Table of Contents Samsung's Response to Political Factors Samsung's Response to Economic Factors Samsung's Response to Social Factors Samsung's Response to Technological Factors Samsung's Response to Legal Factors Samsung's Response to Environmental Factors In In a highly interconnected and globalized world, it is important for businesses to innovate and adapt to a rapidly changing environment. Samsung Electronics is the world's largest information and technology company in terms of revenue and therefore must consider all environmental factors to remain in its position (Financial Times, 2013). Samsung is currently ranked tenth by Forbes among the world's most valuable brands, with $38.2 billion (Figure 3). As of the end of 2016, Samsung Electronics had 220 operations centers worldwide, including manufacturing subsidiaries, design centers, and research and development centers, while operating 15 regional headquarters in Korea, North America, in Europe, Southeast Asia, Africa and other regions. of the world (Samsung Electronics Sustainability Report, 2017). This report will identify and analyze these factors using the PESTLE framework, which includes political, economic, social, technological, legal and environmental factors. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayThe PESTLE framework, which only considers the macro environment, is designed as a strategic warning system enabling businesses identify incoming threats. This framework can help a business prevent bankruptcy and plan for the future. Political factors look at how the government affects the economy and the market in which the business operates. This may include factors such as the nature of the political system, government involvement and political stability (The Business Environment, 2008). Samsung recently regained the top spot in smartphone sales in the United States, with market share increasing to 36.2%, up from 32.9% in the previous quarter (CNBC, 2017). However, there is uncertainty over whether these sales will continue due to President Donald Trump's decision. their views towards international trade and trading blocs, as evidenced by the withdrawal from the Trans-Pacific Partnership (The Guardian, 2017). Any tax or quota on imports would hamper Samsung's sales and allow domestic or cheaper alternatives to flourish. Samsung's response to political factors Samsung Electronics operates six mobile phone manufacturing plants in six countries, including Vietnam, China, India, Brazil, Indonesia and Korea. The two Vietnamese factories currently produce fifty percent of all Samsung mobile phone production (Business Korea, 2015). As most of these countries are part of the Association of Southeast Asian Nations, Samsung is able to keep transportation costs low through low or free trade. However, Samsung plans to increase production in the United States. The move comes amid criticism from US President Donald Trump of companies manufacturing overseas for US consumers (Wall Street Journal, 2017). The Trump administration has threatened to impose an import tax on large companies that do not increase production or relocate production to the United States (Financial Times, 2017). For Samsung to avoid any tariffs or quotas, it would need to continue its expansion in the United States while maintaining its manufacturing center in Asia. The factorsEconomics take into account the conditions and forces that affect the cost and availability of goods, services and labor and thus shape the behaviors of buyers and sellers (Introduction to Business, 2017). The current global economic crisis has affected most developed countries, damaging their purchasing power and reducing their consumption. If left unresolved, the economic downturn could have seriously harmed the company's sales and market leadership position. However, some opportunities have arisen due to the recession. The value of the Korean won lost more than nine percent against the US dollar from January to June 2008, helping Samsung make significant inroads into global electronics markets (Samsung Electronics: Managing Innovations in an Economic Downturn, 2017). Changes in the exchange rate can have a significant impact on a company like Samsung, which imports and exports to a considerable extent. Samsung's response to economic factors In response to the recent economic downturn, Samsung had to turn to emerging markets to be able to maintain revenue. As global consumption of electronic products stabilized after the recession, China's growing middle class showed an inverse upward trend as they demanded cheaper and more innovative electronic products (Financial Times, 2012). Furthermore, Samsung has the largest market share of mobile phones, smartphones and TVs in China due to its distribution network formed between the company and Chinese retail titans, allowing them to remove as much as possible damage to sales (Samsung Electronics: Managing Innovation in an Economic Downturn, 2017). The social environment refers to the composition of society and the needs that businesses meet. This includes factors such as demographics, culture, level of education and communication as well as the needs of society. According to the BBC, 4 out of 5 adults own a smartphone, or 37 million people. With the current population increase and aging trends, it is easy to predict that smartphone sales will increase. For example, Japan has the oldest population in the world, with more than a quarter of the population aged 65 or older (Sky, 2017). Decades of improving life expectancy and declining birth rates have led to a rapid aging and shrinking population (Bloomberg, 2017). There is evidence that consumers across countries are shifting their spending habits as they age toward health-related services and goods (World Economic Forum, 2015). Additionally, changes in the class structure in emerging markets have led to an increase in the number of people with higher disposable income, thereby increasing demand for luxury goods such as smartphones and other electronic devices. Samsung's response to social factors In order for Samsung to keep up with the aging population in countries around the world, they need to adapt their products more to older generations. This could include smart health products such as wearable technology and healthcare software. According to Innovamedtec, the global wearable technology market will reach 210 million unit shipments and $30 billion in revenue by 2018, up from 96 million unit shipments and $8.5 billion in revenue during of the year 2018. 2012. Samsung has capitalized on this trend by currently launching 6 smartwatches in total (CNBC, 2015). YH Eom, European President ofSamsung, said: “The wearables market has enormous potential. We therefore invest massively in R&D…. I would say that a significant part of our investments are in wearables and we will be ready in time to meet the market trend” (CNBC, 2015). Investing in innovation and technology is often considered a key element of a company's success and allows it to differentiate itself from its competitors. The rise of automation and robotics in many industries has allowed businesses to reduce costs and improve efficiency (Brookings, 2016). Some restaurants have robots that deliver food and self-ordering kiosks available to customers. The number of industrial robots is increasing: in 2013, there were 1.2 million robots in factories and warehouses. In 2014, there were 1.5 million and increased to 1.9 million the following year (Brookings, 2016). By investing in technology, Samsung has a great opportunity. to reduce costs while providing a better product. This would allow Samsung to compete with its larger competitors using the price and quality of their products. Samsung's Response to Technological Factors Through a decade-long development program, Samsung has achieved economies of scale and scope that have become a comparative advantage that few can imitate (Samsung Electronics: Managing Innovations in an Economic Downturn , 2017). Samsung's innovation and manufacturing power is demonstrated by the fact that its main customers are some of the world's largest technology companies such as Sony and Apple (Figure 1). By supplying its competitors, Samsung can ensure that it will stay ahead of everyone else because there will always be a demand for Samsung products or components. Additionally, Samsung plans to invest 21.4 trillion won in South Korea to expand its lead in memory chips. and next-generation displays for smartphones (The Business Insider, 2017). They plan to build a new NAND manufacturing plant in Pyeongtaek, a new semiconductor production line in Hwaseong, and many other projects (The Business Insider, 2017). These investment projects will help Samsung remain an industry leader as they will increase its innovation. Other companies' dependence on Samsung manufacturing will also increase, as they will likely continue to purchase Samsung components. Legal factors examine how legal frameworks affect business operations and their relationships with their customers and suppliers. It is closely related to political factors in that they both establish regulations and restrictions on how a business is allowed to behave. An example of this type of regulation is the patent. A patent is a license that prohibits any other company from reproducing, using, or selling the same invention for a specified period of time (Business Insider, 2011). Samsung was assigned the second highest number of patients in 2015 through June 2 among all major companies, 600 patients behind IBM (Figure 2). In 2012, Samsung was granted more than 5,000 patents in the United States (Samsung Electronics: Managing Innovations in an Economic Downturn, 2017). This encourages Samsung to innovate and protects its ideas, allowing Samsung to stay ahead of its competitors. In addition, there are regulations that cover employment and labor, environment, privacy, safety and health. By complying with all these regulations, Samsung is able to preserve its brand image and avoid having to pay fines. 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