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Samsung Case Study

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Q1: Perform a PEST on Samsung and Identify the Change Drivers

The group has identified the following analysis on SAMSUNG, one of South Korea’s key income contributor from the electronics industry that has resulted on a positive impact to the growth of the nation. The following table will highlight an analysis from Samsung’s perspective with regards to the nation’s political, economical, social and technology areas, where we have identified the change drivers, be it negative or positive, from the PEST analysis.

|SCOPE |Samsung PEST Analysis |Change Drivers |
|POLITICAL |Government: |Government: needed to improve the situation and|
| |Was the second poorest country in the World (in|ensure the quality of the people rise at par |
| |1954) and this was a huge concern. |with its other neighboring countries ie Japan, |
| | |China and Russia. |
| |Government strategy was to leverage on Samsung | |
| |by promoting the company during the Seoul |Education: Improvement in the education was |
| |Olympic games (1998) to showcase how S. Korea |also another change driver to ensure it became |
| |was technologically advance in the World |the platform to maximize human potential at the|
| | |early age |
| |Samsung was considered the backbone of South | |
| |Korea due to its high margin profits which in | |
| |turn accelerated the nation’s growth. For the | |
| |government to achieve national competitive | |
| |advantage, Samsung was an example of how the | |
| |people worked hard and efficient. | |
| | | |
| | | |
| | | |
|ECONOMIC |Korea has limited natural resources hence the |Economic Crisis: |
| |strategy was to tap the human resources and |This happened in 2009- where S. Korea took a |
| |build the people of the nation to be |dip from other industry but survived because of|
| |outperformers |Samsung. |
| | | |
| |As, Samsung is the backbone that supports South|Samsung: |
| |Korea economy growth- In yr 2000 Samsung’s |They were the change drives for S. Korea as in |
| |sales was at 132 US Billion and grew to 161.8 |2010 –which helped the country become the 15th |
| |US Billion. |largest economy in the world |
| |Samsung’s brand ranked 21st among the world’s | |
| |leading company. | |
|SOCIAL |The founder of Samsung, Gun –Hell Lee practices|Leadership Commitment: |
| |a philosophy “We would devote our human |The founder had set the right values and |
| |resources and technology to create superior |philosophy to create a unique and performance |
| |products and services, thereby contributing to |base culture. The successor, Gun-Hell Lee |
| |a better global society”. |continued the culture while strengthening its |
| | |core values. |
| |Samsung employees felt a sense of belonging and| |
| |pride and understood their accomplishment was a|Collectivist and Confucian tradition and |
| |direct impact to the society and nation |values: |
| | |A crucial change driver as it glues together |
| |The culture of Samsung created the employees to|member of the family and organization by |
| |be open to ideas, technology and innovation |emphasizing harmony, pride, loyalty and |
| |from the outside. Knowledge sharing , |cohesive spirit |
| |teamwork and networking amongst the functional | |
| |divisions were important. | |
|TECHNOLOGY |Samsung creatively combined technology and |Technology: |
| |management for better communication |Is used to connect the various functional |
| | |departments to deliver efficient working |
| | |performance. |

Based on the above PEST analysis and Change Drivers identified, we are able to categorise SAMSUNG’s IFE (Internal Factor Evaluation Matrix) under Strength and Weaknesses and calculate the weighted average to assess Samsung’s capability as detailed in the table below. (Pls Check with Dr, Mohan on the calculation and the rating and weigh given?—Im not to sure if this is correct)

|No. |Strengths |Weight |Rating |Weighted Score |
|1 |Samsung's solid reputation and brand value was estimated to be US $18 billion |0.2 |4 |0.8 |
|2 |Samsung's strong leadership and compelling values: economic contribution to the |0.05 |2 |0.1 |
| |nation, top priority to the people and pursuit of rationality | | | |
|3 |Human Resources Department: |0.05 |2 |0.1 |
| |- People is its Asset Philosophy. | | | |
| |- Hiring competent employee is the key success of Samsung | | | |
| |- Samsung's hardwork and speed culture | | | |
|5 |Diversified business portfolio |0.2 |3 |0.6 |
|6 |Samsung's technologically advanced |0.15 |3 |0.45 |
| | | | | |
| |Grand Total |0.65 | | |
| | | | | |
| | | | | |
| | | | | |
| |Weaknesses |Weight |Rating |Weighted Score |
|1 |Values differences between older employee and young employee |0.05 |4 |0.2 |
|2 |Hierarchical structure and high power distance |0.15 |3 |0.45 |
|3 |Samsung products are always perceived as low quality product because Samsung sets |0.2 |1 |0.2 |
| |low price to cater mass market. | | | |
| | | | | |
| |Grand Total | | | |

