Human Resources System and Operation at Samsung Electronics - Case Study Example

Table of Contents Introduction 2 Objective of the report 2 Overview of Samsung 2 STEEPLE Analysis 3 Opportunities & Threats Analysis 6 Proposed Business Strategy 8 Rationale for Business Strategy 9 Strengths & Weakness Analysis 9 HR Strategies 11 HR Practices which needs to be implemented 11 Conclusion 12 References 14 Introduction This report will look to present the HR System and Operation at Samsung Electronics, Australia by analyzing different parameters and presenting a detailed description on the same. The report will start from providing the objective of the report, a description about Samsung Electronics. This will be followed by an external analysis which will be carried out in the form of STEEPLE analysis. The report will also focus towards presenting the external and internal analysis in the form of SWOT analysis and will bring forward the business future strategy out of it. This will be matched by the HR policies and strategies which Samsung Electronics has to develop so that it is able to ensure better opportunities of growth in the future. The report will thereby help the users to understand the working of Samsung and will present the different directions through which business performance can be better shaped up. Objective of the report The report looks to develop strategic awareness in the design and delivery of HR systems and operations at Samsung Electronics Australia. This will be facilitated through an external and internal analysis along with the HR strategies so that the business is able to identify the different fundamentals based on which the overall business needs to be determined. Overview of Samsung Samsung Electronics as the name suggest works in the electronics industry. The company started its operation in the year 1938 and over the years has become a market leader in the consumer electronics industry. The organization was started as a family owned organization but over the year it has become a global brand and has its operations all around the globe including Australia. The company deals is a large range of electronic products which included televisions, refrigerators, dish washer, air conditioners, washing machines, microwaves and similar other products. The company has identified its vision which is to be innovative and develop different products which will help to satisfy the needs of consumer and ease their life style. This has been replicated in their strategies as Samsung looks at having a strong supply chain network by being innovative so that they can have access to even far off customers. This has helped Samsung to develop itself as a global player and has shaped the manner in which it works in the electronic industry. STEEPLE Analysis The STEEPLE analysis which is an external analysis is as Social The population of people in Australia is ageing which is bound to reduce the demand for electronics as people would prefer other products. The prime reason for increase in population is low fertility rate and increasing life expectancy which has reduced the overall rate of growth in population (ABS 2014; Treasury 2015). This has been aided by the fact that people under the age of 18 are looking towards purchasing products which are eco friendly and has diverted the attention of people towards products which are less harmful to the environment (ABS 2004). Despite the differences Samsung has looked towards understanding the different needs and wants of the consumer by understanding their diverse demographic and cultural requirements. This along with the fact that people look to stay at distant places require technology to communicate and would thereby have a role and significance to determine the manner in which preference for the products is determined. The social analysis thereby presents the different dimensions through which Samsung can shape their performance and will determine the overall framework through which future strategies will be decided. Technological The advancement in technology has provided the opportunity through which business avenues and the process of carrying on business has improved. Samsung gas used social media in such a manner through which it has been able to improve communication with its customers and has thereby been able to strengthen the overall framework and process of carrying out business. This has been aided by the use of mobile marketing as Samsung focuses towards increased and extended use of the same. The increase and growth in the number of smart phone users has aided towards its growth and has helped the overall business to grow. Along with it the deep penetration of internet in Australia (Australia is the country which has highest number of internet connections as regard to penetration) has helped Samsung to reduce cost associated with marketing and has provided the opportunity through which overall business process and development has been better shaped. Economic The present economic condition is stable and highlights opportunity of growth for the entire economy. This would translate into one where Samsung will be able to garner benefit from the growth opportunities which the economic scenario provides. The only consideration is that the interest rates in Australia are rising and the unemployment rate is growing at a rapid pace. This might refrain people from purchasing luxury and high price products because people would look to save money for future consumption. Despite the situation people would prefer to spend on electronic items as the disposable income of individuals is rising and a large proportionate of income is being spent on consumer durable items (Molina 2015). Along with it the labour market is cheaper due to availability of large number of immigrants looking for a livelihood. The neighbouring countries also present opportunities for companies like Samsung as neighboring South American and East Asian countries is growing which is presenting wide opportunities through which the overall growth for consumer durables is bound to increase in the future. This would lead towards ensuring that the overall process entails towards increasing the opportunities for Samsung in Australia and other markets. Environmental The concern for the environment is rising all around the globe which would thereby require that Samsung looks to identifying ways which will help to reduce the degree of carbons being released in the environment, recycling and