Samsung Case Study

Company has established an effective relationship with its stakeholders and treating everyone through diverse techniques. Samsung is periodically meeting the demands of its shareholders where significant judgments are made and problems are discussed. For instance, strengthened compliance management organization has started and operated a healthcare study center. Company has a direct connection with their consumers and employees through making client satisfaction surveys to make a healthier costumer relation service. It also is creating employee surveys that made the company to improve the work shift system to reduce work ours. Samsung has also contributed in government policy formulation, which assisted to make an Energy management system that decreases its energy consumption by 10% (Samsung.com (3), 2015).

South Korea became a leading producer of microchips, and had an important share in the world markets with electronics, machines, and cars for consumers. Samsung accounts for nearly ⅕ of South Korea’s GDP, which has stirred much controversy overseas. In any other country, Samsung would simply just be a multinational corporation. However, because of the size of South Korea, Samsung acts as a more controlling behemoth than anywhere else. Aside from engineering the world’s best selling smartphone, Samsung builds roads and oilrigs, operates hotels, amusement parks, and even sells insurance. Amsden describes the elements that are essential to development are as follows; “a skilled labor force, salaried management, production know-how, and project execution skills” (105). Samsung quickly transformed from a company that exported fish and vegetables in 1938 to a multinational corporation, because they understand the necessary elements for development as explained by

Today Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now globally focused and responsive to the needs of each market, and more committed than ever to true innovation. The group’s three core business sectors are electronics, finance and trade and services.

The purpose of this essay is to discuss the extent of how effective management and managing has evolved in a contemporary organisational context such as Samsung and discuss the relevance of these perspectives of management.

On being operational in the global market, Samsung has been subjected to various kinds of pressure. Therefore, the focus of this report is show while formulating an international strategy how Samsung should take both environment factors into consideration that will shape their business approach. The analytical business tools namely PESTLE and Porter Five Forces will be used to understand the micro and macro environment drivers of Samsung’s strategy.

South Korea is a major international economic power and has the twelfth largest economy in the world and the third largest in Asia, behind only Japan and China. As one of the Four Asian Tigers, South Korea has become an increasingly attractive place to move business components, investments, and form trade agreements with. In the 1950s, South Korea was one of the poorest countries in Asia; now the country has achieved rapid economic growth through exports of manufactured goods. Examining the current demographic, cultural, business, and political culture will give managers and investors a panoramic view into South Korea’s dynamic, profitable, and growing dimensions.

Factor conditions – the incremental investments in R&D allowed Samsung to develop specialised resources and competitive advantage. The development of internal R&D in electronics, sales, service, and its technical and capital resources was pivotal to the success of the firm in the early stage as well as in the more recent years. In addition, the “home grown” resources, such as inexpensive manufacturing allowed Samsung to excel in the international environment. Additionally, the large investments on post-war education helped the country to develop an asset of highly skilled workers that allowed exploiting several industries overtime speeding up the industrialisation process (Datta – Secrets behind Korea’s economic success, 2017).

Recent quality related issues have put Samsung Electronics, one of the world’s largest technology companies at risk. These quality concerns, spiked through recent recalls and external complaints, have generated a flow of bad news coming to the desk of quality director Kevin Sarni. The issues most commonly found within the complaints related to display issues, customer service support, faulty electric components, audio, and safety. Of the main issues, display and customer service support appeared to be the most detrimental. Once the patterns and themes became visible, Samsung and its quality director Kevin Sarni were challenged with immediately identifying root causes. This was

Company Background: Samsung is a South Korean multinational company those starting its business as a small trading company and right now becoming world largest corporation. The company deals with its business in several sectors such as advance technology, finance, petrochemical, semiconductors, plant construction, skyscraper, medicine, fashion, hotels, chemical and others. The company was established in 1969 in Suwon, South Korea and known globally for its electronic products (Kelly, 2011). The company is manufacturing several latest technologies, electronic appliances such as mobile phones, tablets, laptops, TVs, refrigerators, air conditioners, washers and other products. The company runs its operations and sales its products in 61 countries with approx 160,000 employees in all over the world (SAMSUNG, 2014). Moreover, the company acquired the position of the world biggest IT maker in 2009 by beating the Hewlett-Packard (HP) previous leader. Its sales revenue in the segment of LCD and LED is the highest in the world. Furthermore, Samsung also becomes world leader in the segment of tablets, mobile phones and gadgets.