From the assessment calculated from Samsung’s IFE, the Grand total weighted score is ??. Looking at the scores we can address what needs to be recommended and done for Samsung. One possible solution is to foster an aligned culture as Samsung needs to maintain the values and philosophy as well as ensuring that the gaps are bridged or closed. However, before we discuss the possible solutions to foster an aligned culture let us look at what are the basic cultural components of an effective Organization. Organizational effectiveness results from the alignment of three main components:

1. Culture: How we do things around here in order to succeed.
2. Leadership: Creating a vision and direction for the organization and mobilizing people to accomplish them.
3. Strategy: Establishing the fundamental focus for action that the organization must take it in order to provide significant added value to customers.

Successful leaders, therefore, develop and maintain the culture that will deliver their organizations strategic objectives. This approach takes leadership development and performance to the strategic and system level. It links leadership behaviour to the marketplace, to business strategy, and to the culture required to implement that strategy.
The central emphasis in this approach is leadership versatility.
Bill and Kristine Schneider of the Corporate Development Group (CDG) discusses how core strategy, culture and leadership must be aligned, how this drives bottom line success and organizational sustainability and how it harnesses the energy of the people and unleashes their productivity.

The Four Core Cultures
Core refers to the elements of the business that drive competitive advantage and shareholder value. All other internal core functions need to function in support of the core. CDG defines them as follows: 1. Collaboration – Diversity, human involvement, harmony etc.
2. Control – Systematism, objectivity, order etc.
3. Cultivation – Growth & Development, dedication, commitment etc.
4. Competence – Professionalism, freedom, concept etc.
Culture is important because it limits or enables strategy. It provides consistency, order and structure, and sets internal ways of life and patterns for internal relationships. It determines conditions for internal effectiveness and drives effective performance. The most important thing that leaders can do is create and manage culture. (Edgar Schein) It has everything to do with organizational implementation, and is the foundation of an organization’s identity. The wrong culture can hold your strategy hostage.

The Four Core Strategies
Strategy is the fundamental focus for action that the organization must take in order to provide significant added value to its customers. It is the unique value proposition, the magnetic north, the decider for all decisions. It determines the right culture and the right leadership. In a successful company, strategy is likely to be in alignment with culture and leadership. 1. Synergy – Close partnership, high personalization etc. 2. Certainty – Dependability, predictability convenience etc. 3. Enrichment – Raising of human spirit, take customer to another plateau etc. 4. Superiority – Create market niche, unmatched product/service etc.

The Four Core Leadership Practices 1. Participative – Team builder, coach, close partner with customers etc. 2. Directive – Authoritative, conservative, realist etc. 3. Charismatic – Cultivator, commitment builder, idealist etc. 4. Standard Setter – Conceptual visionary, spurs competition, tough task maker.

An important element in choosing leaders is to match them to the core culture and strategy of the organisation.

Now, in order for Samsung to grow, it needs to maintain an aligned culture to ensure that the performance of the organization is sustained if not improved. The impact of an aligned culture, not only a possibility of organizational performance, the potential for employee satisfaction and balance is likely to be higher. In the case we would go in detailed of the recommendations that we propose to bridge the gaps. But in the meantime, we believe that Samsung will need to questions themselves in the following areas
1. Analyze: Which of the four core cultures is dominant?
2. Focus: How clear is the organization’s core culture to your colleagues? To employees? How does this affect relationships?
3. Alignment: How aligned are the organization’s strategy, culture and leadership?
What are the areas of cultural match? Where are the potential pitfalls?
4. Integration: Do leaders behaving in a way that supports taking the organization to different heights.

Before we can address the above and propose the recommendations, we need to look at the national and organizational culture that plays a big influence on Samsung’s philosophy, strategies, systems and processes that can be driven by the HRD philosophy. What we like to do is to look at the generational identities in South Korea – and how the culture has developed accordingly.

South Korean culture

According to Hofstede Theory, South Korea culture is defined as hierarchical and is known as high power distance society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification.

Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.

