Samsung Company Analysis - Case Study Example

Samsung Company Analysis Introduction In this age, competitiveness is present in each and every segment. This is mainly due to the presence of numerous rival contenders. Similarly, the segment of electronics is also experiencing extreme bargaining power and switchover costs of the customers. However, in order to reduce such switchover costs, most of the reputed organizations such as Samsung, Sony, Philips etc always desire to offer extremely inventive products and services to its customers at a competitive cost. By doing so, the changing requirements of the customers might get satisfied that may amplify the reputation and brand image of the organization in the market among others. Brief Overview of Samsung The organization of Samsung is developed in the year 1938 by Byung-Chull Lee in the region of Korea. In a very small time frame, the organization captured all the regions of the globe by presenting varied types of products such as FMCD, semiconductors, telecommunications and many others. Due to which, the brand image and total revenue increased by US $ 133.78 billion in the year 2010. Moreover, the profit margin also increased by US $ 13.67 billion by the end of the year 2010 that amplified its sustainability and competitive position in the market at a considerable extent among many other rival contenders. In addition, the organization also became successful in expanding its wings in more than 67 countries in the entire globe comprising of 173,000 employees of diverse culture and creed (Samsung Financial Highlights, 2010. This essay mainly analysis the competitive position and situation of the organization of Samsung by developing a vision, mission, organizational structure, leadership and workforce types. Apart from this, this plan also evaluates whether diversity might be incorporated effectively within the organization of Samsung or not. Discussion The vision and mission of Samsung The vision of the organization of Samsung is to inspire the entire world to develop an entirely new era. This might be possible only by implementing varied types of inventive technologies and techniques in order to create inventive products and services. Along with this, the organization of Samsung also tries to develop varied types of creative solutions for the customers that might improve their reliability and dependency over the brand in the future era among others. Moreover, by creating value-added products for the customers, the organization of Samsung tries to develop a better experience and reputation for itself within the minds of the customers. This might prove effective for the organization to reduce its switchover costs that may amplify its market share and brand value in the market among many other rival contenders (Samsung, 2014). The mission statement of the organization of Samsung is to recruit experienced managers and engineers in order to amplify its performance and market share. Moreover, the organization of Samsung might try to recruit human resources as per their experiences and talents rather than culture so as to develop creative products and services at a competitive price for the customers. Only then, the sustainability and competitive position of the organization of Samsung might get enhanced in the global market as compared to many other rival players. Evaluate the type of organizational structure of Samsung The organization of Samsung is recognised as one of the reputed brand in the segment of electronics with strong foothold in the entire globe among many other contenders. This is mainly due to its aim to offer inventive products at a competitive price. However, in order to do so, the organization of Samsung needs to maintain a multidivisional tall hierarchical structure (Shaughnessy, 2013). This means the organization needs to comprise of a bureaucratic structure in which, the decision-making authority is one and the orders and policies has to be followed by all other executive or employees of the organization. The organization of Samsung comprises of varied divisions such as marketing, research and development, sales, promotion, branding, HR etc but the final decisions for presented by the CEO or board of directors of the organization of Samsung and their decisions are executed effectively by the respected managers of the departments (Samsung, 2013). However, all the decisions might get executed in an effective way only if proper coordination and communication exists among the employees of the organization. Otherwise, it may not be possible for the organization of Samsung to expand itself in numerous regions and developing markets in order to amplify its position and market share to a remarkable extent. (Source: Samsung, 2014). Thus, it might be clearly revealed from the above figure that due to the presence of high-ended communication among the employees and members of each and every department, the organization of Samsung easily maintains a hierarchical structure for itself. Analysis How diverse is the workforce of Samsung? In this fast–paced economy, change is the most inevitable aspect. Therefore, in order to cope up with the change, innovation is the most critical and successful phenomenon. However, in order to do so, it is extremely essential to recruit experienced and skilled staffs within the organization. Only then, the organization might become successful in presenting high-ended products of high creativity and technology to the customers so as to retain them for a longer period of time. However, in order to fulfil the aim to present extremely creative and innovative products to the customers, the organization of Samsung might try to offer high attention over the concept diverse workforces. The organization of Samsung might try hire disable employees as well as females within