Economic, Legal, and Regulatory Forces and Trends
The economic factors such as price fluctuations, inflation, exchange rate, and interest rates directly affect the companies (Voiculet, Belu, Elena, & Rizea, 2010). The economic situation of United States is very critical for the new division. The United States economy is one of the world’s largest economies. In fact, Morgan (2011) suggests that the U.S economic strength is the reason it has always taken a leading position in the affairs of the world. In particular, the country’s favorable taxation policy, trade tariffs, positive economic growth, interest rates, and foreign exchange rates will have a positive impact on the performance of the new division. Besides, the high disposable income among the New Yorkers will positively impact the new division. The consumer spending in electronic goods continues rising. As a result, this will continue having a positive impact on the performance of Samsung’s new division in New York. The trends in electronics sale in the United States are very encouraging.
The legal and regulatory forces that have an impact on the performance of Samsung’s new division in New York include the advertising standards, product safety, health and safety, consumer laws and rights, and equal opportunities. The new division must adhere to the advertising standards and product safety regulations. It must also give its staffs equal opportunities and ensure that they are healthy and safe. Besides, the new division must comply with product safety and labeling requirements. All the companies wishing to do business in New York are required to obtain authority. According to the Office of General Counsel (2000), the companies doing business in New York without authority might not use the State’s courts until they get authority and pay all the arrears in taxes, penalties, and fees. Samsung’s new division must, thus, abide by all the regulation requirements in New York to avoid the consequences of not doing so.
How Samsung Adapts to Change
Change is quickly accelerating in the contemporary business world. The recent technological changes require businesses to be innovative and agile (Laping, 2014). As a technology service company, Samsung Company understands that they will not survive if they resist the change. In essence, this organization adapts to change by always being innovative. The company invests heavily in the research and development as well as in the product design so as to continue meeting the changing consumer needs. It has successfully produced different products, which have helped it remain competitive. Ideally, Samsung’s strategy of adapting to change gives it a competitive edge.
Supply Chain of Samsung’s New Division in New York
The new division keeps most of its supply chain in-house. In other words, most of the division’s components are designed in-house. Supply chain management involves integrating the main business processes across the organization’s supply chain (Croxton, Garcia-Dastugue, Lambert, & Rogers, 2001). The new division carefully develops its supply chain management activities to match to the expectations of the consumers. The in-house activities in this division exploit the resources as well as competencies found in the whole supply chain. Nonetheless, the division leverages a number of subcontractors to help supply specific components. In essence, the division shares intelligence with its supply chain partners to learn more about the market. Additionally, the division uses its supply chain management to differentiate itself from the business rivals.
In an attempt to develop and leverage the core competencies as well as resources in the division’s supply chain, I will utilize the suppliers in the highly industrialized regions as well as the developing countries. As a result, this diversity will help increase the division’s customer base. It will also buffer the division from political, natural, and economic disturbances in the supply chain. Interestingly, this will produce a positive impact on the division’s stakeholders and business model. In an attempt to develop and leverage the core competencies and resources in the division’s supply chain, I will also acquire small, cutting-edge firms. In essence, these firms will provide the division with the required expertise and, as a result, give it a competitive advantage.
Issues and/or Opportunities
The company faces some issues that might affect its performance in the future if something is not done to solve them. One of these issues is the fierce competition. The company faces intense competition from the leading business rivals. The other issue is the difficulty in sustaining the competitive advantages. Due to the intense competition, the company has problems in maintaining its competitive edge. The other issue that the company faces is heavy dependence on the sales of consumer electronics in the markets with limited growth potential. However, the company has some opportunities that it can exploit to improve its performance. Specifically, the growing online market presents a good opportunity for the company to increase its sales. Besides, the company has an opportunity to acquire new companies to facilitate efficiency and improve its competitiveness.
Hypotheses and Research Questions
The company can avoid the fierce competition it faces through exploiting its competitive advantages. The research question for conducting this analysis is: What are the competitive edges that can that the exploit to alleviate the problem of intense competition it faces?
The difficulties that the company faces in sustaining its competitive advantages are detrimental to its success. The research question to use for carrying out this analysis is: Which types of problems does the company face?
The heavy dependence on the sales of consumer electronics is to blame for the company's poor performance in the limited growth markets. The research question to use for conducting this analysis is: What is the sales percentage of the company’s electronic products?
References
Morgan, I. (2011). The American Economy and America’s Global Power. Special Report, London: LSE Ideas.
Voiculet, A., Belu, N., Elena, D., & Rizea, C. (2010). The impact of external environment on organizational development strategy. MPRA Paper, 26303, 1-4.
Croxton, K. L., Garcia-Dastugue, S. J., Lambert, D. M., & Rogers, D. S. (2001). The supply chain management processes. The International Journal of Logistics Management, 12(2), 13-36.
Office of General Counsel. (2000, February). "Doing Business" In New York: An Introduction to Qualification. General Guidelines. Retrieved from http://www.dos.ny.gov/cnsl/do_bus.html
Laping, C. (2014, November 12). How Can Mature Businesses Adapt To Change? Forbes. Retrieved from http://www.forbes.com/sites/netapp/2014/11/12/adapt-to-change-ask-your-cio/#19adde696798
