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Organization Structure and Its External Environmental - Research Paper Example

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Organizational structure and external environment Name Institution Organizational structure and external environment The organizational structure of Samsung company is based on two fundamental requirement in that it comprises of division of labor which leads to specialization and coordination whereby its labor in that workers are in a position to work as a team to accomplish organizational goals…
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Organization Structure and Its External Environmental
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Download file to see previous pages These domains are very large but the company has focused on the ones that have more influence on its performance in the market. Samsung company faces stiff competition from other companies especially LG with similar products, markets, and geographic locations. The company is aware of its competitors, their organizational size, marketing strategies, developments, and their competitive advantages. This has given management an upper hand in watching their operation internationally. The company is aware of its customers who are the most critical element of external environment. In order to keep its customers satisfied, it is important to know the preferential changes of customers, which are the likes, and dislikes which changes rapidly. The company produces goods that suit its customers bearing in mind that people live in tight social system that establish and encourage trends. It is always on the anticipating changes in customer product requirement, emerging technologies that can change how the good is used. In addition, it is aware of demographical changes, which include economical, social, and cultural shifts such as population age and economic class (Oldham, 1980). Samsung depends on availability of some external resources for its productivity and operation. It has skilled workers who include graduate from the field of technology, training schools, and labor market. The availability of these labors changes dramatically over period in that once the need for certain skill drops, even the supply drops which can affect the company, therefore, Samsung is aware of this and aims to compete for skilled labor in the market to avoid collapse. Samsung uses certain raw materials to manufacture its products, which it aims to keep in adequate supply to its main plant because a drift in supply of raw material may halts or slow its operation. Samsung has strong financial base that supports its operation in other countries in that it has credit lines that enables it to fund new ventures. Technologically, it has technological tools that are used in production of its products (Jacobsen, 2011). It uses new and up to date technology to fit the changing need of its customers. The company is responsible in its external market in which it operates in that it abide by the legal system , new laws and regulations that are in place in its area of operation. Environmental uncertainty is inevitable for any company since it is a measure of how many factors change during the time of planning. High level of uncertainty means that management has an intricate environment to deal with since it their decision-making capacity in absence of clear information. Leaders of Samsung Company have a framework of environmental uncertainty in that they have determined the stability and complexity of the environment in which they operate in. environmental complexity of Samsung company is determined by number of domains that influence its operation by focusing on how to beat its competitors. Environmental stability of Samsung is determined by the frequency in which the domain aspects change and if the changes in the environment are predictable. Some domains in the Samsung environment are considered predictable thus making its external environment stable. Therefore, the company looks to create suitable ...Download file to see next pagesRead More
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