'Management: Samsung Electronics\r'

'Title of table of contents Executive Summary 1. 0 mental institution……………………………………………………………………1 2. 0 Political surround……………………………………………………….. 2 2. 1 organisation perceptual constancy………………………………………………………… … 2 2. 2 authorities and contribution……………………………………………… …2 2. 3 compendium …………………………………………. ………………………à ¢â‚¬Â¦Ã¢â‚¬Â¦2 3. 0 statutory purlieu………………………………………………………….. 2 3. 1Regulatory framework………………………………………………………… 2 3. 2 vexation laws ………………………………………………….. …………….. 3 3. 3Labour laws ………………………………………….. ……………………….. 3 3. 4 epitome ………………………………………….. …………………………… 3 4. 0 Economic En vironment……………………………………….. … ………… 3 4. 1 Interest consec target (%)……………………………………….. ……………….. …… 3 4. 2 Currency Exchange Rate ($)………………………. …………………………… 3 4. 3 Economic Trends/ omens……. ………………………………………………. 4 4. 4 Analysis……………………………………………………………………………………. 4 5. 0 Socio-cultural Environment……â⠂¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦.. 4 5. 2 Analysis …………………………………………………………………………………….. 5 6. 0 technical Environment…………………………………………………………. 6 6. 1Technological base of mathematical processs …………………………………………………………… 6 6. 2 dialogue ne dickensrks………………………………………………………………… 6 6. Logistics ne tworks……………………………………………………………………………. 6 6. 4 Analysis…………………………………………………………………………………….. 7 7. 0 grind away Analysis……………………………………………………………………………… 7 8. 0 Recommendations……………………………………………………………………….. 8 9. 0 Conclusion…………………………†¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 8 10. 0 References…………………………………………………………………………………… 9 Executive Summary This hatch give discuss whether Samsung classify young-bearing(prenominal) genital organ do a confederation in Malaysia.The give notice (of) entrust be divided into two parts: extraneous surroundings and SWOT compend of the foreign environment. In external environment, it wins six sections which argon political, frugal, socio-cultural, technological and statutory environment, each of them gives the analysis and suggestions to Samsung Group. Further to a greater extent(prenominal), the findings entrust be presented in the recommendation and conclusion of the root word. 1. 0 Introduction Samsung aggroup is the largest electronic manufacturing party in Seoul. The company mainly products electronics such(prenominal) as stylish ph anes, semiconductor and digital TVs. Samsung 2013) Now the company considering expanding the subsidiary company in kuala Lumpur, Malaysia. This report will rivet on detailed analysis round 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 diligence. The sit downigation will report on the political, economic, socio-culture, engine room and sub judice environment of Malaysia. The report will jockstrap the company do expansion of analysis opportunities & brats for Samsung in Malayan electronics industry and assess strengths or weakness of Samsung.The report will discuss the possibility of expanding Samsung group operations in Malaysia. It provides the political, economic, socio-cultu ral, technology and wakeless environment analysis. Then it will roll up SWOT analysis and provide recommendation. 2. 0 Political Environment 2. 1 presidency stableness Malaysia is a federal thoroughgoing monarchy in secondeast Asia. The transcription of governing is a legacy of British colonial rule. The head of the state is referred to as the powerfulness and selected every five year term.Comp ared with the former(a)wise countries, the death penalty is windlessness be in used, at that placefore, Malaysia’s detestation value is lower. Because of the Consolidate leadership, Malaysia’s political posture keeps stable in recent years, crime ordinate becomes down. (Malaysia information 2013) It shows the level of government stability in Malaysia is high. 2. 2 Government and contribution Malaysia serves as a duet between the East and the West and excessively plays an important role in the solid ground stage by establishing a semipermanent cooperative relat ionship with the other ASEAN members, such as China, sulfur Korea and Japan.Government implements several plans and acceptable outside investments. (Malaysia government information 2013) 2. 3 Analysis Depending on the political stability and global trading relationships, Malaysia can manage a closer operation with the other countries. With the mutually-beneficial foreign policy, Samsung troupe has a colossal opportunity to operate smoothly in Malaysia. 3. 0 Legal Environment 3. 1 Regulatory framework Malaysia and South Korean do not let away the connatural legal system, Malaysia’s legal system is based on English uncouth law eon South Korean legal system is based on civil law. South Korean government) It nitty-gritty the Samsung Group would not be known with the regulatory framework. 3. 2Business laws Although there are almost legal restrictions on certain products trade from other countries. (Malaysia product line guide) The law allows foreign companies to imp ort raw materials. (Malaysia customers) However, the depravity puzzle in Malaysia has become much more worse. (Corruption Malaysia’s top enemy) 3. 3Labour laws Malaysia fatigue laws arrive at improved in recent years, there are age and working moment restrictions in Malaysia. (Malaysia push back law) 3. 4AnalysisThe government holds rise 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 have-to doe with rate in Malaysia is 3. 00 percent. (Malaysia post rate 2013)Malaysia’s use up rate is promising to keep unchanged in these years. (RUPA 2013) South Korean’s benchmark interest rate is 2. 75 percent. It means that the interest rate in Malaysia is higher than that in South Korean. primordial bank rates) 4. 2 Currency Exchange Rate ($) base on the re-sentencing rate in March 2013, one Malaysian Ringgit equals 358. 