The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with society’s search for virtue, the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view. South Korea scores as one of the long term oriented societies. Notion of the one and only almighty God is not familiar to South Koreans. People live their lives guided by virtues and practical good examples. In corporate South Korea, you see long term orientation in the higher own capital rate, priority to steady growth of market share rather than to a quarterly profit, and so on. They all serve the durability of the companies. The idea behind it is that the companies are not here to make money every quarter for the share holders, but to serve the stake holders and society at large for many generations to come.

South Korea is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups.

Samsung’s strong foundation lay in its values with the nation’s philosophy of an intense development of human resources. These values used to develop the Samsung culture and develop various organizational systems.

The Byung-Chull Lee founded the company on three values:

i. Economic contribution to the nation

Samsung business served and contributed to the national economy and the global community

As a leader, Byung-Chull Lee had a clear vision & mission to create the opportunities to make contribution to Korean society with high-tech-oriented structure.

ii. Top priority to the people

It created an environment where humanity was respected and believe in potential for both individual and societal development.

The chairman’s belief that “a company is its people” inspired Samsung to value its people and fostered a strong commitment to attracting, retaining, and training talent. To hiring the competent people with the best talent was the key development of Samsung as company.

iii. Pursuit of rationality

This was to indicate conscious efforts to develop mindsets for rational decision makers with the purpose of ensuring sustainable growth for the company.4

Samsung’s commitment to observing ethical principles, eliminating inefficiencies and cleaning up irregularities was the outcome of its long-standing heritage of rationality.

Samsung Philosophy read, “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society,” Gun Heng Lee articulated the Samsung spirit as the need “to actively participate with our customers, to recognize and confront the global challenge and to create a better future for all.” The Samsung Philosophy & Spirit were instrumental in establishing corporate values and developing employee behavior that facilitated building a first-class company in the 21st century with the time-honored corporate heritage of Samsung.

A strong commitment to Samsung’s values was achieved through Samsung’s human resource development (HRD) philosophy, which focused upon respecting people and living by the belief that “a company is its people.”

Samsung’s HR played as a strategic partner have a deeper understanding of the company’s business environment-past, present, and future, to influence the organization’s strategy to meet the demands of the marketplace. Besides, HR team was able to assess the organization’s capabilities on how all the organization’s subsystems interact to create & maintain alignment, rebalancing the organization as the market shifts.

The Organizational capabilities index (OCI), it’s a tool to measure organizational effectiveness and to “map” company’s human capital aligned.

There are 5 key organizational variables can be used to determine alignment.

1. Strategic alignment & cohesiveness - how well the strategic priorities are transmitted, shared, and made consistent with people’s value & behaviors.

2. Customer focus - the strategic, performance, and people approaches needed to successfully focus on the customer relationship

3. leadership & talent management - how the leadership style, communication, motivation, commitment, and behavior create the climate that’s necessary for the organization to be productive. 4. performance - how the processes and day-to-day behavior & activities match & support the strategic priorities 5. Culture - the value & beliefs of employees & the processes that directly link them so that their behavior supports the strategy

Byung-Chull Lee had modeled the HRD philosophy on his deep involvement with his employees to develop their talent, to encourage employees and express his appreciation for their extraordinary efforts. This applied to leadership & talent management in the development of HRM system. The Samsung Human Resources Development Center (SHRDC) which established by HoAm-Kwan in 1982 also implemented the “Samsung with high potentials” vision and foster its commitment to employee development. SHRDC played an important role in maintaining and developing a cohesive Samsung culture through people.

As Samsung’s global ambitions strengthened in the late 1990s, it realized the need to build competitiveness in its management and HRM practices for greater success in the global marketplace. Samsung adopted a new management paradigm to foster an environment of creativity and innovation. A new HR policy (Shin In Sa) that revamped a number of critical HR functions, including promotion, compensation and performance appraisal, was introduced in 1995. Its purposed was to create the maximum possible value for the employees and the company through a strategic alignment.

Another critical area that Samsung would need to analyse is the impact of globalization in shaping the individual and organisational values that has helped transform South Korea’s societies. It is interesting to note the theory by Hofstede on “Uncertainty Avoidance” and another aspect of “Long-term Orientation’