directing supplier behaviour. This will ensure that Samsung will be able to work on the international standards which have been identified and will help to limit the negative impact which the business has on the environment. Samsung has looked towards using renewable sources by using the wind power resources so that the negative impact on the environment can be reduced. This would thereby help Samsung to contribute towards the environment and would help them to take steps through which overall business opportunities for Samsung in the future will improve. Legal Australia as a country is a business friendly nation where legal framework and institutions looks towards identifying the different rules which will govern and direct business. Samsung has to look towards ensuring that they abide with the different legal requirements that the different institutions lay forward. Samsung faces a few legal issues associated with their working as Samsung is presently engaged into a legal action with regard to compensation for the factory workers for those who suffered cancer (The Guardian 2014). This has led towards huge compensation being paid by the company towards employees. In addition to it Samsung also faces a large number of patent lawsuits from the chipmakers Nvidia (Chung 2015). This potentially damages Samsung’s reputation and would require that Samsung looks at abiding with the different legal requirements so that they are able to carry out their business activities without any issue. Ethics Society as a large wants organization to be ethical while carrying out the business activities so that their interest can be protected. This is being witnessed in Australia where the number of ethical consumer who demands responsible manufacturing is increasing at a rapid pace. These forces Samsung to be ethical on grounds of better manufacturing so that the overall framework shapes in such a manner that ensures better business productivity. The manner in which demand for ethical standards is rising requires that Samsung focuses on better working conditions and ensures that the employees are compensated fairly. This will help Samsung to provide better products and will adhere to the different ethical requirements. The overall framework thereby highlights the different areas which Samsung needs to focus on so that they are able to improve their performance and make changes according to the changing business environment. Opportunities & Threats Analysis The business environment and the manner in which Samsung is working presents different opportunities and threats which Samsung needs to consider and develop their policies keeping in mind the changing business environment. The details are as Opportunities Firstly, the market is expanding across global borders which are providing ample opportunities for Samsung to cater to a large market. This will thereby help Samsung to ensure that the different resources can be used in such a manner through which they will be able to cater to the ever expanding markets across Australia and other countries Secondly, the disposable income for people is rising which thereby increases the opportunities for Samsung. Since, the economic recession of 2009 the economy is growing which would thereby help Samsung to ensure that they are able to sell more and more products Thirdly, the number in individuals working alone and staying alone is rising. Along with it both the husband and wives are working for which they require products which can ease their lives. Samsung looks to work in the same direction and provides products which will help to ease their lives. This has thereby multiplied the opportunities for Samsung and provides a wide market to cater. Threats Firstly, the age of people in Australia is rising which would mean that the demand for trendier and technologically advanced products would decrease as compared to young people who prefer technologically advanced products. This would have an impact on the future sale of Samsung as aging population will impact the future potential of Samsung. Secondly, the different legal cases which Samsung has against itself are likely to impact the brand image of Samsung which would thereby have an impact of the future performance. Rising consumer awareness and increasing legal litigations are likely to impact the future selling potential of Samsung and could thereby have an impact on the overall future business opportunities. Thirdly, working in different markets would require that Samsung deals with the different diversity issues especially in relation to employees. This could lead towards conflict and could tarnish the brand image. Samsung has to deal with it as it is already working in different regions of the globe and needs to deal with the diversity issues so that a better framework which helps to carry out business is identified. Fourthly, increasing competition from other players working on the same business model is likely to impact the performance of Samsung. Since, all the players are looking to capture the same population and look to sell similar products has intensified the degree of competition which Samsung needs to deal with so that they are able to deliver better business performance. Proposed Business Strategy Samsung has to look towards being innovative and identify the different needs of the consumer. This will require understanding the consumer better and coming up with better products which are different from the competitors so that they are able to work on a differentiation strategy. This will help Samsung to create a niche market for its products and will be able to attract different section of the society. Along with it Samsung has to look towards abiding with the legal requirements and identifying steps which would help to improve the brand image. Samsung has to focus towards ensuring that they care for the environment and the society so that the overall business strategy looks at building a strong brand image and developing products which are innovative. This will help Samsung to be able to ensure that they are able to cater to a large market and would help to work on the different dimensions through which business opportunities are multiplied. Rationale for Business Strategy The business strategy which Samsung looks to adopt is based on the dimensions which they have identified. Samsung has a vision of being innovative and providing products through a strong distribution network so that the different needs of the