samsung has been paying
attention to the creation and training of its employees from when the company was just
starting, with full understanding that people are the core of any business.” (Corporate
Sustainability Management Office, 2015)
Key Activities: “To achieve your company goals, which operations must be finished?
Should outline every important task you must complete implementing your business plan”
(osterwalder, 2010). Reaching consumer groups, preserving customer connections, and
producing income should be the major goals of these crucial tasks.
Key Partnerships: Few businesses can thrive on their own. Long-term survival
depends on identifying and setting up critical relationships, which are the outside
businesses or suppliers that will support your main operations. These alliances are formed
to get resources and lower risks. The relationships Samsung has with its supplier’s
software developers and retail channel partners help the company improve its supply chain
and product portfolios. They help also Samsung’s sustainability “which strives to recover
and recycle resources that have been used, expanding the use of environmentally
conscious materials” (Samsung Official , 2024) and its expansion on the global market.
Cost Structure: You must specify every possible expense. After all, you can't tell when
you're making a profit unless you know how much you've spent. “Companies can be
classified as either value-driven (focused on giving the client the most value) or costdriven (focused on cutting expenses wherever feasible)” (Strategyzer, 2024). With
efficient costing such as manufacturing costs and economy scale, Samsung achieves its
goals of operational excellence and profitability which are the company’s key goals for
sustainable growth. Thus, “Samsung’s Total Expenses Have Increased From $161 Billion
in 2015 to $181 Billion in 2018” (Trefis Team, 2020).
“The core components of Samsung's business model include innovation, technology, and a wide
range of products. Delivering top-notch appliances, electronics, and services to a worldwide
clientele is Samsung's value proposition” (Cuofano, 2024). The BMC framework unfolds
Samsung’s operations into component segments as mentioned in Figure 6 above. All these
components serve a definite purpose towards the realisation of the company’s goals; in this
case, for Samsung.
Organizational Structure
Samsung's organizational structure is divisional. It is a framework used by businesses to divide
their operations into smaller, somewhat independent groups known as divisions. Based on the
geography, services, and products, the staff members are separated into various groups. After
that, each group is in charge of and responsible for its actions. Samsung Electronics is in charge
of its internal operations because it is an entirely distinct division of the Samsung Group, “For
example, the Semiconductor Division specializes in the development and manufacturing of
semiconductors, whereas the Consumer Electronics Division concentrates on devices such as
TVs and smartphones” (Cuofano, 2024). Each level of management usually has fewer
responsibilities under this kind of organizational structure. Additionally, the organization may
easily analyze staff performance and divisional performance. The organizational structure of
Samsung Electronics is depicted in the diagram below. It displays every department inside the
company. The CEO is the head of each division, to whom many reports are submitted.
Figure 7 Samsung Organizational Structure
Advantages
and
Organisational structure
Disadvantages
of
Samsung
Electronics
Advantage
Disadvantages
Samsung's chosen organisational structure has many
benefits. “Each division can operate independently since
they have a divisional structure for their organization”
(Evans, 2023). Though communication in this kind of
structure is more effective when all divisions are
attempting to accomplish the same objective, it also
permits each division to communicate with the others.
Another benefit of this structure is that each division
focuses on its area, goods, and services; this is a
significant strength since it allows the organization to
concentrate on other outside variables that might
undermine its operations. As a result, the business can
react to outside advancements in each division more
quickly.
A divisional structure's drawbacks include the
potential for increased expenses due to the increased
number of workers when each division has distinct
functions. The strategic focus may be strained because
each division may have a unique strategy that differs
from that of other divisions within the organization or
the business overall. “Lack of communication amongst
the various divisions is also a significant drawback
because each division might not be aware of the other's
objectives, which could have an impact on the
organization in the form of sanctions and additional
funding for corporate social responsibility” (Evans,
2023).