Uncertainty Avoidance
According to Hofstede Theory, South Korea exhibited high uncertainty avoidance where they maintain rigid codes of belief and behavior. South Koreans are intolerant of unorthodox behavior and ideas. However, societies have transformed and demand for higher technologies gadgets are increasing every day. As such, Samsung’s corporate has developed a culture different from South Korea because of one of their values “Economic contribution to the nation” where Byung-Chull Lee was driven by a passion to make a meaningful contribution to Korean society and to meet with all the demand. They are open to ideas, technology and innovation from the outside which is totally different from the South Korea original culture. Samsung’s values consisted of five factors which are People, Excellence, Change, Integrity and Co-prosperity. Samsung provide opportunities for the employees to perform to their fullest potential and because Samsung believed that it could only survive if it constantly strove to innovate, it has taken the initiative to execute change and innovation with risk awareness. Byung-Chull Lee spent 80 per cent of his personal time to develop talent and he often sat down with several groups of middle managers to share his ideas and/or seek their input that has displayed their values that have been developed in the company for years. Samsung even developed a program know as New Employee Orientation (NEO) to help employees to adapt to the Samsung culture and values

Long-term Orientation
South Koreans followed the teaching of Confucius where the society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view. The companies in South Korea believe that there are to serve the stake holders and society instead of making monies. Samsung culture is much different and it can be commented as having a short-term point of view. Samsung has developed a lot of programs and training courses for the employees in order for them to adjust to the Samsung culture and as explained by one of the executive-level employees they have sacrificed themselves for Samsung, obedient and followed the rules set by Samsung. But Samsung has not expected that globalization will affect the South Koreans thinking and the problem arises when there is a generational gap between Samsung and the new employees. The new employees known as the “digital natives” described the current Samsung culture as “conservative” because Samsung would like all the employees to follow their culture. The new employees have a different thinking and behaved contrary from Samsung culture which the older generation in Samsung can’t accept it. The digital natives prefer Samsung to be more open and communicative. Samsung did not consider the globalization when programs were developed but focusing solely on their cultures and how to input those cultures into new employees to continue with the spirit of Single Samsung. The consequences that Samsung will have to bear is to re-evaluate its program to better bridge generational gaps but having the new employees embrace the culture of Samsung as well.

How should Samsung approach the current issues. Should it remain to uphold the single Samsung Sprit and Values?. Our team looks closely into this and recommend our proposal in bridging the gaps to further strengthen the culture alignment with in the organisation. But before we elaborate our recommendations, lets detail out the current Samsung Values and Spirit.

Current Samsung values:

With the new Samsung Leader in placed, Gun- Hell Lee. He revolutionised the existing 3 core values set by the founder, Byung- Chull Lee and enhanced it to Five main factors/areas: “People, Excellence, Change, Integrity and Co-prosperity”. These values evolved from the original values that looked at three important areas which were the values used as the key ingredient to set the right culture

1. “Economic contribution to the nation”- serves the national economy and global community

2. “Top priority to the people”- to ensure strong commitment to attract, retain and train people as core asset

3. “Pursuit of rationality”- develop mindset to think of sustainable efforts in ensuring growth .

Looking at the existing values, we believe that the Samsung spirit and values (ie 5 factors) should remain, as it addresses the core substance of sustaining any organisation. However, what could differ is the meaning and explanation behind the factors which needs to be relooked at to address the diversity of generational as well as new demographics of Samsung’s current workforce ie non Koreans, American Koreans, expat, etc.

The Samsung spirit:

What is it? It was a genius way, advocated by Byung to gel and portray the workforce of Samsung people in comparison to the normal/conventional South Korean corporation which reads “ We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.” It sets a tone and inculcates a different pioneering spirit and sets a culture where employees understand the purpose of its existence and the end goal of contributing to the well being of society.

To ensure that the motivation, loyalty and commitment to the company still stand, there needs to be a few areas where the Samsung Human Resource Development Centre (SHRDC) should focuses are on. These efforts will be addressed in the “Bridging Strategy” which hopefully will be able to address the value differences in diversity for Samsung. There is definitely a need to change. We have highlighted above some of the issues that the management is going through and the team has come up with some recommendations to apply appropriate intervention plans to help. One suggestions is to relook at the current values statement- what we recommend is to strengthen the meaning so that it reach can address not only the old and loyal employees but the new generation and the non Korean employees—together the people in Samsung can internalize and institutionalize it better. Hence, in the below tabulation we have outlined the improve value statement as one of our proposal on bridging the generation gaps.

