Strategic Organizational Development Samsung Electronics Company

Document Type:Thesis

Subject Area:Management

Document 1

This paper will look at the aspect of growing the organization globally, with respect to the various management theories. The first attempt will be to track back the existing strategies that have been driving the company since its conceptualization. This will involve the background information and review by various authors regarding the strategic organizational development through the 1993 management system, and into the value chain theory and later into the current changes in Samsung Corporation in terms of products and leadership. The company’s procedures and methods of strategic development will then be highlighted which will give its future strategies and what recommendations are being implemented in order to facilitate the transition from the current into the future strategic development. Introduction This is a worldwide electronic company whose headquarters are in Gyeonggi-dox, in South Korea. Being an international organization, its operations are done in various continents such as Asia, Europe, South and North America. In its initial stages, Samsung was well known for its television manufacturing, which was later extended into the consumer line appliance; production of washing machines and refrigerators. To date, the organization has expanded its products to cater for consumer electronics. Surprisingly enough, its reputation in the consumer electronics has powered it into the first rank in mobile phones and smartphones manufacturing. Its iconic product the Samsung Galaxy has been one of its bestselling line of devices. Additionally, the company has ventured into Android tablet computer manufacturing, a device known as Samsung Galaxy Tab and the revolutionary Galaxy Note accrues to its mastery of the phablet economy.

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The pursuit for world recognition and dominance in the world economic front has resulted into the organizational competition which is characterized by legal and institutional confinements, which in one way or another are facilitating the dominance by eliminating the hindrances. To become a unique and worldwide company and be selected in the international competitive market, the organization must focus on techniques that are inventive and facilitate an administration that is open, on-discriminatory and eliminate all practices and foundations that are restrictive to growth. This changing scenes in the industry have resulted into aggressiveness in technology and innovation, human resource, design, and marketing departments. According to Song (pp. these are the assets that Samsung has utilized to attain its international recognition. Most management practitioners and researchers are therefore interested in studying Samsung as a case study of a leading organization worldwide.

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Literature Review Hakansson and Ford (pp. agree that the electronics industry is a business environment unique for its versatility and aggressiveness. Competition among the organizations in the industry is therefore based on how well a competitor can surpass others in creative promotional methods, invention and innovation, and the frequency of creating and following up on strategies that influence their internal and external factors of the business environment. For example, Apple’s application of design thinking in the precarious stage of its projects is uniquely recognized. According to Hakansson, this is unlike Samsung’s circumvention point of innovation. Since the initialization of its forays, then into development, and then its resilience in the washing machines against a well-established Toshiba. This company has been able to acquire business patents where its competitors seem to have insurance.

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This ability to create thoughts that are patentable in the ‘backyard’ of its rivals is the core of its innovation. Henri Fayol conceptualization of control was attained when Lee coordinated the company to accomplish the new strategic development system and become the 21st leading organization in the world. Although several programs have been changing according to the economic value, the model by Director Lee is still operational. However, the Samsung’s New Management Program (SNMP) have impacted on management demands, awareness and on Human Resource models. The Value Chain Theory The first step of this model was to acknowledge a system of managing the human resource that was open, operational due to the digital era. Then biases formulated on issues of academic backgrounds, ethnicity, religion, and gender were eliminated which lead to the possibilities of exploiting all the potentials and abilities of their employees.

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The management at this time was more concerned about the scale of the company, reliability and the speed of production rather than their brand quality, and that of their services and products. The market was the determinant of the prices for their products and the original manufacturer’s demands dictated the features available on their products. Little attention was given to the final product, just skinning, because the designers and the engineers were busy creating and developing other new products. The status and influence of designers were minimal because they all considered their own designs. Director Lee Kun-Hee changed the orientation of the company by discovering the absence of improvements and advancements in the organization. They even manufactured the phablet, which has since been replicated by the company’s contenders. The entire company is now based on designers and even the top management is required to compose of designers to assist in envisioning of the complete design ‘DNA’ within the organization.

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However, the productivity-oriented administration of the company that was rooted deep within by the pioneers is still a stumbling block for the full adoption of the design-centered leadership approach and designers, therefore, face challenges of inconsistency in developing their products. This is a disadvantage of bureaucracy which is showed by resistance to change. The transition to being innovative centered without any of the administrative concept being lost is difficult for the company. McGregor’s Theory Y supports the new Samsung management system by highlighting that managers who willingly create enabling environments, make it easy for their workers to respond with similar initiatives and high performance. Human Resource (HR) Management The operation of the Samsung Company’s human resource management has been open, according to Youndt and Snell. An open system in human resource boosts creativity and autonomy and therefore the employees in this company are able to develop talents, new talents are appreciated and therefore, the barriers of gender and academic restrictions are broken.

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The main aim of an open HR system is to enhance competition and effectiveness and at the same time, the management works in synch with all its workers boosting collaboration. In Samsung, the open management is meant to boost employee’s potential and skills and give everyone equivalent opportunities (Stanford, 2007). The pillars of Samsung’s Organizational strategic development Ultimate fast follower In terms of learning from the competition, Samsung has been able to edge out all its rivals by learning from them. This company is a fast follower and therefore, an example of a market reader and still is able to satisfy its consumers. The fact that it is accustomed to the movements of its competitor designs and products makes it easy for the company to establish a niche and what is likely to bring market adhesion.

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The management creatively designs for the identified gap and creates an innovation for it. This aggression and competitive strategy have led to court cases with the prominent case being sued by Apple for configuration copying. The concept of idea administration has been employed by the company to facilitate the transmission and overseeing of ideas and decisions from the originators/masterminds to all the other members of the organization. After the ideas are assessed by the various supervisors, a review team is constructed to improve on the perspectives and add opinions. According to Ungson, there is a system organization which is specifically autonomous to execute assignments that are distinctive. Specialization of the team's boots productivity; for example, there is a team for examination and outline, fabrication and then circulation. The advantage of this method is the flexibility of business environment, quick implementation and high speed of adaptability.

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Continued litigation has expanded the rivalry between Samsung and Apple leading to stiff and punitive damages paid to Apple, which impacts negatively on Samsung. The company should, therefore, consider expanding their products to eliminate such cases. This is only possible through a management that successful oversees the transition; one that can creatively form a vision, manage all the changes, acquire political support, support and inspire the changing momentum. Goals should be understandable to every individual in the organization so that they understand what they are supposed to do and when. This can be possible by strengthening the structure of human resource management which is very transformative in; connections, fostering interrelationships, team building, training and coaching of staff members which increases employee development. Hassard, J. Morris, J. and McCann, L. ‘My brilliant career’? New organizational forms and changing managerial careers in Japan, the UK, and USA.

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 Journal of Management Studies, 49(3), pp.  Competitive advantage of nations: creating and sustaining superior performance (Vol. Simon and Schuster. Stanford, N.  Guide to organisation design: Creating high-performing and adaptable enterprises (Vol. John Wiley & Sons.

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