Strategic Planning Essay

999 Words4 Pages
1. Describe Samsung as a conglomerate. What type of diversification does Samsung pursue? Identify possible factors such as core competencies, economies of scale, and economies of scope that might underlie its success as a diversified conglomerate (chaebol). Which do you consider its key success factors? The meaning of conglomerate is that an enterprise that diversifies into a market that has no connection to the market in which the enterprise is operating for the moment. Conglomerate is a financial strategy for an enterprise in order to increase the shareholder value. The negative purpose of this strategy is that it increases risk along one or more markets, as well as reducing profit improvements, and sales company-wide. Samsung was…show more content…
For example, Samsung is using just one set of engineers to develop most of their products, instead of using different engineers for different products, which provides to Samsung more services at less cost. 2. How did Mr. Lee turn Samsung Electronics from a sleeping and bureaucratic company into a world leader? Samsung Electronics status was overcome by the presence of Motorola and Blackberry, who were the world leaders in consumer electronics and phones. However, Samsung Electronics status changed when the company’s chairman Mr. Lee sent some dysfunctional mobile sets as presents to its business partners, leading to public embarrassment. He changed Samsung Electronics into a world leader company by increasing the spending on R&D as well as on the marketing and design. He assisted non-Korean MBA’s and PhD’s with a little transition into their positions in a bigger homogenous scale of employees. He also assumed the conglomerate’s structure in order to change Samsung’s culture. Mr. Lee western managers and designers to a leading occupations and sent people to learn the best business practices around the globe. I believe that those measures formed the basis of Samsung Electronics turnover in the market. 3. What type of global strategy is Samsung
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