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Optimization based on external business environment


Discuss About The Sustainable And Operations The Management?

The aim of the present report is to provide recommendations that can be adopted by the Samsung Company to initiate the process of operational optimization. The operational strategies will be suggested based upon the external business environment including the strengths and the weaknesses. The timeline for each of the operational changes will also be provided that will be the part of the business planning of the Samsung Company for the next 10 years.

A4 process diagram that will be used to provide the timeframe of the operational department

The main purpose of the optimization of business operations is to improve the upon the business performance and the productivity. One of the key purpose of the operational function is to increase the efficiency levels of the overall service chain. The smooth functioning of the supply chain management is also dependent upon the functions of the operation management. According to Shen et al., (2017), it is important to optimize the internal business processes and evaluate the options. This will help in the matters of discover the future growth opportunity of the business. In case of Samsung the future growth opportunity of the company is mainly due to the increase in the levels of demand for smartphones within the middle class sections.

In the given context, the Samsung company can implement the operational strategy of core product and service development. As new products are being launched by the company each year, the company has to face the challenges of implementing innovation that will aim to optimize the use of technology. In order to provide the products at cheaper rates compared to the rivals, technological companies like Samsung often have compromised upon the quality of the products. This was mainly done to neutralize the threats that the company obtained due to availability of the cheaper smartphones in the market. Paik and Zhu (2016), have mentioned that one of the essential features that are required for the purpose of optimizing the quality of product is to understand the demand and the expectations level of the customers. For example, in case of the smartphone, most of the customers in the current days prefer to have high quality of camera that will enable them to take professional snaps. Hence, it will be useful for Samsung to focus on the technological optimization by focusing on the camera development. The company can also conduct customer survey to understand the type of issue that are encountered by the users due to poor product quality. This can help in the process of optimization as the company will get the opportunity to focus on particular issues related to product quality (Warner 2014). The company will therefore be able to incorporate the customer-driven strategy, which is believed to help in the process of adopting changes according to new demand of the customers. It can also help the company in the process of recovering the market from the limited growth opportunity in the consumer market of US and Europe.

Core product and service development

Gupta and Boyd (2008), have mentioned about the theory of constraints that can be applied in the context of optimizing operational strategies. The most importance of the theory is due to the fact that it can help in identifying the limited factors within the business operations. One of the major advantage of the theory is the fact that it helps in the process of cross-functional nature, which is needed in the purpose of interdependent functions of each department. In a multinational company like Samsung, the implication of the constraint theory can help in the process of proper resource utilization. The operational strategy can be implemented based upon the input that is needed in each of the departments. For example, in case of Samsung, the major revenue is earned from the smart phone department. Hence, it is essential to invest more resources in the manufacturing sector of smartphones. The company can also invest in the research and development sectors of the smartphones that is needed to swiftly transform the technology that are used in the latest smartphones.  This theory can also help in the process of increasing the existing market share of the company by incorporating the principles of sustainability in the business (Nielsen & Larsen, 2016).  The lack of resources in the areas like New Zealand can also be resolved, which is also considered to be major sustainability issues of Samsung.

The theory of Corporate Social Responsibility (CSR) can also be incorporated as a major part of operational strategy (Korschun et al., 2014). This is essential in the context of fulling the company’s vision of sustainability and implementing the techniques of green manufacturing techniques thereby fulfilling the needs of the local environment. Additionally, the CSR principles can also help in the process of spreading the awareness among the stakeholders of the company about matters related to harmful effects of the environment due to industrial wastes. The company will therefore be able to deal with the rising pressure of providing risk free products. After the manufacturing of the smartphones the company needs to properly test each models for the Specific absorption rate (SAR). High rates of SAR can cause fatal disease among human as the frequency emitted from the phones has the potential to bring about mutational changes in human gene (Guérin et al., 2014). Hence, with the help of the CSR principles Samsung will be able to gain the social reputation.

Theory of constraints

The next important strategy within the context of the optimizing operational strategies of Samsung is competitive priorities. As mentioned in the previous report that due to the market entry of cheap smartphone brands like Xiaomi and Huawei, Samsung has to face high threats and have lost significant market share in the recent years. The quality management team needs to be allocated, who will help in the process of highlighting the loopholes in the existing operational management. According to Moradi et al., (2015), the psychological factors and the customer behavior plays one of the most important part in deciding upon the competitive strategies that are implemented by the companies. The message that are delivered by the companies as a part of business communication process needs to be optimized. This will ensure that the target group of customers are able to understand the unique feature the can expect after buying product of certain brand (Hajabdollahi & Pourgholamali, 2016). For example, if Samsung launches a smart phone with best battery with higher capability, it is essential for them to highlight the fact within the following advertisement. This will ensure that able to attract the customers, who are particularly focusing upon long battery backup in their phones.

The operational strategies that are mentioned in the above section will be implemented by Samsung on the basis of the 10-year plan. The following section will provide the timeline for each operational strategy:

Operational Strategy for Optimization

Period of Implementation

Process of Implementing

Expected Risks

Person Responsible for implementation

Detailed Customer Survey

This is the primary activity and needed to be implemented with the first 6 months of the 10-year plan.

That is from Jan 2018- June 2018

Online survey will be conducted from the markets of Europe and US. The market researchers need to design the survey questionnaires that will help to collect detailed information from the perspective of the customers (Spears et al., 2015).  

