Business study and research is one of the prominent fields of study in todays modern world. It gives an insight that how business and business industry works and what we can do to improve it and its standards. Today, we are going with the example of Samsung is one of the best mobile phone manufacturers in the world. The rate of progress of Samsung is very fast, and they took the mobile market shares. They do not only make mobile phones but also invest in other products as well. They invest in the banking sector and heavy machinery. They also produce almost all kinds of electrical products used in homes and offices. It is a technology giant of this modern age.
Samsungs business philosophy is to devote all the talents and technologies to create superior products and services that make society better in a global range (YING, 2016). Being the best and able to produce superior technology, you will not be left alone; rather, government agencies and political scenarios would affect you in every way. Similarly, international trade law will also affect the companys performance as it can affect the trade agreements and transportation of goods and raw materials from one country to the other.
Being one of the largest tech and mobile phone producers, Samsung surely plays an important role internationally as we all in local societies in which they operate. Samsung secured the sixth rank in the Interbrand Best Global Brands 2019 list, and its brand value was $61.1 billion. Samsung has the sixth biggest brand value in the entire world and with that value comes a huge responsibility, and brands have to play their responsibilities as well towards people and regions in which they operate.
Extensive research has shown that country?of?origin (COO) information significantly affects product evaluations and buying behavior (Magnusson, Westjohn, and Zdravkovic, 2011). The buying behavior of consumers follows a set pattern, and it can be observed throughout the world. Customers of every region have their own needs and desires, and they think it is their right that these big organizations like Samsung fulfill their needs and desires. In many parts of the world, people look at these organizations as the life saving component of reality. People blindly trust these organizations in many regions, and they should make sure that they would not disappoint people because, after all, in the end, it the people who matters the most.
International trade laws are of different kinds. The main purpose of these laws is to make sure that everything is fine between the countries who will make a trading agreement with the other and how this agreement will affect the position and interests of other companies, and how to tackle the issue. It will also open up the gates for a new agreement.
These trade laws impact Samsung because being part of the international trade union and big power in this sector, and one can not escape the major laws and union agreements even if they are unjust and biased. The difference is also natural. One tries to pull the legs of the other, and the latter responds by pulling the legs of the first one. In this way, a balance can be obtained through fake smiles and weeping; instead, balance is the product of equality, and with it, one should not expect the places to turn it into heaven. The struggle continues.
The International Emergency Economic Powers Act (IEEPA), enacted October 28, 1977, is a United States federal law. It gives the President of the United States of America authority to regulate international commerce in case of anything that interferes with the countrys economy by declaring an emergency if he feels that certain economic activity is posing an unusual threat to the United States. This law also implies that outside the United States and President order sanctions on such country or organization. Samsung, when exceeding the limit and threatened US interests, the government changed its policies, and Apple became the largest mobile phone provider in the world.
Most businesses are expanding on international markets in the context of an increasingly difficult and fierce business environment (Hoang Tien, 2019). It has indeed become much more difficult to do business in recent years. People often ask what they should do, and they seek guidance in this regard, and we can think about the difficulties of big organizations like Samsung if we can not even manage a one person business. Business needs to develop an international marketing strategy in order to survive in the international market and compete and stand out among thousands of other businesses and service providers from every corner of the world.
Case # 1
South Korean prosecutors have raided the offices of Samsung Electronics as part of a probe into the political scandal around President Park Geun hye (BBC, 2016). South Korean prosecutors raided Samsungs office as they were investigating a political scandal around President Park Geun hye. She was alleged to take a bribe from Samsung indirectly, and Samsung was alleged to give it to a person close to the President to increase its influence in political circles.
The prosecution has raided the office because they investigated the allegations that Samsung gave money to the daughter of Choi Soon sil, a close friend of the President. This close connection arose the suspension of the law enforcement agencies as Miss Choi was accused of using their friendship to interfere with Samsungs political circles. Samsung also confirmed the raid when talking to BBC, but they refrained from saying anything further.
Present Park apologized for her relations to Miss Choi, but the general public was angry, and there had been an increased demand for resignation had been seen. It was reported that the prosecution was investigating that Samsung might have provided around $3.1 million to a company that is co owned by miss Choi and her daughter for the equestrian training of her daughter in Germany. In return, Samsung asked for political influence to grow its business and tax relaxations. Detectives arrested miss Choi on November 3, and she was charged with fraud and abuse of power.
