Samsung has been among the top companies in the manufacturing of electronic items. Taking into consideration its versatility, the company has encountered several major obstacles along the path of development. To be more specific, Samsung Electronics has undergone all sorts of challenges ranging from social to environmental issues. As a result, many researchers have focused on the impacts of the practices carried out by the company and pay attention to the environmental problems caused by Samsung (Thompson et al., 2013). As such, this paper will highlight these issues and then narrow down to one of them; consequentially, the discussion will proceed to some of the possible solutions that can be implemented to resolve the problem using different analysis tools.

Problems

The extensive application of carbon materials in Samsung’s manufacturing has greatly increased the rate of carbon gas emission in the atmosphere that in turn lead to global warming (Bryson, Clark, & Vanchan, 2015). Samsung has not embraced a clean electricity plan aimed at reducing gas emissions. The implication of this practice is that the global environment is not sustainable enough to maintain all of its biodiversity.

Justification

The choice of the negative influence on atmosphere as the focus of the paper emanates from the fact that most of the world’s life depends on the environment for survival. As such, when the environmental conditions become inhabitable, human life becomes jeopardized. While Samsung has invested in clean energy, recent reports still rank its efforts to use clean electricity lower as compared to key players in the industry such as Intel, AT&T, Microsoft, and Apple (Thompson et al., 2013). Therefore, it is evident that the protection of the environment must be maintained by multinational corporations, such as Samsung, at all costs, as the overall prosperity of the world’s population depends on it.

Analysis Tools

PESTEL

            Political. Increasing political pressure to encourage companies similar to Samsung focus on use of clean energy.

Economic. Rising costs of fuel and expenditures related to its negative impact on the environment, prompting the use of alternative energy sources.

Sociocultural. More people are becoming cautious of the practices that different organizations use in manufacturing, especially those contributing to emission of gases.

Technological. The increasing use of video conferencing and electric cars.

            Environmental. The focus on recycling batteries and other electronic components.

Legal. Increased regulations aimed at the reduction of carbon emissions.

SWOT Analysis

Strengths. Samsung already has an initiative to be environmentally responsible through its Eco-Management 2013 program.

Weaknesses. Poor production policies, which were against the company’s environmental norms and guidelines.

Opportunities. Increasing potential to recycle its products, focus on use of electric cars, and digitize its international meetings.

Threats. Competitors, such as Apple and AT&T, have been on the forefront in reducing carbon emissions, which may lead to a shift in Samsung’s customer base.

Diversification

  • The increased number of alternatives for its energy sources to help embrace clean energy
  • The enhanced research to help develop new technologies that reduce environmental degradation

Solution

One of the solutions to the prevailing problems of Samsung Company in terms of environmental pollution is to come up with Clean Development Mechanism (CDM). Furthermore, the company should embrace the advantage of lobbying with other international bodies that monitor corporate practices and their impacts on the environment at a global scope. In turn, such parties guide on best practices that can be adopted to make the globe a better place. Finally, more funds should be channeled into the company’s corporate social responsibility to contribute to elimination of the negative influence on the environment.

References

Bryson, J. R., Clark, J., & Vanchan, V. (2015). Handbook of manufacturing industries in the world economy. Cheltenham, UK: Edward Elgar Publishing.

Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J., & Jain, A. K. (2013). Crafting & executing strategy 19/e: The quest for competitive advantage: Concepts and cases. London, UK: McGraw-Hill Education.

 

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