In conclusion, “Samsung’s divisional structure is critical to accomplishing the company’s
strategic goals of Innovation, Responsiveness, and Global Efficiency” (EdrawMind, 2024). The
organisation by product type enables specialized teams to work towards focused development
particularly in areas such as electronics and mobile devices to prompt rapid innovation.
Divisions by geography aid Samsung in understanding various regional trends and preferences,
facilitating localisation, and adapting to the regional market easily. These elements allow
Samsung to maintain its competitive edge and adapt efficiently to shifting technology
landscapes, enhancing its leadership in the global market.
Functional Units
Any organization's success is influenced by several critical functions. These consist of
operations, finance, marketing, and human resource management (HRM). “Every function
contributes differently to accomplishing the organization's goals, and their interactions are
essential to the organization's overall efficacy” (Islam, 2024)Samsung maintains its functional
units effectively within a divisional organizational structure by organizing each business area.
1. Marketing: Every single division of Samsung has a marketing department that is
charged with the responsibility of developing strategies unique to the products within the
division as well as the market segments in which these products will be sold. “This setup
enables the specialized segments such as mobile and consumer electronics segments to
promptly meet various market needs and unique product positioning in highly saturated
industries” (Jones, 2024).
2. Human Resources (HR): Human Resources are responsible for staff recruitment,
training, performance appraisal and staff management and relations in their respective
divisions in response to certified divisional needs. This also allows “Samsung to cultivate
the correct organizational climate following its corporate values and acquire and retain
the right type of talent for each product division, knowing that people lie at the heart of
any company” (Corporate Sustainability Management Office, 2015).
3. Operations: The divisional structure is more operationally flexible so that it can meet
the manufacturing and logistics requirements of each business unit. On the other hand,
“the strategic position of the semiconductor division is to focus on supply chain, as well
as sophisticated manufacturing practices” (Cuofano, 2024). Thanks to such
independence, Samsung is in a position to guarantee the high quality of products in
different lines, develop the efficiency of its production, and optimize the company’s
processes.
4. Finance: Each division within Samsung has its own budgetary power and financial
resources thanks to the company's divisional structure. “Each division's finance teams
are in charge of budgeting, financial analysis, and investments according to the goals of
that division” (Dudovskiy, 2017). This independence enables each division to efficiently
manage resource allocation and profitability while upholding Samsung's overall financial
requirements.
Macro Environmental Analysis
Organizations utilize the PESTEL
framework or technology to analyze and
track the macro-environmental (external
marketing environment) elements that
affect a company. “PESTEL analysis is a
diagnostic and management approach that
Figure 8 PESTEL Analysis
will help you identify elements that impact
business decisions and are not related to
your organizational strategy” (PESTLE analysis, 2017). The analysis evaluates six categories
of influence: political, economic, social, technological, environmental, and legal factors an
acronym of PESTEL.
1. Political: Policies are derived from how the government may impact a business in its daily
operations, employment rights, taxation or sector regulation. “They also incorporate
factors related to a general political climate like political stability in the international
arena or election, which may affect a business” (LucidityHQ, 2019).
2. Economics: “A company's operational costs and pricing strategies may be impacted by
economic conditions such as inflation, exchange rates, and economic growth” (Mitton,
2024).
3. Socio-Cultural: These are the areas where issues relating to the population’s ordinary
assumptions and Beliefs are engaged. Such characteristics include career attitude, health
concerns, age pattern and population growth. “First of all, sociocultural factors are never
static, and secondly, they are not the same across different populations, so managers have
to watch these changes and try to envision ways they may impact corporate strategy over
the next year” (LucidityHQ, 2019). All these elements are important particularly because
they refer to the basic components defining our understanding of consumers and their
behavior.
4. Technological: “Innovation and technology may have a profound effect on business,
affecting how companies manufacture and deliver goods and services, interact with staff
and customers, and run their daily operations” (Lucidspark, 2024).
