Business Management Assignment: Organizational Analysis Of Samsung Electronics
Task: Your aim for this report on business management assignment is to analyze four of the major multinationals you have studied. Each case entry should be approximately 350-500 words in length, and you should assess in turn four topics, namely (i) strategy, (ii) corporate organization, (iii) core capabilities, and (only when demonstrably relevant to the success of the firm, and omitted as necessary) (iv) the role of the home government.A short Introduction and a Conclusion should be provided.
For guidance on the analysis and sub-sections, see the approach in R Fitzgerald and H Rui, ‘Whose fall and whose rise?: lessons of Japanese MNCs for Chinese and emerging economy MNCs’, Asia Pacific Business Review, 2016, vol.4. You will study this article during the course, and advice in workshop sessions will be provided.
The firms to be analyzed are:
1) One Japanese bank multinational (eg MUFG, or SMBC), or a Japanese general trading company (eg Mitsubishi Corporation), or Secom, or another major Japanese service multinational of your choice.
2) Hitachi Technologies, or another major Japanese manufacturing multinational of your choice.
3) Huawei Technologies, or another major Chinese manufacturing or mineral extraction multinational of your choice.
4) Samsung Electronics, or another major Korean manufacturing multinational or you choice.
Answer one of the following questions.
1. To what extent have multinationals from mainland China competed successfully in different international markets, and which major factors explain these achievements and shortcomings?
2. To what extent have Japanese multinationals competed successfully in different international markets, and which major factors explain these achievements and shortcomings?
3. To what extent have South Korean multinationals competed successfully in different international markets, and which major factors explain these achievements and shortcomings?
4. To what extent have Taiwanese multinationals competed successfully in different international markets, and which major factors explain these achievements and shortcomings?
The whole business management assignmentis based on the multinational company that is Samsung Electronics. The report aims to identify the major objectives of the company that includes different topics like the name of the company strategy, corporate organization core capability, and the role of home governance. The whole study is based on different case studies and modern materials on Asia Pacific Business. In this report, the different Strategies and roles of the government in the Samsung company can be briefly described.
Organization Background (Namely)
When there is a discussion about the Samsung company and its background then the Samsung company is one of the South Korean companies which was founded by Lee Byung-Chul in 1938. Originally it was a grocery trading Store but in 1969 it was converted into the electronic industry (Samsung.com, 2021). The first product which is launched by the Samsung company is the black and white television in the industry. After that, the companies started to export their products all over the world. The exportation business of the company is getting very high and after that, it becomes a leading manufacturing company all over the world. The company gained 50% of its stake in Korea Semiconductor in 1970 (Vu. and Vu, 2021).
The Samsara company explores their businesses in almost every city of the country and handles 5 lakh employees approximately. The Samsung company started their business from a small business which is in Korea and it has been almost 8 years since it was suspended. It is one of the leading companies which have a specialization in the different media digital appliances system integrated and semiconductor electronic appliances. It has a flagship company and performs high text electronic manufacturing in the global market all over the world. The brand equity of the Samsung company is very strong and their corporate social responsibility and their benefits in society are very high (Samsung.com, 2021). It has a very high level of diverse product portfolio and is almost available all over the world. Samsung also introduced its mobile phone in the market in 2000 which has a built-in camera feature and can take 20 photos at a single time. After the year 2000, the company launched many different other mobile phones in the market but the Fame of the company increased after the production of the Samsung Galaxy S Series in the market. It has a high level of features.
Strategies of Samsung
When it comes to strategy Samsung focuses more on market penetration, product re-designing, and innovations. This means to modify their products which are currently prevailing in the market (Omer, 2019).
Other market strategies practised by Samsung are as follows-
Samsung is very well known for improvement in their new product by launching a new model. They at least once a year introduce a new model in the target to target the customers. Samsung already has a good and loyal customer base and in addition marketing, strategies of Samsung are remarkable as well. The new product is then advertised by using TV ads, billboards, social media advertisements, etc (Brand, 2018).
By development of the market, it means to expand the market to the areas of the world which Samsung has never touched before. It also means to explore a new idea which other companies have not touched before. For Example- Samsung introduced Galaxy Z 5G Samsung believes in substantive growth thus it follows vertical incorporation and not horizontal incorporation (Samsung.com, 2021).