consumer can be satisfied. This has been achieved to a large degree through the research and development department which has looked towards developing different products based on the different needs and requirements of consumer. The research and development department takes into consideration the aging population and has developed products which would help them and entice them to purchase the same. Along with it Samsung has further aimed at ensuring better safety standards and has identified the ethical code of conduct which they need to follow. This will help Samsung to ensure that they abide with the different legal requirements and are able to develop the different framework through which different litigations and cases which are pending against Samsung are dealt with. This would help Samsung as the business model and rationale has been developed and identified based on the different dimensions through which business will be able to meet the different need and requirements of the changing and evolving business environment. Strengths & Weakness Analysis The internal analysis which presents the strengths and weakness for Samsung and highlights the different areas they need to concentrate on are as Strengths Firstly, Samsung has a strong brand image because of being able to meet the consumer needs and demand by having products which they need. This has been achieved largely due to the fact that Samsung has been investing heavily on research and development and have been developing products which meet the different needs and requirements of the customers. Secondly, Samsung has a strong distribution network which has enabled them to penetrate deeper into the markets. This has helped Samsung to be able to reach a wide audience and has multiplied the opportunities to reach a wide audience. This has been matched by the fact that the market has been properly integrated and has thereby enabled Samsung to bring the entire population together. Thirdly, a strong workforce capable of understanding the different needs and requirements of the consumers has helped to ensure better service delivery standards. This has enabled Samsung to be able to work on the different business dimensions and develop a business model which has enabled them to meet the different needs and requirements of people. Weakness Firstly, Samsung focuses on a very wide market instead of a niche market which has thereby widened their focus and made it difficult for them to concentrate on a particular market area. This has hindered the manner in which different products are being positioned and requires focusing towards improving the manner in which services are provided Secondly, the business model being followed by Samsung is similar to other players in the market which has limited them from being a differentiator. Following similar strategies hasn’t provided the advantage that Samsung is looking at and has thereby limited the manner in which different business activities are controlled Thirdly, the diverse workforce having different qualities has made it difficult for Samsung to deal with the issues which the workforce presents. This would require that Samsung focuses towards improving the human relation issue and meet the different needs of the consumer better. HR Strategies The human resource strategy by Samsung has been developed and built on the following grounds Innovative recruitment and selection strategy where Samsung looks towards blending the human resource strategy with the business strategy for better decision making Training and development system has been developed which helps to meet the different needs and requirements of the customer by developing strategies which will meet the human resource needs A performance appraisal system which looks towards ensuring that the employees are compensated fairly based on the working mechanism so that the employees are motivated and committed towards the goals of the organizations (Marier 2008). HR Practices which needs to be implemented Samsung for their long term development and business process needs to look at Firstly, look towards development of employees by training and motivating the employees so that the correct employees are at the correct position which will help to ensure better productivity and use of resources (Loshali & Krishnan 2013) Secondly, identifying the correct talent and recruiting them so that the organization is able to grow. While looking to recruit employees the research and development organization should be considered so that the selection becomes appropriate and as per the future requirements and changes which the business would witness (Sani 2012) Thirdly, the workforce needs to be motivated by providing the required training so that changes which would help the business is looked at. This will help to focus towards improving the overall working dimensions and thereby ensure better standards Fourthly, looking towards being innovative by finding out different ways through which business will be able to function better. This will help to ensure that the human resource department functions in the most effective manner and will be thereby able to bring about the required changes in the manner different activities are carried out (Johnson et al 2014). Lastly, determining the performance measurement mechanism through which the business will be able to determine the different dimensions through which business will be better placed. This will help Samsung to be able to work on business fundamentals and ensure better coordination among the human resource department. Conclusion This report presents the HR System and Operation at Samsung Electronics, Australia by analyzing different parameters and presenting a detailed description on the same. The report starts from providing the objective of the report, a description about Samsung Electronics. This is followed by an external analysis in the form of STEEPLE analysis. The report then focus towards presenting the external and internal analysis in the form of SWOT analysis and will bring forward the business future strategy out of it. This is matched by the HR policies and strategies which Samsung Electronics has to develop so that it is able to ensure better opportunities of growth in the future. The report thereby help the users to understand the working of Samsung and will present the different directions through which business performance can be better shaped up. 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