Management: Samsung Electronics

Title of contents Executive Summary 1. 0 gateway1 2. 0 semipolitical environs.. 2 2. 1 government stability 2 2. 2Government and ploughshargon 2 2. 3 compend . 2 3. 0Legal Environment.. 2 3. 1 restrictive framework 2 3. 2Business laws .. .. 3 3. 3Labour laws .. .. 3 3. 4 Analysis .. 3 4. 0 Economic Environment.. 3 4. 1 Interest compute (%).. .. 3 4. 2 Currency Exchange Rate ($). 3 4. 3 Economic Trends/ forecasts. . 4 4. 4 Analysis. 4 5. 0 Socio-cultural Environment.. 4 5. 2 Analysis .. 5 6. 0 expert Environment. 6 6. 1technical schoolnological infrastructure 6 6. 2 Communication networks 6 6. Logistics networks. 6 6. 4 Analysis.. 7 7. 0 SWOT Analysis 7 8. 0 Recommendations.. 8 9. 0 Conclusion 8 10. 0 References 9 Executive Summary This authorship depart discuss whether Samsung assembly can wee-wee a company in Malaysia.The report ordain be divided into two parts impertinent milieu and SWOT analysis of the external environs. In external environment, it provides s ix sections which are political, stinting, socio-cultural, proficient and sancti one and only(a)d environment, each 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 collection is the largest electronic manufacturing company in Seoul. The company mainly products electronics such as stylish phones, semiconductor and digital TVs. Samsung 2013) Now the company considering expanding the subsidiary company in kuala Lumpur, Malaysia. This report will focus on flesh out 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, engineering and legitimate environment of Malaysia. The report will help the company do expansion of analysis opportunitie s & threats for Samsung in Malaysian electronics industry and prize strengths or weakness of Samsung.The report will discuss the possibility of expanding Samsung group operations in Malaysia. It provides the political, economic, socio-cultural, technology and legitimate environment analysis. Then it will cover SWOT analysis and provide recommendation. 2. 0 Political Environment 2. 1 government stability Malaysia is a federal constitutional monarchy in secondeast Asia. The governance of government is a legacy of British colonial rule. The head of the state is referred to as the king and selected each five year term.Compared with the early(a) countries, the death penalty is still be in used, therefore, Malaysias curse enumerate is lower. Because of the Consolidate leadership, Malaysias political situation keeps stable in recent years, crime rate becomes down. (Malaysia information 2013) It shows the level of government stability in Malaysia is postgraduate. 2. 2 Government and contri exclusivelyion Malaysia serves as a bridge between the East and the West and also plays an important role in the world re-create by establishing a long-term cooperative relationship with the other ASEAN members, such as China, South Korea and Japan.Government implements several(prenominal) plans and welcome outside enthronizations. (Malaysia government information 2013) 2. 3 Analysis Depending on the political stability and spheric trading relationships, Malaysia can make a closer operation with the other countries. With the jointly-beneficial foreign policy, Samsung order has a huge opportunity to operate smoothly in Malaysia. 3. 0 Legal Environment 3. 1 Regulatory framework Malaysia and South Korean do not have the similar legal system, Malaysias legal system is based on English common law while South Korean legal system is based on civil law. South Korean government) It means the Samsung Group would not be familiar with the regulative framework. 3. 2Business law s Although there are some legal restrictions on certain products imported from other countries. (Malaysia business guide) The law allows foreign companies to import raw materials. (Malaysia customers) However, the corruption problem in Malaysia has become some(prenominal) more worse. (Corruption Malaysias top enemy) 3. 3Labour laws Malaysia labour laws have improved in recent years, there are age and working hour 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 conjunction. 4. 0 Economic Environment 4. 1 Interest rate (%) The benchmark following rate in Malaysia is 3. 00 percent. (Malaysia interest rate 2013)Malaysias interest rate is likely to keep unchanged in these years. (RUPA 2013) South Koreans benchmark interest rate is 2. 75 percent. It m eans that the interest rate in Malaysia is high than that in South Korean. Central bank rates) 4. 2 Currency Exchange Rate ($) Based on the transmute rate in March 2013, one Malaysian Ringgit equals 358. 31 South Korean Won. (Themoneyconverter 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 best economic records among Asia countries. GDP is predicted to rise by 4. 5% in 2013 and increase by 5. 4% in 2014. Over the next decade, GDP is expected to grow by 4. 2% a year on average. According to forecasts, one of the fastest growing sectors in manufacturing industry over th e next 10 years will be electrial equipment. (Oxford political economy) 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 outside(a) trade ability of Malaysia is still locating in the forefront of the world. This kind of ability makes a great positive furbish up on the transnational 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 choose to work in groups while the South Korea employees prefer to choose personal works.Overall, Samsung Company should organize teamwork to its Malaysia employees. cause Distance Lower Higher Leadership Power Distance affects the hierarchical order in an organization. Compared with South Korea, Malaysia employees accept hierar chical order more than Australian employees. Therefore Samsung Companys manager should take autocratic style question Higher dodge Lower Planning The planning in Malaysia employees would like runly aims while South Korea employees prefer relaxed attitudes. It demonstrates that clear rules and regulations are more suitable for topical anaesthetic employees. Time orientation Long Short PlanningSouth Korea employees prefer having a long time orientation, however, Malaysia employees are known to prefer having short time plans. Therefore, Samsung Group should set short term targets for its staffs. Masculinity VS FemininityFemininity Femininity Rewards The Masculinity and Femininity will have an impact on social 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, 2013) 5. 2 AnalysisAlthough both Malaysia and South Korea would be devoted 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 steady-going operation of Samsung Group in Malaysia. 6. 2 Communication networks Compared with South Korean, the telecommunication network in Malaysia is evolution 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, inflict and air deification modes. The Malaysia government will strengthen the management of roads and improve the quality of transport in the future. (Trade and Transport in Malaysia overview of the logistics) 6. 4 Analysis The great Technological infr astructure, 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 market influence Weakness Samsung Company * lacks business experience in Malaysia * the shortage of qualified personnel * no stable customers in local market 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- corruption problemsEconomic Environment-high interest rate in Malaysia-high exchange ratesoc io-cultural environment-used to work collectively-higher power distance-lower Uncertainty Avoidance-only achieve short time target 8. 0 Recommendations Based on the analysis of external environment of Malaysia, it is suggested that Samsung Company should *continue to produce high-quality products to make good reputation in Malaysia (strengths) * train more raw 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. To sum up, from the menses market environment, there are many favorable aspects for Samsung Company to be expanded in Malaysia. password Count1443 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. html South Korean Interest . 2013. Central bank rates. www. bok. or. kr Malaysia information technology reportQ1. 2012 .Business supervise 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? 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. 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