their organizations in order to enhance their organizational culture. In addition, the organization of Samsung may hire experienced staffs all round the globe in order to develop a wide range of creative products and services that may fascinate a huge range of customers of varying age groups and income groups. Along with this, the organization might offer performance based compensation or experience based remuneration to the employees hired from varied regions such as India, China, Russia, US, Europe etc. The prime intention of the organization of Samsung behind recruitment of global diverse workforces is to attain a global mindset, global decision-making policies as well as global culture so as to tackle all sorts of complications in an effective way. For example: as almost 85 percent of the revenues and sales of Samsung electronics arrives from international markets, the employees in those regions need to be well versed with the global decision-making process. Only then, due to the presence of diverse workforces, the organization of Samsung may very easily handle varied types of issues such as development of new product ranges or product series like Samsung Vio or Samsung Galaxy to increase its total sales and market value among many other contenders (Samsung, 2014). In addition to this, presence of diverse workforces might also prove effective in presenting varied types of ideas and decisions that might help the organization in amplifying its prosperity and loyalty in the market. For example: localization strategy is maintained for promoting the products and services of Samsung. It presented the advertisements for its new products like Samsung Vio in different local languages to fascinate the customers of that region. This strategy proved extremely helpful for the brand that amplified its reputation and position among others. How diverse is the Leadership authorities of Samsung? The organization of Samsung experiences a hierarchical structure with bureaucratic culture. In this type of culture, the prime decision-making authority is the CEO or the board of directors of the organization such as Yoon-Woo-Lee or Gee-Sung Choi, Ju-Hwa Yoon etc. However, by doing so, it may be possible for the organization to amplify its reputation and image in various regions of the globe (Samsung, 2014). This is because; if all the decisions are taken by the board of directors of the organization, then it would follow standardised strategy. However, standardised strategy may not prove effective in improving the demand and distinctiveness of the product lines of the organization of Samsung in the global market. Therefore, the organization of Samsung needs to offer high concentration over localization strategy and participative leadership style. This means, the organization of Samsung need to recruit managers or executives of the local regions so as to get attain information about the taste and preferences of the customers of that region. By doing so, the organization might become successful in developing products as per the requirements of the local customers so as to improve its brand image and portfolio. In addition, the organizational board of members need to maintain a good interpersonal relationship or coordination with the managers of every specific region so as to know their decisions and suggestions. Only then, the organization might easily handle the manager of diverse culture and religion in an effective way thereby amplifying its reliability and consistency in the market among others. Hence, the organization of Samsung needs to maintain divisional structure rather than hierarchical structure as well as participative leadership style among them in order to retain the control and authority within the hands of the board of directors of the headquarter. Only then, the organization of Samsung might become successful in improving its customer base and uniqueness in varied developing markets that may reduce the threat of new entrants. Is diversity company-wide or are certain levels or positions more or less diverse than others? As the goal of the organization of Samsung is to amplify its sustainability and competitive position in global perspectives, then, it might be achieved only through the strategy of product innovation and development. However, in order to fulfil this strategy of product innovation, the organization of Samsung needs to recruit employees or staffs of varying skills and talents in diverse positions such as research and development, Hr, marketing, promotion, branding etc. Only then, the organization of Samsung after developing a creative product might promote it with diverse techniques and policies at diverse regions that may amplify its total sales and profitability (Strategic-management-insight, 2013). For example: the experienced research and development staffs might create the technologically advanced product, Samsung galaxy that need to be presented with competitive pricing policies so as to fascinate the customers of all income ranges. Other than this, in order to increase the sales, varied types of promotions or branding technologies need to be used such as organizing contests, free online software updates etc. In addition, development of Samsung mobile stores is also extremely essential in order to promote the features of Samsung galaxy. Only then, the organization of Samsung might become successful in attracting a wide range of targeted customers so as to improve its reliability and dependency in the market. Therefore, in order to present the above mentioned strategies, the organization need to recruit diverse and experienced staffs at very positions o the organization. However, in order to maintain the diverse workforce in an effective way, the organization of Samsung need to maintain effective interpersonal relationship among all. Only