False information can be generated from the survey. It may not be possible to get the exact detailed information about external market environment (Roster et al., 2017)

Marketing manager and Market Researcher

Core product and service development

Once information is collected from the survey, the same will be used in core product and service development. Hence, the assigned time is from July 2018 to December 2025.

Once raw primary data are being collected from the market survey, the same will be used in the process of developing the products. The company will invest in the sector of Research and Development that will help in bringing about the innovation in the smartphone design.   

There can be risk of financial loss as new product design may not be popular in the market. There is also the risk of research patent violation and the company will aim to inherit the product design of the new entrants in the market

The CEO and Operational Manager along with the manager of the finance department. The main tasks of product development will be assigned to the Research Development team of Samsung. The team will comprise of software and electronic engineers.

Theory of constraints

This strategy will be implemented alongside of the product development as it will quickly help in the process of identifying the respective loopholes  

The new product once being manufactured needs to be tested extensively (Woeppel, 2016). The product will also undergo quality checking steps that will help to identify all forms of loopholes in the products  

The quality control team may not be able to highlight upon the loopholes that can occur after long term usage. It may also not able to identify the health risks that are associated with using smartphones

Quality Control manager and Marketing manager along with the supervision of operational manager

Competitive priorities

This one of the important steps of the operational strategy and has to be implemented thought entire period of 10-year plan. Jan 2018 to Jan 2028

The market researcher needs to collect detail primary and secondary information from the market. Tools like the Porter’s five force needs to be implemented that can help to analyze the competitive environment (Fleisher & Bensoussan, 2015).

The detailed information has to be collected from the marketing policies of the rival brands. They also need to be effective to collect the information about the changes that are occurring in the market. For example, the company needs to get detailed information about the new features that are offered and pricing strategy of the same.  

As the market researchers will collect information about the rivals, there is a risk that classified company information may be leaked in public domain. Hence, the company will be at the risk of facing legal challenges

Marketing managers and market researchers. They will work under the guidance of Operational manager.

Corporate Social Responsibility (CSR)

Jan 2019 to Jan 2028

The Operational manager of the company needs to take prior consultancy from the local environmental experts (Mason & Simmons, 2014). The SAR values of the smartphones has to be below the legal values

Violation of the legal polices that may include Environmental Acts

Environmental officers and Legal experts of Samsung


The following study has been able to highlight upon the operational strategies that needs to be implemented by Samsung to deal with the issues related with the business optimization. The analysis of the competitive environment and core product development is the major part of the operational strategy. The theory of constraint will help in identifying the loopholes in the existing business plan of Samsung. The principles of CSR will help in the process of protecting the environment. All the policies of operational strategy will be implemented in 10 year planning process.


Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT Press.

Guérin, B., Gebhardt, M., Cauley, S., Adalsteinsson, E., & Wald, L. L. (2014). Local specific absorption rate (SAR), global SAR, transmitter power, and excitation accuracy trade?offs in low flip?angle parallel transmit pulse design. Magnetic resonance in medicine, 71(4), 1446-1457.

Gupta, M. C., & Boyd, L. H. (2008). Theory of constraints: a theory for operations management. International Journal of Operations & Production Management, 28(10), 991-1012.

Hajabdollahi, H., & Pourgholamali, N. (2016). Investigating the Optimum Operational Strategy of Energy Storage Tank by Using Particle Swarm Algorithm. Heat Transfer—Asian Research, 45(7), 648-660.

Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social responsibility, customer orientation, and the job performance of frontline employees. Journal of Marketing, 78(3), 20-37.

Mason, C., & Simmons, J. (2014). Embedding corporate social responsibility in corporate governance: A stakeholder systems approach. Journal of Business Ethics, 119(1), 77-86.

Moradi, M. H., Eskandari, M., & Hosseinian, S. M. (2015). Operational strategy optimization in an optimal sized smart microgrid. IEEE Transactions on Smart Grid, 6(3), 1087-1095.

Nielsen, S., & Larsen, J. D. (2016). Operational strategy, economic and environmental performance of sludge treatment reed bed systems–based on 28 years of experience. Water Science and Technology, 74(8), 1793-1799.

Paik, Y., & Zhu, F. (2016). The Impact of Patent Wars on Firm Strategy: Evidence from the Global Smartphone Industry. Organization Science, 27(6), 1397-1416.

Roster, C. A., Albaum, G., & Smith, S. M. (2017). Effect of Topic Sensitivity on Online Survey Panelists’ Motivation and Data Quality. Journal of Marketing Theory and Practice, 25(1), 1-16.

Shen, H., Yan, H., Gao, Y., Yang, X., & Wei, Z. (2017, January). Matching Entrepreneurship and Operational Strategy for Manufacturing Firms in China. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 13538). Academy of Management.

Spears, B., Taddeo, C., Barnes, A., Scrimgeour, M., Collin, P., Drennan, J., & Razzell, M. (2015). Keep it tame: Promoting respect online safe and well online pilot study: Evaluating the design, engagement and impact of a social marketing approach aimed at 12 to 18 year olds.

Warner, J. (2014). Business Optimization: A Simple and Effective Approach for Acheiving Ongoing Business Success. BookBaby.

Woeppel, M. (2016). Manufacturer's guide to implementing the theory of constraints. CRC Press

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