Business Strategy in a Global Environment Case Study - 2

melody Strategy in a Global Environment - Case Study ExampleSamsung ensures that all of its mad materials are procured from legal sources like the US, Thailand, Russia, etc (Samsung, 2008).Owing to the exceedingly reputed brand image and high financial strengths, Samsung is practically able to exert influence on the supplier companies and thereby controlling the supply chain. However, Samsung is dependent on particular companies for procurement of certain integrated circuit equipments. However, the union maintains a good relationship with its suppliers so as to ensure a long term sustainable sourcing of raw materials (Marketline, 2014).Capability 2 (Manufacturing) The manufacturing act upon of a firm is the most important capability, as it produces the products for the company which is sold to generate revenue. Samsung owns several manufacturing plants in more than 80 countries (Grobart, 2013). It allows the company to increase the production level in the host countries. It has in like manner enabled the company to manufacture at a lower cost and sell products at a lower footing compared to exporting from home country. Samsung leverages the comparative advantage of host countries by utilizing the low cost skilled labours, especially in the Asian markets. The company used the most technologically advanced tools and equipments to manufacture its products. As a result, its production process is highly cost effective and yields large volume at lesser time. Samsung also employs skilled labours and trains them to increase individual efficiency, which in turn increases the production output of the facility (Samsung, 2015). The manufacturing process is highly energy efficient which allows the company to operate in an environmentally sustainable way by cut down its carbon foot print. Moreover, Samsung continuously looks forward to expand its production capacities. It has invested nearly $15 billion to climb up a new manufacturing plant in Seoul (Market watch, 2014).Capability 3 (Distribution)