|Values |Current Statement |Bridging Strategy- Improved Statement |
|People |We value our people with a strong belief in “ A|We value our people as we strive to create a |
| |company is its people” philosophy and providing|culture that fully understands its sense of |
| |opportunities to perform their full potential |belonging, duties and responsibilities and how |
| | |this contributes to the well being of peoples |
| | |and nations wherever Samusng operate. |
|Excellence |We give our best efforts with endless passion |Strive for excellence, we need to uphold |
| |and a challenging spirit to become world best |professionalism- to ensure our commitment, be |
| |in every ways |innovative, be proactive and a have a |
| | |continuous pioneering spirit |
|Change |We rapidly take the initiative in executing |We need to understand the changing environment |
| |change and innovation with risk awareness; we |that would set us a part from our competitor to|
| |can not survive if we do not constantly strive |ensure we are the benchmark for best practices |
| |to innovate |and evolving |
|Integrity |We act in a right and ethical way in all |Honest, transparent and upright in our approach|
| |manners, ensuring fairness with hone and grace |to ensure that all levels of people in the |
| | |organization is acting in a professional |
| | |manner. |
|Co- prosperity |We take full responsibilities as a good |To create a harmonious balance not just on a |
| |corporate citizen in pursuit of mutual |global scale towards mankind but also towards |
| |prosperity with our community, nation and human|sustainability development |
| |society | |

Its important to note that an appropriate medium is used to ensure that when Samsung drives the changes through its transformation programme—the management needs to ensure that it properly plans, synthesize and facilitate the change. Management is the KEY to ensure a difference can be made and seen.

Another recommendation that we would like to propose the Samsung’s management is to relook at the NEO Programme and suggest some slight changes that needs to be infused into the programme. This is to address SHRDC’s new strategy of hiring Korean-American engineers, expatriate, recruitment of high caliber operators who were ranked among the top at leading high schools in South Korea--whereby the compensation and benefit scheme is different compared to the local package. This could create some tension and could in the long run demoralize the people who are the core asset of Samsung. SHRDC would need to realign its compensation, promotion or bonuses to be fair to the loyal and hard working Koreans as they may not have the opportunity of leading complex and large scale projects for the company

We believe that the NEO, original intent and the core objective of the programme is a crucial step for new employees to adjust to the Samsung Culture as well as inculcate Samsung Spirit among new employees. The steps are as follows:

1. Learn the Samsung Spirit –incorporate Samsung’s history, philosophy and values

2. Modules on Etiquettes of working with senior colleages

3. Exposure to understand how to solve problems the Samsung Way

4. Exposure to real life business challenges through simulation

5. Mentor-mentee programme

We have tabled out in the new and improved intervention that we believe can tackle the challenges and issues from the current NEO Programme if not addressed.

|NEO Areas |Current Programme |Challenges/ Issues |New and Improved Intervention |
|Target Audience: |Was designed for fresh South|Profile of new employees changing drastically. |To ensure that a sense of belonging is |
| |Korean college graduates. |2008-2009: An increase up to 50% of experienced |consistent throughout, the programme would |
| | |employees recruited |need to incorporate for the different |
| | |Foreign Employees recruit in 2009: Up to 34% |demographics. |
| | |The Gen-I or the “digital natives” are linked less | |
| | |to tradition. Influenced to market forces and IT |Some of the modules and approach needs to be |
| | |Savvy. |revisited and re-engineered in a creative |
| | |Attitude is open, dare to challenge and communicate|way. The normal way of communication |
| | |whats on their mind. Believes of work- life |through lectures will need to incorporate ie |
| | |balance and usual are money oriented compared to |live communication, videos, social networks, |
| | |loyalty |current affairs. |
| | | |Senior Colleagues will also need to undergo a|
| | | |“change” to understand and accept the |
| | | |generation gap and how to adjust and be more |
| | | |open minded |
|Programmes |Designed to focus on | |Need to also include: Innovation and |
| |philosophy value and culture| |creativeness ie up to date technology or |
| | | |processes/system |
| | | |Competitors- Samsung workers need to view |
| | | |themselves in a competitive manner- |
| | | |pioneering spirit |
| | | |Benchmark- best practices from industry |
| | | |Develop Competency |
| | | |Mentor Mentee can remain |
| | | | |

Nevertheless, we believe that other programmes in Samsung can still be sustain, especially with their three main programmes

1. Samsung Shared Value Program (SVP)

2. Samsung Business Leader Program (SLP)

3. Samsung Global Expert Program (SGP)

Last but not least, and effective change needs to be wholesome in manner. Our recommendations above can be summarise through the commitment of the leaders, through proper and right medium of communication, the enablement are supported and last but not least the program management properly implemented.


