Samsung: A Global Company Leveraging Benefits, Economy Growth & Job Creation - Essay Sample

Introduction

A global company is an entity that has subsidiaries in different countries and Samsung Company is one of the entities that has managed to run its operations in different parts of the world. This multinational business manage to enjoy various benefits, such as cheap labor, the ability to access large markets and lower rates of taxation, and mitigation of risks. The importance of global entities include growth of economies and creation of employment. PESTEL and Porter 5 Forces are tools enabling a business to understand the operations of external environment that affects its operations. Technology helps in advancing the operations of a firm and gain a competitive advantage in a market.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Global firms can set their firms in countries that can offer cheap labor, enabling them to build their profitability. Additionally, all countries do not charge taxes using the same rates, and this enables them to set their business in states with lower rates. Operating globally raises the number of potential customers that can be reached, and this widens the market for the commodities manufactured by an entity (Williams, Davies, Lamptey, and Tetteh 2017). Samsung mitigates possible risks that may affect its operations, and this is by ensuring that it is accessing different markets. Loses can be experienced in a given market, and the destructions encountered are mitigated by the profitability realized in another. The impact of global trade is both positive and negative to the operations of Samsung Company. The positive effects of the process include the transfer of technology from one country to another and the creation of employment (Siegel, Borgia, Lessard, and Karim 2017). When multinationals set businesses in a given state, they manage to create employment leading to the growth of an economy. They facilitate the growth of research and development and support the balance of trade. Global trade can be a threat to the political sovereignty of the host nations (Siegel, Pyun, and Cheon 2019). It can also trigger a collapse of the local businesses, especially if they are encountering higher costs of producing the same commodities as the multinational.

Samsung rely on various programs to support its trading process that includes the PESTEL Analysis and Porter 5 Forces. The PESTEL Analysis is a tool that is used in analyzing the external environment. The focus is placed on the political, social, environmental, economic, technological, and legal elements. A government can intervene in the activities happening in an economy, and this can affect a global firm's ability to undertake its activities (Comino, and Ferretti 2016). Economic growth, interest rates in an economy, rates of exchange, and unemployment are the economic factors that directly affect the operations of this business. Through the PORTER 5 Forces, a global entity manages to understand the threats that are posed by substitute commodities, entrants, and rival companies. A business manages to know the procedures that it can use to counter these threats (Dobbs 2014). Technological changes influences the operations of an entity and multinationals should find ways of countering them.

Technology is a critical component to Samsung Company, for it enables the firm to ease the trading process. It enables this company to remain innovative and understand the programs that it can utilize to gain a competitive edge in the market over the rival companies. Creativity leads to the designing of high-quality commodities that are easily accepted in the market by customers (Suleman 2019). Another benefit of technology is the rise in computational accuracy with accounting programs helping the maintenance of data that supports the decision-making process. It becomes easier to use Big Data to analyze the operations of a business and the trading process enabling management to understand the strategies they can use to raise their sales volume (Kolaski 2018). Increasing the efficiency levels of a firm and opening the communication channels helps in entities to improve the quality of the commodities. Workers from various departments manage to exchange ideas and ensure there is the optimal utilization of the available resources, a move that triggers success (Carson 2019). Therefore, businesses should consider installing the latest technological systems for them to enjoy significant benefits in the market.

Conclusion

In conclusion, global companies' helps local economies to grow and they create employment for people. Samsung is one of the entities that is operating as a multinational and it is relying on tools, such as PESTEL to understand the external environment. Additionally, it relies on technology to raise its efficiency levels and realize economies of scale.

References

Carson, A, 2019. The Role of Technology in a Business Organization. Bizfluent. Retrieved from https://bizfluent.com/about-6082161-role-technology-business-organization.html

Comino, E. and Ferretti, V., 2016. Indicators-based spatial SWOT analysis: Supporting the strategic planning and management of complex territorial systems. Ecological Indicators. 60. pp.1104-1117. DOI: 10.1016/j.ecolind.2015.09.003

Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review. 24(1). Pp.32-45. Retrieved from https://cemi.com.au/sites/all/publications/Dobbs%202014.pdf

Kolaski,R, 2018. The Role and Importance of Technology in Business. Industry Today. Retrieved from https://industrytoday.com/the-role-and-importance-of-technology-in-business/

Siegel, P.H., Borgia, C., Lessard, J. and Karim, K., 2017. Multinational diversification and performance: a re-evaluation of the evidence. International Journal of Accounting and Finance, 7(2), pp.95-109. Retrieved from https://www.researchgate.net/profile/Philip_Siegel2/publication/318413355_Multinational_diversification_and_performance_a_re-evaluation_of_the_evidence/links/59726d090f7e9b401694423b/Multinational-diversification-and-performance-a-re-evaluation-of-the-evidence.pdf

Siegel, J., Pyun, L. and Cheon, B.Y., 2019. Multinational firms, labor market discrimination, and the capture of outsider's advantage by exploiting the social divide. Administrative Science Quarterly, 64(2), pp.370-397. https://doi.org/10.1177/0001839218769634

Suleman, F, 2019. 10 Reasons that Demonstrate the Importance of Technology in Business. readwrite. Retrieved from https://readwrite.com/2019/08/16/10-reasons-that-demonstrate-the-importance-of-technology-in-business/

Williams, G., Davies, S., Lamptey, J. and Tetteh, J., 2017. Chinese multinationals: threat to, or opportunity for, trade unions?. Retrieved from https://www.global-labour-university.org/fileadmin/GLU_Working_Papers/GLU_WP_No.46.pdf