Samsung has most of its production dependency on sociology, as it is a common threat into firms although it looks into consumer behavior which is what consumer’s needs and wants are. As fast as consumers taste changes to another developing product, it is a huge threat for Samsung as it also needs to change its products towards consumer tastes. Samsung is basically a family maintained to be multinational firm and it is. Samsung provides its products to all over the globe, at few regions it may not as there are conditions such as trade restrictions or a minimum of it. Samsung has needed to modify its products to the quick changing customer tastes and preference in the different markets where it runs and works more

Samsung is perhaps the world’s greatest success story. Started in 1938 in Taegu, Korea by Lee Byung Chul, Samsung has sprouted from a small company under Japanese rule, into the one of the world’s leaders in technology and innovation. It is a result of the Confucian principles embraced by the company and its presidents and executive decisions and eagerness to adapt to the rapidly changing world. Principles including leading honorably and with strength, emphasising the ruler subject relationship, Chun-tzu, making personal relationships a priority in a business setting, in addition to keeping accordance with Jen,a warm heartedness and compassion that allows to one to want to better humanity (Lander). In addition to Confucianism, Samsung has learned to innovate, create demand, and learn from other companies’ successes and failures. With this combination of old world Confucian principles and the ability to diversify and evolve, Samsung has experienced intense growth and success, beating out Apple and Panasonic and gaining a foothold in the digital age(Park and Barjot).

Samsung is an immensely profitable company that last quarter generated approximately $7 billion in operating profit — and that was a bad quarter for the South Korean consumer electronics company. However, industry observers and investors alike tend to be very forward looking and there have been some very troubling trends in the company’s mobile business.

In the year 1938,the western financial system was recovering from one of the greatestcrashes in history, on the other hand a second world war was about to break out, a man by the name of Byung Chul Lee founded a small trading company named Samsung in Daegu, Korea (Samsung.com, 2016). This company initially dealt with local groceries and had about 40 employees. At first the company produce noodles, then expanded into sugar and then wool. And by the late 1950’s the company had moved to insurance security and retail. In the late 1960’s Samsung moved to electronics, and the first ever product produced by Samsung electronics was a 12 inch black and white television in 1970 (Referenceforbusiness.com, 2016). By 1983 the first Samsung computer had arrived (News.samsung.com, 2016). This computer was way ahead than Microsoft computers. In the 90’s Samsung began to rise as an international force in many industries. The company went from strength to strength, becoming market leaders by learning the trade of many industries. In the end they

In my conclusion, I would like to emphasize that SAMSUNG has a quite distinctive way to carry on its business. From the part of visible aspects, it has a different way to build up its image by emphasizing the blue color, while other competitors such as SONY and APPLE focus on the shape of logos to do the same thing. From another aspect of organizational culture, the invisible aspects, we can find its effort to be adjusting well to a society where the organization affects. It tries to contribute its profit to the society by offering an educational service, a welfare service and even some public performances and so on. Although, it has been obvious that such a large co-operation company like SAMSUNG has a responsibility to contribute its profit to make the society better, SAMSUNG`s profit contribution policy is very well-organized so, it can be a very own aspect that SAMSUNG has. Lastly, its managerial structure has an incredibly unique way to communicate to each other and get a new idea from people. It has a very strict hierarchical structure that is carried out by people in the organization all the time, but

With a strong and sustain economy, South Korea contributes to the development of Samsung obviously. In addition, it also helps Samsung to gain their sales income and