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...Organization design Case Study SAMSUNG LIMITED Mr.Rajan occupies No.2 position in the corporate planning department of Samsung Ltd, a multi-product company having a turnover of more than Rs 800 crores and operating in a high technology (hi-tech) industry. For the last five years, Mr.Rajan has been associated with strategic planning of the company and recently he has been deputed to a task force to reorganize the company to cope up with the changing technology and environment. At the last meeting of board of directors of the company, the members expressed their concern about the failing competitive position of the company in the industry. The main reason cited by the chief executive was the outdated organization structure, which has not undergone any change for the last 10 years though the size, technology and environment of the company have changed tremendously. It was on the advice of the chief executive that the board of directors decided to set up a task force for company’s reorganization. At the first meeting of the task force, Mr. Rajan convinced the other members to adopt the following procedure. i. Determine exactly, what type of structure the company has at present. ii. Determine the type of environment the company faces now and the weaknesses of the present structure. iii. Forecast the environment the company will face in future. iv. Design the organization structure to meet the future challenges. v. It was noticed that the company is currently...

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Samsung Case Study

...SAMSUNG CASE STUDY At the end of 2003, Samsung’s CMO Eric Kim had to present his plan on how to become a blockbuster brand by 2005 to top management. After 5 years of marketing his brand in the Global market, Samsung had achieved a good positioning from awareness prospective. In order to move to the next level (to be “loved”), Kim had to take a decision based on data and comments he collected from his line managers and from the FCB partner agency during the last year. He had to decide if he wanted to embrace complex customer segmentation (targeting specific “vanguard clients”) or keeping focus just on the DigitAll campaign. Kim’s dilemma arose as a consequence of the analysis on brand development by countries and products, carried on by the FCB Advertising Agency. In some countries, to move customers from a priced base brand to a “delights me” category, the communications strategy is probably needed to be reevaluated. A trend analysis survey with industry expert, reports that consumer trends are going to change in the next future. More tailored services and digital technology more involved in the common life are going to shape a change in the consumer habits that needs to be addressed by Kim’s future strategy. Samsung’s 1997-2003 marketing strategy has been successful because they have been able to read the needs of their customers creating a Global Logo, and launching new products in half the time of the competition. They marketed their brand strongly and globally in...

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Samsung Case Study

...BACKGROUND This Samsung Electronics (hereinafter referred as “Samsung”) case illustrates the history of Samsung’s success in their strategy in getting into the Dynamic Random Access Memory (DRAM), the high growth memory market segment in 1980s when then-key player, Intel had chosen to exit the business. Despite Samsung’s high internal production cost ($1.30 for a single 64K DRAM chip) which exceeded the prevailing market price which is below $1.00, consistent with its strategy, Samsung went ahead to build its large manufacturing fabrication facility amidst Samsung’s unproven technical knowledge in memory manufacturing business, uncertain industry performance then, harsh environment to build the semiconductor facility from ground zero which is highly sensitive to dust and electronic shock. All these coupled with Samsung’s vision, perseverance and determination has seen Samsung grown to a $25.1 billion of semiconductor exports as of 2004 commanding a 10.4% of the country’s export volume. In this report, we will analyze in depth Samsung’s production cost advantages that brought this chaebol to where it is today, and how Samsung’s competitive advantage has translated to Samsung commanding a price premium in DRAMs in 2003 before providing recommendations to Samsung’s senior management to respond to the threat of large-scale Chinese entry into the industry in order to continue differentiating itself as a market leader over its competitors. QUESTION 1: WHAT ARE THE SOURCES OF SAMSUNG’S...