5. Environmental: One of the major factors affecting the market is sustainability and
environmental effect which consumers are becoming more conscious about and need to
check sustainability impact. “Measures of carbon footprints, trash disposal strategies, and
resource conservation assessments are some of the macro environment factors which can
influence a brand reputation and customer loyalty” (Peterdy, 2022) .
6. Legal: laws of the nation where an organization operates are referred to as legal factors.
There is always a significant relationship between these regulations and the operation of
firms in that nation; in most cases, they are parallel to other regulation aspects that are
mainly political. “Some aspects that businesses need to have regards to change include
modification and enhancement of labour laws and rules. It is involved in minimum wages,
occupational requirements and the rights of the employees” (Villegas, 2024)
PESTEL Analysis of UAE and Its Impact on Samsung
The United Arab Emirates or just Emirates is one of the most
powerful countries in the Middle East. “Since it achieved total
independence in 1971, it has come a long way in many fields”
(Office of the Historian, Foreign Service Institute, 2024). The
United Arab Emirates has seven emirates and they include,
Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah
and Umm Al Quwain.
Figure 9 UAE Map and Flag
1. Political: “The UAE has long-term political stability, with
open diplomatic policy worldwide” (UAE Government, 2011). The leaders of the seven
emirates make up the Supreme Federal Council, the highest federal body that chooses the
nation's president. Free trade zones are desirable locations for global trade and business
because they “provide companies with a range of benefits, such as tax breaks, streamlined
customs processes, and complete ownership rights” (Gurcanpartners, 2024).
IMPACT
Positive
Negative
Samsung can simplify operations and reduce If the political conflict continues with
costs due to free trade zones, favourable tax “Yemen, or Lebanon, as well as the issues with
policies, and the full rights of foreign Iran and Qatar” (Global Trade Portal, 2024),
ownership.
Additionally,
Samsung's this would directly influence Samsung's
innovative and technology-driven products various operations, as taxes on certain
receive support from the UAE government products can go up and supply chains can be
through Vision 2021 and the UAE Strategy for disrupted.
Artificial Intelligence.
2. Economics: Besides aiming at diversification of the economy “the major structure of the
UAE economy comes from the oil which is more than 95% of the total government income;
other sectors of the economy such as financial and maritime services, tourism and trading
contributes less than 5% of the total GDP of the nation” (Kisser, 2024). In addition, the
UAE can be considered one of the most attractive markets for international companies
because of the country’s personal and corporate income tax exemptions (0%) policy.
IMPACT
Positive
A rising demand for consumer electronics is
supported by the “UAE's consistent GDP
development, which is fuelled by non-oil
sectors” (Narayanan, 2024). Since affluent
people frequently seek high-tech products,
Samsung benefits from this atmosphere.
Negative
Cybersecurity
threats
are
directly
proportional to the dependence on digital
and smart technologies. Samsung needs to
improve its security in order to safeguard its
user’s information since leaks would
severely impact its reputation and attract
regulatory problems.
3. Social-Cultural: According to the United Nations estimates, the population of the United
Arab Emirates was expected to hit 8.2 million in mid-2010. “Currently, only about 20% of
the country's population is of Emirati origin and the country has one of the biggest
immigrant populations globally” (Rahman, 2022). Furthermore, the idea of unity in the
UAE is based on tribal and religious links and traditional aspects of social cooperation.
IMPACT
Positive
“Since 78% of people in the United Arab
Emirates own at least one cell phone and many
more have multiples” (Almuraqab, 2020)
Samsung can serve this market by providing
cutting-edge
smartphones,
wearable
technology,
and
high-quality
home
electronics. Consumers in the UAE are drawn
to luxury and innovative products.
Negative
Due to the United Arab Emirates' strict
culture, Samsung needs to adapt its
marketing strategies to be culturally
appropriate an inappropriate campaign
may lead to criticism and brand damage and
thus should be avoided by an organization.