31 South Korean Won. (The silverconverter 2013) With the exchange rate increased each year in Malaysia ( art 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 run a risk for Samsung to earn more money in Malaysia. accordingly, 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 vanquish economic records among Asia countries. GDP is predicted to rise by 4. 5% in 2013 and increase by 5. 4% in 2014. Over the conterminous decade, GDP is evaluate to grow by 4. 2% a year on average. According to forecasts, one of the fastest increment sectors in manufacturing industry over the succeeding(a) 10 years will be electrial equipment. (Oxford Economics) Nowadays, Malaysia begins a trans ition 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 international trade ability of Malaysia is tranquillize locating in the forefront of the world. This liberal of ability makes a great confirming impact on the international stage. (Malaysia virginsworthiness 2013) 5. 0 Socio-cultural Environment Hofstede South Korea proportion| Malaysia| Managerial Implications| Collectivism VS IndividualIndividual| Collectivism| workplace design †The Malaysia employees privilege to work in groups while the South Korea employees prefer to lead personal works.Overall, Samsung Company should organize teamwork to its Malaysia employees. | index number Distance Lower | high| leading †Power Distance affects the stratified fellowship in an organization. Compared with South Korea, Malaysia employees accept hierarchical order more than Australian employe es. Therefore Samsung Company’s manager should take autocratic style| Uncertainty melloweder Avoidance| Lower| cookery †The cookery 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 local employees. cartridge holder orientation Long| Short| Planningâ€South Korea employees prefer having a dogged time orientation, however, Malaysia employees are known to prefer having short time plans. Therefore, Samsung Group should educate short term targets for its staffs. | Masculinity VS womanhoodFemininity | Femininity| Rewards †The Masculinity and Femininity will have an impact on social competition, doing and success. Both Malaysia and South Korea are resembling in this level of Femininity. It shows that Samsung Company can perform female leadership in Malaysia. | (Hofstede, 2013) 5. 2 AnalysisAlthough both Malaysia and South Korea would be inclin ed to work with females, there are also several differences between Malaysia and South Korea. 6. 0 Technological Environment 6. 1Technological basis Malaysia has the well developed technological infrastructure while (Asia’s New High Tech Competitors) the infrastructure in Malaysia is one of the best in Asia. ( drape in Malaysia) It demonstrates the splendiferous infrastructures can maintain the veracious operation of Samsung Group in Malaysia. 6. 2 discourse networks Compared with South Korean, the telecommunication network in Malaysia is developing faster.Communication network in Malaysia is served by digital and fibre optic technology. (Invest in Malaysia) 6. 3Logistics networks The logistics networks in Malaysia cover sea, land and song transport modes. The Malaysia government will strengthen the management of roads and improve the flavor of transport in the future. (Trade and Transport in Malaysia: overview of the logistics) 6. 4 Analysis The great Technological in frastructure, 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 outperform international corporation * strong financial resource * A strong commercialise influence| Weakness| Samsung Company: * lacks business experience in Malaysia * the shortage of serve personnel * no stable customers in local foodstuff| Opportunities| Malaysia has:Political environment-stable political 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 has:Legal environment- contrary regulatory framework to South Korea- corruption problemsEconomic Environment-high interest rate i n Malaysia-high exchange ratesocio-cultural environment-used to work collectively-higher power distance-lower Uncertainty Avoidance-only accomplish short time target| 8. 0 Recommendations Based on the analysis of external environment of Malaysia, it is suggested that Samsung Company should: *continue to modernize high-quality products to make good reputation in Malaysia (strengths) * train more modernistic professional persons in local market (threats) *use the new technology and the political system to progress to 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. To sum up, from the current mar ket environment, there are many plausive aspects for Samsung Company to be expanded in Malaysia. Word Count:1443 10. 0 References alphabetical Index of the political entities and corresponding 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. hypertext mark-up language South Korean Interest . 2013. Central bank rates. www. bok. or. kr Malaysia information technology reportQ1. 2012 .Business Monitor International. January http://search. proquest. com. dbgw. lis. curtin. edu. au/docview/919719232/13D455FB3221B7702F2/1? accountid=10382 Rupa Damodaran 2013. â€Å"Malaysia’s key interest rate expected to remain unchanged in these years. ” Business times April 201 82 (11): 14-15. Currency convertor Widget. 2013. XE. COM INC http://themoneyconverter. com/MYR/KRW. aspx Malaysia Interest Rate 2013. .trading economics. http://www. tradingeconomic s. com/malaysia/interest-rate Asia’s new high tech competitors. 2013. government statistics http://www. nsf. gov/statistics/s4495/conten3c. htm Invest in Malaysia. 2013 Malaysian investment study authority. ttp://www. mida. gov. my/env3/index. php? page=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. hypertext mark-up language Malaysia Interest Rate. 2013. Trading Economics http://www. tradingeconomics. com/malaysia/interest-rate Malaysia’s top enemy. 2013. Malaysia story http://www. asiaone. com/News/AsiaOne+News/Malaysia/Story/A1Story20091225-188007. html\r\n'