then, it might easily maintain the operations and functions of the organizations in various regions in a successful way. Otherwise, it may not be possible for the organization of Samsung to enhance its brand value and market share to a significant extent in the future age among many other existing rival contenders (Samsung, 2013). Thus, it might be clearly depicted that diverse workforces need to be recruited by the organization of Samsung in each and every position or levels so as to fulfil its goal to present creative products at a best price to its customers in order to attain sustainability. Findings In what way diversity need to be incorporated within the organization of Samsung? The organization of Samsung is a global enterprise. It needs to offer high attention over diversity in order to present products of varied features so as to cope up with taste and preferences of customers with varying lifestyle, culture and behaviours of the customers. For example: Galaxy Tab 10.1 is introduced in Europe with features such as 8MP rear camera, 4G connectivity, dual WiFi etc that amplified the total sale and net income of the organization of Samsung as compared to the product of Apple. However, in order to improve the awareness of the product of Galaxy Tab 10.1, the promotion is done entirely in its local language in both social media and online sites. Moreover, in order to attract the customers towards the product of Galaxy Tab 10.1, varied types of special coupons and discounts are presented. This promotional strategy also proved effective for the organization of Samsung that amplified its brand value and market share to a considerable extent as compared to its rival players. Thus, it might be clearly stated that the organization need to implement the strategy of diversity in all levels or positions. Otherwise, the organization may not become effective in presenting wide range of value-added products that may increase its profitability and total revenue among others. But the organization might recruit the diverse workforces or staffs as per their experiences and qualifications, so as to improve the organizational productivity and efficiency. Moreover, the organization might try to implement performance –based pay systems as well as performance related pay systems so as to retain them for longer period of time. Thus, retention of the experienced and qualified staffs, within the organization might prove effective in developing varied types of inventive products and services, comprising of varying features. This might increase the customer base of the organization that may amplify its portfolio and uniqueness in the market among many others. Hence, diversity need to be considered as one of the most important concept for the organizations, operating in this age, in order to amplify its sustainability and competitive advantage in the global market among many other contenders (Innovation Leaders, 2013). Conclusion Conclusively, it might be stated that, in order to amplify the position and ranking in the global market, each and every organization need to offer high attention over diversity. This is because; it is through diverse workforce comprising of varying experiences and talents so as to develop varied types of products and services. Other than this, the diverse workforces might also become successful in presenting varied types of ideas and information such as pricing policies, coupons, special discounts, promotional strategies etc so as to improve the total sale and profit margin of the organization in the market among many other rival players. In addition, diverse workforces also help in presenting varied types of branding strategies in order to improve the popularity and dependency of the products and services of the organization. However, in order to do so, the organization of Samsung need to recruit diversely experienced staffs at every levels or positions so as to increase its equity and dominance in the market. But in order to maintain the concept of diversity in an effective way, proper coordination and communication need to be implemented so as to alternate the behaviours of the employees of the organization of Samsung. Only then, through proper participation and coordination, all the employees of diverse culture and creed might prove effective for the organization of Samsung in long run among other rival players. Thus, proper interpersonal relationship among the employees of the organization of Samsung is the only way to maintain diverse workforces in an effective and efficient way. References Innovation Leaders. (2013). Company Profile. Retrieved on May, 3rd 2014, from: http://innovationleaders.org/sam_company_profile.html. Samsung (2013). Sustainability, integrity management. Retrieved on May, 3rd 2014, from: http://www.samsung.com/us/aboutsamsung/sustainability/integritymanagement/download/RespectingGlobalDiversity.pdf. Samsung (2010). Samsung financial highlights. Retrieved on May, 3rd 2014, from: http://japan.samsung.com/aboutsamsung/electronics/elecompany/images/AnnualReport_2010.pdf. Samsung (2014). About Samsung –investor relations. Retrieved on May, 3rd 2014, from: http://www.samsung.com/us/aboutsamsung/investor_relations/financial_information/financial_highlighig.html. Samsung (2013). Samsung’s Product Innovation Team: How Ideas Becomes Streamlined. Retrieved on May 2, 2014, from: http://global.samsungtomorrow.com/?p=22137. Shaughnessy, H. (2013). What Makes Samsung Such an Innovative Company? Retrieved on May 3rd, 2014, from: http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/why-is-samsung-such-an-innovative-company/. Strategic-management-insight. (2013). Samsung Swot analysis and strategies. Retrieved on May, 3rd 2014, from: http://www.strategicmanagementinsight.com/swot-analyses/samsung-swot-analysis.html. Read More