4. Technological: “The government of the United Arab Emirates aims to become a global
leader in technology. Big data, artificial intelligence (AI), renewable energy sources,
healthcare, and alternative energy are some of the critical areas they are focusing on”
(McNelliey, 2024).
IMPACT
Positive
Negative
“Government programs that encourage Cybersecurity
threats
are
evolving
businesses
to
embrace
cutting-edge simultaneously with the growth of reliance
technology include the UAE Blockchain on digital and smart technologies. Samsung
Strategy 2021 and its goal to be a leader in AI has to strengthen the protection of
and IoT” (Go-Global, 2024). This emphasis is customer information because its leaks
consistent with Samsung's dedication to might harm the brand, as well as lead to
technical advancement.
legal issues.
5. Environmental: Due to the increased extension of the climate, environmental problems in
the United Arab Emirates are increasing, mainly water problems and energy consumption.
The UAE released the “UAE Energy Strategy 2050 which plans to spend AED 150 – 200
billion by 2030 to triple the proportion of renewable energy to meet the increasing energy
need caused by a rapidly growing economy” (UAE Government, 2024).
IMPACT
Positive
Negative
“Government programs that encourage Samsung might need to spend more to meet
businesses
to
embrace
cutting-edge UAE environmental requirements which
technology include the UAE Blockchain are; the use of environmentally friendly
Strategy 2021 and its goal to be a leader in AI materials and energy-efficient products.
and IoT” (Go-Global, 2024). This emphasis is Such changes may affect the company’s
consistent with Samsung's dedication to revenues in the short run since “UAE has set
technical advancement.
its goal at the grid emission factor of 0.27 kg
CO2/kWh by 2030” (UAE Government,
2024).
6. Legal: Many international companies such as Samsung working in the UAE are affected
by the legal structure covering a wide range of segments including consumer protection,
data privacy, Intellectual Property (IP), and environmental standards. Its laws indicate the
“UAE’s efforts to strengthen intellectual property rights and align the legal system with the
advanced technology era in line with international standards and norms” (Al Dhaheri
International Advocates & Legal Consultants, 2024).
IMPACT
Positive
Negative
“Government programs that encourage Cybersecurity
threats
are
evolving
businesses
to
embrace
cutting-edge simultaneously with the growth of reliance
technology include the UAE Blockchain on digital and smart technologies. Samsung
Strategy 2021 and its goal to be a leader in AI has to strengthen the protection of
and IoT” (Go-Global, 2024). This emphasis is customer information because its leaks
consistent with Samsung's dedication to might harm the brand, as well as lead to
technical advancement.
legal issues.
The overall PESTEL analysis of the UAE shows the following factors that affect Samsung. On
a political level, the UAE guarantees a stable government and proper conditions for business.
Economically, it has a high gross domestic product and a growing middle-income population
which serves Samsung’s consumer electronics well. From the technological aspect, the UAE
is well-developed and presents an opportunity to introduce Samsung’s modern products. In
terms of society, a young, computer-literate population creates a demand for electronics. In
terms of the environment, the UAE targets sustainable development which brings opportunities
for green products. In the legal aspect, Samsung is enveloped with high intellectual property
rights that safeguard its inventions. Taken together, they have helped to establish the conditions
conducive for Samsung to grow and spread its market.
Micro Environmental Analysis
SWAT Analysis
“SWOT analysis is a strategic tool for understanding a business
competitive environment, its advantages and disadvantages and the
planning of business strategies” (Schooley, 2024). SWOT analysis
also considers the current and potential opportunities as strengths and
weaknesses and opportunities and threats.
 Strengths: Strengths are special, positive characteristics of your
organization, some of these conditions are within your control.
Figure 10 SWOT Analysis
 Weaknesses: Your weaknesses are the things that detract from
your strengths. “You may have to improve these areas if you are to continue competing
effectively” (Sarsby, 2016).
 Opportunities: Chances are external factors that can assist in achieving success in the work
setting.
