Human Resource Strategy
Compare and contrast the two (2) industries you have identified in terms of size, products, services, and customers, economic and regulatory environment.
The two companies that are compared in this analysis are Starbucks and Samsung Electronics
Samsung Electronics operates out of South Korea. It is information technology and electronics giant that works using the model of vertical integration. It operates in an end-to-end, from procurement to final products ready to sell range of operations. Samsung Electronics also supplies discrete components and electronic parts to major players in the global market like Hewlet-Packard, Dell, Apple and Sony.
Starbucks is the major coffee chain operator in the world. By 2014 end, the company owned 21,878 locations across the world of which 14,400 operate in the Americas. About 50% are company-owned while the rest are licensed.
Samsung is known as a leader in televisions worldwide. Lately the company competes with Apple in the Smartphone category by positioning its Galaxy S series against iPad and iPhone. It is an interesting point that Samsung's competitors are also its clients to whom Samsung supplies major electronic parts for manufacturing cameras, cellphones, printers, computers, and televisions.
In terms of Starbucks:
Starbucks offers a range of coffee offerings that patrons can enjoy in the stores and also at take-away packages.
Coffee: More than 30 blends and single-origin premium coffees. Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso beverages, Frappuccino® coffee and non-coffee blended beverages, Starbucks Refreshers™, smoothies and teas.
Merchandise: Coffee- and tea-brewing equipment, Verismo System ™ by Starbucks®, mugs and accessories, packaged goods, music, books and gifts.
Fresh Food: Baked pastries, sandwiches, salads, salad and grain bowls, oatmeal, yogurt parfaits and fruit cups.
Consumer Products • Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle's Best Coffee brands), Starbucks VIA® Ready Brew, Starbucks® K-Cup® portion packs, Starbucks® and Teavanna® Verismo ™ pods, Tazo® tea filter bags, and tea latte concentrates. • Ready-to-Drink (RTD): Starbucks® bottled Frappuccino® coffee drinks, Starbucks Discoveries® chilled cup coffees, Starbucks Discoveries® Iced Cafe Favorites™, Starbucks Iced Coffee, Starbucks Doubleshot® espresso drinks, Starbucks Doubleshot® Energy+Coffee drinks; Starbucks Refreshers ™ beverages, Evolution Fresh bottled juices, Tazo® bottled iced and juiced teas (Starbucks, 2015).
Economic Environment
Concerning the financial environment of Starbucks, a portion of the issues experienced is that the worldwide regulations in trade and additionally the currency conversion rates influence the outsourcing of beans from Africa. The customer spending rate has also declined because of receding economy globally and lower disposable incomes. Wariness in spending habits is influencing the volume of business of Starbucks. Worldwide markets are thus posited to encash the famed Starbucks brand (D & M. consultancy benefits, 2013).
With respect to Samsung, the host nation's economy is facing challenging times. The monetary emergency is the key element. Currently, the Chinese economy is too dependent on exports, while completely ignoring internal market for a considerable period now. Now it is faced with dual problems of a slowdown in export demands and the internal fiscal situation, which are two-pronged - real economy sector and the financial sector. Chinese organizations, in addition to above difficulties also face the lack of genuine technological innovativeness (Xu, 2009).
Regulatory Environment
Samsung
1.
Regulatory incentives
A real encouragement for FDI contributing ventures is the range of motivations offered by the South Korean government. Among all the OECD nations, South Korea offers investors among the best impetuses in the SE Asian region. Among the motivations offered, reductions/exemptions of income, local, and corporation taxes. They also have provisions for offering exemption for investments made in the hi-tech industries that have wide economic ramifications. Over and above major money related motivators, the Free Economic Zones (FEZs) of Incheon, Gwangyang, and Busan/Jinhae are focused on making a universal business and living environment. These motivators are alluring to make investments in the country (Data Monitor, 2008).
2.
Favorable tax policies
With a specific goal to attract investment, the nation has been framing policies to create a favorable atmosphere. The proportion of net profit gained by foreign ventures far exceeds those accrued by domestic companies. Besides, the South Korean subsidiaries of foreign companies have proved to be more profitable ventures if not the most.. Toward the end of 2005, nearly 53%, or264, of the partnerships recorded in the Fortune Global 500 had put resources into South Korea....
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now