Operations Strategy - Essay Example

23). In order to ensure effective operations strategies and management, the operations managers ought to plan and control the production system and its interfaces within the organization and with the external environment (Warman 2013). This paper critically evaluates the main issues of operations strategy and management of Samsung Electronics and the successes of the company in addressing the issues. Operations strategy / management of Samsung Incorporated The electronics giant majorly focuses on the operations system in managing the whole process from the production to the distribution of its products (Warman 2013).

The major aspects of operations system include the energy, materials, capital, labour, and information that are necessary for the flow of production processes besides determining the position of the company (Gong, Y 2013, p. 32). The key decision areas that the management of Samsung Inc. has focused on in strategizing and managing its operations include the capacity, process technology, supply networks, development, and organization (Sang-Hun 2012). Samsung Electronics Company is the biggest electronics company in South Korea in terms of market capitalization besides the fact that it is the largest manufacturer of television globally.

This market capitalization edge has led to the decision to detach the Liquid Crystal Display (LCD) operations from the mainstream company (Warman 2013). This is a new business operation strategy that the company plans to implement from the year 2013 to 2014 in order to enhance the global competitiveness of the company. Indeed, this is a sure way to attract more market and generate more revenue especially considering the fact that the business environment of electronics is highly competitive (Gong, Y 2013, p. 33). This is a perfect example of process technology where Samsung Electronics separates business chains that thrive in the market from its main operations (Michell 2010, p. 34). Although the electronics giant saw a 10% drop in the total sales in the 2012 / 2013 financial year, the operations management are resilient in using modern technology.

This ensures the introduction of more appealing products while at the same time managing the capacity of resources involved (Chang 2011, p. 53). This strategy has worked well for the company, as its shares have elevated to an unprecedented high of 5.1% following the announcement of the separation plan and in turn elevating the prospects for making profits (Mun 2010, p. 110). Lastly but most important, Samsung Electronics has a dedicated and extensive supply chain all over the world thus making it easier to distribute its products including the smartphones to the regional retail stores (Sang-Hun 2012).

It is surprising that just a few years ago Samsung electronics was among the struggling electronics industries in the world especially considering the long journey that has seen the company climb the corporate ladder to be the leading electronics industry (Warman 2013). Indeed, in 2012/ 2013 fiscal year, Samsung Electronics recorded an unprecedented high profits that was attributed the Liquid Crystal Display (LQD) television screens. Today, Samsung Electronics is the largest technology company in the world going by the total revenue base of the company.

This came more so because of intensive and extensive marketing and operations strategies