 Threats: External challenges that could negatively impact the business.
SWOT Analysis of Samsung
 Strengths: Samsung is one of the well-established, reputable
companies and has a significant advantage from its pretty
diverse “product portfolio including mobile devices, TVs, and
semiconductors. It opens several revenue streams and thus
enhances the company’s ability to compete in the given
markets” (Bhasin, 2024). Samsung also has established itself
as an innovative company, being ahead in display technology, Figure 11 SWOT of Samsung
5G and the rest, with sizeable investments in R&D. It can control its manufacturing and
supply chain costs while ensuring it has quality production facilities in worldwide locations.

Weaknesses: “Samsung has its limitations, and they include the overdependency on the
Smartphone market. However, the market it is in is diverse and it still heavily relies on the
smartphone business” (Pereira, 2023). The next great blow to the image of Samsung
emerged from the Galaxy Note 7 disaster. Because Samsung’s continuous battery problem
led to many phones exploding, the company was forced to pull the model and ultimately
abandon it, all while losing a lot of money in the process. In any case, they may erode
Samsung’s brand image, which will reduce its market share as the loyalty of the customers
decreases.

Opportunities: Samsung consumer electronics will provide Samsung with a chance to
capitalize on the increasing interposal of electronic consumer goods particularly mobile
phones in the developing world such as South East Asia, Africa and India. It may achieve
a larger market share as well as sales because this company can supply reasonably priced
gadgets appropriate for the special demands of these areas. “While the uptake of the 5G
technology continues to gain momentum across the world, Samsung has been privileged to
be in a position to offer both the infrastructure and accessories that are compatible with
the 5G technology. In addition, AI can launch new technologies to enhance user
experiences and make a product distinct from its competitors for Samsung” (Parker, 2024).

Threats: “Samsung's market share and margins, as well as its price strategies, and
reputation may be challenged both by emerging and experienced Chinese and other
international contenders and famous companies such as Apple, Google, and Huawei”
(Bhasin, 2024). Severe weather conditions, war and political unrest around the world and
the global outbreak of deadly diseases such as the coronavirus affect Samsung’s enormous
supply chain. These disruptions may influence a firm’s costs, output and the extent to which
it fulfils the needs of its clients.
Recommendations
1. Diversify Product Portfolio: To diversify it Samsung should look into new markets
such as AI, IoT and electric vehicles which are in high demand for smart and digital
technologies in markets like the UAE.
2. Strengthen Quality Control: For Samsung to regain the consumers’ confidence, then
it has to establish quality standards in all of its products, to avoid instances such as the
Galaxy Note 7 defect. This will also meet the social and legal requirements concerning
the safety of the products to be placed in the market.
3. Invest in Sustainability: Samsung needs to be more environmentally sensitive in
manufacturing and offer more green products from the standpoint of modern society
awareness. This more or less complies with environmental laws and consumers’
demand for green products.
4. Strengthen Supply Chain: Samsung’s supply chain is vulnerable to risks such as trade
tensions and economic instability, and thus it needs to diversify to operate under
unfavourable political environments.
5. Expand in Emerging Markets: Samsung needs to take advantage of digital change
efforts in places like the UAE to launch its products and diversify its market.
Conclusion
Samsung Company is one of the biggest technological companies in the world that has
specialization in the manufacturing of electronics, IT, home appliances,
semiconductors, mobile phones, and displays. It also possesses innovative streaks in its
activities and has started innovations such as foldable screens, 5G, and real artificial
intelligence integration. Through intensive capital spending, especially on R&D as well
as ethical policies that aim at providing quality products, the company has been dually
able to sustain its competitive advantage. However, it has limitations due to severe
competition and a high level of supply chain internationalization. Nevertheless,
Samsung continues to be a technological pioneer as well as an innovator in the
industries of consumer electronics. These make it possible for it to continue to be
relevant in the current and the coming years’ geopolitics of technology
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