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Case Study for Samsung

...대한민국 엄마들에게 여유를 선사하는 공식적인 날을 만들어 주기 위한 [삼성 버블샷3 맘스데이 여유클래스] 행사를 개최. 30여명의 파워블로거들에게 엄마 없이도 편리하고 간단하게 사용할 수 있는 버블샷 체험 및 이벤트 기회 제공. 버블샷3: 물을 단 한방울도 쓰지 않고 건조할 수 있는 혁신적인 기술 세제를 적당히 사용할 수 있는 세제 자동 투입 기능 갤럭시 S4 미디어데이 (2013-04-29) 다양한 제품 체험존, 통신3사 별로 갤럭시S4를 제험할 수 있는 공간을 마련하여 구매시 통신사 선택에도 도움이 되도록 배려, 다양한 플립커버 액세서리를 선보임. '갤럭시 S4' 소비자 체험 마케팅 본격 전개(2013-04-29) 삼성전자는 ‘갤럭시 S4‘ 국내 출시를 기념해 4월 26일부터 3일간 서울 삼성동 코엑스 내 센트럴 플라자에서  소비자들이 ‘갤럭시 S4′를 직접 체험할 수 있는 ‘삼성 갤럭시 S4 런치(Samsung Galaxy S4 Launch)‘ 행사를 진행했습니다. 40년 역사상 최초! 시드니 오페라 하우스에 무슨 일이?(2014-04-20) 삼성전자는 ‘시드니 오페라 하우스’의 최대 후원사가 되어 40년 역사 이래 처음으로 ‘런칭 행사’를 개최했으며 오페라 하우스의 전경은 물론 입구에도 별도 소비자 체험행사를 운영하여 ‘최초로 체험 공간을 제공’하여 큰 호응을 얻었습니다. 美 최대 전자제품 유통망 베스트바이와 손잡고 IT 제품 체험의 장 제공(2013-04-20) 美 베스트바이 1400여개 전 매장에 삼성 Experience Shop 론칭 이 날 행사에는 삼성전자 IM부문 신종균 대표이사 사장과 베스트바이 사장이 참석해 양사 간 파트너십 체결을 공식 발표했습니다. 삼성전자는 올해 상반기까지 미국 전역의 1400여개 베스트바이 매장에 숍인숍(Shop in Shop) 형태로 ‘삼성 체험 매장’을 개장할 계획입니다.  베스트바이 방문 고객은 스마트폰, 태블릿, PC, 카메라 등 삼성의 혁신 제품들을 만져 보고 다양한 서비스도 직접 체험해 볼 수 있습니다. 특히, ‘삼성 체험 매장’ 방문 시 현장의 전문 직원(Samsung Experience Consultants)으로부터 제품에 대한 1:1 설명과 사후 서비스 등 보다 적극적이고 다양한 고객 대응 서비스 혜택을 누릴 수 있습니다. 항균모 브러시와 UV 살균램프 채용한 삼성 침구청소기(2013-04-25) 편안하고 깨끗한 잠자리에 대한 주부들의 니즈를 반영해 삼성전자에서 ‘살균 시스템으로 더 강력해진 삼성 침구청소기’를 출시했습니다.  삼성지펠 푸드 쇼케이스 인쇄광고 시리즈(2013-04-24) 여자는 여자만의 공간을 사랑한다. 테라스 그리고 [푸드쇼케이스 쿠킹존] 남자는 남자만의 공간을 즐긴다. 자동차 그리고 [푸드쇼케이스 패밀리존] 아이는 아이만의 공간이 필요하다. 침대 밑 그리고 [푸드쇼케이스 키즈존] 가족의 쓰임새에 꼭 맞춘 푸드쇼케이스 냉장고 지금, 두개의 냉장실을 가진 전에...

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Samsung Case Study

...PIGGY 1. Memakan babi menyebabkan pelbagai penyakit, mengikut kajian saintifik memakan babi boleh menyebabkan tidak kurang daripada tujuh puluh jenis penyakit. Seseorang boleh mendapat pelbagai helminthes seperti cacing bulat, cacing peniti, cacing kerawit dan lainnya. 2. Kadang babi mengencingi kotorannya dan memakannya jika berada di hadapannya. Dia memakan sampah busuk dan kotoran hewan apapun. Babi adalah hewan mamalia satu-satunya yang memakan tanah, memakannya dalam jumlah besar dan dalam waktu lama jika dibiarkan, kulit orang yang memakan babi akan mengeluarkan bau yang tidak sedap. 3. Babi merupakan carrier virus/penyakit Flu Burung. Ditubuh dalam babi, virus AI (H1N1 dan H2N1) yang semula tidak ganas bermutasi menjadi H1N1/H5N1 yang ganas/mematikan dan menular ke manusia. 4. Babi adalah haiwan yang paling rakus di dunia ini, dalam hal makan tidak tertandingi haiwan lain. Dia melahap semua makanan yang ada di depannya, sehingga daging babi itu memiliki banyak lemak daripada danging hewan lainnya. Jika perutnya telah penuh atau makanannya telah habis, dia akan memuntahkan isi perutnya dan memakannya lagi, untuk memuaskan kerakusannya. Alcohol 1. Setiap minuman yang memabukkan adalah khamar dan yang setiap memabukkan adalah haram. Barang siapa yang kecanduan minuman keras dan mati kemudian tidak bertaubat maka nanti ia tidak akan meminumnya di akhirat. 2. Arak boleh merosakkan fizikal dan mental masusia di mana dari segi ilmu perubatan...

