Fortune Global 500 Corporation Case Study Example | Topics and Well Written Essays - 750 words

Fortune Global 500 Corporation - Case Study Example Samsung electronics started in 1969 manufacturing products such as Television sets, radios, computer accessories and security appliances. Mobile phones came later on in the 90’s. In the 90’s (Business Week, 2006), the company established factories in Britain, United States of America, Thailand, Mexico,china and Spain. South Korea is Samsung’s mother country but the company has opened up subsidiaries in many other countries, that total up to about 67. 2 In most countries where Samsung operates, the mixed economy market system is in place. The system blends free enterprise as well as elements of state control. Some resources are owned by the state and others are owned by private entities (Lindblom 2002). The other element of mixed economy system is that the state is most active in influencing tax regimes and laws. The private businesses are allowed to operate within these laws when making and implementing their in house decisions. Lawful systems that exist in count ries where Samsung operates in are based on religious law, civil law and common law or a blend of the three. Market systems and legal systems can affect a company’s operations, in this case, the Samsung Company. The type of the market system in a country of operation can either propel growth for the company or spell doom for the company in that particular country. For example, if a country subscribes to the planned economy, where the state decides everything as well as controlling all businesses, the company operating in that country is most likely to close shop since the business environment is not conducive. The same case applies to the legal systems. If a country has detrimental and rigid legal systems that do not favors business initiatives and ventures, companies operating in that particular country are bound to face numerous difficulties in there day to day operations (Kritzer and Silbey, 2003). Therefore, success of companies operating in various countries is dependent on favorable market and legal systems. 3 Political risk in this scenario can be described as the risk a host state will make as it formulates and implements political decisions and these decisions prove to have magnified effects on a multi-national company’s profits and/or objectives. Political risks can be immense property destruction brought about by conflicts or revolutions. Political risk can also be of financial nature, where a state introduces retrogressive laws and tax regimes that hinder capital movement and profit making (Kritzer and Silbey, 2003). Political risks can force a company to increase prices of their products due to the high cost of production. They can also force a company to close shop in that particular country if the investor climate in that particular country is not conducive. If I was a political consultant for a company, I would advice the company to first conduct research on the political risks in a country before venturing into the investments. T herefore, political risks can be related to the market and legal systems that countries have subscribed. 4 A company like Samsung must satisfy a number of stakeholders as it conducts its operations. First, it must satisfy the needs of its clients and learn effectively on how to cope with high demand for its products and services. The company must also take into consideration the welfare of its employees seriously in order to boost morale and Productivity. It is also feasible for the company to satisfy also the host