This incident brought negative effects not only for President Park but also for Samsung. The incident made it clear that Samsung will do anything to achieve its desired goals and objectives, and it is not a morally good and reliable company. One can not trust the company because if a company uses bribe to achieve desired goals, then it means that it does not have the potential to do it by itself that is why that company is distributing money among the people of influence to gain their favor so that they can use that favor in favor of the company. The five years sentence of Jay Y. Lee damaged the image of Samsung. Countries like Germany also banned Samsungs products which caused them huge losses. Samsung lost the trust of its customers in South Korea and other parts of the world. This incident brought only negativity to Samsung.
Case # 2
Apply surpassed Samsung in mobile sales in the year 2020. It was reported that Apple Surpassed Samsung in the last quarter of 2020 and became the worlds largest mobile phone seller. Apple sold around 80 million devices and gained a market share of about 20%. It was a big change in the mobile market. The political reason behind that was the tension within the Korean peninsula as north, and south Korea was against each other, and there was tension between countries. Apple being the US based company, took advantage of the whole situation and promoted its sale. No doubt that the coronavirus was also a factor in the lower sales of Samsung because it was difficult to transport raw material and manufacture mobile phones in the time of the global pandemic. But the main reason behind that was also Trumps Pro American policy. President Trump tried his best to boost Americas economy by very mean because it was the basic agenda in his election campaign, and he again wants to win the election based on an improved economy.
The trade war between America and China also affected the whole world because China is the largest raw material producer also the country makes chips and other mobile accessories. The ban on Huawei by the American President made them realize that now they need to promote their mobile phone that is why they hired thousands of IT experts to develop their mobile operating software. The effects of this trade war affected the whole world, and it is still affecting the world.
It resulted in the reduced sales of Samsung, and Apple took over the global market in 2020 and became the largest mobile selling brand in the whole world. The scenario changed in a year, and people started to prefer Apple instead of Samsung, and it brought serious concerns for the Korean giant.
Globalisation has both negative and positive effects on the business. Globalisation is not anything sacred, but it brought problems for the poorer and developing nations, and on the other hand, it brought benefits to the richer nations and countries.
Due to globalisation, competition has increased a lot. Now Apple and Samsung can invest and compete with Huawei within China and Chinese people do like Apple more than Huawei despite having strong nationalism and seeing America as their trade rival. On the other hand, globalisation brought money and investment to the developing countries as well. Now the big organizations like Apple and Samsung are investing in those poorer nations and creating more jobs. The biggest example regarding the benefits of globalisation is the rival of Amazon in developing counties. Now they sell their products in the open market, and many are making huge profits out of it. So, there are both negative and positive effects of globalisation of the business.
Benefits and limitations it holds for your business, including examples
The benefits of globalization include the increased flow of capital or money. Everything is connected; that is why it is easy to sell products globally, which can earn you more profits.
The limitations of globalization include the increased competition. Due to more competition, it is hard to find a market and potential customers for the business. Furthermore, you have to decrease the price or lower the quality or quantity to fit in the market, which is not good for business.
For example, if you are a local manufacturer of LED bulbs, now due to globalisation, you have to compete with other companies that make LED bulbs like Philips and Samsung itself. It will make it very hard for you to compete with these giants, and there is a huge chance that you will face losses.
Utilization of product or service on a global scale and how successful and unsuccessful it has been
I was running a small business on a local scall in which we need a lot of paper for office and fieldwork. We need good quality paper for the office work, and it was not available in the local market, and local traders were asking too much money to arrange the paper. We ordered the paper from Amazon, and we got the best quality paper at an affordable price with an unlimited supply. They were also delivering the paper on the office door that saved our time, and we also enjoyed their fast delivery service. Overall, it was a good and successful experience for us. Globalisation not only solved our problem but also saved much money.
BBC, 2016. Samsung raided in political corruption probe. [online] Available at: <https://www.bbc.com/news/business 37904802> [Accessed 27 June 2021].
Hoang Tien, d., 2019. International distribution policy comparative analysis between samsung and apple. International Journal of Research in Marketing Management and Sales, 1(2), pp.24 27.
Magnusson, P., Westjohn, S. and Zdravkovic, S., 2011. “What? I thought Samsung was Japanese”: accurate or not, perceived country of origin matters. International Marketing Review, 28(5), pp.454 472.
YING, F., 2016. GRIN Samsungs international strategy. An Analysis. [online] Grin.com. Available at: <https://www.grin.com/document/338598> [Accessed June 26 2021].
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