The vertical incorporation strategy also consists of three parts. Vertical incorporation means reducing friction in the middle of the production of the product and its reach to the customer.
Vertical Onward Incorporation
This implies a reduction of wholesalers to reduce the time taken by the new product to customers as well as cutting off the extra profit margin of those middlemen. This strategy makes Samsung more popular in the market. Introducing the latest technology at a reasonable price is a great strategy for Samsung (Asdi and Putra, 2020).
Vertical Reverse Incorporation
This is quite the opposite of the above strategy. Here Samsung selects its middlemen to reduce the cost of transportation, warehousing, etc. This also consists of owning the retail shops.
Brand Ambassador Strategy
To promote their brand and new product line this great strategy is used by Samsung. Samsung ties up with popular celebrities to promote their brand. This type of strategy has a great impact on customers as when they see their favourite star promoting a certain tech they have a higher chance of purchasing that phone or television (Kembuan et al. 2021).
A Company having its digital presence also poses a good impact on its customers. Social media is a great platform for advertising and cooperation with customers. It informs them about any new product quickly as soon as it is launched. Engaging digitally is also a good strategy adopted by Samsung (Samsung.com, 2021). Samsung ads popping on customers' feeds and screens make its products more desirable. Customers will wish to buy the new product to feel relevant to others. Engaging on social media also keeps track of their customer’s needs and wants like what features they have in the new model of phone or what design will better suit a certain product line. All these factors make social media engagement a good strategy to be adopted (McDougall and Pereira, 2017).
The corporatestructure of Samsung is innovative. The company strives for better products and consumer satisfaction to a great extent. Development and growth in its core objectives. Samsung has evolved from a simple small trading sector to a well-known multinational corporation. Even to date Samsung follows its principle of innovation and evolving. Samsung uses various managerial and industrial strategies to manage its diversified market of operation. Always changing market amalgamations and adapting to new situations is the speciality of Samsung. Its organizational structure stands strong in the market tackles every problem and never fails to innovate even in tough times (Chang et al. 2019). The innovation lies in the core of Samsung's organizational structure which makes it stand tall. All managerial strategies revolve around finding out better ways to standardize either organizational structure and evolve further in the field of technology. Because the need for new technology is everlasting. Samsung has a clear idea of how to benefit from this matter of fact that as soon as a new electronic product is introduced in the market it becomes the measure of relevance to the consumers (Samsung.com, 2021). Samsung influences technology development more than any of its business objectives. Its organizational structure is built and runs in such a way that no new idea is left out. Samsung greatly focuses on new techniques at every level of work whether in industry, technology, or managing. It operates in 80 countries and around 50000 workers are employed within its operating sector. This makes Samsung a very interesting company to study about. Samsung came into existence in 1969, after South Korea's independence. Now it is one of the most powerful multinational companies around the world. However, higher positions in its corporations are held by family members of the founding members of Samsung.
I talk about the organizational structure of American companies that are following skills and incentives. As to them, the incentive is the best way to motivate a worker to forge great ideas. Whereas Samsung believes in innovation, ideas, and loyalty. Asian culture within the corporation creates harmony in the workplaces of Samsung. Asian culture lacks the will to conflict or negative competition (Shin and Cho, 2020). Managerial staff will emphasize constructive criticism rather than poor treatment of their employees. Samsung has strong networks in marketing and their attitude towards concerned parties makes them a great public face. Samsung has a perfect structure of an organisation with harmony, space for innovation and respect towards networks. All these factors are plus points for Samsung. It would have been a greater advantage to the company if head managers or leaders were appointed from different origins of the world (Samsung.com, 2021).
The corporate structure of Samsung has the advantage of product development, basically re-designing and innovations. This support is the result of its magnificent product-based division of work since Samsung deals in numerous varieties of products. The clear product division and employment of the workforce accordingly make it easier to operate within it (Lord et al. 2018).
Core capabilities are the factors of a company where it stands strong as compared to other companies. Given below are some of the core capabilities of Samsung-
Samsung has tough competition in the market, it competes with companies like Apple, Redmietc which makes it a challenge to strive in the market. To grow in the market Samsung has to compete with every company. Its marketing strategies are truly very helpful in tackling such competition. Not only marketing networks but great quality of products is also a reason Samsung is so popular in the market (Samsung.com, 2021). The customers who are used to buying and using Samsung phones will find a new product of the same product line more desirable to buy rather than buying a new phone from a different brand.