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Samsung Case Study

...1. How was Samsung able to go from copycat brand to product leader? Samsung was able to go from copycat brand to product leader by using a “new product development” strategy (Kotler and Armstrong, p.261). According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm’s own product development. In 1993, the CEO and chairperson, Lee Kung Hee decided to revamp the company’s management because he was not content to remain the best of the knock-off brands. Rather, he set high goals (to become the biggest consumer electronics company and to surpass Sony) and established a strategic plan to accomplish those goals. Samsung accomplished its goals in less than two decades. The first step that he took was idea generation. He hired a “fresh new crop” of young designers to produce new ideas that could get the company in the direction that he wanted it. Sleek, bold and beautiful products were the aim so that they could target high-end users to the company. Next idea screen was also implemented in the development stage. Each product had to pass the “Wow” test otherwise; it would have to go back to the drawing board for further improvement Samsung then went a step further by testing new product concepts. From Blu-Ray players that changed colors, Eco-fit monitors with transparent stands that gave the appearance of a floating monitor, to a small Pebble MP3 player that...

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Samsung Case Study

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...Direct Marketing Samsung advertise their product through television, internet, and other else. We may use your Personal Data for marketing purposes, in particular to display to you or present you with advertisements and promotion materials, to inform you about our products or to conduct free prize draws and prize competitions and other such information which we believe may be of interest to you based on your use of and your interests in our Services, always provided that such use complies with applicable laws. We will only send you any advertisement, marketing or promotional material or product information, if you have elected to receive such information by email and/or post when you completed the registration process. Depending on the jurisdiction you reside in and in accordance with applicable laws in your country we may ask you to expressly consent to such use before we send you any marketing or promotional material or before we send you any product information. You can change your mind about your preferences in respect of direct marketing at any time by using the unsubscribe information on every such mailing, by updating your user profile or account data or by contacting us (see below for details on how to contact us). If you do so, we would not remove your Personal Data from our database(s) to the extent that this Personal Data is still required by us under the terms of this Privacy Policy or to continue to provide our Services to you. Salesforce Compatibility Our...

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Case Study About Samsung

...[Case study presentation summary] [Case study presentation summary] Strategy for Business 1) The case study analyses the Samsung Corporation, and how it has evolved during the past decade in one of the largest conglomerates in the world. The first part of the case study is an analysis of the corporation written in 1994 and the second one provides an outlook of the company performance after 1994 and until today. The paper brings about the overall picture of the South Korean business landscape in the early 60s, with military governments in power, and tight regulations for the companies and how did Samsung survived those periods. The text brings about how Samsung during its early history revolutionized the South Korean business by being the first to adopt western practices in the company. It also mentions how the corporation decided to actually focus on the core industries but not to play a minor part in more than 52 businesses it owned in the late 60’s. The case study than emphasize on the appearance of Samsung electronics and the rapid growth of it from 70’s onwards, in 90’s the globalization and the changes that came with that. 2) External environment analyzed through the PEST framework. In the early years of the company, the South Korean government was heavily controlling the business. There were tight regulations with concern of the leading companies, as they were obliged to meet conditions imposed by the government if they wanted to receive government support....

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Uppsala Samsung

...Lund University Centre for East and South-East Asian Studies Master’s Program in Asian Studies Master’ East and South-East Asia Track Spring semester, 2011 The Development of the Uppsala Model A Study of Samsung Electronics Author: Li Zhou Supervisor: Magnus Andersson Abstract: Based on an explorative case study approach, this thesis investigated whether the Uppsala model functioned in Samsung Electronics Corp. (SEC) case. The purpose of this study was to upgrade the Uppsala model by using a representative case of SEC. This thesis found that there are two dimensions derived from the Uppsala model. The first dimension is the sequential nature of the internationalization process in terms of psychic distance (from the market with close psychic distance to the market with remote psychic distance). The second dimension is a “market commitment” dimension, which means the form of market operation established from low-level commitment to high-level commitment. Two hypotheses derived from the two dimensions of the Uppsala model will be applied in SEC case. The first hypothesis is that the shorter the psychic distance between SEC’s home environment and target markets, the earlier will SEC establish foreign activities in those markets and vice versa. This hypothesis will be tested on a the macro-level with regards to the geographical distribution of Korean1 outward FDI and will be tested again during the internationalization process of SEC in two target markets-China and the US, to...

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