Wide Variety Of Market
Samsung as we all know deals in a variety of products like mobile phones, televisions, cameras etc. because of this factor it has the advantage of targeting more customers. When consumers see a brand that is dealing in every line of product, they feel more attracted towards buying their product. In each of its product lines, whether it's tv or phone or any other product, they inspire innovation (Murweni and Sultan). They always strive for future technology to become a concept of the present.
Samsung operates in more than 80 countries. It is a huge advantage to the market. With every new country, it sells its products it gains new customers (Samsung.com, 2021).
The strong organisational structure is mostly focused on innovation and adding value by the enhanced experience of consumers. The company's strategy is to innovate rapidly to stand out in comparison to other companies. Rapid innovation is mainly possible through better organisational structure and harmony in the workplace. Samsung is a well-suited example of a product-type divisional organisational structure. This type of organisational structure is most commonly used across the world. Samsung has a hierarchical model alongside product-type divisions of work. The headquarters focuses on improved performance by unified efforts and effective manifestation to achieve organisational goals and increase the growth rate (Jewel, 2021). The company's organisational structure put Samsung on a competitive advantage against other companies selling the same product as Samsung. This strategy supports Samsung in the fierce market competition.
Exclusive marketing by Samsung makes its products more familiar to customers. Global advertising, making a brand ambassador, billboards and posters are a form of marketing strategy. Samsung has a strong base and also ideas for brand promoting as well as introducing new products or product lines in the market. Samsung every year launches a variety of products every through this marketing technique (Samsung.com, 2021). It is effective because customers tend to buy the product, they see in the ads all around them. This marketing strategy is a core capability of Samsung helping it achieve its business goals. So, all these great factors are the core capabilities of Samsung that are unique in their way. Samsung does not need to imitate other strategies because it already is enjoying the best manner of operation possible capabilities of Samsung are much vaster and more varied than are explained here (Prasanth et al. 2018).
The role of the home government
Samsung has a high level of strategic vision and a different execution theme. There is a high level of home governance in the Samsung company. The Samsung company also operates the different governance policies by that they can operate the business and new opportunities and challenges for the company. On the other hand, growth and sustainability problems can arise due to many of the politics of the government as well as different external issues. There is proper governance we needed for handling effective governance and the home operations. Different types of strategies, visions and values exist in the company then there is a high level of quality expected by the home governance (Ceil, 2019).
When there is a discussion about the different functions and the roles of the home ministry for the governance then it is mainly responsible to maintain the internal security and domestic need of the company. The home ministry of the Samsung company provides a high quality of security and domestic policies to the company so that they can face the different types of challenges which come from the different issues (Samsung.com, 2021).
Many types of politics can arise due to changes in government policies and laws and regulations. The different government policies create lots of problems to maintain the security as well as the existence of the company in the country. Therefore, the company must make a strategy to handle these issues. But the government supports the Samsung company very well therefore it is trying to reduce the political issues which occurred by the government. The different taxes policy and as well other regulations may not affect the working criteria of the Samsung company. They have a high level of responsibility for the internal security of the Samsung company. Samsung also maintains its governance inside the company that is also used abroad team to run the business smoothly (Kim et al. 2020).
The team which is prepared by the Samsung company is used to taking the different types of responsibility to handle the different stakeholders of the business. It also determines the different decisions that are made for the company and check all the balances of the company. In this governance, the role of the board team is very effective. It is also called the corporate governance as well as the home Governance of the Samsung company. There are many other ways to highlight the working of a Samsung company for the Government (Samsung.com, 2021). The Samsung company provides a high level of effort to enhance the government Technologies and their security and solutions. As the government helps the Samsung company it is also taking charge to help the government too. Samsung provides different types of products and services for the military of the company so that they can easily save the country. The Samsung company provides a different solution for government technology and tries to highlight or mobilize the workforces of the government (Panibratov and Michailova, 2019).
The overall assessment is based on the Samsung multinational company and its different strategies. Samsung has a very high level of Fame and position in the market and their Strategies and corporate organizations are very high in all aspects. This report has been identifying the key abilities of the Samsung company and the different home ministry or home government roles of the Samsung company which help to enhance their product and services in all over the world. It is also helpful for the researchers to identify the strategies by that they can be able to highlight the requirements of the company.
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